Report

COMPANY ANALYSIS REPORT
ON
Maruti Suzuki
COMPANY ANALYSIS REPORT (Maruthi Udyog Limited)

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CONTENTS
1. INTRODUCTION
2. METHODOLOGY
(a) OBJECTIVES OF THE STUDY
(b) PROFILE OF THE COMPANY
3. VISSION& MISSION
4. ANALYSIS & INTERPRETATION OF FUNCTIONAL AREAS
(a) HRM
(b) MARKETING MANAGEMENT
(C) FINANCIAL MANAGEMENT
5. FINDINGS AND CONCLUSION
6. BIBLIOGRAPHY

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OBJECTIVES OF THE STUDY
The objectives of the study are:
 To narrate the profile of the company
 Overview of Maruti and Suzuki
 Building understanding of the car market in India and various segments
 Understand MUL’s product range and positioning in each segment
 Understanding the basics in the automobile industry
 Overview of each Maruti model and the MUL ‘Advantage’
 Overview of the selling process and how to uncover needs of a customer to do

need based selling
 Role of financing as a sales tool and the various financing options available
 Ensuring personal effectiveness
 To study the HRM of the company
 To enhance my knowledge about Recruitment and Selection.
 To convert my theoretical knowledge into practical knowledge.
 To prepare myself as a H.R. person who can easily identify the training need
through his experience which is very essential quality of a H.R. Person & for
the organization as well.
 To enhance my knowledge about Training & Development

 To analysis the Marketing Management of the Company
 To study the financial position of the company

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OVERVIEW
Maruti Suzuki India Limited is a publicly listed automaker in India. It is a leading

four-wheeler automobile manufacturer in South Asia. Suzuki Motor Corporation of Japan
holds a majority stake in the company. It was the first company in India to mass-produce and
sell more than a million cars. It is largely credited for having brought in an automobile
revolution to India. It is the market leader in India and on 17 September 2007, Maruti Udyog
was renamed Maruti Suzuki India Limited. The company headquarter is in Gurgaon, Haryana
(near Delhi).
Profile
Maruti Suzuki is one of India's leading automobile manufacturers and the market
leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until
recently, 18.28% of the company was owned by the Indian government, and 54.2% by
Suzuki of Japan. The Indian government held an initial public offering of 25% of the
company in June 2003. As of May 10, 2007, Govt. of India sold its complete share to Indian
financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog.
Maruti Udyog Limited (MUL) was established in February 1981, though the actual
production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which
at the time was the only modern car available in India, its' only competitors- the Hindustan
Ambassador and Premier Padmini were both around 25 years out of date at that point.
Through 2004, Maruti has produced over 5 Million vehicles. Marutis are sold in India and
various several other countries, depending upon export orders. Cars similar to Marutis (but
not manufactured by Maruti Udyog) are sold by Suzuki and manufactured in Pakistan and
other South Asian countries.
The company annually exports more than 50,000 cars and has an extremely large
domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the
India's largest selling compact car ever since it was launched in 1983. More than a million
units of this car have been sold worldwide so far. Currently, Maruti Alto tops the sales charts
and Maruti Swift is the largest selling in A2 segment.
More than half the cars sold in India are Maruti cars. The company is a subsidiary of
Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is owned by
the public and financial institutions. It is listed on the Bombay Stock Exchange and National
Stock Exchange in India.

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Maruti Suzuki was born as a government company, with Suzuki as a minor partner to
make a people's car for middle class India. Over the years, the product range has widened,
ownership has changed hands and the customer has evolved. What remains unchanged, then
and now, is Maruti’s mission to motorise India.
Partner for the Joint venture
Pressure started mounting on Indira and Sanjay Gandhi to share the details of the
progress on the Maruti Project. Since country's resources were made available by mother to
her son's pet project. A delegation of Indian technocrats was assigned to hunt a collaborator
for the project. Initial rounds of discussion were held with the giants of the automobile
industry in Japan including Toyota, Nissan and Honda. Suzuki Motor Corporation was at that
time a small player in the four wheeler automobile sector and had major share in the two
wheeler segment. Suzuki's bid was considered negligible.
Industrial relations
For most of its history, Maruti Udyog had relatively few problems with its labour
force. Its emphasis of a Japanese work culture and the modern manufacturing process, first
instituted in Japan in the 1970s, was accepted by the workforce of the company without any
difficulty.
Authorized service stations
Maruti is one of the companies in India which has unparalleled service network. To
ensure the vehicles sold by them are serviced properly, Maruti has 2628 listed Authorized
service stations and 30 Express Service Stations on 30 highways across India.
Service is a major revenue generator of the company. Most of the service stations are
managed on franchise basis, where Maruti trains the local staff. Other automobile companies
have not been able to match this benchmark set by Maruti. The Express Service stations help
many stranded vehicles on the highways by sending across their repair man to the vehicle.
Maruti insurance
Launched in 2002 Maruti provides vehicle insurance to its customers with the help of the
National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The
service was set up the company with the inception of two subsidiaries Maruti Insurance
Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited
This service started as a benefit or value addition to customers and was able to ramp
up easily. By December 2005 they were able to sell more than two million insurance policies
since its inception.

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Maruti Finance
To promote its bottom line growth, Maruti launched Maruti Finance in January 2002.
Prior to the start of this service Maruti had started two joint ventures Citicorp Maruti and
Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in
securing loan.[15] Maruti tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak
Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its
strategic partners in car finance. Again the company entered into a strategic partnership with
SBI in March 2003[16] Since March 2003, Maruti has sold over 12,000 vehicles through SBI-
Maruti Finance. SBI-Maruti Finance is currently available in 166 cities across India
Maruti Driving School
As part of its corporate social responsibility Maruti Udyog launched the Maruti
Driving School in Delhi. Later the services were extended to other cities of India as well.
These schools are modelled on international standards, where learners go through classroom
and practical sessions. Many international practices like road behaviour and attitudes are also
taught in these schools. Before driving actual vehicles participants are trained on simulators.
Exports
Maruti Suzuki has helped India emerge as the fourth largest exporter of automobiles
in Asia. Shown here is Maruti Gypsy in Malta.
Maruti Exports Limited is the subsidiary of Maruti Udyog Limited with its major
focus on exports and it does not operate in the domestic Indian market. The first commercial
consignment of 480 cars were sent to Hungary. By sending a consignment of 571 cars to the
same country Maruti crossed the benchmark of 300,000 cars. Since its inception export was
one of the aspects government was keen to encourage. Every political party expected Maruti
to earn foreign currency.
OBJECTIVES OF THE STUDY

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The objectives of the study are:
 To narrate the profile of the company
 Overview of Maruti and Suzuki
 Building understanding of the car market in India and various segments

 To study the HRM of the company
 To enhance my knowledge about Recruitment and Selection.
 To convert my theoretical knowledge into practical knowledge.
 To prepare myself as a H.R. person who can easily identify the training need
through his experience which is very essential quality of a H.R. Person & for
the organization as well.
 To enhance my knowledge about Training & Development

 To analysis the Marketing Management of the Company
 Understand MUL’s product range and positioning in each segment
 Understanding the basics in the automobile industry
 Overview of each Maruti model and the MUL ‘Advantage’
 Overview of the selling process and how to uncover needs of a customer to do

need based selling
 To study the financial position of the company
 Role of financing as a sales tool and the various financing options available
 Ensuring Company effectiveness in implementing accounting standards
 Analyzing companies financial statements in ratios

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PROFILE (Snap Shot)
Year of Establishment February 1981
"The Leader in The Indian Automobile Industry, Creating

Vision Customer Delight and Shareholder's Wealth; A pride of
India."
Industry Automotive - Four Wheelers

Listings & its codes
BSE - Code: 532500

NSE - Code: MARUTI
Bloomberg: MUL@IN
Reuters: MRTI.BO
Joint Venture
With Suzuki Motor Company, now Suzuki Motor
Corporation, of Japan in October 1982.
Registered & Corporate

Office
11th Floor, Jeevan Prakash
25, Kasturba Gandhi Marg
New Delhi - 110001, India
Tel.: +(91)-(11)-23316831 (10 lines)
Fax: +(91)-(11)-23318754, 23713575
Telex: 031-65029 MUL IN
Works
Palam Gurgaon Road

Gurgaon -122015
Haryana, India
Tel.: +(91)-(124)-2340341-5, 2341341-5
Website www.marutiudyog.com

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Type Public (BSE MARUTI, NSE MARUTI)
Founded 1981 [1]
Headquarters Gurgaon, Haryana, India
Key people Mr. Shinzo Nakanishi, Managing Director and CEO
Industry Automotive
Products Cars
Revenue ▲US$3.5 billion (2009)
Employees 6,903 [2]
Parent Suzuki
Website MarutiSuzuki.com

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MILE STONES

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1981  Maruti Udyog Ltd. was incorporated.
1982  Steped into a JV with SMC of Japan.
1983  Maruti 800, a 796 cc hatchback, India's first affordable car was
produced.
1984  Installed capacity reached 40,000 units. Omni, a 796 cc MUV was in
production.
1985  Launch of Maruti Gypsy (970cc, 4WD off-road vehicle).
1986  Produced 100,000 vehicles (cumulative production).
1987  Exported first lot of 500 cars to Hungary.
1988  Installed capacity increased to 100,000 units.
1992  SMC increases its stake to 50 per cent.
1994  Produced the 1 millionth vehicle since the commencement of
production.
1995  Second plant launched, the installed capacity reached 200,000 units.
1996  Launch of 24-hour emergency on-road vehicle service.
1997  Produced the 2 millionth vehicle since the commencement of
production.
1998  Launch of website as part of CRM initiatives.
1999  Launch of Maruti - Suzuki innovative traffic beat in Delhi and
Chennai as social initiatives.
2000  IDTR (Institute of Driving Training and Research) launched jointly
with Delhi government to promote safe driving habits.
2001  Launch of customer information centers in Hyderabad, Bangalore,
and Chennai.
2002  SMC increases its stake to 54.2 per cent.
 Launch of Maruti Finance with 10 finance companies in Mumbai.
 Start of Maruti True value in Mumbai.

2003  Production of 4 millionth vehicle.
 Listed on BSE and NSE after a public issue oversubscribed 10 times.

2004  Maruti closed the financial year 2003-04 with an annual sale of
472122 units, the highest ever since the company began operations 20
years ago.
2005  The fiftieth lakh car rolls out in April, 2005.
2007  Swift
COMPANY ANALYSIS diesel (Maruthi
REPORT launched.
Udyog Limited)
11
2008  World premier of concept A-star at 9th expo.
2009  Ritz has launched.
JOURNEY OF MARUTHI SUZUKI
Feb 1981 - The result, Maruti Suzuki India Limited (MSIL) was born in February
1981. Maruti Suzuki started as a government company, with Suzuki as a minor partner, to
make a people's car for middle class India. Over the years, the company's product range has
widened and ownership has changed hands. A subsidiary of Suzuki Motor Corporation
(SMC) of Japan, the Maruti Suzuki India Limited headquartered in Delhi, running with 3
vehicle assembly plants at Gurgaon and 1 vehicle assembly.
1983 Dec 14, 1983 - Maruti completes 25 years Maruti Suzuki recently completed 25
years. On December 14, 1983, the first Maruti 800, India's iconic car, rolled off
the assembly line at the company's Gurgaon plant. Since then, Maruti Suzuki
has produced and sold around
2000 Nov 21, 2000 - Also, Suzuki is registered under trademark laws in various
countries. They hybrid trademark 'Maruti Suzuki' has been used on products of
the joint venture company in India. The Indore-based World Information Pages
had claimed that the word Maruti is name of an Indian god.
2002 Jan 25, 2002 - The rights issue will thus witness Suzuki becoming the largest
shareholder in Maruti. In return for this, the Government will get a renunciation
premium for forgoing its portion of the rights in favour of Suzuki as well as
control premium for giving up majority control in Maruti to the .
2003 May 31, 2003 - Osamu Suzuki, chairman & CEO, Suzuki Motor Corporation,
said: "Maruti is controlled by Suzuki and will continue to be managed by
Suzuki in India." Responding to queries on the future control of Maruti, Suzuki
said: "General Motors has a 20 per cent stake in Suzuki, Japan.
2004 May 2004 - Maruti Suzuki's all-conquering hatchback Swift has just added
another feather to its crown by becoming the fastest car model to reach the 3-
lakh milestone. Launched in May 2005, the sporty car achieved this feat in only
three years and eight months. On the occasion .
2005 June 26, 2005 - Maruti Suzuki's all-conquering hatchback Swift has just added
another feather to its crown by becoming the fastest car model to reach the 3-
lakh milestone. Launched in May 2005, the sporty car achieved this feat in only
three years and eight months. On the occasion
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Nov 13, 2006 - The former India bureaucrat is managing director of Maruti
2006 Suzuki, the Indian subsidiary of Suzuki Motor, the Japanese automaker's
biggest operation outside of ... Such are the current competitive dynamics
facing Maruti Suzuki in one of the fastest-growing auto markets in the world
2007 Dec 11, 2007 - India's rapidly expanding automobile market is key for Suzuki,
its chairman has often said. Maruti Suzuki, in which Suzuki owns a 54.2%
stake, is expanding its lineup and dealer network here. Suzuki also faces
competition from global automakers like Toyota (nyse: TM - news - people ).
2008 Apr 25, 2008 - `The best year': Mr S. Nakanishi, Managing Director and CEO,
Maruti Suzuki India Ltd, addressing a press conference in the Capital on ...
Announcing the results, Mr Shinzo Nakanishi, the company's Managing
Director, said, "The year 2007-08 was the best year in the history of Maruti."
2009 Jul 1, 2009 - MUMBAI, July 1 (Reuters) - Maruti Suzuki, India's top car
maker, said its car sales rose 22.6 percent in June, up for the six month in a
row, 'This month's export numbers are the highest ever monthly export volume
in the company's history,' Maruti said in a statement on Wednesday. ...
VISION & VALUES

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VISION VALUES
“The leader in the Indian Automobile • CUSTOMER OBSESSION

Industry, creating customer delight and • FAST, FLEXIBLE & FAST MOVER
shareholders’ wealth A pride of India.” • INNOVATION AND CREATIVITY
• NETWORKING AND PARTNERSHIP
• OPENNESS AND LEARNING
BOARD OF DIRECTORS
Name Designation Name Designation
Managing Director &

R C Bhargava Chairman / Chair Person Shinzo Nakanishi
CEO
Shuji Oishi Director Tsuneo Ohashi Director
Keilchi Asai Director Osamu Suzuki Director
Kenichi Ayukawa Director Amal Ganguli Director
Manvinder Singh
Pallavi Shroff Director Director
Banga
Davinder Singh
Director Hirofumi Nagao Director
Brar
HUMAN RESOURCE MANAGEMENT:

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Personnel management is that part of management process which is primarily concerned
with the human constituents of an organization.
Objectives:
 To help the organization reach its goals.
 To employ the skills and abilities of the workforce efficiently.
 To provide the organization with well-trained and well-motivated employees.
 To increase to the fullest the employee’s job satisfaction and self-actualization.
 To develop and maintain a quality of work life.
 To communicate HR policies to all employees.
 To be Ethically and Socially Responsive to the needs of society.
Importance:
 Social significance: proper management of personnel’s, enhances their dignity by

satisfying their social needs.
 Professional significance: By providing healthy working environment, it promotes

team work in the employees.
 Significance for Individual Enterprise: It can help the organization in accomplishing.
HR VISION :
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Lead and Facilitate continuous Change towards organisational Excellence ; create a
learning And vibrant organisation with High sense of pride amongst its Members
CULTURE BUILDING INITIATIVES
SINCE INCEPTION:
 Japanese Spirit Management philosophy of Team

 Common uniform
 Open office
 Common Canteen
FOCUS OF EFFECTIVE MANAGENENT PROCESS
 Top Driven HR – MD is also Director HR

 HR’s role of a facilitator
 Line managers as HR Managers
 Year of the Customer –
HR INTERNAL CUSTOMER FOCUS
 Focus on Internal & External Customer
HR INITIATIVES
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 Prepare MUL Strategic Business Plan-2000-2003; To achieve the Vision & Goal
 Improve the performance Appraisal system - it’s process, skill & usage
 Introduce a Potential Appraisal System
 Improvements in internal & external Training & it’s effective utilisation. Training
need identification.
 Systematic career planning ; Job Rotation ; Empowerment; Job enrichment
 Periodic communication meeting at various level; Roll out of Vision
 Raise cost consciousness for cost control and reduction
 Exposure on Brand Strategy to all non- marketing staff
 Retention of Talent.
INDUCTION SUCCESSION:
 Transparent Recruitment & Selection process

 Recruitment on an All India Basis – no sectoral or
 Region specific
 Recruitment of Best available Talent in the Country
ENGINEERS – CAMPUS - IITS/RECS/RORKEE/HBTI
 ALL-INDIA TEST
 MBAs – IIMs/XLRI
 CAs - Rank Holders
 Technicians - ITI’s diploma holders after All
 India Exam & Apprenticeship In MUL
 Lateral Entry for Experienced Professionals
SUCCESSION PLANNING
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 potential & performance
 vacancy – based
 Open Office – Easy accessibility, Speedy

 Communication and decision making
 Morning Meetings
 Morning Exercises
 Management Committee Meetings – every
 Tuesday
 Single unaffiliated Union
 Excellent Industrial Relations scenario – no
 loss of mandays due to strike/lockout etc. in
 past 5 yrs.
 Maruti Udyog Sahyog Samiti – a forum for
 Non-Unionised Staff
 Delayered Organisation Structure
 Workers(Techn. / Asst.), Supervisors,
 Executives, Managers
INDUCTION PROGRAMME

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Objective:
The objective of this program is to facilitate smooth induction of the new DSEs into
their place of work i.e. Maruti dealerships. This program attempts to orient the new DSEs on
a few important parameters, which are listed below:
Overview of Maruti and Suzuki:
 Building understanding of the car market in India and various segments
 Understand MUL’s product range and positioning in each segment
 Understanding the basics in the automobile industry
 Overview of each Maruti model and the MUL ‘Advantage’
 Overview of the selling process and how to uncover needs of a customer to do need
based selling
 Role of financing as a sales tool and the various financing options available
 Ensuring personal effectiveness
 Understand the attributes of a good DSE
MEANING OF RECRUITMENT
 It is the process of searching the potential candidate and offers him or her the job
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 It is positive in nature in the Indian context. Process of identifying and hiring best-
qualified candidate.
RECRUITMENT PROCESS OF MARUTI UDYOG LTD:
 The recruiting procedure at a Maruti dealership is as follows:
FOR A PARTICULAR DEALERSHIP
 The dealership should release an advertisement.

 Depending on availability of infrastructure
 Interview of shortlisted/ qualified personnel
MEANING OF SELECTION:
It is the process of searching the potential candidate. It is negative in nature in the

Indian context. But it is positive in the US context.
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Steps in Selection Process of Maruti udyog ltd:
Selection process consists of a series of steps, at each stage, facts may come light
which may lead to the rejection of the applicant. It is a series of successive hurdles or
barriers which an applicant must cross. These hurdles or screens are designed to
eliminate an unqualified candidate at any point in the selection process There is no
standards selection procedure to be used in all organizations or for all jobs.
The complexity of selection procedures increases with the level and responsibility of
the position to be filled.
 Preliminary Interview (screening applications)

 Application Form
 Selection Test
 Employment Interview
 Medical Examination
 Reference Checks
 Final Approval
 Employment.
 Induction.
 Follow – up (Evaluation)
IMPORTANCE OF TRAINING

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Training and Development helps in optimizing the utilization of human resource that
further helps the employee to achieve the organizational goals as well as their individual
goals.
 Annual Training Plan - All Levels
 Training customised to meet Organisational Objectives
 Topics selected based on Vision, Values & Departmental
 Feedback of Company-wide Managers
 Competency Mapping to identify Individual Training Needs
 Technical Training on latest Technologies abroad at SMC, Japan
STRONG FOCUS ON TRAINING INITIATIVES:
 Build a Learning Organisation
 Continuous Value Additions to Professional Skills
 Customised Training
 Training to the personnel of Business Partners
OVERSEAS TRAINING :

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 Training held in co-ordination with SMC, Japan and
 AOTS (Assoc. for Overseas Tech. Scholarship)
 (covered 1600 employees under the various schemes)
 6 months SMC Training for Technicians
 OJT in SMC, Japan (2 batches/yr of 50 each)
 9 months Javada Training for Press, Tool & Die
 Specialists - Design & Maintenance
 AOTS Managerial Training (4-10weeks) for Manager &above - Managerial Best

Practices
 AOTS Technical Training (3.5 to 6 months) for
 Supervisors & above - Technological Knowhow
 R & D Training (2 yrs.) - Research on new Technologies
APPRAISAL REWARD
Appraisal:
A systematic, periodic and so far as humanly possible, an impartial rating of an

employee’s excellence in matters pertaining to his present job and to his potentialities for a
better job.
 New Appraisal System based on KRAs &Targets
 Review of Targets at regular Intervals
 People Development an important KRA
REWARD
 Promotions based on Performance
 Productivity & Profit-linked Incentive Schemes
 Training including Long-term SMC Japan Trg.
 Highest paid workforce in the Industry, if not the Country
LEADERSHIP

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 Vision, Value & Team Building Workshops for Top Management
 CFT (Cross Functional Teams) of Managers for Major Thrust Areas
 Managers sent to Joint Ventures to upgrade their practices to MUL standards
CAREER DESIGN
It is defined as the process of deciding on the content of a job in terms of its duties
and responsibilities on the methods to be used in carrying out the job, in terms of techniques,
systems and procedures and on the relationships that should exist between the job holder and
his superiors, subordinates and colleagues
 Performance & Potential based Appraisals
 Fast Track Option for High-performers
 Promotions after Managers Vacancy based
 Interviews for promotions above Managers
SELECTION OF SUPERVISORS:
 Performance / Attendance / Discipline record
 Written Test & Interview
 Job Rotation - including Inter-functional
OUTSOURCING HR:
 Part of our Long-term Strategic Plan
 Currently Trainers hired from outside

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RETENTION EMPLOYEE WELFARE :
Employee retention is a process in which the employees are encouraged to remain

with the organization for the maximum period of time or until the completion of the project.
Employee retention is beneficial for the organization as well as the employee.
EMPLOYEE WELFARE:
 Residential Colonies for Employees – Chakkarpur & Bhondsi
 Hospitalisation Reimbursement – on actuals without Ceiling
 Vehicle Loans
 Household Equipment Loans
 House Building Advance
 Annual Advance
 MUL PF Trust – for better Mgt., Service & speedy redress
 Proposed MUL Pension Scheme
 Learning Opportunity - Benchmark in Auto Technology
 Professional Value addition through Training
 Opportunity for foreign training at SMC, Japan
 Job Rotation & Job enrichment

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EMPLOYEE ENGAGEMENT -ESOPs
Maruti Udyog Ltd. Employees Mutual Benefit Fund Scheme Managed by a 10-
member Trust Fixed Equity of 0.26% Lock-in period of 3 years Transferable Internally
SUGGESTION SCHEME QUALITY CIRCLES:
 For better quality and productivity
 Through involvement of all employees and teamwork
During the year 1999-2000 :-
 Suggestions Implemented - 52,054
 Cost Saving (in crores) - Rs. 131.69 Crores
 Number of QC Groups - 510
 QC Meetings held - 7189
Target for SS & QC for 2000-01:
 Suggestions Implemented - Prod. & VI - 1implmented/employee/month
 Other areas - 8.4 implemented/employee/month
 Cost Saving Rs. 165 crores (25%)increase for the Company
 QC Meeting - 13 meetings/QC Gp./ Year
 Target - 34 marks / suggestion
 Company-wide QC Groups (8-15 members per group)
 Monthly QC Meetings on the First Wednesday each Month
 Company-wide QC Competitions - Best Team sent to SMC
 MD’s lunch with Best QC Team & Best Suggestion Winner
SUGGESTIONS : MONETARY REWARD:

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 Criteria - Idea
 Efforts
 Result : Cost reduction / Q Improvement / Productivity
 Improvement
FUTURE CHALLENGES
 Realigning organisation culture based on new vision & values
 Objective performance management & development system
 Transparent job rotation & job enrichment
 Performance linked reward and recognition system
 Career planning & promotion policy
 Revised recruitment policy
 Competency mapping
 Strong fucus on training initiatives
 Build a learnng organisation
 Continuous value addition to professional skill
 Customised training
 Training to the personnel of business partners
 Internal Communication
 Union alignment
 Employee involvment & participation
CODE OF BUSINESS CONDUCT AND ETHICS:

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As a responsible corporate citizen, Maruti Suzuki India Limited (‘Maruti’ or “the
Company”) has alwaysbelieved in following highest standards of Corporate Governance.
Being a listed Company, every act of the Company, its Board Members and its employees is
the focus of public attention and accordingly, there is a need to reinforce Maruti’s
commitment towards maintaining highest standards of Corporate Governance. This Code of
Business Conduct and Ethics (“Code of Conduct” or “Code”) helps ensure compliance with
our standards of business conduct & ethics and also with regulatory requirements. All Senior
Management Personnel are expected to read and understand this Code of Business Conduct
and Ethics,
Uphold these standards in day-to-day activities and also comply with all applicable
standards, policies and procedures of the company. This policy should be read in conjunction
with applicable regulations & existing policies & procedures of the Company. You can also
contact the Secretarial & Legal Department if you have any questions or clarifications.
APPLICABILITY :
This Code of Conduct is applicable to all Senior Management Personnel which would
include the directors of the Company, the top management personnel (i.e., executive directors
& advisors at executive director level) & all functional heads (including management
personnel with direct functional reporting to directors & top management personnel). All
Senior Management Personnel are expected to comply with the letter and spirit of this Code.
The Senior Management Personnel should continue to comply with otherapplicable laws &
regulations and the relevant policies, rules and procedures of the Company.The Code comes
into immediate effect.
INTERPRETATION OF THE CODE :
In this Code the term “Relative” shall have the same meaning as defined in Section 6
of the Companies Act, 1956. In this Code, words importing the masculine shall include
feminine and words importing singular shall include the plural or vice versa. Any question or
interpretation under this Code of BusinessConduct and Ethics will be considered and dealt
with by the Board or any person authorized by the Board on their behalf.

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COMPLIANCE WITH APPLICABLE LAWS & REGULATIONS :
Senior Management Personnel must comply and where applicable, oversee

compliance by employees with all the laws, rules and regulations applicable to the Company
and its employees. Each Senior Management Personnel must acquire appropriate knowledge
of the requirements relating to his duties sufficient to enable him to recognize potential non
compliance issues and to know when to seek advice from the Legal Department on specific
Company policies and procedures. No payment or transaction should be made or undertaken,
by a Senior Management Personnel or authorized or instructed to be made or undertaken by
any other person or the Company if the consequence of that transaction or payment would be
the violation of any law in force.
HONESTY, INTEGRITY & ETHICAL CONDUCT :
Senior Management Personnel shall act in accordance with the highest standards of
integrity, honesty, fairness and ethical conduct while working for the Company as well when
representing the Company. Honest conduct means conduct that is free from fraud or
deception. Integrity & ethical conduct includes ethical handling of actual or apparent
conflicts of interest between personal and professional relationships.
MARKETING MANAGEMENT:

29
Marketing is the creation and delivery of standard of living to the society.
Objectives:
The various objectives of marketing include the following :.
 Intelligent and capable application of modern marketing policies.
 To develop the marketing field.
 To develop guiding policies and their implementation for a good result.
 To suggest solution by studying the problems relating to marketing.
 To find source for further information concerning the market Problems.
 To revive existing marketing function, if shortcoming are found.
 To take appropriate action in the course of actions.
Importance :
 Importance of marketing to the society.
 Importance of marketing to the firm.
 Importance of marketing in Developed Economy.
 Importance of marketing in underdeveloped or Developing Economy.
 Importance of marketing in a Seller’s or Buyer’s market.
PRODUCTS OF MARUTHI SUZUKI :

30
Starting Price
Available Car Models
(Ex-showroom, Mumbai)
Maruti Suzuki 800

Rs. 1,97,214
Maruti Suzuki Omni

Rs. 2,03,565
Maruti Suzuki Alto

Rs. 2,36,843
Maruti Suzuki Zen Estilo

Rs. 3,13,085
Maruti Suzuki Wagon R

Rs. 3,22,157
Maruti Suzuki Wagon R

Duo Rs. 3,39,532

31
Maruti Suzuki A-Star
Rs. 3,58,942
Maruti Suzuki Versa

Rs. 3,86,953
Maruti Suzuki Ritz

Rs. 4,05,872
Maruti Suzuki Swift

Rs. 4,22,859
Maruti Suzuki Swift Dzire

Rs. 4,82,300
Maruti Suzuki Gypsy

Rs. 5,23,325
Maruti Suzuki SX4 Rs. 6,81,091
Maruti Suzuki Grand Vitara

Rs. 16,92,000

32
Dealers Showroom (pune)
 ACE KUDALE CAR-MANJRI BUDRUK-MARUTI SUZUKI

36/2C/1,PUNE SOLAPUR HIGHWAY,MANJRI BUDRUK
 CHOWGULE INDUSTRIES-AMBEGAON-MARUTI SUZUKI

1,KATRAJ BYPASS ROAD,, NEXT TO PODDAR INTERNATIONAL SCHOOL, AMBEGAON, HAVELI
 CHOWGULE INDUSTRIES-MAHATMA PHULE PETH-MARUTI SUZUKI

VARDHAN BULDINGOSWAL BANDHU CHAMBERS, S.NOÂ 321/A/3, JAWAHARLAL NEHRU MARG,
MAHATMA PHULE PETH, SEVEN LOVES CHOWK.
 CHOWGULE INDUSTRIES-PUNE SATARA RD-MARUTI SUZUKI

47/2A/2,PUNE SATARA ROAD,TAWARE COLONY OFF
 EXCELL AUTOVISTA PVT LIMITED

OFFICE NO: 1 & 2, GROUND FLOOR, KONARK ICON BUILDING, NEAR SEASONS
MALL,MAGARPATTA KHARADI ROAD, HADAPSAR
 MAHALAXMI AUTOMOTIVES PVT. LTD.

SHOP 101, 102 , 967/2 SUNIT CAPITAL SENAPATI BAPAT ROAD , SHIVAJI NAGAR
 MY CAR PUNE PVT. LTD.

GNO: 625/1/3/1, STAR WAGEN, A/P- KURULI, CHAKAN 410501
 MY CARPUNE-WAKAD-MARUTI SUZUKI
MUMBAI- BANGALORE PUNE BYE PASS,NEAR WAKAD POLICE CHOWKY, WAKAD
 SAI SERVICE-DECCAN GYMKHANA-MARUTI SUZUKI

DECCAN GYMKHANA
 SAI SERVICE-FUGEWADI-MARUTI SUZUKI

BOMBAY-PUNE ROAD,FUGEWADI
 SEHGAL AUTORIDERS PVT. LTD.

S. NO. 51,PLOT NO 3,HISSA NO. 5,BAVDHAN KHURD
 SEHGAL AUTORIDERS-ERANDWANE-MARUTI SUZUKI

82/2,LAW COLLEGE ROAD,ERANDWANE
 SUMANKIRTI CARS-EXPRESS HIGHWAY BANER-MARUTI SUZUKI

35,EXPRESS HIGHWAY BANER,KSHITIJ HEIGHTS,NEAR SHIVSAGAR MANGAL KARYALAY
 THE KOTHARI WHEELS-VIMAN NAGAR CHOWK-MARUTI SUZUKI

33/2B/1,AHMADNAGAR ROAD,2 TRADE NET, VIMAN NAGAR CHOWK
 WONDER CARS
Survey No. 165, Kokane ChowkPimple Saudagar.

33
 WONDER CARS-MIDC CHICHWAD-MARUTI SUZUKI
64/8,BLOCK- 2, MIDC CHINCHWAD
4P’s OF MARUTI SUZUKI SWIFT:
PRODUCT
PRODUCT
PRICE
PRICE
PLACE
PLACE
PROMOTION
PROMOTION

34
PRODUCT:
The all-new Maruti Suzuki Swift is fully loaded with a range of exciting new
features. It's a perfect complement to your evolved tastes and lifestyle. And the best way to
take your driving pleasure to a brand-new high.European Styling. Japanese Engineering.
Dream-Like Handling.
The new Swift is a generation different from Suzuki design. Styled with a clear sense
of muscularity, its one-and-a-half box, aggressive form makes for a look of stability, a sense
that it is packed with energy and ready to deliver a dynamic drive.Its solid look is
complemented by an equally rooted road presence and class-defining ride quality. New
chassis systems allow for the front suspension lower arms, steering, gearbox and rear engine
mounting to be attached to a suspension frame. You get lower road noise, and a greater
feeling of stability as you sail over our roads with feather-touch ease.
There are three variants of Maruti Suzuki Swift :
Swift LXi
Swift VXi
Swift ZXi
3 assist grips, 3 spoke urethane steering wheel, antenna, cabin light (3 position), console
box (lower), cup holders (front 2, rear1), front door trim pockets, green tinted glass window,
halogen headlamps, headlamp leveling device, heater and manual Air conditioning, OVRM
(internally adjusted), rear fog lamps, wind screen wiper 2 speed plus 1 speed intermittent,
tailgate opener key type, trip meter (digital display), sun visors (both sides), brake assist ,
child lock (rear door), high mounted stop lamp, power steering, rear seat belts etc. are the
features available in this model.
Swift VXi:
Apart from the features found in other model, striking features of this model are black
colored A & B pillars, 12v accessory socket in center console, day and night rear view
mirror, door ajar warming lamp, driver's seatbelt warning lamp, tachometer, driver's seat belt
warning lamp, vanity mirrors (sun visor co-driver side), rear seat head restraints, fabric

35
accented door trims, central door locking (4 door), front and rear electronic windows, front
fog lamps, light off/ key reminder, manual air-conditioning, key not removed warning
buzzer, etc.
Swift ZXi
Special features that have made this model more market friendly are rear window demister,
rear parcel shelf, rear window wiper, room lamp and luggage room, keyless entry,dual front
airbags, colored outside door mirror cowls, colored outside door handles, 12v accessory
socket in luggage room, driver seat height adjuster, central door locking (5 doors), seat belts
3-point ELR with shoulder adjusters, seat belts front 3-point ELR with pretensioning,tailgate
opener electromagnetic type etc.
PRICE:
Maruti is expected to take Hyundai heads on with the pricing of their upcoming
Maruti Suzuki Swift car. After launching cars for the masses since so many years, India’s
largest automobile manufacturer is now targeting the premium segment with their latest
model from the Suzuki’s stable. The analysts predict the pricing of this premiumhatchback to
start from Rs. 4 lakh.This price range would practically rip apart Hyundai’s offering in Getz,
which is priced at a much higher tag of Rs. 4.5 lakh. Both the companies are known for their
value based offerings and Maruti with their extensive service network and brand reputation
for making reliable cars should get the customer’s nod over their competition.The official
pricing however is still not out. However, the company is said to be studying the prospects of
launching the base model at the 4-lakh price tag. There is another advantage in doing so
considering in the capital city of Delhi NCR road tax on the sub 4 lakh priced cars is
comparatively lower at 2%. Cars at a price higher than 4 lakh have to pay a 4% road
tax.Delhi NCR is one of the major targeted markets and it might get the benefit of this policy.
And if they indeed do take the chance of pricing Suzuki Swift at a considerable lower price
than Hyundai Getz, they would quite likely force the competition to rethink their strategy.
PROMOTION:
When Maruti Udyog launched the Swift in May last year, the automotive industry
was agog with expectation that the car had the makings of a real winner. Three versions were
launched with the base variant carrying a retail tag of Rs 3.85 lakh, ex-showroom, New
Delhi, and this aggressive pricing only reinforced this feeling. A year later, the company

36
says the Swift is now the most-sold car in the first year of any car in the history of the Indian
automobile industry, having totted up sales of 61,200 units.
This is higher than what Maruti had initially planned to sell. The car recorded an
estimated 4,000 bookings at the time of its launch, and the initial output of 200 units a day on
a two-shift basis, wasn’t enough to cope with demand.
In October, the company increased capacity for the Swift which helped cut down on
the waiting time from an estimated three months.
PLACE :
The car manufacturing company, called Maruti Suzuki Automobiles India Limited, is
a joint venture between Maruti Udyog and Suzuki
Motor Corporation holding a 70 per cent and 30 per cent stake respectively. The
Rs1,524.2 crore plant has a capacity to roll out 1 lakh cars per year with a capacity to scale
up to 2.5 lakh units per annum. The car manufacturing plant will begin commercial
production by the end of 2006.The engine and the transmission plant has owned by Suzuki
Powertrain India Limited in which Suzuki Motor Corporation would hold 51 per cent stake
and Maruti Udyog holding the balance. The ultimate total plant capacity is three lakh diesel
engines. However, the initial production is 1 lakh diesel engines, 20,000 petrol engines and
1.4 lakh transmission assemblies.
SALES PERFORMANCE
:

37
INTERPRETATION:
The sales volumes of Maruthi Suzuki had increased randomly from 2001-2008, in
2001 it was 352,415 crores it increased to 764,842 in the year 2008.this report says that
Maruthi Suzuki has out standng it’s performance in producing and marketing its
products.
MARKET SHARE :
INTERPRETATION:
Market Share:
 Currently Suzuki holds 54.2% stake of Marti, the balance being held by various QIBs,
PCBs
 Public. On BSE, Marti has the highest market capitalization in the auto sector.
 We are the largest car company in the country. So far, we have produced more than
6.6 million cars.
 We are Suzuki's largest manufacturing facility, outside Japan offering 11 models
in over 150 variants.
 The turnover last year was USD 3.37 Bn employing more than 6700 employees.
 The high localization of parts within India is one of our distinct strengths.
 Where the company has 3 plants in Gurgaon facility, 4th plant was added with
38
the capacity of 100000 Cars
 Hundred thousand at Manesar in 2006-07.
The market share of Maruthi Suzuki had decreased gradually from the year 2001-
2008 due to its rigid competitors HYUNDAI and TATA motors etc.
BRAND HIERARCHY OF THE COMPANY:
The Product Line:

39
The Indian passenger car market was divided into various segments and sub-segments
on the basis of price, size (i.e. length of the model and its weight) and other factors (including
engine capacity). MUL had a presence in all the segments and sub-segments.
COMPETITORS :
Major Competitors:

40
M&M PAL HYUNDAI
FORD MISTSUBUSHI TOYOTA
HIND MOTORS GM TATA MOTORS
Since 1985, Maruti Udyog Limited (MUL) has been the market leader in the
passenger car industry in India. Its flagship product - M800 had the distinction of being the
largest selling car model in India since its launch in December 1983.Positioned as people's
car, M800 ruled the Indian passenger car market and remained unchallenged ever since it
occupied the top slot, five months after its introduction In March 2003, MUL sold 20,687
units of M800, the highest ever sales by any single model in a month. It was also the highest

41
sales since M800 debuted, surpassing its previous monthly high of 18,735 units in August
1999
For the first few months of 2004, M800 performed well, selling 15,301 units in
January, 13,518 units in February and 15,540 in March. But gradually Alto, another MUL
product, began eating into M800's share. Alto reported In April, its sales increased to 9,350
units and in May 2004, Alto took over M800's position as the largest selling car with sale of
10,373 units, slightly over M800's sales of 10,016 units.
Analysts felt that Alto had taken the top spot because of its price reduction in
September 2003 by Rs. 23,000 followed by the launch of the non-AC Alto for Rs. 0.23 mn in
the first week of April 2004. On reducing the gap between its bread and butter model M800
and its compact car Alto, MUL said it had "long term" plans for M800.
Commenting on Alto's pricing strategy, Jagdish AKhattar (Khattar), managing

director of MUL, said, "The new price positioning of the Alto would cannibalize existing A1
segment product the M800 which is also considered an old model. But, the cannibalization
will remain within the Maruti family and the bigger numbers will help Maruti depreciate Alto
faster. Net M800 sales may be less but we would be pushing more Alto and the more we sell
the Alto the faster it will depreciate."
Though industry analysts said this move would boost MUL's profits, they also
expressed their views that MUL's long-term plan might be to discontinue M800 and replace
the entry segment with Alto. However, Khattar clarified that MUL's pricing strategy was not
meant to replace M800 with Alto. He said, "Now, we have two cars in entry-level. Maruti
800 is still a dream of Indians, how can I replace it?"
Current and Future Market Strategies:
Design small cars suitable for the Indian conditions as a strategy to beat the stiff
competition with development capabilities and internal resources to finance its expansion,
thereby cushioning itself Company’s plan to stay away from the ultra low-cost segment.
Maruti Suzuki is looking to make India an exclusive base to manufacture small cars

42
The Pricing Strategy :
Due to the fierce competition in the Indian passenger car industry, price emerged as
an important factor affecting the purchasing decisions of customers. Since it had been in the
industry for more than two decades, and as a market leader, MUL adopted aggressive pricing
strategies.
The company had products at various price points (Refer Exhibit IV for a
comprehensive list of MUL's products, their variants and prices). In the early 2000s, when
the passenger car industry was witnessing stagnation, MUL slashed the prices of its various
models, to revive the industry.
KEY STRATEGIC INITIATIVES BY MARUTI
Turnaround Strategies Maruti Followed :
Maruti was the undisputed leader in the automobile utility-car segment sector,
controlling about 84% of the market till 1998. With increasing competition from local
players like Telco, Hindustan Motors, Mahindra & Mahindra and foreign players like
Daewoo, PAL, Toyota, Ford, Mitsubishi, GM, the whole auto industry structure in India has
changed in the last seven years and resulted in the declining profits and market share for
Maruti. At the same time the Indian government permitted foreign car producers to invest in
the automobile sector and hold majority stakes.
OFFERING ONE STOP SHOP TO CUSTOMERS:
Maruti has successfully developed different revenue streams without making huge
investments in the form of MDS, N2N, Maruti Insurance and Maruti Finance. These help
them in making the customer experience hassle free and helps building customer satisfaction.
Maruti Finance: In a market where more than 80% of cars are financed, Maruti has
strategically entered into this and has successfully created a revenue stream for Maruti. This
has been found to be a major driver in converting a Maruti car sale in certain cases. Finance
is one of the major decision drivers in car purchase. Maruti has tied up with 8 finance
companies to form a consortium. This consortium comprises Citicorp Maruti, Maruti
Countrywide, ICICI Bank, HDFC Bank, Kotak Mahindra, Sundaram Finance, Bank of
Punjab and IndusInd Bank Ltd.( erstwhile-Ashok Leyland Finance).
Maruti Insurance :
Insurance being a major concern of car owners. Maruti has brought all car insurance
needs under one roof. Maruti has tied up with National Insurance Company, Bajaj Allianz,
New India Assurance and Royal Sundaram to bring this service for its customers. From
identifying the most suitable car coverage to virtually hassle-free claim assistance it's your

43
dealer who takes care of everything. Maruti Insurance is a hassle-free way for customers to
have their cars repaired and claims processed at any Maruti dealer workshop in India.
TRUE VALUE :
Another significant development is MUL's entry into the used car market in 2001,
allowing customers to bring their vehicle to a 'Maruti True Value' outlet and exchange it for a
new car, by paying the difference. They are offered loyalty discounts in return.This helps
them retain the customer. With Maruti True Value customer has a trusted name to entrust in a
highly unorganized market and where cheating is rampant and the biggest concern in biggest
driver of sale is trust.
REPOSITIONING OF MARUTI PRODUCTS :
Whenever a brand has grown old or its sales start dipping Maruti makes some
facelifts in the models. Other changes have been made from time to time based on market
responses or consumer feedbacks or the competitor moves. Here are the certain changes
observed in different models of Maruti.
CUSTOMER CENTRIC APPROACH:
Maruti’s customer centricity is very much exemplified by the five times consecutive
wins at J D Power CSI Awards. Focus on customer satisfaction is what Maruti lives with.
Maruti has successfully shed off the public- sector laid back attitude image and has
inculcated the customer-friendly approach in its organization culture. The customer centric
attitude is imbibed in its employees. Maruti dealers and employees are answerable to even a
single customer complain. There are instances of cancellation of dealerships based on
customer feedback.
KEY SUCCESS FACTORS :
The Quality Advantage :
Maruti Suzuki owners experience fewer problems with their vehicles than any other
car manufacturer in India (J.D. Power IQS Study 2004). The Alto was chosen No.1 in the
premium compact car segment and the Esteem in the entry level mid - size car segment
across 9 parameters.
A Buying Experience Like No Other:

44
Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189
cities, with a workforce of over 6000 trained sales personnel to guide MUL customers in
finding the right car.
Quality Service Across 1036 Cities :
In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7
parameters: least problems experienced with vehicle serviced, highest service quality, best
in-service experience, best service delivery, best service advisor experience, most user-
friendly service and best service initiation experience.
One Stop Shop :
At Maruti Suzuki, customers will find all car related needs met under one roof.
Whether it is easy finance, insurance, fleet management services, exchange- Maruti Suzuki is
set to provide a single-window solution for all car related needs.
The Low Cost Maintenance Advantage :
The acquisition cost is unfortunately not the only cost customers face when buying a
car. Although a car may be affordable to buy, it may not necessarily be affordable to
maintain, as some of its regularly used spare parts may be priced quite steeply. Not so in the
case of a Maruti Suzuki. It is in the economy segment that the affordability of spares is most
competitive, and it is here where Maruti Suzuki shines.
Lowest Cost of Ownership :
The highest satisfaction ratings with regard to cost of ownership among all models
are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto and Omni.
Technological Advantage :
It has introduced the superior 16 * 4 Hypertech engines across the entire Maruti
Suzuki range. This new technology harnesses the power of a brainy 16-bit computer to a
fuel-efficient 4-valve engine to create optimum engine delivery. This means every Maruti
Suzuki owner gets the ideal combination of power and performance from his car.
SWOT ANALYSIS OF MARUTI UDYOG
STRENGTHS :

45
 Established distribution and after-sales networks
 Understanding of the Indian market and ability to liaison with the government:-
 Ability to design products with differentiating features:-
 Brand Image
 Experience and Know-how in technology:-
WEAKNESSES :
 Lack of experience with the foreign market:-

 Inexperience with foreign workforce
 Heavy Import tariffs
OPPORTUNITY:
 Increased purchasing power of Indian middleclass category

 Govt. subsidies
 Tax benefits
 Foreign collaboration
THREATS :
 Threats from Chinese manufacturers

 Indian as well as foreign competitors
FINANCIAL MANAGEMENT
DEFINITION :

46
Financial management is concerned with the efficient use of an important economic
resource namely Capital Funds.
Objectives:
The main objective of a business is to maximize the owner’s economy welfare. This
objective can be achieved by:
 Profit/EPS maximization
 Wealth maximization.
Profit /EPS maximization: Profit /EPS earning is the main aim of every economic activity. A
business being an economic institution must earn profit to cover its costs and provide funds
for growth.
 Profit / EPS is the test of economic efficiency.
 Efficient allocation of fund.
 Social welfare.
 Internal resources for expansion.
 Reduction in risk and uncertainty.
 More competitive.
 Desire for controls.
 Basis of decision-making.
Wealth maximization: this is also known as value maximization or net present worth
maximization approach, it takes into consideration the time value of money.
IMPORTANCE:
The following are the points to highlight the importance of finance.
 Finance for business promotion.

 Finance management for optimum use firms.
 Use for co-operation in business activities.
 Useful in decision making.
 Determinant of business success.
 Measurement of business.
 Basis of planning, co-ordination and control.
 Useful to shareholders and investors.
BALANCE SHEET
DEFINITION : A Balance sheet may be described as a statement of the financial

position of a concern at a given data. The financial position of a concern is revealed by
its assets on a given data and its liabilities on that date. Excess of assets over liabilities
47
represents Capital, such excess may be taken as an indicator of the financial soundness
of a concern.
Balance sheet Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Sources of funds
Owner's fund
Equity share capital 144.50 144.50 144.50 144.50 144.50
Share application money - - - - -
Preference share capital - - - - -
Reserves & surplus 8,270.90 6,709.40 5,308.10 4,234.30 3,446.70
Loan funds
Secured loans 0.10 63.50 71.70 307.60 311.90
Unsecured loans 900.10 567.30 - - -
Total 9,315.60 7,484.70 5,524.30 4,686.40 3,903.10
Uses of funds
Fixed assets
Gross block 7,285.30 6,146.80 4,954.60 5,053.10 4,566.70
Less : revaluation reserve - - - - -
Less : accumulated depreciation 3,988.80 3,487.10 3,259.40 3,179.40 2,735.90
Net block 3,296.50 2,659.70 1,695.20 1,873.70 1,830.80
Capital work-in-progress 736.30 238.90 92.00 42.10 74.90
Investments 5,180.70 3,409.20 2,051.20 1,516.60 1,677.30
Net current assets
Current assets, loans &
3,190.50 3,956.00 3,870.70 3,097.40 2,144.40
advances
Less : current liabilities &
3,088.40 2,779.10 2,184.80 1,843.40 1,840.60
provisions
Total net current assets 102.10 1,176.90 1,685.90 1,254.00 303.80
Miscellaneous expenses not
- - - - 16.30
written
Total 9,315.60 7,484.70 5,524.30 4,686.40 3,903.10
Notes:
Book value of unquoted
5,169.60 3,398.10 2,040.10 1,505.50 1,666.20
investments
Market value of quoted
219.50 270.40 289.80 200.10 150.90
investments
Contingent liabilities 2,734.20 2,094.60 1,289.70 893.60 1,119.80
Number of equity
2889.10 2889.10 2889.10 2889.10 2889.10
sharesoutstanding (Lacs)
Interpretation : The balance sheet amount has increased gradually from the year 2004-2008
as 3,903.10 to 9,315.60 .
Analysation: This indication shows the company operations reach in wide in facing the
market efficiently.

48
PROFIT & LOSS ACCOUNT:
Definition: Net profit represents the excess of gross profit plus other revenue incomes over sales
expense including sales costs and other expenses. The debit side of P&L a/c shows the expenses and
the credit side the incomes. If the total of the credit side is more, it will be net profit. And if the debit
side happens to be more, it would be net loss.
P&L Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
18,066.8
Operating income 14,806.40 12,197.90 11,046.30 9,449.50
0
Expenses
13,622.0
Material consumed 11,063.70 9,223.70 8,508.50 7,033.50
0
Manufacturing
670.60 489.80 359.60 273.80 219.40
expenses
Personnel expenses 356.20 288.40 228.70 196.00 177.90
Selling expenses 560.20 499.90 356.00 369.90 666.20
Adminstrative
326.30 274.50 170.60 150.20 112.90
expenses
Expenses capitalised -19.80 -14.30 -6.70 -22.40 -12.80
15,515.5
Cost of sales 12,602.00 10,331.90 9,476.00 8,197.10
0
Operating profit 2,551.30 2,204.40 1,866.00 1,570.30 1,252.40
Other recurring
456.10 361.10 268.10 218.90 198.90
income
Adjusted PBDIT 3,007.40 2,565.50 2,134.10 1,789.20 1,451.30
Financial expenses 59.60 37.60 20.40 36.00 44.90
Depreciation 568.20 271.40 285.40 456.80 494.90
Other write offs - - - 16.30 72.40
Adjusted PBT 2,379.60 2,256.50 1,828.30 1,280.10 839.10
Tax charges 763.30 705.30 560.90 446.50 227.70

Adjusted PAT 1,551.20 1,267.40 833.60 611.40
1,616.30
Non recurring items 37.90 -23.00 -83.70 -31.40 -151.90
Other non cash
76.60 33.40 5.40 51.40 82.60
adjustme
Reported net profit 1,730.80 1,561.60 1,189.10 853.60 542.10
Earnigs before
7,368.10 5,947.10 4,631.20 3,611.00 2,878.00
appropriation
Equity dividend 144.50 130.00 101.10 57.80 43.30
Preference dividend - - - - -
Dividend tax 24.80 21.90 14.20 8.20 5.60
Retained earnings 7,198.80 5,795.20 4,515.90 3,545.00 2,829.10
49
Interpretation : The operating and non operating expenses and income are incresing
gradually from the year 2004-2008
Analysation : This trend shows that company,s productivity is increasing yearly to extend
its market operations.
RATIO ANALYSIS
Meaning of Ratio Analysis:
Ratio Analysis can be defined as the study and interpretation of relationships between
various financial variables, by investors or lenders. It is a quantitative investment technique
used for comparing a company's financial performance to the market in general. A change in
50
these ratios helps to bring about a change in the way a company works. It helps to identify
areas where the management needs to change.
Steps in Ratio Analysis:
The firs task of the financial analyst is to select the information relevant to the
decision under consideration from the statements and calculates appropriate ratios.
The second step is to compare the calculated ratio with the ratios of the same firm
relating to past or with the industry ratios. This step facilitates in assessing success or failure
of the firm.
The third step involves interpretation, drawing of inferences and report-writing.
Conclusions are drawn after comparison in the shape of report or recommended course of
action.
Importance:
Ratios are useful for the following reasons:
 The ratios can be used by financial managers for future financial planning. Ratios
calculated for a number of years work as a guide for the future.
 Ratios are useful in co-ordination which is very needed in business. The efficiency
and weakness of an enterprise if communicated properly will establish a better co-
ordination among areas of appreciation and control.
 Ratios are used for communication of weak and good points to the concerned parties.
 Ratios should be shown the better financial position of the firm. For example, better
solvency ratio speaks out good financial position.
 The ratios are economic barometer useful to all mentioned above as they can know
the good and bad position of a company by making a comparative study of financial
statement.
RATIOS Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Per share ratios
Adjusted EPS (Rs) 55.94 53.69 43.87 28.85 21.16
Adjusted cash EPS (Rs) 75.61 63.09 53.75 45.23 40.80
Reported EPS (Rs) 59.91 54.07 41.16 29.55 18.76
Reported cash EPS (Rs) 79.57 63.46 51.04 45.92 38.40
Dividend per share 5.00 4.50 3.50 2.00 1.50
51
Operating profit per share (Rs) 88.31 76.30 64.59 54.35 43.35
Book value (excl rev res) per share
291.28 237.23 188.73 151.56 123.74
(Rs)
Book value (incl rev res) per share
291.28 237.23 188.73 151.56 123.74
(Rs.)
Net operating income per share (Rs) 625.34 512.49 422.20 382.34 327.07
Free reserves per share (Rs) 286.28 231.89 183.18 144.13 116.91
Profitability ratios
Operating margin (%) 14.12 14.88 15.29 14.21 13.25
Gross profit margin (%) 10.97 13.05 12.95 10.08 8.01
Net profit margin (%) 9.34 10.29 9.53 7.57 5.61
Adjusted cash margin (%) 11.79 12.01 12.45 11.59 12.21
Adjusted return on net worth (%) 19.20 22.63 23.24 19.03 17.10
Reported return on net worth (%) 20.56 22.78 21.80 19.49 15.16
Return on long term funds (%) 27.35 30.74 33.47 28.12 22.71
Leverage ratios
Long term debt / Equity 0.05 0.08 0.01 0.06 0.08
Total debt/equity 0.10 0.09 0.01 0.07 0.08
Owners fund as % of total source 90.33 91.57 98.70 93.43 92.00
Fixed assets turnover ratio 2.48 2.41 2.46 2.19 2.07
Liquidity ratios
Current ratio 1.03 1.42 1.77 1.68 1.17
Current ratio (inc. st loans) 0.91 1.40 1.77 1.67 1.15
Quick ratio 0.66 1.13 1.31 1.25 0.85
Inventory turnover ratio 22.93 28.76 18.78 22.97 30.43
Payout ratios
Dividend payout ratio (net profit) 9.78 9.72 9.69 7.73 9.02
Dividend payout ratio (cash profit) 7.36 8.28 7.81 4.97 4.40
Earning retention ratio 89.53 90.21 90.91 92.09 92.01
Cash earnings retention ratio 92.25 91.67 92.58 94.95 95.86
Coverage ratios
Adjusted cash flow time total debt 0.41 0.34 0.04 0.23 0.26
Financial charges coverage ratio 50.46 68.23 104.61 49.70 32.32
Fin. charges cov.ratio (post tax) 39.57 49.76 73.28 37.85 25.71
Component ratios
Material cost component (%
77.25 73.36 77.25 78.30 74.47
earnings)
Selling cost Component 3.10 3.37 2.91 3.34 7.05
Exports as percent of total sales 4.10 3.90 4.78 8.89 9.96
Import comp. in raw mat. consumed 10.84 12.62 18.75 19.69 20.40
Long term assets / total Assets 0.74 0.61 0.49 0.52 0.62
Bonus component in equity capital
- - - - -
(%)

52
PER SHARE RATIOS:
EPS is measured by dividing the net profits after taxes and preference dividend by the total
number of equity shares.
EPS = net profit after tax- preference dividend
Per share ratios 2008 2008 2007 2006 2005

Adjusted EPS (Rs) 55.94 53.69 43.87 28.85 21.16
Adjusted cash EPS (Rs) 75.61 63.09 53.75 45.23 40.80
Reported EPS (Rs) 59.91 54.07 41.16 29.55 18.76
Reported cash EPS (Rs) 79.57 63.46 51.04 45.92 38.40
Dividend per share 5.00 4.50 3.50 2.00 1.50
Operating profit per share (Rs) 88.31 76.30 64.59 54.35 43.35
Book value (excl rev res) per share (Rs) 291.28 237.23 188.73 151.56 123.74
Book value (incl rev res) per share (Rs.) 291.28 237.23 188.73 151.56 123.74
Net operating income per share (Rs) 625.34 512.49 422.20 382.34 327.07
Free reserves per share (Rs) 286.28 231.89 183.18 144.13 116.91
Interpretation: Due To Incresing Profits And Market Sustainability The Per Share Value
Of Maruthi Suzuki Had Been In Incresing Trend From 2004-2009.
Analysis: As a result of that the per share value in the market is above 1100rs.

53
PROFITABILITY RATIOS:
Profitability is a ratio. Being a ratio profitability is a meaningful measure and reveals

the relation of different individuals items with sales of the concern. Profitability of a concern
can be known through the analysis of general and overall profitability.
Gross profit ratio=Gross profit (100) /Net sales
Gross profit ratio= net sales-cost of goods sold (100) / Net sales
Profitability ratios 2008 2008 2007 2006 2005

Operating margin (%) 14.12 14.88 15.29 14.21 13.25
Gross profit margin (%) 10.97 13.05 12.95 10.08 8.01
Net profit margin (%) 9.34 10.29 9.53 7.57 5.61
Adjusted cash margin (%) 11.79 12.01 12.45 11.59 12.21
Adjusted return on net worth (%) 19.20 22.63 23.24 19.03 17.10
Reported return on net worth (%) 20.56 22.78 21.80 19.49 15.16
Return on long term funds (%) 27.35 30.74 33.47 28.12 22.71
35 Operating margin (%)
30
Gross profit margin (%)
25
20 Net profit margin (%)
15
Adjusted cash margin
10
5 Adjusted return on net worth

(%)
0
Reported return on net worth
2008 2007 2006 2005 2004
Interpretation: The gross profit and net profit had increased initially from the year 2004-
2007 from 8.01-13.05,5.61-10.29 and decreased in the year 2008 as 10.95 and 9.34.
Analysis: Due to the implementation latest organisational aspects company increased its
expenses in the year 2008.

54
LEVERAGE RATIOS:
Leverage ratios can be computed from the balance sheet items to determine the
proportions of debt in total financing. Leverage ratios can also be calculated from the income
statement items by determining the exact to which operating profits are sufficient to cover the
fixed charges.
Debt –equity ratio = Long –term debit / Shareholder’s Equity
Leverage ratios 2008 2008 2007 2006 2005

Long term debt / Equity 0.05 0.08 0.01 0.06 0.08
Total debt/equity 0.10 0.09 0.01 0.07 0.08
Owners fund as % of total source 90.33 91.57 98.70 93.43 92.00
Fixed assets turnover ratio 2.48 2.41 2.46 2.19 2.07
12
10
Long term debt / Equity
8
Total debt/equity
6
Owners fund as % of total

4 source
Fixed assets turnover ratio
2
0
2008 2007 2006 2005 2004
Interpretation: The Debt Equity Ratio Is Expected To Be 2:1 Ratio But It Is In 1:2 Ratio
Analysis: This Situation Creates Insecurity To Creditor’s.
LIQUIDITY RATIOS:

55
Liquidity means the ability of a concern to meet its current obligations as and when these
become due. Thus the liquidity ratios indicate the ability of a concern to meet its short-term
obligations.
Quick ratio= Quick assets / Current liabilities
Current ratio = Current assets / Current liabilities
Liquidity ratios 2008 2007 2006 2005 2004

Current ratio 1.03 1.42 1.77 1.68 1.17
Current ratio (inc. st loans) 0.91 1.40 1.77 1.67 1.15
Quick ratio 0.66 1.13 1.31 1.25 0.85
Inventory turnover ratio 22.93 28.76 18.78 22.97 30.43
Interpretation: The current ratio is in between 2:1 ratio, this is in increasing trend from
initial stage. From 2004-2007 and decreased in the year 2008 as 1.03.
Analysis: One way this trend shows the, balancing of current assets and liabilities. This
trend is continued even in quick ratio and liquid ratios.

56
PAYOUT RATIO:
This is the relationship between the returns belonging to the equity shareholders and
the dividend paid to them. Thus is calculated as:
Pay out ratio = dividend per share / Earning per share
Payout ratios 2008 2008 2007 2006 2005

Dividend payout ratio (net profit) 9.78 9.72 9.69 7.73 9.02
Dividend payout ratio (cash profit) 7.36 8.28 7.81 4.97 4.40
Earning retention ratio 89.53 90.21 90.91 92.09 92.01
Cash earnings retention ratio 92.25 91.67 92.58 94.95 95.86
120
100
80
Dividend payout ratio (
60 Dividend payout ratio (cash
Earning retention ratio
40
Cash earnings retention ratio
20
0
2008 2007 2006 2005 2004
Interpretation: The Dividend Pay Out Ratio And Retention Ratio Is Increasing From The
Year 2004-2008.
Analysis: This Is Proseperous Trend To Share Holders And Company.

57
COVERAGE RATIOS
This ratio indicates the times-interest-earned. It is used to examine the firm’s debt-
servicing capacity. The interest coverage ratio is the sum of net profit before interest and
taxes dividend interest charges.
Coverage Ratio = sum of net profit before interest / Taxes dividend by interest charges
COVERAGE RATIOS 2008 2007 2006 2005 2004

Adjusted cash flow time total debt 0.41 0.34 0.04 0.23 0.26
Financial charges coverage ratio 50.46 68.23 104.61 49.70 32.32
Fin. charges cov.ratio (post tax) 39.57 49.76 73.28 37.85 25.71
Interpretation: The Cash Balance Is Being Adjusted From 2004-2008 Between Creditors,
Debtors And Shareholders Dividend .
Analysis: This Is In Incresing Trend From 2004-2008.This Is Prosperous To Company And
Its Stake Holders

58
COMPONENT RATIOS:
This ratio ensures whether the capital employed has been effectively used or not. This
is also the test of managerial efficiency and business performance. High total capital ratio is
always required in the interest of the company.
Long term assets Turnover Ratio = Sales(net) / Capital employed
Component ratios 2008 2007 2006 2005 2004

Material cost component (% earnings) 77.25 73.36 77.25 78.30 74.47
Selling cost Component 3.10 3.37 2.91 3.34 7.05
Exports as percent of total sales 4.10 3.90 4.78 8.89 9.96
Import comp. in raw mat. consumed 10.84 12.62 18.75 19.69 20.40
Long term assets / total Assets 0.74 0.61 0.49 0.52 0.62
Bonus component in equity capital (%) - - - - -
Interpretation: The Material Cost Component Ratio Is Increasing From 2004-2008.
Analysis: As the Productivity is increasing simultaneously but the selling cost component
ratio decreased gradually from the year 2004-2008,which can decline the sales percentage of
company.

59
FINDINGS
This company analysis done by me, brought out many findings.

I would like to state some from them:
Maruthi Suzuki can be termed as an greater example for merging industries (Govt. & foreign
investments).
HRM:
 Maruthi suzuki has finite recruiting and training procedures .
 There are quality circles which can motivate employee and employer relationship.
MARKETING MANAGEMENT:
 This segment is the initial cause for the sustainability of maruthi as an leader in the
market of passenger cars.
 Maruthi suzuki conducts r&d, in developing marketing strategies and products ,

which are near to customer preferences and tastes.
FINANCIAL MANAGEMENT:
 As Maruthi Suzuki is an company which consists of Indian government’s capital , it

follows lawful and ethical practices impractically in accounting its finance.
 This company at most reaches the standard ratio in every ratio every year.
CONCLUSION
I have analyzed the attached Balance Sheet of Maruti Suzuki India Limited (Formerly
Maruti Udyog Limited), as of Five years comparison and the related Profit and Loss
60
Account and Cash Flow Statement for the year ended on that dates Annexed thereto ! These
financial statements are the Responsibility of the company's management.
My pleasure is to express an opinion on these financial statements based on

analysis Those Standards An analysis includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An analysis also
includes assessing the accounting principles used and significant estimates, marketing
Techniques, HRM strategies, financial position of the Maruthi Udyog Limited.
 The company analysis done by me on Maruthi Udyog Limited, sorted out that the
automobile industry in India is prosperous and growing with innovating technology.
 Cars in the market through different marketing strategies such as pricing strategy,
products development etc. Finally “Maruthi Udyog Limited” has it financial trend in
ascending order from previous four years.
 Thus, Maruthi Udyog Limited, is counting its profits, and fulfilling the Social
responsibility, by making its tag line to be implemented i.e
“Count on us”

61

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COMPANY ANALYSIS REPORT

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited)

(a) OBJECTIVES OF THE STUDY

(b) PROFILE OF THE COMPANY

4. ANALYSIS & INTERPRETATION OF FUNCTIONAL AREAS

(b) MARKETING MANAGEMENT

(C) FINANCIAL MANAGEMENT

5. FINDINGS AND CONCLUSION

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited)

The objectives of the study are:

 To narrate the profile of the company

 Overview of Maruti and Suzuki

 Building understanding of the car market in India and various segments

 Understand MUL’s product range and positioning in each segment

 Understanding the basics in the automobile industry

 Overview of each Maruti model and the MUL ‘Advantage’

 Overview of the selling process and how to uncover needs of a customer to do

 Ensuring personal effectiveness

 To study the HRM of the company

 To enhance my knowledge about Recruitment and Selection.

 To convert my theoretical knowledge into practical knowledge.

 To enhance my knowledge about Training & Development

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited)

Maruti Suzuki India Limited is a publicly listed automaker in India. It is a leading

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited)

Partner for the Joint venture

Authorized service stations

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited)

Maruti Driving School

OBJECTIVES OF THE STUDY

 To narrate the profile of the company

 Overview of Maruti and Suzuki

 Building understanding of the car market in India and various segments

 To enhance my knowledge about Recruitment and Selection.

 To convert my theoretical knowledge into practical knowledge.

 To enhance my knowledge about Training & Development

 Understand MUL’s product range and positioning in each segment

 Understanding the basics in the automobile industry

 Overview of each Maruti model and the MUL ‘Advantage’

 Overview of the selling process and how to uncover needs of a customer to do

 To study the financial position of the company

 Ensuring Company effectiveness in implementing accounting standards

 Analyzing companies financial statements in ratios

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited)

Year of Establishment February 1981

"The Leader in The Indian Automobile Industry, Creating

Industry Automotive - Four Wheelers

BSE - Code: 532500

Registered & Corporate

Palam Gurgaon Road

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited)

Founded 1981 [1]

Headquarters Gurgaon, Haryana, India

Key people Mr. Shinzo Nakanishi, Managing Director and CEO

Revenue ▲US$3.5 billion (2009)

Employees 6,903 [2]

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited)

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited)

 Start of Maruti True value in Mumbai.

 Listed on BSE and NSE after a public issue oversubscribed 10 times.

VISION & VALUES

“The leader in the Indian Automobile • CUSTOMER OBSESSION

Name Designation Name Designation