MANAGEMENT

in Maruti Udyog
Ltd

By:-
Arushi Mahanti
D. Sunil Kumar
Ayush Dhanuka
Aditya Verma
Ankit Dugar
Ankit Mehta
Introduction
 Maruti Udyog Ltd (Maruti), a joint venture
between Suzuki Motors of Japan (eleventh
largest vehicle manufacturer in the world and
the fourth largest manufacturer in Japan) and
the Indian government, is the leader in India's
automobile market.
 Maruti has the widest product range among
Indian car manufacturers, with ten basic
models and more than 50 variants.
Manufacturing Facility
• Its manufacturing facilities are located at two
facilities Gurgaon and Manesar south of Delhi.
Maruti Suzuki’s Gurgaon facility has an installed
capacity of 350,000 units per annum.

• The Manesar facilities, launched in February 2007

comprise a vehicle assembly plant with a capacity of
100,000 units per year and a Diesel Engine plant with
an annual capacity of 100,000 engines and
transmissions.

• Manesar and Gurgaon facilities have a combined

Gurgaon facility
 The Gurgaon Manufacturing Facility has three fully
integrated manufacturing plants and is spread
over 300 acres (1.2 km2).
 All three plants have an installed capacity of
350,000 vehicles annually but productivity
improvements have enabled it to manufacture
700,000 vehicles annually.
 The Gurgaon facilities also manufacture 240,000
K-Series engines annually. The entire facility is
equipped with more than 150 robots, out of which
Manesar Facility
 The Manesar Manufacturing Plant was
inaugurated in February 2007 and is spread
over 600 acres (2.4 km2).
 Initially it had a production capacity of
100,000 vehicles annually but this was
increased to 300,000 vehicles annually in
October 2008.
 The production capacity was further
increased by 250,000 vehicles taking total
Quality management

• Maruti measured the relative quality of dispatched

vehicles on a random, daily basis through a quality

index audit. To improve quality, Maruti had

introduced various measures:

• Tracking surveys and direct customer contact in

order to understand the problems faced by

customers.

• Full-time task forces for improvement in initial

quality study problems and departmental cross-

Productivity
 Maruti turned around from a loss of Rs.2690
million in 2001 to a net profit of Rs.1045 million,
in 2002. This turnaround had been facilitated by
sharp improvements in quality and productivity,
both in-house and at the vendors' end.
In 2002, Maruti started a program "Challenge 50
initiative" to improve productivity by 50 % and
reduce cost by 30 % by 2004-05. Maruti involved
various component suppliers in Challenge 50.
Productivity improvement programs were
Vendor management
 Maruti was working on a 3.5% per annum

reduction in vendor prices by 2004-2005.

 Maruti streamlined the sourcing and stocking of

materials and components through its Delivery

Instruction system , one of Suzuki's best

practices.

 This system provided details of Maruti's

component requirements for every 15 days,

across the different variants of the various

models, to its vendors.

Vendor management
• Vendor management became an important area
as Maruti attempted to improve operational
efficiency.
• Maruti procured components worth about
Rs.5,000 crores every year.
• The company's top 10 vendors accounted for
about 34 % of its aggregate purchases of
components from vendors in India. 
Sales Network
 As of 31 March 2011 Maruti Suzuki has 933
dealerships across 666 towns and cities in all
states and union territories of India.
 It has 2,946 service stations (inclusive of dealer
workshops and Maruti Authorized Service
Stations) in 1,395 towns and cities throughout
India.
 It has 30 Express Service Stations on 30 National
Highways across 1,314 cities in India.
Service sector
 Service is a major revenue generator of the company.
Most of the service stations are managed on franchise
basis, where Maruti Suzuki trains the local staff.
 Other automobile companies have not been able to
match this benchmark set by Maruti Suzuki.
 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 Suzuki 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
Conclusion

Even though Maruti was well

ahead of its other rivals, it
realized competition could not be
underestimated. Hyundai, Tata
Motors and Ford were all
formidable rivals.
Thank-You