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EQUITY RESEARCH REPORT

OF
MARUTI SUZUKI

SUBMITTED TO-
Fincrux technologies

SUBMITTED BY-

Abdul Shubhan khan

Acknowledgement
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I am very grateful to Fincrux technologies team for

their guidance.
Working on the project is hard, need hard work and
concentration but I made it possible with the support
which I had received from Fincrux technologies team.
I learned a lot from this project and acquired useful
knowledge.
I am thankful to all for giving me guidance,
encouragement and right path to work on it. I thank
everybody who has directly or indirectly helped me in
this project to make it successful.
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Table of content

Topic Pg. no
General overview 4
Shareholding pattern 5
Management and 6
governance

SWOT Analysis 10
Competitive analysis 12
Conclusion and 13
suggestions
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General overview
Maruti Suzuki India Ltd (formerly Maruti Udyog Ltd) is India's largest
passenger car company, accounting for over 50 per cent of the domestic car
market. The Japanese car major held 56.21% stake in Maruti Suzuki.

Maruti Suzuki was established in February 24, 1981 only to merge with the
Japanese automobile company Suzuki in October 1982. The first manufacturing
factory of Maruti was established in Gurgaon, Haryana, in the same year. Mr.
R.C. Bhargava is the chairman of the company and Mr. Kenichi Ayukawa is the
CEO and Managing Director.

BASIC INFORMATION

Ticker Symbol – Maruti.

The Primary Exchange Traded – National Stock Exchange (NSE), Bombay
Stock Exchange (BSE).
ISIN – INE585B01010
The Primary Sector and Industry – Auto (Car & Utility Vehicles).
The Investment Recommendation – Bullish.
The Current Stock Price – Rs 5964.00
Current Market Capitalization – Rs 179,977.79 Crores.
Target Stock Price – Rs 6085.00
Face Value – Rs 5.00
VISION:

“To be The Leader in the Indian Automobile Industry, Creating Customer

Delight and Shareholder’s Wealth; A pride of India”

MISSION:

Modernization of the Indian Automobile Industry.

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Production of fuel-efficient vehicles to conserve scare resources.

Production of large number of vehicles which was necessary for economic
growth.
Market penetration and diversification.

Shareholding pattern

Holder's Name No of Shares % Share Holding

No of Shares 302080060 100%

Promoters 0 0%

Foreign Institutions 64853292 21.47%

NBanksMutualFunds 22160245 7.34%

Others 5049368 1.67%

General Public 10626039 3.52%

Financial Institutions 29391676 9.73%

Foreign Promoter 169999440 56.28%

The Shareholding Pattern page of Maruti Suzuki India Ltd. presents the
Promoter's holding, FII's holding, DII's Holding, and Shareholding by
general public etc.

MANAGEMENT AND GOVERNANCE

CRITIQUE OF THE MANAGEMENT AND BOARD –

Maruti Suzuki biggest strength lies in its healthy combination of top-down and
bottom-up approach in decision making process towards empowering the
employees. A major thrust is laid on the constant two-way communication, free
flow of thoughts and mutual growth. Led by the MD & CEO, and enunciated
across levels, communication has led to a marked change in the labour-
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management relations in recent years. A calendar for communication ensures

two-way communication with employees across various levels.

The unique strength of Employee-Employer Connect is a beneficiary of the

unique strength it enjoys with its human resources. During the year, various
channels, both digital and non-digital were improvised to interact better with the
employees. A lot of thrust was given on digitization of HR processes which led
to enhanced employee experience owing to improved and faster responsiveness.
Employees in turn, raise queries, give feedback and participate in different
policy and procedural decisions on these platforms.

The Company is an equal opportunity employer promoting gender diversity and

equality at the workplace. During the year under review, the Company
celebrated ‘Gender Diversity and Inclusion week thereby emphasizing its
importance among the employees. In order to tap the growth opportunity going
ahead, it is imperative for the Company to groom its employees and create a
talent pool.

The Company also carries out a comprehensive supplier assessment to identify

the weak areas with an objective to improve supplier’s capability. Risks get
identified during assessments and appropriate mitigation measures are then
taken with a time bound action plan.

SENIOR MANAGEMENT’S HISTORY WITH THE FIRM AND THEIR

RECORD OF CAPITAL ALLOCATION -

Chairmen - Mr. R C Bhargava.

History in Maruti Suzuki -

2007 till date: Chairman, Maruti Suzuki India Limited (MSIL), (Formerly
Maruti Udyog Limited).

2003: Director, Maruti Udyog Limited.

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1998: President and CEO of RCB Consulting Private Limited, a management

and human resource consultancy outfit with various domestic and international
clients.

1990-92: Chairman & Managing Director, Maruti Udyog Limited.

1985-90, 92-97 Managing Director, Maruti Udyog Limited.

1984-85: Joint Managing Director Maruti Udyog Limited.

1981-83: Director (Marketing), Maruti Udyog Limited.

1979-81: Director (Commercial), Bharat Heavy Electricals Limited.

1977-78: Joint Secretary, Cabinet Secretariat, Government of India.

1974-77: Joint Secretary of Government of India, Ministry of Energy.

Management Director & CEO - Mr. Kenichi Ayukawa

History in Maruti Suzuki -

Born in 1955, Mr. Ayukawa has handled several key assignments at Suzuki
Motor Corporation, Japan and in the Group's overseas operations.

Mr. Ayukawa served as Managing Director of Pak Suzuki Motor Company

from May 2004 to June 2008.

He served as Director on the Board of Maruti Suzuki India Limited from July
2008 to March 2013.

Before taking charge as the Managing Director at Maruti Suzuki India Limited
he served as Managing Executive Officer and Executive General Manager,
Global Marketing at Suzuki Motor Corporation, Japan.

DIRECTOR - Mr. Osamu Suzuki

History in Maruti Suzuki -

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2002 till date: Director, Maruti Suzuki India Limited (Formerly Maruti Udyog
Limited).

2000: Chairman & CEO, Suzuki Motor Corporation.

1978: President & CEO, Suzuki Motor Corporation.

1973: Senior Managing Director, Suzuki Motor Corporation.

1967: Managing Director, Suzuki Motor Corporation.

1966: Director and General Manager, Suzuki Motor Corporation.

1963: Director, Suzuki Motor Corporation.

1958: Joined Suzuki Motor Company Limited.

DIRECTOR - Mr. Toshihiro Suzuki

History in Maruti Suzuki -

2016: Representative Director & President (CEO & COO).

2015: Representative Director & President (COO).

2013: Director, Maruti Suzuki India Limited (Formerly Maruti Udyog Limited).

2011: Representative Director and Executive Vice President, Suzuki Motor

Corporation.

2006: Director and Senior Managing Officer, Suzuki Motor Corporation.

2003: Director, Suzuki Motor Corporation.

1994: Joined Suzuki Motor Corporation.

DIRECTOR (MARKETING & SALES) - Mr. Takahiko Hashimoto

History in Maruti Suzuki-

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April 1992: Joined Suzuki Motor Corporation, Assigned to Spare Parts &
Accessories Department.

April 2008: Appointed Group Manager of Product Planning Department.

April 2016: Appointed General Manager in Maruti Suzuki India Ltd.

He brings with him a vast experience of over 27 years in Marketing and Sales.

DIRECTOR (INDEPENDENT) - Mr. D. S. Brar.

History in Maruti Suzuki -

2006 till date: Independent Director, Maruti Suzuki India Limited (MSIL).

2004: Chairman, Davix Management Services Private Limited.

2004: Chairman, GVK Biosciences Private Limited.

1977-2004: Held various positions such as Chief Executive Officer and

Managing. Director, President / Senior Vice President, General Manager and
Business Development Manager at Ranbaxy Laboratories Limited.

DIRECTOR (INDEPENDENT) - Mr. R P Singh

History in Maruti Suzuki -

2013: Director, Maruti Suzuki India Limited

2005: Chairman, Punjab and Sind Bank

1976: Indian Administrative Services

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SWOT ANALYSIS

Strengths

 Maruti Udyog limited (MUL) is in a leadership position in the market

with a market share of 48.74
 Major strength of MUL is having largest network of dealers and after
sales service centers in the country.
 Good promotional strategy is adopted by MUL to transfer its thoughts to
the people about its products.
 Maruti Suzuki recorded highest number of domestic sales with 9,66,447
units from 7,65,533 units in the previous fiscal. It recently attained the
10million domestic sales mark.
 Strong Brand Value and Loyal Customer Base are big strengths for MUL
 There are around 15 vehicles in Maruti Product portfolio. Has good
product lines with good fuel efficiency like Maruti Swift, Diesel, Alto etc
 Alto still beats the small car segment with highest number of sales
 MUL is the first automobile company to start second hand vehicle sales
through its True-value entity.
 MUL has good market share and hence it’s after sales service is a major
revenue contributor.

Weaknesses

 Low interior quality inside the cars when compared to quality players like
Hyundai and other new foreign players like Volkswagen, Nissan etc.
 Government intervention due to having share in MUL.
 Younger generations started getting a great affinity towards new foreign
brands
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 The management and the company’s labor unions are not in good terms.
The recent strikes of the employees have slowed down production and in
turn affecting sales.
 Maruti hasn’t proved itself in SUV segment like other players.

Opportunities

 Developing hybrid cars and fuel-efficient cars for the future can be an
opportunity for Maruti Suzuki.
 Maruti can target tapping emerging markets across the world and building
a global brand.
 Fast growing automobile market and increased purchasing power.
 MUL can start R&D on electric cars for a much better substitute of the
fuel.
 New DZire from Maruti will capture the market share and expected to
create the same magic as Maruti Esteem (currently not available)
 Export capacity of the company is giving new hopes in American and UK
markets
 Economic growth of the country is constantly increasing and the
government is working hard to increase the gdp to double digit.

Threats

 Government policies for the automobile sector across the world.

 Ever increasing fuel prices.
 Intense competition from global automobile brands and cheaper brands
can hurt Maruti Suzuki's business.
 Substitute modes of public transport like buses, metro trains etc.
 Major players like Maruti Suzuki, Hyundai, Tata has lost its market share
due to many small players like Volkswagen- polo. Ford has shown a
considerable increase in market share due to its Figo.
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 Tata Motors recent launches like Nano 2012, Indigo e-cs are imposing
major threats to its respective competitor’s segment.
 China may give a good competition as they are also planning to enter into
Indian car segment.

Competitive analysis
TODAY
Company Current Price Change (%Chg.) Low / High EPS PE

Maruti Suzuki India Ltd. 7,050.00 -78.85 (-1.11%) 7,005.00 / 7,175.00 894302 187.06

Force Motors Ltd. 1,139.00 26.70 (2.40%) 1,112.00 / 1,178.85 25.79 44.16

Mahindra & Mahindra Ltd. 614.35 -0.95 (-0.15%) 611.95 / 624.00 57.40 10.70

Tata Motors Ltd. 148.90 0.35 (0.24%) 146.55 / 149.40 -6.31 -23.60
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Conclusion and suggestions

The study shows that MSIL has the largest market share in the field of four
wheelers in India. Marketing strategy used by MSIL is satisfactory and
appropriate to sustain in the competitive era. MSIL’s marketing strategy is good
enough to take the competitive advantage. The technology used by MSIL is as
per economic needs and the positive EXIM policy of India help to enhance the
export of cars. Aggressively, MSIL moves towards present opportunities that is
rise of Indian middle class and small cities with booming economy.
As far as the suggestion is concern, it is necessary for MSIL that it maintains the
present status in the Indian market. MSIL keeps close look on different threats
and do the needful to prevent it from threats and immediately eliminate the
weaknesses and should establish a separate R & D department. And need to
think about question mark group products and I think, it is necessary to stop the
dog group products.