Project 1 Maruti Suzuki

An Organization study
ORGANIZATIONAL STUDY MARUTI SUZUKI INDIA LTD
CHAPTER: 1
INDUSTRY PROFILE
1. INTRODUCTION TO INTERNSHIP:
Project is the integral part of the academic’s syllabus of the MBA. Internship is the incentive to
link the gap between knowledge and its application through a series of intervention that enable
students of MBA program. To gain insights and exposure to the study.
Organization examine refers back to the take a look at of business enterprise as an entire and
getting of expertise with various departments in the organization. The corporation is spilt into
various departments to enhance the management and manage. Organizational studies are tries to
observe the work of managers and employees in every branch in the business enterprise.
This project mainly focuses on the study of an organization. The aim of undertaking this
organization study is to understand the working culture of organization at MARUTI SUZUKI
INDIA LTD.
1.1 INTRODUCTION TO AUTOMOBILE INDUSTRY :
The History of the automobile actually began about 4000 years ago when the first wheel was
used for transportation in India. Several Italians recorded designs for wind-driven cars. The first
was Guido da Vigevano in 1335. It was a windmill-type drive to gears and thus to wheels.
Vaturio designed a similar car that was also never built. Later Leonardo da Vinci designed
clockwork-driven tricycle with tiller steering and a differential mechanism between the rear
wheels.
In the early 15th century, the Portuguese arrived in china and the interaction of the two cultures
led to a variety of new technologies, including the creation of a wheel that turned under its own
power. By the 1600s, small steam-powered engine models were developed, but it was another
century before a full – sized engine – powered automobile was created.
The automobile history dates back to the late 18th century. In the year 1769, a French engineer by
the Nicolas J. Cugnot invented the first automobile to run on roads. This automobile, in fact, was
a self-powered, three wheeled, the vehicle found military application in the French army.
Cugnot’s automobile was never commercially sold.
Charles Duryea built a car carriage in America with petrol engine in 1892, followed by Elwood
Haynes in 1894, thus paving the way for motor car under a bonnel.
For many years after the introduction of automobiles , three kinds of power sources were in
common use: steam engines, gasoline or petrol engines, and electrical motors. In 1900, over
2,300 automobiles were steam cars, 800 were electric cars, and only 400 were gasoline cars. In
DEPARTMENT OF MANAGEMENT SUDIES,(MBA,BGSIT) 1
Adhichunchanagiri university, B G Nagara.


ten years from the invention of the petrol engine, the motor car had evolved itself into amazing
designs and shapes. By 1898, there were 50 automobile – manufacturing companies in the united
states, a number that rose to 241 by 1908. In that year, Henry Ford revolutionized the
manufacture of automobiles with his assembly – line style of production and brought out the
model T, a car that was inexpensive, versatile, and easy to maintain.
The introduction of the model T transformed the automobile from a plaything of the rich to an
item that even people of modest income could afford ; by the late 1920s the car was common
place in modern industrial nations.
Herbert Austin and William Morris, two different car makers, introduced mass production
methods of assembly in the UK, thus paving the way for a revolution in the automobile industry.
Austin seven was the worlds first practical four – seater ‘baby car’ which brought the pleasure of
motoring to many thousand of people who could not by a larger, more expensive car. Even the
‘bull-nose’ Morris with front mounted engine became the well-loved model and one of the most
popular cars in the 1920s.
Automobile manufacturers in the 1930s and 1940s refined and improved on the principles of ford
and other pioneers. Cars were generally large, and many were still extremely expensive and
luxurious; many of the collectible cars date from this time. The increased affluence of the united
states after world war 2 led to the development of large, petrol-consuming cars, while most
companies in Europe made smaller, more fuel-efficient cars. Since the mid-1970s, the rising cost
of fuel has increased the demand for this smaller cars , many of which have been produced in
japan as well as in Europe and the united states.

CHAPTER- 2
COMPANY PROFILE
AT A GLANCE:
Maruti Suzuki India Limited is a subsidiary company of Japanese automobile and
motorcycle manufacturer Suzuki. The company offers a complete range of cars from entry level
Maruti 800 and Alto, to hatchback Ritz, A-Star, Swift, Wagon-R, Estillo, Ertiga, celerio, and
sedans DZire, SX4, in the 'C' segment Maruti Eeco and Sports Utility vehicle Grand Vitara.
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 Limited was renamed as Maruti Suzuki India Limited.
The company's headquarters are located in New Delhi.
2.1 BACKGROUND
Maruthi Suzuki is India and Nepal’s number one leading automobile manufacturer 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 BJP-led government held an initial public offering of 25% of the company
in June 2003. As of may 2007, the government of India sold its complete share to Indian
financial institutions and no longer has any stake in Maruti Udyog.
Maruti Udyog Limited (MUL) was established in February 1981, through 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
Suzuki has produced over 5 million vehicles. Maruti Suzuki is sold in India and various several
others countries, depending upon export orders. Models similar to Maruti Suzuki’s (but not
manufactured by Maruti Udyog) are sold by Suzuki motors corporation and manufactured in
Pakistan and other south Asian countries.
The company exports more than 50000 cars annually and has an extremely large domestic
market in India selling over 730000 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.
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 capability to
produce over 700,000 units annually. More than half the cars sold in India are Maruti Suzuki
cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per
cent of Maruti Suzuki. The rest is owned by public and financial institutions. It is listed on the
Bombay Stock Exchange and National Stock Exchange in India.
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over
six million Maruti Suzuki cars are on Indian roads since the first car was rolled out on 14
December 1983. Maruti Suzuki offers 14 models, Maruti 800, Alto, WagonR, Estilo, A-star,
Ritz, Swift, Swift DZire, SX4, Omni, Eeco, Gypsy, Grand Vitara, and Kizashi. Swift, Swift
DZire, Astar and SX4 are manufactured in Manesar, Grand Vitara and Kizashi are imported from
Japan as completely built units(CBU), remaining all models are manufactured in Maruti Suzuki's
Gurgaon Plant.
Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for
three decades. Suzuki’s technical superiority lies in its ability to pack power and performance
into a compact, lightweight engine that is clean and fuel efficient. Nearly 75,000 people are
employed directly by Maruti Suzuki and its partners. It has been rated first in customer
satisfaction among all car makers in India from 1999 to 2009 by J D Power Asia Pacific.
While the major companies were personally represented in the initial rounds of discussion,
Osamu Suzuki, Chairman and CEO of the company ensured that he was present in all the rounds
of discussion. Osamu in an article writes that it subtly massaged their (Indian delegation's) egos
and also convinced them about the sincerity of Suzuki's bid. Suzuki in return received a lot of
help from the government in such matters as import clearances for manufacturing equipment
(against the wishes of the Indian machine tool industry then and its own socialistic ideology),
land purchase at government prices for setting up the factory Gurgaon and reduced or removal of
excise tariffs. This ensured that Suzuki conscientiously nursed Maruti Suzuki through its infancy
to become one of its flagship ventures.
2.2 Nature of the business:

Maruti Suzuki India Limited(MSIL), a subsidiary of Suzuki Motors Corporation, Japan, is
India’s largest passenger car maker. Maruti Suzuki is credited with having ushered in the
automobile revolution in the country. The company engaged in the business of manufacturing
and sale of passenger vehicles in India. Making a small beginning with the iconic maruti 800 car,
maruti Suzuki today has a vast portfolio of 16 car models with over 150 variants. Maruti
Suzuki’s product range extends from entry level small cars like Alto 800, Alto K10 to the luxury
sedan ciaz. Other activities include facilitation of pre-owned car sales fleet management, car
financing. The company has manufacturing facilities in Gurgoan and Manesar in Haryana and a
state of the art R&D centre in Rohtak, Haryana.
The company, formally known as Maruti Udyog Limited, was incorporated as a joint venture
between the government of India and Suzuki Motor Corporation, Japan in February, 1981.


Presently, Suzuki Motor Corporation owns equity of 56.2%. The company’s shares are traded on
the National Stock Exchange (NSE) and Bombay Stock Exchange(BSE).
2.3 Joint venture related issues:

Maruti Suzuki's A-Star vehicle during its unveiling in PragatiMaidan, Delhi. A-Star, Suzuki's
fifth global car model, was designed and is made only in India. Maruti Suzuki is also Suzuki's
leading research and development arm outside Japan Relationship between the Government of
India, under the United Front (India) coalition and Suzuki Motor Corporation over the joint
venture was a point of heated debate in the Indian media till Suzuki Motor Corporation gained
the controlling stake. This highly profitable joint venture that had a near monopolistic trade in
the Indian automobile market and the nature of the partnership built up till then was the
underlying reason for most issues. The success of the joint venture led Suzuki to increase its
equity from 26% to 40% in 1987 and further to 50% in 1992. In 1982 both the venture partners
had entered into an agreement to nominate their candidate for the post of Managing Director and
every Managing Director will have tenure of five years.
R.C. Bhargava was the initial managing director of the company since the inception of the joint
venture. Till today he is regarded as instrumental for the success of Maruti Suzuki. Joining in
1982 he held several key positions in the company before heading the company as Managing
Director. Currently he is on the Board of Directors. After completing his five year tenure, Mr.
Bhargava later assumed the office of Part-Time Chairman. The Government nominated Mr.
S.S.L.N. Bhaskarudu as the Managing Director on 27 August 1997. Mr. Bhaskarudu had joined
Maruti Suzuki in 1983 after spending 21 years in the Public sector undertaking Bharat Heavy
Electricals Limited as General Manager. In 1987 he was promoted as Chief General Manager. In
1988 he was named Director, Productions and Projects.
The next year (1989) he was named Director of Materials [clarification needed] and in 1993 he
became Joint Managing Director. Suzuki Motor Corporation didn't attend the Annual General
Meeting of the Board with the reason of it being called on a short notice. Later Suzuki Motor
Corporation went on record to state thatBhaskarudu was "incompetent" and wanted someone
else. However, the Ministry of Industries, Government of India refuted the charges. Media stated
from the Maruti Suzuki sources that Bhaskarudu was interested to indigenize most of
components for the models including gear boxes especially for Maruti 800. Suzuki also felt that
Bhaskarudu was a proxy for the Government and would not let it increase its stake in the
venture. If Maruti Suzuki would have been able to indigenize gear boxes then Maruti Suzuki
would have been able to manufacture all the models without the technical assistance from
Suzuki. Till today the issue of localization of gear boxes is highlighted in the press.
The relations strained when Suzuki Motor Corporation moved to Delhi High Court to bring a 8
stay order against Bhaskarudu's appointment. The issue was resolved in an out-of-court
settlement and both the parties agreed that R S S L N Bhaskarudu would serve up to 31
December 1999, and from 1 January 2000, JagdishKhattar, Executive Director of Maruti


UdyogLimited would assume charges as the Managing Director. Many politicians stated in
parliament that the Suzuki Motor Corporation is unwilling to localize manufacturing and reduce
imports. As of 2011 Gear boxes are still imported from Japan and are assembled at the Gurgaon
facility.
2.4 THE PRODUCTS OF MARUTI SUZUKI:

1. Gypsy (launched 1985)
2. WagonR (Launched 1999)
3. Alto (Launched 2000)
4. Swift (Launched 2005)
5. Estilo (Launched 2006)
6. SX4 (Launched 2007)
7. Swift DZire (Launched 2008)
8. A-star (Launched 2008)
9. Ritz(Launched 2009)
10.Eeco (Launched 2010)
11.Alto K10 (Launched 2010)
12.MarutiErtiga(Launched 2012), seven seater MPV R3 designed and developed in India, will
compete with Toyota Innova, Mahindra Xylo, and Tata Sumo Grande. In early 2012, Suzuki
Ertiga will be exported first to Indonesia in Completely Knock Down car.
13. Maruti XA Alpha based compact SUV to compete with the Ford Eco Sport& Renault Duster
will be launched in the year 2014
14. Maruti Alto 800(Launched 2012), Maruti Alto 800 is finally out with a price tag of Rs.2.44
lakh (ex-showroom New Delhi). Maruti has rolled out three standard variantsAltos 800 Base,
Alto 800 LX and Alto 800 LXi and three, CNG variants -Alto 800 CNG Base, Alto 800 CNG
LX and Alto 800 CNG LXi. The 0.8 liter of petrol engine is very fuel efficient and pushes the car
to produce high class mileage of 17 to 22 km per liter. The 45.7BHP of peak power produced by
the engine is also successful on road by delivering top-notch performance.
15. Maruti Suzuki Ertiga (Launched 2013)
16. Maruti celerio (Launched 2014)
17. Maruti Ciaz (Launched 2014)


Imported:
1. Grand Vitara (Launched 2007)
2. Kizashi (Launched 2011)


2.5 MODEL AND PRICE OF THE PRODUCTS:
Car Model Ex-Showroom Price
Maruti Suzuki Alto 800 2.38 – 3.49 lakhs
Maruti Suzuki omni 2.41 – 2.47 lakhs
Maruti Suzuki Eeco 2.98 – 3.98 lakhs
Maruti Suzuki alto k 10 3.15 – 3.28 lakhs
Maruti Suzuki wagon R 1.0 3.49 – 4.34 lakhs
Maruti Suzuki Celerio 3.76 – 4.79 lakhs
Maruti Suzuki stingray 4.01 – 4.56 lakhs

Maruti Suzuki Ritz 4.23 – 6.16 lakhs
Maruti Suzuki swift 4.42 – 6.71 lakhs
Maruti Suzuki swift DZire 4.85 – 7.32 lakhs
Maruti Suzuki Gypsy 5.79 – 5.63 lakhs
Maruti Suzuki Ertiga 5.80 – 8.49 lakhs
Maruti Suzuki S*4 7.15 – 9.54 lakhs
Maruti Suzuki grand vitara 22.68 – 24.61 lakhs

Maruti Suzuki Ciaz 8 lakhs
Maruti Suzuki iV-4 12 lakhs
Maruti MR wagon 5 lakhs
Maruti Suzuki S*4 S Cross 10 lakhs


sales and service 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 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 suzuki 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.
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 Maruti Insurance offers special Motor Insurance products from leading Insurance
Companies like National Insurance, New India Assurance, ICICI Lombard, IffcoTokio, Royal
Sundaram & Bajaj Allianz.Maruti Insurance also ensures excellent customer service with utmost
fairness and transparency available to you across the country. No wonder, more than 90%
customers buying a Maruti Suzuki, prefer to buy a Maruti Insurance Policy for their car.
Maruti Suzuki Finance :
To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002.
Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and
Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in
securing loan. Maruti Suzuki 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 2003Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti
Finance. SBIMaruti Finance is currently available in 166 cities across India.
Maruti Finance marks the coming together of the biggest players in the car finance business.
They are the benchmarks in quality and efficiency. Combined with Maruti volumes and
networked dealerships, this will enable Maruti Finance to offer superior service and competitive
rates in the marketplace".
Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India and Maruti
Udyog Limited its primary business stated by the company is "hire-purchase financing of Maruti
Suzuki vehicles". Citi Finance India Limited is a wholly owned subsidiary of Citibank Overseas
Investment Corporation, Delaware, which in turn is a 100% wholly owned subsidiary of Citibank


N.A. Citi Finance India Limited holds 74% of the stake and Maruti Suzuki holds the remaining
26%. GE Capital, HDFC and Maruti Suzuki came together in 1995 to form Maruti Countrywide.
Maruti claims that its finance program offers most competitive interest rates to its customers,
which are lower by 0.25% to 0.5% from the market rates.
Maruti True Value :
True service offered by Maruti Suzuki to its customers, it is a market place for used Maruti
Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with the help of this
service in India. As of 31 March 2010 there are 341 Maruti True Value outlets.
Accessories :
Many of the auto component companies other than Maruti Suzuki started to offer components
and accessories that were compatible. This caused a serious threat and loss of revenue to Maruti
Suzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine Accessories
to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps, stereo
systems, seat covers and other car care products.
These products are sold through dealer outlets and authorized service stations throughout India.
Exports :
Maruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on exports and it
does not operate in the domestic Indian market. The first commercial consignments of 480 cars
were sent to Hungary. By sending a consignment of 571 cars to the same country Maruti Suzuki
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 Suzuki to earn foreign
currency. Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Nepal, Sri Lanka,
Uganda, Chile, Guatemala, Costa Rica and El Salvador are some of the markets served by Maruti
Exports.
2.5 Vision, Mission & Quality policy:
Vision:
Visions of any company are those values on which company works. As the MUL is started by
Governmental initiatives it tends to be more consumer oriented and hence cost effective, but on
the other hand Suzuki’s participation ensures not only need of the profit, but of the need of
maximum profit. The only way for this Nora’s dilemma of selecting principals for company’s
working vision, was to maximize profit and reducing cost by maximizing output and sales hence
MUL declared its Vision as- “The Leader in the Indian Automobile Industry, Creating Customer
Delight and Shareholder's Wealth; eventually become a pride of India”

Mission:
Mission is the statement of an organization’s purpose, what it want to accomplish in the larger
environment and its goals which are specific, realistic and motivating. Missions are described
over visions and visions demand certain objectives. The main objectives/Missions of MUL are:
-Modernization of the Indian Automobile Industry.
-Developing cars faster and selling them for less.
-Production of fuel-efficient vehicles to conserve scarce resources.
- Production of large number of motor vehicles which was necessary for economic growth.
- Market Penetration, Market Development Similarly Product Development and Diversification.
- Partner relationship management, Value chain, Value delivery network.
Quality policy:
Quality policy of MSIL is “consumer satisfaction through quality of our products and services,
achieved by consistent adherence to procedures and systems”.
Goals :
 Building a continuously improving organization adaptable to quick changes.
 Providing value and satisfaction to the customer.
 Aligning and fully involving all our employees, suppliers and dealers to face competition.
 Maximizing Shareholder's value.
 Being a responsible corporate citizen.

2.6 Process flow of Maruti Suzuki:
Production division of Maruti Suzuki India Ltd:

Production division in Maruti Suzuki India ltd has been renamed as production
business vertical (PBV) after inclusion of projects, production engineering, vehicle inspection &
supplier quality assurance divisions in it.
Press shop:
The press shop can be regarded as the starting point of the car manufacturing process.
Centrally located between weld 1, weld 2 and weld 3 supplies components to all the three plants.
The press shop has a batch production system whereas the plants have a line production system.
Process flow of press shop activity:


Steel coil panel
1. Currently Press Shop is producing sheet metal components for 8 running models of
Maruti Suzuki and one model of GM India - Tavera
2. The Blanking and stamping shop processes 10000 metric ton of steel / month i.e. 400
tons a day
Machine :
1. Five transfer press (4000 ton, 3500 ton, 2400 ton -1 2400 ton -2, 2000 ton in terms of
total capacity &1 tandem line.
2. Two coil processing lines SPM of 60
3. Capacity of 55,000 strokes / day from 400 tons of steel coils
Press machine:
Mass production presses are continuous flow transfer presses. Set of 4 to 5 dies are mounted
on single press & complete panel comes out from press after going through stamping, trimming
& piercing.
SMED:
“Single Minute Exchange of Dies” new concept being adopted. This concept helps in changing
of die set up within single digit minute(below 9 minutes) this help in improving machine
utilization & operating efficiency.
Yield is improved by:
1. Reducing the blank size
2. Utilization of scrap for making smaller sheet metal parts
Steel coils:
 Steel coil is raw material used to make body sheet metal parts. These are CRS
coils made of mild steel having thickness from 0.65 mm to 0.8 mm &weight from
1ton to 4 tons.
 Steel coils are received in bulk quantities from indigenous as well as foreign
suppliers in the ratio of 60 to 40 & stored at a centralized storage & supplied to
blank cutting areas as per plan.


Engine assembly:
1. Fc engine – engine with cast iron block
a. M-800
b. Omni
c. Alto
d. Wagon – R
e. Zen Estillo
2. Aluminum engine – engine with aluminum block
a. Gypsy
b. SX4
c. Swift(petrol)
d. Desire(petrol
3. KB engine (new series of engines with aluminum block)
a. A-Star
b. Ritz
4. Diesel engine
a. Swift (Diesel)
b. Dezire (Diesel)
c. Ritz (Diesel)
2.7 Achievements and awards:

1. Maruti Suzuki has been awarded the ‘national Safety Award’ by ministry of Labour and
Employment, Government of India. The award is for excellence in industrial safety in the
automobile category in the performance year 2016.
2. Maruti Suzuki India Ltd received the ‘commendation for significant achievements’ at the CII
– ITC sustainability awards 2018. The award was presented by Mr. Amitabh Kant, CEO, NITI
Aayog to Maruti Suzuki team.


3. Maruti Suzuki swift, which has topped the sales charts to become India’s most popular
premium hatchback has been awarded the Indian car of the year 2019(ICOTY) by a jury of
India’s leading automobile experts drawn from across publications.
2.8 Future growth and prospects:
 Maruti Suzuki India Limited is a stock well positioned for future growth, but many
investors are wondering whether its last closing price of Rs 8743.7 is based on unrealistic
expectations.
 Maruti Suzuki India is poised for extremely high earnings growth in the near future.
Expectation from 35 analysts are extremely positive with earnings per share estimated to
rise from today’s level of Rs 260.88 to Rs 436.684 over the next three years. This results
in an annual growth rate of 17.88%, on average, which signals a market – beating outlook
in the upcoming years.
 The steadily rising demand of utility vehicles has prompted auto makers to introduce new
products that conform to customer’s requirements. A number of car makers have already
launched new models and enjoyed great responses. Some of the best examples of
successfully utility vehicles in the Indian auto market are Ford EcoSports, Renault Duster
and Mahindra Scorpio.
2.9 Competator’s:
 TATA Motors Company
 HONDA Company
 HYUNDAI Company
 Mahindra Company
 TOYOTA Companys


CHAPTER – 3
MCKINSEY’S FRAMEWORK
Maruti has believed, since the very beginning that it is its employees who could
make it into an organization with a difference. Accordingly, as against the traditional
hierarchical. System of management, which causes unnecessary delays in decision making, we
have built up a flat organization with a family type of atmosphere at our place of work.
The company divided in to different divisions according to the various functional
areas. A divisional manager heads each division. Divisions are further divided in to departments
that are headed by department managers who reports to the respective divisional managers.
Across history, the people have made Maruti Suzuki a company ready to meet the
challenges of the dynamic auto market. The value discipline and punctuality and over
maintaining a safe and healthy work environment.
This 7-S frame work developed by the McKinsey. This frame work was originally
developed by deep thinking and more broadly about effectively organizing a company. It’s
concept related on strategy implementation as a matter of structure and strategy.
These seven elements is conjunction with different of other elements.
 Shared values
 Strategy
 Structure
 Systems
 Skills
 Staff
 Style

The seven S elements divided in two parts, are called ‘hard’ and ‘soft’ elements. ‘Hard’ or
‘tangible’ elements are strategy, structure and systems.
 STRATERGY:
It refers to plan to action to achieve a particular goal or objectives, related on
certain products and markets and allocating resources. Strategy is the direction and scope of an
organization over the long term period.
 STRUCTURE:
It is refers to the organizational structure, hierarchy and activities and
integration of tasks. A structure provides a convenient way of organizing several related
variables as a single unit.

 SYSTEMS:
Systems are the primary and secondary processes that the organization
employees to get
things done, for instant manufacturing system supply
planning order taking process etc…. systems thinking offers you a powerful new
perspective and a set of tools that you can use to address the most stubborn problems in
your everyday life and work.
Soft elements are style, staff, skills, and shared values.
 STYLE:
It refers to the unwritten yet tangible evidence of how management really sets
priorities and spends its time. It is a symbolic behavior between bosses and workers.
Style is a refection of your speaking and thinking habits.
 STAFF:


The staff is comprised of the people in an organization and the employees and
their general capabilities.
 SKILLS:
“to get paid what you are worth, know your disruptive skills” by Whitney Jhonson.
When selling yourself in the talent marketplace, it can be all too easy to focus on the
strengths that are required of the job in questions.
 SHARED VALUE:
It is proof of existence of the company. Share value is represents their own
present company situation. It is called “super ordinate goals”.

CHAPTER – 4
SWOT ANALYSIS
SWOT analysis is an extremely useful tool for understanding and decision - making
for all sorts of situations in business and organizations. SWOT is an acronym for strength,
weakness, opportunities, and threats. The SWOT analysis is headings provide good frame work
for reviewing strategy, position and direction of a company or business proposition, or any other
idea.
Maruti Suzuki is the market leader in India and has an amazing brand equity. Maruti is known
for the service it provides and is synonymous with Maruti 800 the longest running small car in
India. Here is a SWOT of Maruti Suzuki, its strength, weaknesses, opportunities, and threats.
4.1 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 product.
 Maruti Suzuki recorded highest number of domestic sales with 9,66,447 units from 7, and
65,533 units in the previous fiscal. It recently attained the 10 million domestic sales
mark.
 Strong brand value and loyal customer base are big strengths for MUL.
 There are around 15 vehicles in maruti products portfolio. Has good product lines with
good product lines with good fuel efficiency like Maruti swift, Diesel, and 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 its after sales service is a major revenue
contributor.
4.2 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 generation started getting a great affinity towards new foreign brands.
 The management and the company’s labor unions are not in good terms. The recent
strikers of the employees have slowed down production and in turn affecting sales.
 Maruti hasn’t proved itself in SUV segment like other players.
4.3 OPPERTUNITIES :
 MUL has launched its LPG version of wagon R and it was a good move simultaneously.
 MUL can start R&D on electric cars for a much better substitute of the fuel.
 Maruti’s cevro 600 has a huge potential in tapping the middle class segment and act as a
strong threat to Nano
 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.
4.4 THREATS:


 MUL recently faced a decline in market share from its 50.09% to 48.09% in the previous
year
 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.
 Tata motors recent launches like Nano 2012, indigo e-cs are imposing major threats to its
respective competitors segment.
 China may give a good competition as they are also planning to enter into Indian car
segment.
 Launch of Hyundai’s H800 may result in the decline of Alto sales.
A SWOT analysis provides strategic insight on recommendations and opportunities

for small businesses to map out a strategic plan. As an actionable management tool, the SWOT
helps a small business owner hone in on the right course of action to leverage the businesses
unique characteristics. By turning threats into strengths, and matching strengths with
opportunities, you can make the most of your power in the current market place and maximize
your chances of success.


CHAPTER – 5
ANALYSIS OF FINANCIAL STATEMENT
Introduction :
Financial statement analysis is the process of reviewing and analyzing a company’s financial
statements to make better economic decisions to earn income in future. Financial statements
analysis is a process involving specific techniques for evaluating risks, performance, financial
health, and prospects of an organization.
These statements include the:
 Income statement
 Balance sheet
 Statement of cash flow
 Ratio analysis
5.1 Balance sheet :
Particular March 20 March 19
I.EQUITY AND
LIABILITIES
Shareholder’s fund
Equity share capital 151.00 151.00
Total share capital 151.00 151.00
Reserve and surplus 49,262.00 46941.10

Total reserves and 49,262.00 46941.10
surplus
Total shareholders funds 49,413.00 47,092.10
Non-Current liabilities
Long term borrowings 5.40 8.00
Deferred tax liabilities 657.50 613.90
Other long term liabilities 2,175.60 2,037.10


Long term provisions 51.60 39.50
Total current liabilities 2,890.10 2,698.50
Current liabilities
Short term borrowings 106.30 149.60
Trade payables 7,498.80 9,637.70
Other current liabilities 3,019.60 3,747.80
Short term provisions 680.70 625.40
Total current liabilities 11,305.40 14,160.50
TOTAL CAPITAL AND 63,627.70 63,968.70

LIABILITIES
II. ASSETS
Non-current assets
Tangible assets 15,408.60 14,986.20
Intangible assets 406.70 451.10
Capital work-in-progress 1,344.30 1,606.90
Fixes assets 17,159.60 17,044.20
Non-current investments 36,269.20 32,458.10
Deferred tax assets 0.00 0.00
Long term loans and 0.20 0.20

advances
Other Non-Current assets 1,758.10 2,093.50
Total Non-Current assets 55,187.10 51,596.00
Current assets
Current investments 1,218.80 5,045.50
Inventories 3,213.90 3,322.60
Trade receivables 2,129.80 2,312.80


Cash and cash equivalents 29.00 187.80
Short term loans and 17.00 16.10

advances
Other current assets 1,832.10 1,487.90
Total current assets 8,440.60 12,372.70
TOTAL ASSETS 63,627.70 63,968.70
Contingent liabilities,
commitments
Contingent liabilities 11,232.80 11,948.60
5.2 Profit and loss account:
PARTICULAR March 2020 March 2019
INCOME
Revenue from operations 71,690.40 83,026.50
Less: excise/ service 0.00 0.00

tax/other levies
Total operating revenues 75,610.60 86,020.30
Other income 3,420.80 2,561.00
Total revenue 79,031.40 88,581.30
EXPENSES
Cost of materials consumed 34,636.60 45,023.90
Changes in inventories of -238.10 210.80

FG,WIP and stock-In trade
Employee benefit expenses 3,383.90 3,254.90
Finance costs 132.90 75.80


Depreciation and 3,525.70 3,018.90
amortization expenses
Other expenses 11,889.20 11,634.00
TOTAL EXPENSES 71,966.60 78,115.70
Profit / loss before 7,064.80 10,465.60

exceptional,
extraordinary items and
tax
Exceptional items 0.00 0.00
PROFIT/LOSS before tax 7,064.80 10,465.60
Total tax expenses 1,414.20 2,965.00
PROFIT / LOSS FOR 5,650.60 7,500.60

THE PERIOD
5.3 Cash flow statement:
PARTICULARS MARCH 2020 MARCH 2019
Net profit / loss before 7,064.80 10,465.60

extraordinary items and tax
Net cash flow from operating 3,405.10 6,593.20

activities
Net cash used in investing -463.90 -3,538.30
activities
Net cash used from financing -3,100.00 -2,947.80
activities
Net increase / decrease in -158.80 107.10

cash and cash equivalents

begin of year


end of year
5.4 CALCULATION OF RATIOS:
5.4.1 CURRENT RATIO

Current assets
Current ratio =
Current liabilities
particular 2020-19 2019-18
Current assets 8,427.40 12,361.60
Current liabilities 11,294.80 14,150.30
Current ratio 0.75 0.87
Current ratio is calculated to establish relationship between the current assets and current
liabilities. It is also called as working capital ratio. The difference between current assets
and current liabilities is called working capital. The current ratio measures the company’s
ability to pay short-term obligations.
In any operation concern, the current ratio should be 2:1 is called as ideal ratio. Current
ratio in 2019-18 is 0.87:1 its shows that the company performing well as there is a higher
current liability it shows that the company does not have enough current assets to pay for
its short term obligation. And in 2020-19 is 0.75:1 its shows decrease in ratio
comparative to previous year which means the company have enough assets to pay its
short term obligation.
5.4.2 QUICK RATIO:
Quick assets


Quick ratio =
Quick liabilities
Particulars 2020-19 2019-18
Quick assets 8,427.40 12,361.60
Quick liabilities 11,294.80 14,150.30
Quick ratio 0.75 0.87
Liquid ratio is the ratio of liquid assets to liquid liabilities. Liquid assets are those assets
which are the readily converted into cash. It is wise to keep liquid assets at liabilities. The
ideal quick ratio is 1:1. In the year 2019-18 the quick ratio is 0.87, it shows that company
does not have enough money to cover its liabilities. But in the coming year it goes on
decreasing which shows the company has enough quick assets to cover its quick
liabilities.
5.4.3 SOLVENCY RATIO:
Total assets
Solvency ratio =
Total liabilities
particular 2020-19 2019-18
Total assets 62,552.10 62,931.80


Total liabilities 62,552.10 62,931.80
Solvency ratio 1 1
Solvency ratio is primarily used to measures a company’s ability to meet its long term
obligations. A higher ratio indicates financial strength, a lower ratio could indicate financial
strggle in the future. The company solvency ratio is 1 in every year.
5.4.4 PROPRIETARY RATIO:
Shareholders fund
Proprietary ratio =
Total assets
Particular 2020-19 2019-18
Total shareholders fund 48,437.00 46,141.50
Total assets 62,552.10 62,931.80
Proprietary ratio 0.77 0.73


The ideal ratio of proprietary ratio is 0.5:1. Higher the ratio indicates the long term
financial position of the company. The CIFCL proprietary ratio is higher which indicate
the long term solvency position of the firm. It also indicates that the assets of the
company can be lost without affecting the interest of the creditors of the company.
5.4.5 RETURN ON ASSETS RATIO:
Net profit
Return on assets= *100
Total assets
Net profit 5,650.60 7,500.60
Total assets 62,552.10 62,931.80
Return on assets 9.03 11.9
The return on assets ratio, often called the return on total assets, is a profitability ratio that
measures the income produced by total assets during by comparing net income to the average
total assets. It measures how efficiently company can manage its assets to produce profits during
a period.
Return on assets of the company in the year 2019-18 is 11.9% which shows that company having
11.9% profit on the investment of its total assets. And incoming year the utilization of assets
goes on decreasing comparing the previous year.

5.4.6 RETURN ON EQUITY RATIO:
Net profit
Return on equity =
Equity
Net profit 5,650.60 7500.60
Equity 49,413.00 47,092.10
Return on equity 0.11 0.16
Return on equity measures profitability using resource provided by investors and the
company earnings. The ideal ratio is 15 to 20 which shows that the company was able to
successfully utilize the resource provided by its equity investors and the company’s
accumulated profits to generating income.
5.4.7 RETURN ON TOTAL RESOURCES RATIO:


Net profit
Return on total resources = * 100
Total assets
Particular 2020-19 2019-18
Net profit 5,560.60 7500.60
Total assets 62,552.10 62,931.80
Return on total resources 8.89 11.91
The return on total resource means what is the return on the total asset. Hence, the company have
return 11.91% of return on total of its asset in the year 2019. But in coming it goes on
decreasing.
5.4.8 RATIO TABLE:

Particular MARCH 2020 MARCH 2019
Current ratio 0.75 0.87
Quick ratio 0.75 0.87
Solvency ratio 1 1
Proprietary ratio 0.77 0.73
Return on assets 9.03 11.9
Return on equity ratio 0.11 0.16
Return on total resources 8.89 11.91
Chapter – 6


Learning experience
Due to COVID-19 crisis we are not allowed to do the project practically, but we did it by
collecting information and data in various websites.
It is clear that this pandemic has utterly disrupted an education system that many assert was
already losing its relevance.
I learned about management and how the organization works in management aspects and
policies and procedure. As a management student, we need to know the different functioning of
organization.
If I did this project by visiting the company, hope I got very excite experience which is totally
different than it. But this project give me an idea about function with great strength and
efficiency ensuring sustainable success in all fields, and a high level of job satisfaction is
necessary in any type of organization. The company provide as much as possible information in
their official website which help me to do this organization study in very pleasant way. It helps
me to learn more about myself it also develops some soft skills.
In the organization study, organization website provided me information that was useful and
enable me to know functions of each and every aspects of the company.
Finally I feel good to express the information regarding MARUTI SUZUKI INDIA Ltd.,


BIBLIOGRAPHY:
www.marutiudyog.com
www.indiacars.com
www.autoindia.com
www.moneycontrol.com

Project 1 Maruti Suzuki

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Project 1 Maruti Suzuki

Uploaded by

Copyright:

Available Formats

An Organization study

ORGANIZATIONAL STUDY MARUTI SUZUKI INDIA LTD

DEPARTMENT OF MANAGEMENT SUDIES,(MBA,BGSIT) 1

Adhichunchanagiri university, B G Nagara.

ORGANIZATIONAL STUDY MARUTI SUZUKI INDIA LTD

DEPARTMENT OF MANAGEMENT SUDIES,(MBA,BGSIT) 2

Adhichunchanagiri university, B G Nagara.

ORGANIZATIONAL STUDY MARUTI SUZUKI INDIA LTD

DEPARTMENT OF MANAGEMENT SUDIES,(MBA,BGSIT) 3

Adhichunchanagiri university, B G Nagara.

ORGANIZATIONAL STUDY MARUTI SUZUKI INDIA LTD

2.2 Nature of the business:

DEPARTMENT OF MANAGEMENT SUDIES,(MBA,BGSIT) 4

Adhichunchanagiri university, B G Nagara.

ORGANIZATIONAL STUDY MARUTI SUZUKI INDIA LTD

2.3 Joint venture related issues:

DEPARTMENT OF MANAGEMENT SUDIES,(MBA,BGSIT) 5

Adhichunchanagiri university, B G Nagara.

ORGANIZATIONAL STUDY MARUTI SUZUKI INDIA LTD

2.4 THE PRODUCTS OF MARUTI SUZUKI:

DEPARTMENT OF MANAGEMENT SUDIES,(MBA,BGSIT) 6

Adhichunchanagiri university, B G Nagara.

ORGANIZATIONAL STUDY MARUTI SUZUKI INDIA LTD

DEPARTMENT OF MANAGEMENT SUDIES,(MBA,BGSIT) 7

Adhichunchanagiri university, B G Nagara.

ORGANIZATIONAL STUDY MARUTI SUZUKI INDIA LTD

Maruti Suzuki Alto 800 2.38 – 3.49 lakhs

Maruti Suzuki omni 2.41 – 2.47 lakhs

Maruti Suzuki Eeco 2.98 – 3.98 lakhs

Maruti Suzuki alto k 10 3.15 – 3.28 lakhs

Maruti Suzuki wagon R 1.0 3.49 – 4.34 lakhs

Maruti Suzuki Celerio 3.76 – 4.79 lakhs

Maruti Suzuki stingray 4.01 – 4.56 lakhs

DEPARTMENT OF MANAGEMENT SUDIES,(MBA,BGSIT) 8

Adhichunchanagiri university, B G Nagara.

ORGANIZATIONAL STUDY MARUTI SUZUKI INDIA LTD

Maruti Suzuki Ritz 4.23 – 6.16 lakhs

Maruti Suzuki swift 4.42 – 6.71 lakhs

Maruti Suzuki swift DZire 4.85 – 7.32 lakhs

Maruti Suzuki Gypsy 5.79 – 5.63 lakhs

Maruti Suzuki Ertiga 5.80 – 8.49 lakhs

Maruti Suzuki S*4 7.15 – 9.54 lakhs

Maruti Suzuki grand vitara 22.68 – 24.61 lakhs

DEPARTMENT OF MANAGEMENT SUDIES,(MBA,BGSIT) 9

Adhichunchanagiri university, B G Nagara.

ORGANIZATIONAL STUDY MARUTI SUZUKI INDIA LTD

Maruti Suzuki Ciaz 8 lakhs

Maruti Suzuki iV-4 12 lakhs

Maruti MR wagon 5 lakhs

Maruti Suzuki S*4 S Cross 10 lakhs

DEPARTMENT OF MANAGEMENT SUDIES,(MBA,BGSIT) 10

Adhichunchanagiri university, B G Nagara.

ORGANIZATIONAL STUDY MARUTI SUZUKI INDIA LTD

DEPARTMENT OF MANAGEMENT SUDIES,(MBA,BGSIT) 11

Adhichunchanagiri university, B G Nagara.

ORGANIZATIONAL STUDY MARUTI SUZUKI INDIA LTD

DEPARTMENT OF MANAGEMENT SUDIES,(MBA,BGSIT) 12

Adhichunchanagiri university, B G Nagara.

ORGANIZATIONAL STUDY MARUTI SUZUKI INDIA LTD

DEPARTMENT OF MANAGEMENT SUDIES,(MBA,BGSIT) 13

Adhichunchanagiri university, B G Nagara.

ORGANIZATIONAL STUDY MARUTI SUZUKI INDIA LTD

2.6 Process flow of Maruti Suzuki:

Production division of Maruti Suzuki India Ltd: