COMPANY ANALYSIS REPORT

ON

Submitted By:

R. ANAND
M.B.A. II Sem

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited)

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A STUDY ON COMPANY ANALYSIS OF MARUTHI UDYOG LTD Submitted in partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION BY R.ANAND MBA II SEMESTER R.No: 08931E0027 Under the esteemed guidance of S.A.HASEENA SULTANA Assistant Professor KOTTAM GROUP OF INSTITUTIONS Department of Management

SRI KOTTAM TULASI REDDY MEMORIAL ENGINEERING COLLEGE OF KONDAIR ITIKYALA MANDAL MAHABOOB NAGAR DISTRICT-519125(AP) DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited)

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DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION SRI KOTTAM TULASI REDDY MEMORIAL COLLEGE OF ENGINEERING KONDAIR, ITIKYALA (MANDAL) MAHABOOBNAGAR (DIST)-509125(A.P) (Affiliated to J.N.T.U.H)

CERTIFICATE This is to certify that the company analysis report entitled on “MARUTHI UDYOG LTD” submitted by “Mr.R.ANAND” in partial fulfillment of the requirements for the award of degree of MASTER OF BUSINESS ADMINISTRATION in Jawaharlal Nehru Technological University –Hyd is a record of bonafide work carried out by her in this department.

Internal guide CONTENTS
COMPANY ANALYSIS REPORT (Maruthi Udyog Limited)

Head of the department

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METHODOLOGY (a) OBJECTIVES OF THE STUDY (b) PROFILE OF THE COMPANY 3. INTRODUCTION 2. ANALYSIS & INTERPRETATION OF FUNCTIONAL AREAS (a) HRM (b) MARKETING MANAGEMENT (C) FINANCIAL MANAGEMENT 5. VISSION& MISSION 4. BIBLIOGRAPHY COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 4 . FINDINGS AND CONCLUSION 6.SNO TITLE PAGE NO 1.

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 COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 5 . To prepare myself as a H. To convert my theoretical knowledge into practical knowledge. person who can easily identify the training need through his experience which is very essential quality of a H.R.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.R.

I am also indebted to her for her invaluable suggestions. “WHERE THERE IS A WILL THERE IS A WAY”. It’s a sheer pleasure for me to state with candidly that this entire project is a heartily attempt to reach maximum accuracy.PARIMALADEVI (Head of Department) for her consistent support and guidance. I therefore take this opportunity top express my atmost gratitude and indebtness to all who have contributed in some way I am thankful to our guide. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 6 . There was a time when it proved to be on up hill task.ACKNOWLEDGEMENT The goal was fixed. I express my deep sense of gratitude and thanks to B. moves were calculated and I moved with full of enthusiasm. But as work progressed my determination and will power grew stronger and completion of this work further confined my belief that. vigour and keen interest. the goal seeming beyond my reach. I am also thankful to her for helping me find and overcome many problems faced during the period. help and continuous support. which made this company analysis happen. for her motivation. which made me to correct my faults and improve myself.

HASEENA SULTANA. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 7 .I am very much obliged to “SRI KOTTAM TULASI REDDY MEMORIAL COLLEGE” which has given me opportunity to carry out our project work in its premises.ME).A. Assistant professor. Dept. Date: Place: Signature of the student. DECLARATION I here by declare mat this project entitled “A STUDY OF COMPANY ANALYSIS REPORT ON BRITANNIA is a bonafied work carried out by me under the guidance of S. I also declare that report is original and not submitted to any other university of Institution for the award of any degree of Diploma. “NAYANATARA” (MA. I feel privileged to thank wholeheartedly our Principal. Kondair. of Management SKTRMC.for giving me this great opportunity.

Currently. though the actual production commenced in 1983 with the Maruti 800. was the India's largest selling compact car ever since it was launched in 1983. The company headquarter is in Gurgaon. More than a million units of this car have been sold worldwide so far. both in terms of volume of vehicles sold and revenue earned. Marutis are sold in India and various several other countries. The rest is owned by the public and financial institutions. of India sold its complete share to Indian financial institutions. till 2004. Govt. The Indian government held an initial public offering of 25% of the company in June 2003. Maruti 800. Until recently. and 54. Japan.OVERVIEW Maruti Suzuki India Limited is a publicly listed automaker in India. Maruti Udyog was renamed Maruti Suzuki India Limited. It is the market leader in India and on 17 September 2007. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 8 . Maruti Alto tops the sales charts and Maruti Swift is the largest selling in A2 segment. 18. its' only competitors. based on the Suzuki Alto kei car which at the time was the only modern car available in India. With this. It is a leading four-wheeler automobile manufacturer in South Asia. Suzuki Motor Corporation of Japan holds a majority stake in the company. It is listed on the Bombay Stock Exchange and National Stock Exchange in India. Haryana (near Delhi). Profile Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the car segment.2% by Suzuki of Japan. depending upon export orders. It is largely credited for having brought in an automobile revolution to India. Maruti Udyog Limited (MUL) was established in February 1981. 2007. 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.the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point.000 cars annually. More than half the cars sold in India are Maruti cars. Through 2004. Maruti has produced over 5 Million vehicles.28% of the company was owned by the Indian government. The company is a subsidiary of Suzuki Motor Corporation. As of May 10. of India no longer has stake in Maruti Udyog.000 cars and has an extremely large domestic market in India selling over 730.2 per cent of Maruti. which owns 54. Govt. It was the first company in India to mass-produce and sell more than a million cars.

Suzuki's bid was considered negligible. Over the years. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 9 . Its emphasis of a Japanese work culture and the modern manufacturing process. Ltd and Maruti Insurance Brokers Pvt. New India Assurance and Royal Sundaram. Maruti has 2628 listed Authorized service stations and 30 Express Service Stations on 30 highways across India. then and now. Initial rounds of discussion were held with the giants of the automobile industry in Japan including Toyota. was accepted by the workforce of the company without any difficulty. Industrial relations For most of its history. Service is a major revenue generator of the company. Since country's resources were made available by mother to her son's pet project. is Maruti’s mission to motorise India. 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. Authorized service stations Maruti is one of the companies in India which has unparalleled service network. The Express Service stations help many stranded vehicles on the highways by sending across their repair man to the vehicle. first instituted in Japan in the 1970s. with Suzuki as a minor partner to make a people's car for middle class India. Maruti Udyog had relatively few problems with its labour force. Bajaj Allianz. The service was set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services Pvt. Limited This service started as a benefit or value addition to customers and was able to ramp up easily. where Maruti trains the local staff. Partner for the Joint venture Pressure started mounting on Indira and Sanjay Gandhi to share the details of the progress on the Maruti Project. What remains unchanged. To ensure the vehicles sold by them are serviced properly. A delegation of Indian technocrats was assigned to hunt a collaborator for the project.Maruti Suzuki was born as a government company. Maruti insurance Launched in 2002 Maruti provides vehicle insurance to its customers with the help of the National Insurance Company. By December 2005 they were able to sell more than two million insurance policies since its inception. the product range has widened. Other automobile companies have not been able to match this benchmark set by Maruti. Nissan and Honda. ownership has changed hands and the customer has evolved. Most of the service stations are managed on franchise basis.

[15] Maruti tied up with ABN Amro Bank. The first commercial consignment of 480 cars were sent to Hungary.000 cars. These schools are modelled on international standards. Maruti has sold over 12. Before driving actual vehicles participants are trained on simulators. Standard Chartered Bank. Shown here is Maruti Gypsy in Malta.000 vehicles through SBIMaruti Finance. Again the company entered into a strategic partnership with SBI in March 2003[16] Since March 2003. 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. Kotak Mahindra. where learners go through classroom and practical sessions. 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. 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.Maruti Finance To promote its bottom line growth. HDFC Bank. and Sundaram to start this venture including its strategic partners in car finance. Later the services were extended to other cities of India as well. ICICI Limited. Many international practices like road behaviour and attitudes are also taught in these schools. Exports Maruti Suzuki has helped India emerge as the fourth largest exporter of automobiles in Asia. Maruti launched Maruti Finance in January 2002. By sending a consignment of 571 cars to the same country Maruti crossed the benchmark of 300. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 10 . Every political party expected Maruti to earn foreign currency. Since its inception export was one of the aspects government was keen to encourage.

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 COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 11 .R. Person & for the organization as well. To prepare myself as a H. person who can easily identify the training need through his experience which is very essential quality of a H.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  To study the HRM of the company • • • To enhance my knowledge about Recruitment and Selection.R. To convert my theoretical knowledge into practical knowledge.

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 12 .

Registered & Corporate Office 11th Floor. 2341341-5 Website www.Code: 532500 NSE ." Automotive .BO Joint Venture February 1981 "The Leader in The Indian Automobile Industry. Creating Customer Delight and Shareholder's Wealth.: +(91)-(124)-2340341-5.Code: MARUTI Bloomberg: MUL@IN Reuters: MRTI. now Suzuki Motor Corporation. Kasturba Gandhi Marg New Delhi .: +(91)-(11)-23316831 (10 lines) Fax: +(91)-(11)-23318754.PROFILE (Snap Shot) Year of Establishment Vision Industry Listings & its codes BSE .110001. A pride of India.com COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 13 . Jeevan Prakash 25. India Tel. 23713575 Telex: 031-65029 MUL IN Works Palam Gurgaon Road Gurgaon -122015 Haryana.marutiudyog. India Tel.Four Wheelers With Suzuki Motor Company. of Japan in October 1982.

Managing Director and CEO Industry Automotive Products Cars Revenue ▲US$3.5 billion (2009) Employees 6.903 [2] Parent Suzuki Website MarutiSuzuki. Haryana. Shinzo Nakanishi.Type Public (BSE MARUTI. NSE MARUTI) Founded 1981 [1] Headquarters Gurgaon.com COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 14 . India Key people Mr.

MILE STONES COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 15 .

Bangalore.Suzuki innovative traffic beat in Delhi and Chennai as social initiatives. a 796 cc hatchback. Installed capacity reached 40.2 per cent. Listed on BSE and NSE after a public issue oversubscribed 10 times. 8 200 • Ritz has launched. the highest ever since the company began operations 20 years ago. Maruti closed the financial year 2003-04 with an annual sale of 472122 units. India's first affordable car was produced. SMC increases its stake to 50 per cent. Produced the 2 millionth vehicle since the commencement of production. Omni. 9 16 . Launch of website as part of CRM initiatives. Steped into a JV with SMC of Japan. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 7 200 • World premier of concept A-star at 9th expo.000 units. Launch of Maruti . Launch of Maruti Finance with 10 finance companies in Mumbai. 4WD off-road vehicle). Exported first lot of 500 cars to Hungary. Launch of customer information centers in Hyderabad. 2005. Launch of 24-hour emergency on-road vehicle service.000 units. Installed capacity increased to 100. Maruti 800. and Chennai.000 vehicles (cumulative production). Launch of Maruti Gypsy (970cc. a 796 cc MUV was in production. Second plant launched. • • • • • • • • • • • • • • • • • • • 200 • The fiftieth lakh car rolls out in April.198 1 198 2 198 3 198 4 198 5 198 6 198 7 198 8 199 2 199 4 199 5 199 6 199 7 199 8 199 9 200 0 200 1 200 2 200 3 200 4 • • • • Maruti Udyog Ltd. Production of 4 millionth vehicle. IDTR (Institute of Driving Training and Research) launched jointly with Delhi government to promote safe driving habits. Start of Maruti True value in Mumbai. was incorporated. SMC increases its stake to 54. Produced 100. the installed capacity reached 200. 5 200 • Swift diesel launched.000 units. Produced the 1 millionth vehicle since the commencement of production.

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 17 .

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 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. 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 . 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. 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 3lakh milestone. Launched in May 2005, the sporty car achieved this feat in only three years and eight months. On the occasion .

2000

2002

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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 3lakh milestone. Launched in May 2005, the sporty car achieved this feat in only 18

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited)

three years and eight months. On the occasion Nov 13, 2006 - The former India bureaucrat is managing director of Maruti 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 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 ). 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." 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. ...

2006

2007

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COMPANY ANALYSIS REPORT (Maruthi Udyog Limited)

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VISION & VALUES

VISION
“The leader in the Indian Automobile Industry, creating customer delight and shareholders’ wealth A pride of India.”

VALUES
• CUSTOMER OBSESSION
• FAST, FLEXIBLE & FAST MOVER • INNOVATION AND CREATIVITY • NETWORKING AND PARTNERSHIP • OPENNESS AND LEARNING

BOARD OF DIRECTORS
Name R C Bhargava Shuji Oishi Keilchi Asai Kenichi Ayukawa Pallavi Shroff Davinder Singh Brar Designation Chairman / Chair Person Director Director Director Director Director Name Shinzo Nakanishi Tsuneo Ohashi Osamu Suzuki Amal Ganguli Manvinder Singh Banga Hirofumi Nagao Designation Managing Director & CEO Director Director Director Director Director

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited)

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• 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. • To provide the organization with well-trained and well-motivated employees.HUMAN RESOURCE MANAGEMENT: Personnel management is that part of management process which is primarily concerned with the human constituents of an organization. • To employ the skills and abilities of the workforce efficiently. • To increase to the fullest the employee’s job satisfaction and self-actualization. enhances their dignity by satisfying their social needs. 21 COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) . • To develop and maintain a quality of work life. Objectives: • To help the organization reach its goals.

HR VISION : Lead and Facilitate continuous Change towards organisational Excellence .• Professional significance: By providing healthy working environment. • Significance for Individual Enterprise: It can help the organization in accomplishing. 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 COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 22 . it promotes team work in the employees.

it’s process. Training need identification. Job enrichment  Periodic communication meeting at various level. Job Rotation . COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 23 . Roll out of Vision  Raise cost consciousness for cost control and reduction  Exposure on Brand Strategy to all non. Empowerment. skill & usage  Introduce a Potential Appraisal System  Improvements in internal & external Training & it’s effective utilisation. 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  Prepare MUL Strategic Business Plan-2000-2003. To achieve the Vision & Goal  Improve the performance Appraisal system .marketing staff  Retention of Talent.  Systematic career planning .

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  POTENTIAL & PERFORMANCE  VACANCY – BASED COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 24 .

Managers COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 25 .  Executives.  Maruti Udyog Sahyog Samiti – a forum for   Non-Unionised Staff  Delayered Organisation Structure   Workers(Techn. 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. / Asst.). Open Office – Easy accessibility. Supervisors. in  past 5 yrs.

e. This program attempts to orient the new DSEs on a few important parameters. Maruti dealerships.INDUCTION PROGRAMME Objective: The objective of this program is to facilitate smooth induction of the new DSEs into their place of work i. 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 COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 26 .

Process of identifying and hiring best- qualified candidate.MEANING OF RECRUITMENT  It is the process of searching the potential candidate and offers him or her the job  It is positive in nature in the Indian context. 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 COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 27 .

The complexity of selection procedures increases with the level and responsibility of the position to be filled. But it is positive in the US context.  Preliminary Interview (screening applications)  Application Form  Selection Test  Employment Interview COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 28 . facts may come light which may lead to the rejection of the applicant. Steps in Selection Process of Maruti udyog ltd: Selection process consists of a series of steps.MEANING OF SELECTION: It is the process of searching the potential candidate. 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. It is negative in nature in the Indian context. at each stage. It is a series of successive hurdles or barriers which an applicant must cross.

 Follow – up (Evaluation) IMPORTANCE OF TRAINING 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.  Induction.  Annual Training Plan . Values & Departmental  Feedback of Company-wide Managers  Competency Mapping to identify Individual Training Needs  Technical Training on latest Technologies abroad at SMC. Japan COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 29 . Medical Examination  Reference Checks  Final Approval  Employment.All Levels  Training customised to meet Organisational Objectives  Topics selected based on Vision.

Managerial Best Practices  AOTS Technical Training (3. Japan and  AOTS (Assoc.Design & Maintenance  AOTS Managerial Training (4-10weeks) for Manager &above . Scholarship)  (covered 1600 employees under the various schemes)  6 months SMC Training for Technicians  OJT in SMC.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 :  Training held in co-ordination with SMC. for Overseas Tech.Technological Knowhow COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 30 . Tool & Die  Specialists . Japan (2 batches/yr of 50 each)  9 months Javada Training for Press.5 to 6 months) for  Supervisors & above .

periodic and so far as humanly possible. if not the Country  LEADERSHIP  Vision. subordinates and colleagues  Performance & Potential based Appraisals  Fast Track Option for High-performers  Promotions after Managers Vacancy based  Interviews for promotions above Managers COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 31 . R & D Training (2 yrs.  Highest paid workforce in the Industry. an impartial rating of an employee’s excellence in matters pertaining to his present job and to his potentialities for a better job.) . systems and procedures and on the relationships that should exist between the job holder and his superiors.  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. in terms of techniques.Research on new Technologies APPRAISAL REWARD Appraisal: A systematic. 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.

EMPLOYEE WELFARE:  Residential Colonies for Employees – Chakkarpur & Bhondsi  Hospitalisation Reimbursement – on actuals without Ceiling  Vehicle Loans  Household Equipment Loans  House Building Advance  Annual Advance COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 32 . Employee retention is beneficial for the organization as well as the employee.including Inter-functional OUTSOURCING HR:  Part of our Long-term Strategic Plan  Currently Trainers hired from outside 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.SELECTION OF SUPERVISORS:  Performance / Attendance / Discipline record  Written Test & Interview  Job Rotation .

.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 . MUL PF Trust – for better Mgt. Employees Mutual Benefit Fund Scheme Managed by a 10member Trust Fixed Equity of 0. Service & speedy redress   Proposed MUL Pension Scheme  Learning Opportunity .52.054 COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 33 .Benchmark in Auto Technology  Professional Value addition through Training  Opportunity for foreign training at SMC. Japan   Job Rotation & Job enrichment  EMPLOYEE ENGAGEMENT -ESOPs Maruti Udyog Ltd.

7189 Target for SS & QC for 2000-01:  Suggestions Implemented .Idea  Efforts  Result : Cost reduction / Q Improvement / Productivity  Improvement FUTURE CHALLENGES  Realigning organisation culture based on new vision & values  Objective performance management & development system COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 34 . & VI . Cost Saving (in crores) .13 meetings/QC Gp. 131.34 marks / suggestion  Company-wide QC Groups (8-15 members per group)  Monthly QC Meetings on the First Wednesday each Month  Company-wide QC Competitions .510  QC Meetings held .Rs.Prod.4 implemented/employee/month  Cost Saving Rs.69 Crores  Number of QC Groups ./ Year  Target . 165 crores (25%)increase for the Company  QC Meeting .8.Best Team sent to SMC  MD’s lunch with Best QC Team & Best Suggestion Winner SUGGESTIONS : MONETARY REWARD:  Criteria .1implmented/employee/month  Other areas .

This Code of Business Conduct and Ethics (“Code of COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 35 . there is a need to reinforce Maruti’s commitment towards maintaining highest standards of Corporate Governance. Being a listed Company. 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: As a responsible corporate citizen. its Board Members and its employees is the focus of public attention and accordingly. every act of the Company. Maruti Suzuki India Limited (‘Maruti’ or “the Company”) has alwaysbelieved in following highest standards of Corporate Governance.

rules and procedures of the Company.. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 36 . This policy should be read in conjunction with applicable regulations & existing policies & procedures of the Company.Conduct” or “Code”) helps ensure compliance with our standards of business conduct & ethics and also with regulatory requirements. You can also contact the Secretarial & Legal Department if you have any questions or clarifications. In this Code. executive directors & advisors at executive director level) & all functional heads (including management personnel with direct functional reporting to directors & top management personnel). words importing the masculine shall include feminine and words importing singular shall include the plural or vice versa. INTERPRETATION OF THE CODE : In this Code the term “Relative” shall have the same meaning as defined in Section 6 of the Companies Act.e. APPLICABILITY : This Code of Conduct is applicable to all Senior Management Personnel which would include the directors of the Company. Uphold these standards in day-to-day activities and also comply with all applicable standards. policies and procedures of the company. All Senior Management Personnel are expected to read and understand this Code of Business Conduct and Ethics. The Senior Management Personnel should continue to comply with otherapplicable laws & regulations and the relevant policies. All Senior Management Personnel are expected to comply with the letter and spirit of this Code.The Code comes into immediate effect. 1956. the top management personnel (i. 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.

HONESTY. fairness and ethical conduct while working for the Company as well when representing the Company. Integrity & ethical conduct includes ethical handling of actual or apparent conflicts of interest between personal and professional relationships. INTEGRITY & ETHICAL CONDUCT : Senior Management Personnel shall act in accordance with the highest standards of integrity. honesty. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 37 . Honest conduct means conduct that is free from fraud or deception. 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.COMPLIANCE WITH APPLICABLE LAWS & REGULATIONS : Senior Management Personnel must comply and where applicable. No payment or transaction should be made or undertaken. 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. rules and regulations applicable to the Company and its employees. oversee compliance by employees with all the laws.

if shortcoming are found.  To develop guiding policies and their implementation for a good result.  To suggest solution by studying the problems relating to marketing.  To revive existing marketing function.MARKETING MANAGEMENT: Marketing is the creation and delivery of standard of living to the society. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 38 .  To develop the marketing field.  To find source for further information concerning the market Problems. Objectives: The various objectives of marketing include the following :.  Intelligent and capable application of modern marketing policies.

 Importance of marketing in Developed Economy.  Importance of marketing in underdeveloped or Developing Economy.  Importance of marketing to the firm. PRODUCTS OF MARUTHI SUZUKI : COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 39 .  Importance of marketing in a Seller’s or Buyer’s market. Importance :  Importance of marketing to the society. To take appropriate action in the course of actions.

22.97. 1. 3. 2.085 • Maruti Suzuki Wagon R Rs. 3.843 • Maruti Suzuki Zen Estilo Rs.13.Available Car Models Starting Price (Ex-showroom.157 • Maruti Suzuki Wagon R Duo Rs.565 • Maruti Suzuki Alto Rs. 2.03. 3.39.36.214 • Maruti Suzuki Omni Rs.532 • COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 40 . Mumbai) Maruti Suzuki 800 Rs.

58.86.82.091 • Maruti Suzuki Grand Vitara Rs. 4.22. 3.300 • Maruti Suzuki Gypsy Rs.81. 6.953 • Maruti Suzuki Ritz Rs.92. 5. 16.000 • COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 41 . 4. 4.325 • Maruti Suzuki SX4 Rs.859 • Maruti Suzuki Swift Dzire Rs. 3.05.942 • Maruti Suzuki Versa Rs.23.Maruti Suzuki A-Star Rs.872 • Maruti Suzuki Swift Rs.

4P’s OF MARUTI SUZUKI SWIFT: PRODUCT PRICE PLACE PROMOTION COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 42 .

PRODUCT: The all-new Maruti Suzuki Swift is fully loaded with a range of exciting new features. headlamp leveling device. Dream-Like Handling. rear seat belts etc. steering. OVRM (internally adjusted). There are three variants of Maruti Suzuki Swift : • • • Swift LXi Swift VXi Swift ZXi 3 assist grips. day and night rear view mirror. tailgate opener key type. and a greater feeling of stability as you sail over our roads with feather-touch ease. striking features of this model are black colored A & B pillars. 12v accessory socket in center console. high mounted stop lamp. driver's seatbelt warning lamp. And the best way to take your driving pleasure to a brand-new high. cabin light (3 position). Styled with a clear sense of muscularity. its one-and-a-half box. power steering. halogen headlamps. green tinted glass window. a sense that it is packed with energy and ready to deliver a dynamic drive. 3 spoke urethane steering wheel.European Styling. antenna. trip meter (digital display). tachometer.Its solid look is complemented by an equally rooted road presence and class-defining ride quality. wind screen wiper 2 speed plus 1 speed intermittent. You get lower road noise. child lock (rear door). aggressive form makes for a look of stability. heater and manual Air conditioning. driver's seat belt COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 43 . front door trim pockets. rear fog lamps. rear1). door ajar warming lamp. Japanese Engineering. brake assist . cup holders (front 2. It's a perfect complement to your evolved tastes and lifestyle. The new Swift is a generation different from Suzuki design. console box (lower). sun visors (both sides). gearbox and rear engine mounting to be attached to a suspension frame. Swift VXi: Apart from the features found in other model. New chassis systems allow for the front suspension lower arms. are the features available in this model.

central door locking (4 door). which is priced at a much higher tag of Rs. etc.This price range would practically rip apart Hyundai’s offering in Getz. 4 lakh. the company is said to be studying the prospects of launching the base model at the 4-lakh price tag. keyless entry.85 lakh. light off/ key reminder. New COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 44 . Three versions were launched with the base variant carrying a retail tag of Rs 3. vanity mirrors (sun visor co-driver side). Cars at a price higher than 4 lakh have to pay a 4% road tax. PRICE: Maruti is expected to take Hyundai heads on with the pricing of their upcoming Maruti Suzuki Swift car.The official pricing however is still not out. front and rear electronic windows. seat belts front 3-point ELR with pretensioning. The analysts predict the pricing of this premiumhatchback to start from Rs. rear seat head restraints.Delhi NCR is one of the major targeted markets and it might get the benefit of this policy. ex-showroom.tailgate opener electromagnetic type etc. However. India’s largest automobile manufacturer is now targeting the premium segment with their latest model from the Suzuki’s stable. the automotive industry was agog with expectation that the car had the makings of a real winner. rear parcel shelf. seat belts 3-point ELR with shoulder adjusters. room lamp and luggage room. manual air-conditioning. 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%. 12v accessory socket in luggage room. colored outside door mirror cowls. rear window wiper.warning lamp. colored outside door handles. fabric accented door trims. 4.5 lakh.dual front airbags. front fog lamps. central door locking (5 doors). PROMOTION: When Maruti Udyog launched the Swift in May last year. And if they indeed do take the chance of pricing Suzuki Swift at a considerable lower price than Hyundai Getz. 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. driver seat height adjuster. key not removed warning buzzer. After launching cars for the masses since so many years. they would quite likely force the competition to rethink their strategy. Swift ZXi Special features that have made this model more market friendly are rear window demister.

The car manufacturing plant will begin commercial production by the end of 2006. and the initial output of 200 units a day on a two-shift basis. However.5 lakh units per annum. A year later. PLACE : The car manufacturing company. The ultimate total plant capacity is three lakh diesel engines.000 petrol engines and 1. In October. having totted up sales of 61. The car recorded an estimated 4. The Rs1. called Maruti Suzuki Automobiles India Limited. the company increased capacity for the Swift which helped cut down on the waiting time from an estimated three months.4 lakh transmission assemblies.524. This is higher than what Maruti had initially planned to sell. the company says the Swift is now the most-sold car in the first year of any car in the history of the Indian automobile industry. the initial production is 1 lakh diesel engines. wasn’t enough to cope with demand.Delhi.000 bookings at the time of its launch. 20.2 crore plant has a capacity to roll out 1 lakh cars per year with a capacity to scale up to 2. is a joint venture between Maruti Udyog and Suzuki Motor Corporation holding a 70 per cent and 30 per cent stake respectively. SALES PERFORMANCE : COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 45 .200 units. and this aggressive pricing only reinforced this feeling.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.

this report says that Maruthi Suzuki has out standng it’s performance in producing and marketing its products.INTERPRETATION: The sales volumes of Maruthi Suzuki had increased randomly from 2001-2008.842 in the year 2008.415 crores it increased to 764. MARKET SHARE : COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 46 . in 2001 it was 352.

We are the largest car company in the country. Marti has the highest market capitalization in the auto sector.37 Bn employing more than 6700 employees. The turnover last year was USD 3. We are Suzuki's largest manufacturing facility.2% stake of Marti.INTERPRETATION: Market Share:  Currently Suzuki holds 54. The high localization of parts within India is one of our distinct strengths. we have produced more than 6. On BSE. So far. outside Japan offering 11 models in over 150 variants. PCBs Public. 4th plant was added with the capacity of 100000 Cars Hundred thousand at Manesar in 2006-07. Where the company has 3 plants in Gurgaon facility.6 million cars. BRAND HIERARCHY OF THE COMPANY: COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 47 . The market share of Maruthi Suzuki had decreased gradually from the year 2001- 2008 due to its rigid competitors HYUNDAI and TATA motors etc. the balance being held by various        QIBs.

e.The Product Line: The Indian passenger car market was divided into various segments and subsegments on the basis of price. size (i. 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 : COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 48 .

Major Competitors: M&M PAL HYUNDAI FORD MISTSUBUSHI TOYOTA HIND MOTORS GM TATA MOTORS Since 1985. Its flagship product . Maruti Udyog Limited (MUL) has been the market leader in the passenger car industry in India.M800 had the distinction of being the COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 49 .

they also expressed their views that MUL's long-term plan might be to discontinue M800 and replace the entry segment with Alto. But gradually Alto.largest selling car model in India since its launch in December 1983. began eating into M800's share.016 units. we have two cars in entry-level. It was also the highest sales since M800 debuted. Jagdish AKhattar (Khattar). Khattar clarified that MUL's pricing strategy was not meant to replace M800 with Alto.373 units. MUL said it had "long term" plans for M800.Positioned as people's car.540 in March. Commenting on Alto's pricing strategy.735 units in August 1999 For the first few months of 2004.687 units of M800. said. On reducing the gap between its bread and butter model M800 and its compact car Alto. But. Alto took over M800's position as the largest selling car with sale of 10. selling 15. M800 ruled the Indian passenger car market and remained unchallenged ever since it occupied the top slot. However.518 units in February and 15. the cannibalization will remain within the Maruti family and the bigger numbers will help Maruti depreciate Alto faster. MUL sold 20. 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. "Now. Maruti 800 is still a dream of Indians. Alto reported In April.000 followed by the launch of the non-AC Alto for Rs. five months after its introduction In March 2003. managing director of MUL." Though industry analysts said this move would boost MUL's profits.23 mn in the first week of April 2004. Analysts felt that Alto had taken the top spot because of its price reduction in September 2003 by Rs.301 units in January. 23. He said. slightly over M800's sales of 10. "The new price positioning of the Alto would cannibalize existing A1 segment product the M800 which is also considered an old model. 0. surpassing its previous monthly high of 18. another MUL product. how can I replace it?" Current and Future Market Strategies: COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 50 . M800 performed well. 13. its sales increased to 9. the highest ever sales by any single model in a month.350 units and in May 2004.

N2N. controlling about 84% of the market till 1998. At the same time the Indian government permitted foreign car producers to invest in the automobile sector and hold majority stakes. PAL. Hindustan Motors. Mahindra & Mahindra and foreign players like Daewoo. This has been found to be a major driver in converting a Maruti car sale in certain cases. their variants and prices). Ford. KEY STRATEGIC INITIATIVES BY MARUTI Turnaround Strategies Maruti Followed : Maruti was the undisputed leader in the automobile utility-car segment sector. Maruti has tied up with 8 finance companies to form a consortium. 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. Maruti has strategically entered into this and has successfully created a revenue stream for Maruti. GM. ICICI Bank. Since it had been in the industry for more than two decades. The company had products at various price points (Refer Exhibit IV for a comprehensive list of MUL's products. This consortium comprises Citicorp Maruti. when the passenger car industry was witnessing stagnation. In the early 2000s. Kotak Mahindra. Sundaram Finance. thereby cushioning itself Company’s plan to stay away from the ultra low-cost segment. With increasing competition from local players like Telco.( erstwhile-Ashok Leyland Finance). Maruti Insurance : COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 51 . Maruti Finance: In a market where more than 80% of cars are financed. MUL adopted aggressive pricing strategies. Maruti Insurance and Maruti Finance. to revive the industry. Maruti Countrywide. and as a market leader. Bank of Punjab and IndusInd Bank Ltd. HDFC Bank. Maruti Suzuki is looking to make India an exclusive base to manufacture small cars The Pricing Strategy : Due to the fierce competition in the Indian passenger car industry. Toyota. MUL slashed the prices of its various models. Finance is one of the major decision drivers in car purchase. Mitsubishi. price emerged as an important factor affecting the purchasing decisions of customers.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. These help them in making the customer experience hassle free and helps building customer satisfaction. OFFERING ONE STOP SHOP TO CUSTOMERS: Maruti has successfully developed different revenue streams without making huge investments in the form of MDS.

Maruti Insurance is a hassle-free way for customers to have their cars repaired and claims processed at any Maruti dealer workshop in India. Maruti has successfully shed off the public. From identifying the most suitable car coverage to virtually hassle-free claim assistance it's your dealer who takes care of everything. by paying the difference.D. KEY SUCCESS FACTORS : The Quality Advantage : Maruti Suzuki owners experience fewer problems with their vehicles than any other car manufacturer in India (J. Maruti has tied up with National Insurance Company. Maruti dealers and employees are answerable to even a single customer complain. 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. Focus on customer satisfaction is what Maruti lives with. The Alto was chosen No. Maruti has brought all car insurance needs under one roof. Here are the certain changes observed in different models of Maruti. 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. The customer centric attitude is imbibed in its employees. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 52 .This helps them retain the customer. REPOSITIONING OF MARUTI PRODUCTS : Whenever a brand has grown old or its sales start dipping Maruti makes some facelifts in the models.size car segment across 9 parameters. New India Assurance and Royal Sundaram to bring this service for its customers.Insurance being a major concern of car owners. CUSTOMER CENTRIC APPROACH: Maruti’s customer centricity is very much exemplified by the five times consecutive wins at J D Power CSI Awards. Other changes have been made from time to time based on market responses or consumer feedbacks or the competitor moves. Bajaj Allianz.1 in the premium compact car segment and the Esteem in the entry level mid .sector laid back attitude image and has inculcated the customer-friendly approach in its organization culture. Power IQS Study 2004). They are offered loyalty discounts in return. There are instances of cancellation of dealerships based on customer feedback.

Quality Service Across 1036 Cities : In the J. as some of its regularly used spare parts may be priced quite steeply. and it is here where Maruti Suzuki shines. Esteem. highest service quality. Wagon R. One Stop Shop : At Maruti Suzuki. best service advisor experience. most userfriendly service and best service initiation experience. with a workforce of over 6000 trained sales personnel to guide MUL customers in finding the right car.D. This new technology harnesses the power of a brainy 16-bit computer to a fuel-efficient 4-valve engine to create optimum engine delivery.A Buying Experience Like No Other: Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities. fleet management services. Not so in the case of a Maruti Suzuki. Technological Advantage : It has introduced the superior 16 * 4 Hypertech engines across the entire Maruti Suzuki range. It is in the economy segment that the affordability of spares is most competitive. best in-service experience.Maruti Suzuki is set to provide a single-window solution for all car related needs. customers will find all car related needs met under one roof. Alto and Omni. best service delivery. insurance. exchange. SWOT ANALYSIS OF MARUTI UDYOG COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 53 . The Low Cost Maintenance Advantage : The acquisition cost is unfortunately not the only cost customers face when buying a car. Power CSI Study 2004. Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced. Maruti 800. Lowest Cost of Ownership : The highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen. This means every Maruti Suzuki owner gets the ideal combination of power and performance from his car. it may not necessarily be affordable to maintain. Although a car may be affordable to buy. Whether it is easy finance.

STRENGTHS :  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 COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 54 .

Wealth maximization: this is also known as value maximization or net present worth maximization approach. Social welfare.         Profit / EPS is the test of economic efficiency. Reduction in risk and uncertainty. Efficient allocation of fund. Internal resources for expansion. IMPORTANCE: The following are the points to highlight the importance of finance.FINANCIAL MANAGEMENT DEFINITION : Financial management is concerned with the efficient use of an important economic resource namely Capital Funds. Basis of decision-making.  Finance management for optimum use firms. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 55 . Objectives: The main objective of a business is to maximize the owner’s economy welfare. A business being an economic institution must earn profit to cover its costs and provide funds for growth. Profit /EPS maximization: Profit /EPS earning is the main aim of every economic activity. it takes into consideration the time value of money. This objective can be achieved by:  Profit/EPS maximization  Wealth maximization. Desire for controls. More competitive.  Finance for business promotion.

40 5.50 Less : current liabilities & 3.40 1.830.954.234.90 1.10 Total 9.677. loans & advances 3.30 Investments 5.10 144.695.50 4.50 investments COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) Contingent liabilities 2.259.80 Net block 3.50 6.90 3.30 7.666.446.90 3.184. Basis of planning.10 71.873.60 4.10 1.40 1.169.10 2.40 2.      Use for co-operation in business activities.10 3. Useful in decision making.60 3.779.144.843.289.70 2889.179.190.60 Uses of funds Fixed assets Gross block 7.484.30 2.285.10 Unsecured loans 900.60 3. The financial position of a concern is revealed by its assets on a given data and its liabilities on that date.254.20 Number of equity 2889. co-ordination and control.840.90 56 1.176.409.051.70 2.60 2889.90 7. Useful to shareholders and investors.70 238.80 2889.524.270.30 Less : revaluation reserve Less : accumulated depreciation 3.659.50 3.735.903.040.40 1.20 150.505.20 3.90 Loan funds Secured loans 0.524. Determinant of business success.70 6.10 144.60 Notes: Book value of unquoted 5.60 2889.90 5. Balance sheet Mar ' has Mar ' 07 Mar ' 06 Mar ' year 2004Interpretation : The balance sheet amount08 increased gradually from the05 Mar ' 04 Sources of funds Owner's fund Equity share capital 144.70 5.10 1.487.296.10 893.80 3.50 200.40 provisions Total net current assets 102.70 311.956.094.90 1.80 74.10 1.119.315.088.50 Capital work-in-progress 736.00 2.60 303.00 2.686.40 1.30 307.566.00 4. BALANCE SHEET DEFINITION : A Balance sheet may be described as a statement of the financial position of a concern at a given data.30 3.60 investments Market value of quoted 219. Measurement of business.20 92.988.70 2.315.685. such excess may be taken as an indicator of the financial soundness of a concern.80 1.10 289.516.70 3.053.40 63.80 1.20 3.70 Net current assets Current assets.903.50 5.10 4.30 2.398.097.50 567.686.40 1.10 .10 sharesoutstanding (Lacs) 144.80 16.10 Miscellaneous expenses not written Total 9.50 Share application money Preference share capital Reserves & surplus 8.180.146.484.10 270.734.40 1.30 4.709.308.70 42.870.10 144. Excess of assets over liabilities represents Capital.

10 144. it will be net profit.00 9.30 37.828.90 5.90 9.449.10 2.50 219.368.033.40 361.90 1.789.20 3.40 1.80 14.10 4.197.10 130.197.70 356.616.90 1.066.00 369.80 196.30 456.30 218.70 10.40 -151.515.40 853.50 7.40 51.806.00 670.00 170.60 2.829.90 274.30 12.379.90 -12.878.30 1.40 499.545.70 611.00 2.90 1.565. The debit side of P&L a/c shows the expenses and the credit side the incomes.50 2.10 14.90 1.551.331.00 57.551.60 542.508.50 833.90 82.10 3.622.223.20 326.561.10 227.476.50 705.90 72.10 Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustme Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings Analysation : This trend shows that company.50 37.611. And if the debit side happens to be more.134.80 8.795.s productivity is increasing yearly to extend its market operations. If the total of the credit side is more.00 268.007.60 763.20 4.20 36.40 2.90 76.280.90 666.80 13.80 15.30 560.189.60 -31.256.80 7.80 288.30 -19.451.866.Analysation: This indication shows the company operations reach in wide in facing the market efficiently.204.60 356.20 2.10 20.40 1. it would be net loss. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 57 .90 150.60 568.631.20 101.00 456.40 1.60 1.198.70 489.40 198. P&L Operating income Expenses Interpretation : The operating and non operating expenses and income are incresing Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 gradually from the year 2004-2008 18.40 9.602.947.10 1.252. 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.570.30 1.50 -14.267.515.00 33.10 2.40 839.40 11.20 560.10 446.00 43.30 8.20 12.20 112.00 21.046.30 1.70 5.40 285.30 44.60 5.70 359.30 5.50 273.90 494.80 16.50 24.60 271.40 -83.60 -6.80 7.730.063.40 177.60 3.80 8.00 1.60 228.20 -23.20 -22.90 11.40 59.10 2.

Ratios are useful in co-ordination which is very needed in business. 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.RATIO ANALYSIS Meaning of Ratio Analysis: Ratio Analysis can be defined as the study and interpretation of relationships between various financial variables. 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. Conclusions are drawn after comparison in the shape of report or recommended course of action. drawing of inferences and report-writing. Ratios are used for communication of weak and good points to the concerned parties. This step facilitates in assessing success or failure of the firm. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 58 . Ratios calculated for a number of years work as a guide for the future. For example. A change in these ratios helps to bring about a change in the way a company works. The third step involves interpretation. It is a quantitative investment technique used for comparing a company's financial performance to the market in general. The second step is to compare the calculated ratio with the ratios of the same firm relating to past or with the industry ratios. by investors or lenders. Ratios should be shown the better financial position of the firm. Importance: Ratios are useful for the following reasons: • • • • • The ratios can be used by financial managers for future financial planning. The efficiency and weakness of an enterprise if communicated properly will establish a better coordination among areas of appreciation and control. It helps to identify areas where the management needs to change.

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 59 .

15 0.10 90.23 29.36 3.40 92.61 59.03 19.78 9.76 38.21 17.41 1.20 20.57 2.91 13.68 1.95 0.80 33.89 19.31 291.41 50.28 77.77 1.78 18.56 27.29 12.59 19.25 2.10 4.91 79.62 - COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 60 .36 89.33 2.10 10.34 11.00 54.08 0.23 49.25 22.09 91.70 37.93 9.74 - Mar ' 07 53.08 0.50 64.62 0.74 0.16 22.71 74.12 0.34 68.57 77.61 12.61 73.35 123.95 9.46 1.04 104.03 0.97 9.57 5.34 144.16 51.28 14.00 2.91 0.73 188.35 151.18 15.76 9.49 231.08 92.78 7.28 291.RATIOS Per share ratios Adjusted EPS (Rs) Adjusted cash EPS (Rs) Reported EPS (Rs) Reported cash EPS (Rs) Dividend per share Operating profit per share (Rs) Book value (excl rev res) per share (Rs) Book value (incl rev res) per share (Rs.72 8.21 91.01 5.47 0.16 40.07 1.94 75.40 0.76 73. in raw mat.04 3.29 12.37 3.20 183.74 123.06 0.30 237.89 14.75 0.90 12.26 32.17 1.) Net operating income per share (Rs) Free reserves per share (Rs) Profitability ratios Operating margin (%) Gross profit margin (%) Net profit margin (%) Adjusted cash margin (%) Adjusted return on net worth (%) Reported return on net worth (%) Return on long term funds (%) Leverage ratios Long term debt / Equity Total debt/equity Owners fund as % of total source Fixed assets turnover ratio Liquidity ratios Current ratio Current ratio (inc.74 327.07 93.25 3.25 8.01 22.53 92.10 15.58 0. charges cov.69 7.48 1.66 22.43 9.47 7.42 1.35 0.32 25. consumed Long term assets / total Assets Bonus component in equity capital (%) Mar ' 08 55.02 4.45 23.01 98.24 21.80 18.59 188.05 10.49 28.85 30.50 43.97 7.40 1.23 237.87 53.08 7.09 54.79 19.85 45.92 2.91 4.55 45.40 1.30 3.13 14.25 0.01 0.70 2.34 286.56 382.81 90.61 - Mar ' 06 43.97 92.73 422.ratio (post tax) Component ratios Material cost component (% earnings) Selling cost Component Exports as percent of total sales Import comp.13 28.56 151.77 1.52 - Mar ' 04 21.49 - Mar ' 05 28.73 4.85 78.28 625.71 0.21 10.53 12.69 63.07 116.43 2.67 1.50 76.67 0.23 49.00 88.34 8.75 41.63 22.88 13.46 39.07 63.57 11.91 92.84 0.12 10.78 30.01 95.28 90.96 20. st loans) Quick ratio Inventory turnover ratio Payout ratios Dividend payout ratio (net profit) Dividend payout ratio (cash profit) Earning retention ratio Cash earnings retention ratio Coverage ratios Adjusted cash flow time total debt Financial charges coverage ratio Fin.69 0.09 94.23 512.46 4.05 9.86 0.31 18.05 0.19 1.

50 76.56 151.57 5.28 291.69 63.35 123.31 291.49 231.74 123.30 237.50 64.87 53.) Net operating income per share (Rs) Free reserves per share (Rs) 2008 55.07 116.28 625.73 422.59 188.56 382.04 3.28 2008 53.34 286.76 38. Analysis: As a result of that the per share value in the market is above 1100rs.75 41.23 29.80 18. EPS = net profit after tax.07 63.PER SHARE RATIOS: EPS is measured by dividing the net profits after taxes and preference dividend by the total number of equity shares.23 512.94 75.40 1.74 327.89 2007 43.55 45. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 61 .00 54.50 43.34 144.preference dividend Per share ratios Adjusted EPS (Rs) Adjusted cash EPS (Rs) Reported EPS (Rs) Reported cash EPS (Rs) Dividend per share Operating profit per share (Rs) Book value (excl rev res) per share (Rs) Book value (incl rev res) per share (Rs.85 45.61 59.09 54.00 88.92 2.23 237.18 2006 28.13 2005 21.35 151.16 51.91 Interpretation: Due To Incresing Profits And Market Sustainability The Per Share Value Of Maruthi Suzuki Had Been In Incresing Trend From 2004-2009.91 79.46 4.73 188.16 40.20 183.

34 10.24 19.47 28. Gross profit ratio=Gross profit (100) /Net sales Gross profit ratio= net sales-cost of goods sold (100) / Net sales Profitability ratios Operating margin (%) Gross profit margin (%) Net profit margin (%) Adjusted cash margin (%) Adjusted return on net worth (%) Reported return on net worth (%) Return on long term funds (%) 2008 2008 2007 2006 2005 14.88 15.56 22.61-10.49 15.53 7.61 11.57 5.12 14. Profitability of a concern can be known through the analysis of general and overall profitability.79 12.63 23. Analysis: Due to the implementation latest organisational aspects company increased its expenses in the year 2008.16 27.80 19.25 10.03 17.29 9. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 62 .12 22.34.45 11.71 35 30 25 20 15 10 5 0 2008 2007 2006 2005 2004 Operatingmargin (% ) Gross profit margin (% ) Net profit margin (% ) Adjusted cash margin Adjusted return on net worth (% ) Reported return on net worth Interpretation: The gross profit and net profit had increased initially from the year 20042007 from 8.29 14.78 21.20 22. Being a ratio profitability is a meaningful measure and reveals the relation of different individuals items with sales of the concern.29 and decreased in the year 2008 as 10.5.10 20.PROFITABILITY RATIOS: Profitability is a ratio.97 13.05 12.21 13.05.74 33.35 30.01-13.95 10.21 19.59 12.95 and 9.01 9.01 12.08 8.

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 63 .19 2.01 0.06 0.05 0.08 0.09 0. 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.48 2.57 98.46 2.70 93.LEVERAGE RATIOS: Leverage ratios can be computed from the balance sheet items to determine the proportions of debt in total financing.00 2.41 2.33 91.07 12 10 Longtermdebt / Equity 8 6 4 2 0 2008 2007 2006 2005 2004 Total debt/equity Ownersfund as %of total source Fixed assets turnover ratio 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. Debt –equity ratio = Leverage ratios Long term debt / Equity Total debt/equity Owners fund as % of total source Fixed assets turnover ratio Long –term debit / Shareholder’s Equity 2008 2008 2007 2006 2005 0.08 90.01 0.43 92.07 0.08 0.10 0.

03 1.17 0.03.13 1.15 0.97 30.43 Liquidity ratios Current ratio Current ratio (inc.42 1.77 1.25 0. Analysis: One way this trend shows the. st loans) Quick ratio Inventory turnover ratio Interpretation: The current ratio is in between 2:1 ratio.31 1. This trend is continued even in quick ratio and liquid ratios. Thus the liquidity ratios indicate the ability of a concern to meet its short-term obligations.76 18.67 1. balancing of current assets and liabilities.93 28.78 22.66 1.85 22.77 1. Quick ratio= Quick assets / Current liabilities Current ratio = Current assets / Current liabilities 2008 2007 2006 2005 2004 1. From 2004-2007 and decreased in the year 2008 as 1.LIQUIDITY RATIOS: Liquidity means the ability of a concern to meet its current obligations as and when these become due. this is in increasing trend from initial stage.91 1. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 64 .68 1.40 1.

97 92.25 2008 9.69 7.72 8.91 92.73 4.86 120 100 80 60 40 20 0 2008 2007 2006 2005 2004 Dividend payout ratio ( Dividend payout ratio (cash Earning retention ratio Cash earnings retention ratio Interpretation: The Dividend Pay Out Ratio And Retention Ratio Is Increasing From The Year 2004-2008.09 94.78 7. Thus is calculated as: Pay out ratio = dividend per share / Earning per share Payout ratios Dividend payout ratio (net profit) Dividend payout ratio (cash profit) Earning retention ratio Cash earnings retention ratio 2008 9.21 91.53 92.PAYOUT RATIO: This is the relationship between the returns belonging to the equity shareholders and the dividend paid to them.95 2005 9.58 2006 7.36 89. Analysis: This Is Proseperous Trend To Share Holders And Company.81 90.67 2007 9. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 65 .01 95.02 4.40 92.28 90.

32 25.85 32.ratio (post tax) 2008 2007 2006 2005 2004 0.34 0.04 0.26 50.61 73.76 104. Coverage Ratio = sum of net profit before interest / Taxes dividend by interest charges COVERAGE RATIOS Adjusted cash flow time total debt Financial charges coverage ratio Fin.COVERAGE RATIOS This ratio indicates the times-interest-earned.23 49.41 0. Debtors And Shareholders Dividend . COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 66 .23 0. The interest coverage ratio is the sum of net profit before interest and taxes dividend interest charges.70 37.28 49. It is used to examine the firm’s debtservicing capacity.71 Interpretation: The Cash Balance Is Being Adjusted From 2004-2008 Between Creditors.57 68. charges cov.46 39.

69 0. High total capital ratio is always required in the interest of the company.74 2007 73.10 10.47 7.40 0.96 20.25 3. Long term assets Turnover Ratio = Component ratios Material cost component (% earnings) Selling cost Component Exports as percent of total sales Import comp.61 2006 77.75 0.84 0.62 0.90 12. consumed Long term assets / total Assets Bonus component in equity capital (%) Sales(net) / Capital employed 2008 77.37 3.Analysis: This Is In Incresing Trend From 2004-2008.30 3.25 2.52 2004 74. This is also the test of managerial efficiency and business performance.This Is Prosperous To Company And Its Stake Holders COMPONENT RATIOS: This ratio ensures whether the capital employed has been effectively used or not.78 18.62 - COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 67 .34 8.91 4.89 19.05 9.49 2005 78.10 4.36 3. in raw mat.

 There are quality circles which can motivate employee and employer relationship. & foreign investments).Interpretation: The Material Cost Component Ratio Is Increasing From 2004-2008. brought out many findings. HRM:  Maruthi suzuki has finite recruiting and training procedures .which can decline the sales percentage of company. I would like to state some from them: Maruthi Suzuki can be termed as an greater example for merging industries (Govt. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 68 . Analysis: As the Productivity is increasing simultaneously but the selling cost component ratio decreased gradually from the year 2004-2008. FINDINGS This company analysis done by me.

My pleasure is to express an opinion on these financial statements based on analysis Those Standards An analysis includes examining. as of Five years comparison and the related Profit and Loss 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. on a test basis. FINANCIAL MANAGEMENT:  As Maruthi Suzuki is an company which consists of Indian government’s capital . evidence COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 69 . it follows lawful and ethical practices impractically in accounting its finance. which are near to customer preferences and tastes. This company at most reaches the standard ratio in every ratio every year. in developing marketing strategies and products .MARKETING MANAGEMENT:  This segment is the initial cause for the sustainability of maruthi as an leader in the market of passenger cars.  CONCLUSION I have analyzed the attached Balance Sheet of Maruti Suzuki India Limited (Formerly Maruti Udyog Limited).  Maruthi suzuki conducts r&d.

Maruthi Udyog Limited.e fulfilling the Social . by making its tag line to be implemented i. Finally “Maruthi Udyog Limited” has it financial trend in ascending order from previous four years.supporting the amounts and disclosures in the financial statements. HRM strategies.  Thus. financial position of the Maruthi Udyog Limited. An analysis also includes assessing the accounting principles used and significant estimates. “Count on us” COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 70 . products development etc. and responsibility.  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. marketing Techniques. is counting its profits.  Cars in the market through different marketing strategies such as pricing strategy.