GLS UNIVERSITY

FACULTY OF BUSINESS
ADMINISTRATION FORMELY KNOWN AS
NRBBA

Project Report on
Maruti Suzuki Limited
1, Nelson Mandela Road,
Vasant Kunj,
New Delhi – 110070
India

Submitted To:
Karishma Anklesaria Dalal

Submitted by:
Mukesh Chhogaram Prajapati
Roll no. 423
FYBBA SEM II
Faculty of Business Administration
Formerly Known as N.R. Institute of Business
Administration
Ahmedabad
2021-2022

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 CERTIFICATE

This is to certify that the report on Maruti Suzuki Limited is submitted by

Mr. Mukesh Chhogaram Prajapati to Faculty of Business Administration,

formerly known as N. R. Institute of Business Administration, affiliated to GLS

University, in partial fulfilment of the requirements for the completion of the

subject Industry Exposure and Project Work – Practical Studies in the Second

Semester of the B.B.A. Program for the year 2021-2022.

___________________ ________________

Dean Professor in- charge

Date: / /2022

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 Preface

As a part of the course curriculum prescribed by the Faculty of Business

Administration - GLS University, the First Year Bachelors of Business
Administration students are required to prepare and submit a research
project on an industry. The research is to involve elements of primary
and secondary data collection and analysis.

The academic objective behind preparing the project report is to include

management theories taught in the classroom and their practical
application. The scope of this project is limited to a study of ‘Maruti
Suzuki Limited’.

The preparation of the report is based on the facts and findings noted
during the Industry Visit. The research also takes into account the
information collected from various secondary data sources such as
audio-visual presentations, articles and research papers found on the
internet and other reference books. Due to the unusual circumstances
prevalent due to the covid pandemic this report is based primarily on
credible secondary sources of information.

Despite my best efforts, there may be omissions and errors, which may
please be excused.

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Table of Content
1. Company Profile
2. History of Organisation
3. Organisation Structure
4. Location
5. Production
6. Financial Information
7. Marketing
8. Human Resource Management
9. Research & Development
10. Form of Organization
11. Social Obligations
12. Finding, Suggestions and Conclusion
13. References

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 Maruti Suzuki Limited

1. Company Profile
Head Office: 1, Nelson Mandela Road,

Vasant Kunj, New Delhi – 110070

India

1.1 Web site: www.marutisuzuki.com

1.2 Vision:

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

Customer Delight and shareholders wealth; A pride of India.”

1.3 Mission and Objectives: The Missions/ objectives of Maruti Suzuki

Limited 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.

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1.4 Special awards:

• Maruti Suzuki has been awarded the 'National Safety Award' by Ministry
of Labour and Employment, Government of India.
• The Brand Trust Report published by Trust Research Advisory, a brand
analytics company, has ranked Maruti Suzuki in the thirty seventh position in
2013 and ninth position in 2019 among the most trusted brands of India.

2. History of Maruti Suzuki Limited

Maruti Udyog Limited (MUL) was established in February 1981 through an Act of
Parliament, to meet the growing demand of a personal mode of transport caused by
the lack of an efficient public transport system. It was established with the objectives
of – modernizing the Indian automobile industry, producing fuel efficient vehicles to
conserve scarce resources and producing indigenous utility cars for the growing needs
of the Indian population.
A license and a Joint Venture agreement were signed with the Suzuki Motors
Company of Japan in October 1983, by which Suzuki acquired 26 % of the equity
and agreed to provide the latest technology as well as Japanese management practices.
Suzuki was preferred for the joint venture because of its track record in manufacturing
and selling small cars all over the world. There was an option in agreement to raise
Suzuki’s equity to 40%, which it exercised in1987. Five years later, in 1992, Suzuki
further increased its equity to 50% turning Maruti into a non-government organization
managed on the lines of Japanese management practices.
In 2000-01, although Maruti generated operating profits on an income of ₹ 92.5
billion, high depreciation on new model launches resulted in a book loss.

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2.1 Recent Achievement:
The Limitless Maruti Suzuki Swift: Delights 2.5 million customers

• India’s No.1 selling car of 2020-21

• Leader amongst premium Hatchbacks for 15 years
• Only car to win ICOTY award for all its three generations

New Delhi: The MS Swift has been on roads for more than 16 years; it is India’s
favourite premium hatchback. India’s No.1 selling car of 2020-21 has recorded a
sale of 2.5 million units which record high of all three generation.
Swift is having the great a following in India as well as outside. It was launched in
2005. Reason for success of the Swift is the limitless performance, stunning looks,
and the feature loaded characteristics. It is the only car to have won the prestigious
ICOTY award thrice.

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Maruti Suzuki receives National Safety Award from Ministry of Labour
and Employment

Maruti Suzuki has developed a three-tier safety governance structure with the “zero
accident” vision comprising “zero human injury” and “zero fire”.
Maruti Suzuki has been awarded the ‘National Safety Award’ by Ministry of Labor
and Employment Government of India. The award was presented by Shri Santosh
Kumar Gangwar, Union Minister of state for Labor and employment. The award was
received by Mr. Manoj Agrawal, Senior Vice President on behalf of the company.

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3. Board of Directors

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3.1 Organizational Structure of Maruti-Suzuki
The multilevel management structure of the company includes Board of Directors and
5 heads of business verticals, which are directly managed by the director of the
company.
The activity takes place in several areas:
• Marketing;
• Finance;
• Quality Assurance;
• Engineering and Sales;
• Spares;
• Production;
• Human Resources Development;
• Administration.
The organization structure of the company can be described by the following
characteristics:
• Low centralization of power: decision-making authority is disturbed at all
levels and is quite decentralized;
• High formalization standards, procedures methods are formally written. The
work flow, roles and responsibilities of each department are set out in
departmental procedures. Operations standards can be found on workstations.
Regulation of work allows to achieve the purposes in time.
• High degree of specialization due to the division of labor.
• All employees of the company can be divided into six functional managers:
workers and technicians, supervisors, executives, section, department mad
division managers.

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3.2 Executive Management Team

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4. Factories of Maruti Suzuki in India
Maruti Suzuki India’s two existing plants at Gurugram and Manesar in Haryana have
a combined manufacturing capacity of 15, 80,000 units, while the Suzuki Motor plant
in Gujarat has 5,00,000 units’ capacity per annum. This adds up to a little over 2
million units per annum (20,80,000). All put together, the three plants’ monthly
production is estimated at a little over 1,73,000 units.

Address of Gurgaon Plant: Maruti Suzuki India Limited

Old Palam Gurgaon Road,
Gurugram, Haryana - 122015
India
Ph: - 0124 - 2346721
Address of Manesar Plant: Maruti Suzuki India
Limited
Plot No.1, Phase 3A
IMT Manesar
Gurugram - 122051
Haryana
India
Ph: - 0124 – 4884000

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Reason why Maruti Suzuki chose Haryana for putting the manufacturing unit was:
• Easy availability of human resource.
• Easy availability of land as compared to other states.
• Availability of power and Government policy.

5. Production
5.1 Product Range:

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5.2 Production System:
Maruti production system or MPS draws learning from parent company Suzuki Motor
Corporation’s concepts on ‘lean manufacturing’ under Suzuki Production System –
SPS. Any production facility is essentially a Mix of 4 M, which are Man, Machine,
Materials, and Methods.
• The 3M’s namely Muri, Muda, and Mura (Japanese term for Inconvenience,
Wastage and Inconsistency) adversely affect productivity. MPS is a systematic
approach to eliminate Muri’s (Inconveniences if any for shop floor employees)
Mudas (all forms of wastages) and Muras (inconsistencies in quality) from the
system so that cost, quality, productivity and safety are under control.
• Under the Maruti Production System (MPS), Maruti engineers capture all
aspects of operation on video and scrutinized each process to identify wastage.
• According to MPS, there are eight types of wastages in any process namely,
Idle Time, Inventory, Over Production, Production Defects, Un-necessary man
movement, Un-necessary material movement, Un-necessary inspection and
Un-necessary processing.

5.3 Plant and Technology:

Gurgaon Plant
The gurgaon manufacturing facility has three fully integrated manufacturing plants
and is spread over 300 acres (1.2km2). The entire facility is equipped with more than
2500 robots (approx.) as well as human resources. The plant has the capacity to
produce around 7,00,000 units per annum.

Manesar Plant
The Manesar manufacturing plant was inaugurated in February 2007 and is spread
over 600 acres (2.4 km2). The plant has around 2500 robots and human resource as
well. In total both the plant has around 5000 robots as per the Rajiv Gandhi, Executive
director (production).

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5.4 Plant Layout

5.5 Automation
• Maruti is the only company in India with more than 60% automation levels at
its plants in Gurgaon and Manesar.
• Maruti Suzuki has plan to have up to 95% automation at the third assembly line
in Manesar and Gujarat plant.

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5.6 Environment Management Plan
Water Pollution Control:
• Water used in the plant is used for cooling purpose and that is in a closed loop
system, so there is no loss of water. The liquid waste that is generated by the
plant is recycled and it is refused in the process or as irrigation water.
Air Pollution Control:
• Clean fuel like LPG is used to operate the furnaces hence, the emissions are
within the limit.
• Stack of the furnace is maintained at 30m.
Noise Pollution Control:
• The noise from the Gas Turbines is controlled by the acoustic enclosures. The
noise level at premises is exceed by the ambient noise level.

6. Financial Information
Financial Information refers to the summarized data of monetary transactions that is
helpful to investors in understanding company’s profitability, their assets, and growth
prospects.

This is the Net Sales and Profit After Tax (PAT) of Maruti Suzuki India Limited from
2008-19.
• The Profit After Tax for the 2019-20 and 2020-21 is 5650.60 and 4229.70
respectively.

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6.1 Sales Turnover
Sales turnover or Inventory Turnover Ratio(X) for the last 5 years was:
• March 2021 – 23.06
• March 2020 – 23.52
• March 2019 – 25.87
• March 2018 – 25.23
• March 2017 – 20.86

6.2 Equity Share Dividend

Dividend given by the company for the last 5 years was:
(ESD) Dividend Rate

• March 2021 – 23.06 900%

• March 2020 – 23.52 1200%
• March 2019 – 25.87 1600%
• March 2018 – 25.23 1600%
• March 2017 – 20.86 1500%

6.3 Capital Employed

(Total assets – Current Liabilities)
• March 2021 - 53960.7
• March 2020 - 51257.3
• March 2019 - 48781.5
• March 2018 - 43928
• March 2017 - 38024.2

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7. Marketing
Marketing is the sum of activities involved in directing the flows of goods and
services from producers to consumers.

7.1 Market share

Maruti Suzuki leads the passenger vehicle segment with a market share of 42.53%,
having sold a total of 1,04,057 units in December 2021, followed by Hyundai in
second, and Tata Motors in third, having sold 38,736 units and 30,914 units
respectively.

7.2 Distribution channels

• Maruti Suzuki ARENA
• NEXA
• True value
• Commercial

Maruti Suzuki Arena

• The new showrooms, Maruti Suzuki ARENA, will spot modern looks and offer
a warm, friendly and environment to the customers.
• Maruti Suzuki ARENA is a place where people come together and experience
something exciting.
• Digital integration is a key differentiator at Maruti Suzuki ARENA. Customers
can now experience the convenience of booking their cars or even they can
personalise the cars in the way they want by using their new website.
• There are 745 ARENA showrooms in India at present.
NEXA
• The aim of the NEXA dealerships is to give a premium feel to the customers.
• The theme of the NEXA dealerships is Black and White.
• The dealerships only retail the premium offering from the Maruti Suzuki such
as S-Cross, Baleno, Ignis and Ciaz facelift.

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 • The showrooms are equipped with iPads and Apple TVs in order to visualise
every aspect of the cars on sale.
• NEXA has 380 showrooms in 234 cities across the country (as per 2021).
True Value
Maruti Suzuki True Value is the first major automobile OEM to enter the India’s used
car market in 2001.
Maruti Suzuki True Value is the pre owed cars arm of Maruti Suzuki that offers
buying, selling and exchange of certified pre owned cars for the customers.
True Value has 1252 outlets spread across 942 cities.
Commercials
• Maruti Suzuki has launched the Super Carry LCV with prices starting at 4.01
lakh.
• Maruti’s first ever LCV, the Super Carry revolutionise the commercial vehicle
space and marks the automakers begin into this space.
• Maruti introduced new dedicated dealerships for the commercial vehicle across
the country.
• The first three dealerships were opened in Ludhiana, Ahmedabad and Kolkata.
• Maruti offered two colours in Super Carry – Superior White and Superior
Silver.

7.3 Advertising
• Maruti laid emphasis on its advertising strategy to help maintain its position as
a market leader.
• The company launched several new products and their variants. The
advertising campaigns of Maruti includes TVCs, print, radio ads, outdoor
promotion, point of sale and mobile promotions.
• The company also conducted different promotional events to attract customers.
• Maruti also offered special schemes for specific professional and income
groups.

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 • The ad campaigns of Maruti emphasized on various aspects of its cars,
including fuel efficiency, space, looks etc, to strengthen its brand image, and to
promote its widespread network and services.

7.4 Sales promotion

1. Price packs- price packs ae the general offers to customer of saving off the
regular price of the products. Maruti, in spite of achieving magical figures
every year still offers price packs. Gift cheques and Exchange bonuses are
always offered on every Maruti car.
2. Premiums and Gifts – Maruti Suzuki offers accessories like alloy wheels, body
cover, carpets, door visors, fog lamps, stereo systems, seat covers, etc.,
products as gifts with the higher end products.
3. Frequency Programs – program is done to reward loyal customers of the
company. Maruti has the loyalty discount in which the company offers 2-3%
discount on the product if the buyer is already an owner of a Maruti car.
4. Free Test Drives- The test drives are free of cost and is the best way of
demonstrating a product where the potential buyer himself drives the vehicle
and decides whether to buy the car or not. The company also provides a test
drive at buyer’s home at a telephone request.
5. Product Warranties- The warranties of the product are as high up to 40,000 km.
this reduces the cost owning a Maruti making it perfect car for the middle class
which is the target market.

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7.5 Level of Competition

7.6 Export oriented market

Passenger vehicle exports from India increased 46 per cent in the first nine months of
the current fiscal year, with Maruti Suzuki India leading the segment with dispatches
of around 1.68 lakh units, as per the latest data by SIAM.
The total passenger vehicle (PV) exports stood at 4,24,037 units in April-December
2021-22 as compared with 2,91,170 units in the same period a year ago.
Passenger car shipments saw 45 per cent growth at 2,75,728 units while utility vehicle
exports rose 47 per cent at 1,46,688 units during the period under review, the data by
the Society of Indian Automobile Manufacturers showed.
Export of vans nearly doubled to 1,621 units in April-December 2021-22 as compared
with 877 units in the same period last fiscal year.

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8. Human Resource Management
Human resource management (HRM) is the practice of recruiting, hiring, deploying
and managing an organization’s employees.

8.1 Recruitment and selection

Purpose and Importance of Recruitment:
Attract and encourage more and more candidates to apply in the organization.
Create a talent pool of candidates to enable the selection of best candidates for the
organization.
Determine present and future requirements of the organization in conjunction with its
personnel planning and jobs analysis activities.
Recruitment is the process which links the employers with the employees.
Increase the pool of job candidates at minimum cost.
Sources of Recruitment in MSIL:
Campus Recruitment

Lateral Recruitment:
Consultants
Job sites
Employee referrals

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8.2 Training and Development
Training and Development is a subsystem of an organization. It ensures that
randomness is reduced and learning or behavioural change takes place in structured
format.
Maruti have invested about Rs 12 crore in their training program .recently they took a
decision to establish a world class Maruti training centre which might come up on a
6–8-acre plot.
This kind of infrastructure will operate in decentralized manner.
It will have a residential facility, an e learning facility and will look at the perspective
of developing our own technician level guys for which campus recruitment take s
place.
Maruti arranges training at several intervals.
The training is mandatory for all the employees. The training schedule is maintained
by the Hr manager.

8.3 Trade Union & Management relations

The Maruti Suzuki Workers Union (MSWU) is the trade union of Maruti Suzuki India
Ltd., Manesar, a plant of the company just outside of New Delhi. Over the last decade,
they have been fighting for wages, pensions, initiatives and most importantly, for the
egalitarian treatment and dignity of their laborers.
Through this incident it can be figured out the relation between the Management and
the Trade Union.

9. Research & Development

$ 1.5 billion allocated by Suzuki Motor Corp. for its research and development (R&D)
activities will be spent on its most profitable unit Maruti Suzuki and help the Indian
firm maintain its 50% market share amid increasing competition from European and
Korean Manufacturers.

9.1 Future Plans of MSIL

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Maruti Suzuki is lining up the country’s largest single-location automobile investment as it plans
to pump in up to ₹ 18000 crore for a new factory premises in Haryana, which may have a peak
annual capacity of 10 Lakh units, as per Maruti Suzuki Chairman R C Bhargava in an interview
by Times of India.
Electric vehicles/hybrids
Given that this is the future of motoring, it only seems logical that the largest
manufacturer (in terms of market share) orient itself in a direction that would lead to
such models being produced. It has already introduced its SHVS technology for the
Ciaz and Ertiga and this is expected to spread across more models in the future.

10. Form of Organization

The Joint Venture is a commercial enterprise in which two or more companies join
their forces to gain a tactical and strategic edge in the market.
Maruti Suzuki is a Joint Venture, in which the parent company Suzuki Motor
Corporation is having 56.37% and Maruti 43.63% stake.

10.1 Advantages
• Profit at low cost
• Flexible nature
• Start-up push
• Shared costs, expenses, benefits, and risk
• Learning ground

10.2 Disadvantages
• The communication between partners can be unclear sometimes.
• The level of expertise and investment isn’t equally matched
• The different cultures and management styles pose barriers to co-operation.
• The venture’s contractual limitations pose a risk to a partner’s core business
operations.

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 • A lot of research and planning are necessary

11. Social Obligations

Maruti Suzuki strives to be a people’s company, and for that, it needs to take care of
everyone. Not only is it completely dedicated to the customers, but also to the
communities around the facilities.

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27
Skill Development Programme

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12 Finding, Suggestions and Conclusion

All in my virtual Industry visit at Maruti Suzuki was very beneficial. Not only did I
learn about working of a professional company and gained great insights into the
manufacturing process but I also learned how to maintain composure in a professional
working environment and work independently.
Also, I learned that in a company one not only responsible for his work profile but his
work also influences all other members in the team. A great performance can really
light up the team. Also, one’s work also serves as input data for other employees so it
has to be very accurate. Working=g in a company is about working in a team to
produce desired results. So, I realized the indispensable value to work.
At last, I would like to conclude with the fact that I really learned how the industry
runs and what skill set needed to be part of it which I am sure will definitely help me
in doing things in the right way in future. Also, I would like to convey my sincere
thanks to my project guides and my faculty coordinator for such an enriching
experience.

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13 References:

https://www.ukessays.com/essays/marketing/maruti-udyog-ltd-and-suzuki.php
https://en.wikipedia.org/wiki/Maruti_Suzuki#Awards_and_recognition
https://www.financialexpress.com/auto/car-news/maruti-suzuki-receives-
national-safety-award-from-ministry-of-labour-and-employment/1337582/
https://www.livemint.com/Companies/z4W92AuWjpx6LOGOmhaYNO/Maruti
-Suzuki-to-increase-dependence-on-robots.html
http://nromoef.gov.in/Environment_Reports/Reports/4_hrdec12.pdf
https://www.moneycontrol.com/financials/marutisuzukiindia/balance-
sheetVI/MS24#MS24
https://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG230.htm
https://www.owler.com/company/marutisuzuki/competitors
https://content.wisestep.com/joint-venture-advantages-disadvantages/

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