INTRODUCTION OF THE COMAPANY

MARUTI UDYOG LIMITED

Maruti is India's largest automobile company. The company, a joint venture

with Suzuki of Japan, has been a success story like no other in the annals of the
Indian automobile industry.

Today, Maruti is India's largest automobile company. This feat was achieved by
the missionary zeal of our employees across the line and the far-sighted vision
of our management.

Maruti Suzuki - Mission

Maruti Suzuki's mission statement says, "To be The Leader in the Indian
Automobile Industry, Creating Customer Delight and Shareholder's Wealth;
A pride of India."

The Company Vision:

We must be an internationally competitive company in terms of our

products and services. We must retain our leadership in India and

should also aspire to be among the global players.

Their focus is on:-

 Building a continuously improving organisation adaptable to quick changes

 Providing value and satisfaction to the customer

 Aligning and fully involving all our employees, suppliers and dealers to face
competition

 Maximising Shareholder's value

 Being a responsible corporate citizen

At Maruti, they have a clear perspective on manpower. They see it as a unique
resource, in the sense that optimal productivity of other resources depends
largely on the way human resources are utilised. The basic philosophy of
management that underlies the Maruti culture is that all employees of the
company should be moulded into a team which then strives as one, to achieve
commonly shared company goals and objectives. To make this philosophy
tenable, the Company takes several initiatives. Inputs are sought from
employees at all levels. They believe that everyone should contribute to the
formulation of company policies, goals and objectives. Secondly, at Maruti,
they encourage leadership in the best sense of the word. According to us, a
leader is one who must be impartial, must have the ability to rise above his own
subjectivity, and, most importantly, must practice what he preaches.

They understand that the process of creating a sense of belonging that all
employees can identify with is a lengthy one. To ensure that this translates into
concrete reality, they have taken several simple but specific and well thought
out measures. The first step in this direction has been the introduction of a
common uniform for all employees. Another measure is the creation of a
common canteen where all employees have lunch, stand in common queues,
and sit on the same table. Common toilets, common transport and similar
facilities for all levels of employees are other measures that reinforce their
emphasis on genuine equality in the workplace.

At Maruti They do not believe in the notion of organisational hierarchies. As a

matter of fact, the management structure and systems in Maruti have been
designed to promote decentralisation of authority. Maruti has a horizontal
management structure with only four functional levels of responsibility to
facilitate quicker decision making.

Another focus area of the Maruti culture is the maintenance of a smoothly

functioning communication network. Maruti believes that communication
channels between labour and management cannot simply consist of having a
labour representative on the Board of the Company. They have faith in the
ability of labour to effectively participate in management and make constructive
suggestions. To encourage this, they ensure that there is a thorough
dissemination of information at all levels, through newsletters or via a letter
from the Chief Executive to all employees. Meetings with the Union are held
regularly, and programmes being contemplated by the Company are discussed
with the Union. The Sahyog Samiti, a collection of representatives of non-
unionised employees, training programmes in Japan, Quality Circles,
productivity-linked incentive schemes, and an ethos of discipline and teamwork,
all contribute to the Maruti culture.

Several measures of performance have made amply clear that Maruti has
established a truly healthy work culture. They have met all project and
performance targets since inception. Their productivity levels are constantly
improving. The Company has had good labour relations with employees from
the very beginning, and they have been successful in the export market. Yet, the
Maruti culture is one that does not believe in resting on its laurels. They adhere
to the spirit of Kaizen, which states that constant improvement is always
possible. The most basic tenet of productivity that they hold dear is that " Today
should be better than Yesterday and Tomorrow should be better than Today".

Maruti Udyog Limited (MUL) was established in Feb 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.

Suzuki Motor Company was chosen from seven prospective partners

worldwide. This was due not only to their undisputed leadership in small cars
but also to their commitment to actively bring to MUL contemporary
technology and Japanese management practices (which had catapulted Japan
over USA to the status of the top auto manufacturing country in the world).
A license and a Joint Venture agreement was signed between Government of
India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in
Oct 1982.

The objectives of MUL then were:

 Modernization of the Indian Automobile Industry.

 Production of fuel-efficient vehicles to conserve scarce resources.

 Production of large number of motor vehicles, which was necessary for

economic growth.

CORE VALUE
 Customer Obsession

 Fast, Flexible and First Mover

 Innovation and Creativity

 Networking and Partnership

 Openness and Learning

VISION
The leader in the India Automobile Industry, Creating Customer Delight and
Shareholder’s Wealth; A pride of India”

Technological Advantage

We have introduced the superior 16 * 4 Hypertech engines across the entire

Maruti Suzuki range. This new technology harnesses the power of a brainy 16-
bit computer to a fuel-efficient 4-valve engine to create optimum engine
delivery. This means every Maruti Suzuki owner gets the ideal combination of
power and performance from his car.
Our other innovation has been the introduction of Electronic Power Steering
(EPS) in select models. This results in better and greater maneuverability. In
other words, our cars have become even more pleasurable to drive.

Production/R&D

Spread over a sprawling 297 acres with 3 fully-integrated production facilities,

the Maruti Udyog Plant has already rolled out over 4.3 million vehicles. In fact,
on an average, two vehicles roll out of the factory every minute. And it takes on
an average, just 14 hours to make a car. More importantly, with an incredible
range of 11 models available in 50 variants, there's a Maruti Suzuki made here
to fit every car-buyer's budget. And dream.

Production Milestones

1st vehicle produced, December 1983

1,00,000 vehicles produced by August, 1986

5,00,000 vehicles produced by June, 1990

10,00,000 vehicles produced by March, 1994

15,00,000 vehicles produced by April, 1996

20,00,000 vehicles produced by October, 1997

25,00,000 vehicles produced by March, 1999

30,00,000 vehicles produced by June, 2000

35,00,000 vehicles produced by December 2001

40,00,000 vehicles produced by April, 2003

45,00,000 vehicles produced by April, 2004

AWARDS

2005

Number one in JD Power SSI for the second

consecutive year

Number one in JD Power CSI for the sixth time

in a row - the only car to win

it so many times

M800, WagonR and Swift topped their

segments in the TNS Total

Customer Satisfaction Study

Leadership in the JD Power Initial Quality

Study - Alto number one in its

segment for the 2nd time in a row, Esteem

number one in its segment for

the 3rd year in a row, Swift number one in the

premium compact segment

WagonR and Esteem top their segments in the

JD Power APEAL study
 TNS ranks Maruti 4th in the Corporate
Reputation Strength (CSR) study

(#1 in Auto sector)-Feb 05

Maruti bagged the "Manufacturer of the year"

award from Autocar-CNBC

( 2nd time in a row)-Feb 05

First Indian car manufacturer to reach 5 million

vehicles sales

Business World ranks Maruti among top five

most respected companies in

India-Oct 04

Maruti ranked among top ten (Rank7) greenest

companies in India by

Business Today - Sep '04

2004

Maruti Suzuki was No. 1 in Customer

atisfaction, No. 1 in Sales Satisfaction No.1 in
 Product Quality (Esteem and Alto) and No. 1 in
Product Appeal (Esteem and Wagon R)

No. 1 in Total Customer Satisfaction (Maruti

800, Zen and Alto)

Business World ranked us among the country's

five most respected companies

Business World ranked us the country's most

respected automobile company

Voted Manufacturer of the year by CNBC

Voted one of India's Greenest Companies by

Business Today-AC Nielson ORG-MARG

2003

Maruti 800, Maruti Zen and Maruti Esteem

make it to the top 10 automotive brands in
"Most Trusted Brand survey 2003"

J D Power ranked 3 models of Maruti on top:

Wagonr, Zen and Esteem

Maruti 800 and Wagonr top in NFO Total

 Customer Satisfaction Study 2003.

MUL tops in J D Power CSI (2001) for 4th time

in a row

2001

MUL tops in J D Power CSI (2001) for 2nd time

in a row: another international first

2000

Maruti bags JD Power CSI - 1st rank; unique

achievement by market leader anywhere in the
world

1999

MSM launched as model workshop in India;

achieves highest CSI rating.

Central Board of Excise & Customs awards

Maruti with "Samman Patra", for contribution to
 exchequer and being an ideal tax assessee

1998

CII's Business Excellence Award

1996

Maruti wins INSSAN award for "Excellence in

Suggestion Scheme"

Awarded the Star Trading House status by

Ministry of Commerce

1994-95

Engineering Exports Promotion Council's award

for export performance

1994

Best Canteen award among Haryana Industries

 as part of employee welfare

1992-93

Engineering Exports Promotion Council's award

for export performance

1991-92

Engineering Exports Promotion Council's award

for export performance