INTRODUCTION
 Maruti Suzuki India Limited is a leading four-wheeler automobile manufacturer in South Asia. It is largely credited for having brought in an automobile revolution to India.  It was a joint venture between the Indian government, and Suzuki of Japan. As of May 10 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog.  The company annually exports more than 50,000 cars and has an extremely large domestic market in India selling over 730,000 cars annually.  Maruti Suzuki offers 13 models, Maruti 800, Omni, Alto, Versa, Ritz, Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and Grand Vitara.  Maruti Suzuki has manufacturing plants in Gurgaon & Manesar

Men
• The company has a multi-tier management structure, comprising:
1. 2. 3. 4. Board of Directors Managing Executive Officers Executive Officers Divisional Heads
Strategic supervision is provided by the board. Control and Implementation of Company’s strategies is achieved effectively. Operational management remains focused on implementation. Information regarding the company’s operations and financial performance are made available adequately.

Through this it is ensured that:
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• The employees of Maruti. and placing the prosperity of the company as the means of their own advancement .  Financial and operational control and integrity are maintained at operational level. from technicians to engineers to sales persons.  Risk is suitably evaluated and dealt with. Delegation of decision making with accountability is achieved. have fully imbibed the Japanese work culture of making constant improvement.

Money • For its Indian operations. the company plans to invest Rs 9. • The company has also made huge investment in the plant situated at Manesar.000 Crore by 2010. .000 units. that is almost ready to reach its peak production level of 300.

.• The company also operates at the new engine facility located at Gurgaon. • Maruti Suzuki has a good network of internal resources to finance the company’s operations. expansion plans as well as capital investments.

.000 units at the end of first year. SX4 and Dzire are manufactured in Manesar.70.Machinery • The Manesar plant of the company established in 2006achieved an expanded installed capacity of 1. • The models of Swift.

and multifuel engines . Maruti Suzuki Astar. the company has introduced a peppy k series engine for its new car.• Recently. It also has plans to develop hybrid. • The company plans to design cars that are fuel efficient and lower on CO2 emissions. it aims to produce more environmentfriendly car engines. electrical. • In future.

 Energy efficient motors and blowers in the air washer system for shop cooling  Energy efficient chillers for air conditioning.Materials • Maruti uses the following materials to reduce its energy consumption while manufacturing cars:  Energy efficient fans in cooling towers  Special transformers to minimize the energy losses. .

 Energy efficient air driers. Increased re-use of waste heat of combustion for running equipment.  Energy efficient lighting. . Building Management System and Variable Air Volume System for optimized cooling in the work places and reduce the energy consumption.

Maruti Suzuki aims to roll out more numbers of small cars for the Indian sub-continent. . high input costs and congested city roads is paving way for small. • Even the government is supporting the introduction of small cars with favorable policies. light-weight and fuel efficient cars.Methodology Small is Beautiful • Maruti Suzuki has a firm belief that the future of Indian car industry belongs to small cars. • Exuding company’s confidence on growth of small cars. • The rising fuel prices.

• This new car christened as Maruti Suzuki AStar was launched in Europe with the brand ‘Suzuki Alto’. .Re-enter Europe • Maruti Suzuki re-entered European market with a global car that is fuel-efficient and lower on CO2 emissions. Maruti Suzuki Splash. • Maruti has announced to launch another world strategic car model.

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•New multinational players may enter the market.Threat from the new players: Increasing •Most of the major global players are present in the Indian market. Rivalry within the industry: High •There is keen competition in select segments. few more are expected to enter. . •Financial strength assumes importance as high are required for building capacity and maintaining adequacy of working capital. (compact and mid size segments).

Thus the ability to innovate is critical •Product differentiation via new features.Market strength of suppliers: Low •A large number of automotive components suppliers •Automotive players are rationalizing their vendor base to achieve consistency in quality Market strength of consumers: Increasing •Increased awareness among consumers has increased expectations. improved performance and after-sales support is critical •Increased competitive intensity has limited the pricing power of manufacturers .

Threat from substitutes: Low to medium •Consumer preference is changing (Mini cars are being replaced by compact or mid sized cars) •Setting up integrated manufacturing facilities may require higher capital investments than establishing assembly facilities •India is also likely to increasingly serve as the sourcing base for global automotive companies. and automotive exports are likely to gain increasing importance over the medium term •Indian passenger car market is moving towards cars of higher capacity •competition is likely to intensify in the SUV segment in India following the launch of new models at competitive prices .

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affordable passenger cars and a key center for manufacturing Tractors and Two-wheelers in the world Ensure a balanced transition to open trade at a minimal risk to the Indian economy and local industry .• • • • The policies & objectives laid down by the Indian Government regarding the automobile sector are: Exalt the sector as a lever of industrial growth and employment and to achieve a high degree of value addition in the country Promote a globally competitive automotive industry and emerge as a global source for auto components Establish an international hub for manufacturing small.

research and development • Steer India's software industry into automotive technology. • Assist development of vehicles propelled by alternate energy sources • Development of domestic safety and environmental standards at par with international standards . Example: the company developed CMA software for carrying out target costing.• Conduce incessant modernization of the industry and facilitate indigenous design.

Keeping the Government policies in mind Maruti Suzuki has adopted the following policies to run the organisation: • Maruti Suzuki is one of the organisation which was able to survive the global recession. Now they are in the process of re-entering the European market by introducing A-Star • The company has now started using CNG Kits. Not only they made a reasonable profit but also didn’t give away any pink slips • Maruti Suzuki is the leading automobile manufacturer in the country. They have introduced this technology in Alto which fulfills the CSR of going Green • The company has introduced KB-Series engine which offers latest technology to the customers .

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000 sales executives to target customers in the rural areas.ECONOMIC ENVIRONMENT OF MARUTI SUZUKI •The global meltdown has certainly hit the Indian car industry hard. . •Maruti has appointed 2.The industry posted a growth rate of 11 per cent in the year 2007 which has fallen to 3 per cent this year. 60 per cent of which runs on cash . •Maruti now plans to tap the rural market.

• •On May 8 2009 Maruti Suzuki India planned to ramp up its production capacity by addition of 2 Lakh cars in the next two fiscal years.small cars in India.000 on various models in the rural market.000 to 8. Maruti Suzuki manufactures 9 Lakh cars annually to cater to the biggest segment . • It will be spending nearly Rs 1. •Currently.800 Crore to develop the capacity. .The company is offering discounts ranging from Rs 3.

748 units in one month.779 units.000 Crore for a new engine plant and new research and development centre. Maruti exported 4774 units and accounts for a total car sales of 71.•Maruti Suzuki sold 7. •Company has allocated Rs 9. •In January 2009.92 Lakh cars in the last 2008-09 fiscal year which combines the domestic sales and those made abroad. . in japan. •It recorded the highest sales in April with a 15 percent jump and sale of 71.

The price of Swift Petrol LXi Rs 5.000 All variants of SX4 sedan Rs 9. 7. For the higher variants of Swift-VXi and Zxi.000.000.Rs 6.000.The recession affect on Automobile Prices The pricing of the following cars have gone up by: A-Star hatchback Rs 10. The new prices for Swift DZire Rs.000 .

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Social environment Welfare Camps Medical support & welfare Education to underprivileged Road Safety Maruti Driving Schools Greening of Supply Chain Adopting energy saving technologies Reducing water wastage Green Growth .

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• Launched CNG kit for Alto. • The company as a proactive move is all set to make its entire fleet of cars adhere to ‘end of life vehicles’ (ELV) specifications by 2010 by doing away with the usage of hazardous substances during production of cars and their components. . its highest selling small car.

• In future.• The company is involved with the development of small and fuel-efficient car engines. the company has high plans to increase the engine development work in India along with other R&D operations. .

• The company added Virtual Design Review to its R&D activity to enable virtual validation to reduce cycle time and development cost. • In the field of alternate fuel technology. . the company developed LPG system for MPI engine.• The company uses next generation KB series Engine in its new Hatchback car A-star.

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• Targets reducing fresh water consumption and implement rain water harvesting. and recycle.reduce. • Continuous process of promoting 100% recyclable and reusable car parts. reuse.• 3R. .

.• The newly launched Maruti Suzuki A-Star is designed to meet the European ELV (End-ofLife Vehicle) norms.

• The company conducts regular training and education programmes at the supplier end. • Sessions are also held at all possible places comprising people from all arenas of the car industry. .• Encourages its customers to act upon environment friendly approach.

• Researches are done to learn innovative ways of improving ecological balance and reduce automotive emissions. .

• The company has introduced three-coat-onebake painting system at its facility.• Education. • The company is moving towards making its entire fleet of cars green with advanced and efficient technologies. . and improvement initiatives are taken on the shop floor.

. The company was again recertified for the same in 2002.• 1999.Certified for establishing and maintaining EMS as per ISO 14001:1996 standards. • Certified for changing its EMS from ISO 14001:1996 version to ISO 14001:2004 version.

• First prize for excellence in implementation of Energy Conservation measures in industrial sector was awarded by renewable energy department of Haryana Government.• Golden Peacock award for Environment Management in 2007 was honored by World Environment Foundation. .

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The software enables in planning and monitoring all compliance activities across the Company.Legal Environment • Follows highest standards of Corporate Governance • Customer can contact the Secretarial & Legal Department for any questions/clarifications. as well as steps taken by the Company to rectify instances of non-compliances. • Legal compliance reporting The board periodically reviews reports of compliance with all laws applicable to the Company. • The Company has developed comprehensive legal compliance scheduling and management software by which specific compliance tasks are assigned to each individual. .