Maruti Sm Project complete analysis

7/27/2019 Maruti Sm Project complete analysis

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M.COM (SEMESTER-1) STRATEGIC MANAGEMENT

2

INDIA COMES HOME IN MARUTI


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1.COMPANY PROFI LE

1.1COMPANY H ISTORY

Marutl Suzuki India Limited (MSIL) formerly known as 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. 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 Motor Company of

Japan in Oct 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 the agreement to raise Suzukis equity to 40%, which it exercised in 1987. Five years later,

in 1992, Suzuki further increased its equity to 50% turning Maruti into a non-governmentorganization managed on the lines of Japanese management practices. Maruti created history by

going into production in a record 13 months. Maruti is the highest volume car manufacturer in Asia,

outside Japan and Korea, having produced over 5 million vehicles by May 2005. Maruti is one of the

most successful automobile joint ventures, and has made profits every year since inception till 2000-

01. In 2000-01, although Maruti generated operating profits on an income of Rs 92.5 billion, high

depreciation on new model launches resulted in a book loss.

The Evolution

Marutis history of evolution can be examined in four phases: two phases during pre-

liberalization period (1983-86, 1986-1992) and two phases during post-liberalization period (1992-97, 1997-2002), followed by the full privatization of Maruti in June 2003 with the launch of an

initial public offering (IPO).The first phase started when Maruti rolled out its first car in December

1983. During the initial years Maruti had 883 employees, a capital of Rs. 607 mn and profit of Rs.

17 mn without any tax obligation. From such a modest start the company in just about a decade

(beginning of second phase in 1992) had turned itself into an automobile giant capturing about 80%

of the market share in India. Employees grew to 2000 (end of first phase 1986), 3900 (end of second

phase 1992) and 5700 in 1999. The profit after tax increased from Rs 18.67 mn in 1984 to Rs.

6854.54 mn in 1998 but started declining during 1997-2001.

During the pre-liberalization period (1983-1992) a major source of Marutis strength wasthe wholehearted willingness of the Government of India to subscribe to Suzukis technology and

the principles and practices of Japanese management. Large number of Indian managers, supervisors

and workers were regularly sent to the Suzuki plants in Japan for training. Batches of Japanese

personnel came over to Maruti to train, supervise and manage. Marutis style ofmanagement was

essentially to follow Japanese management practices.

Maruti Udyog Limited (MUL) was established in February 1981, though the actual

production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei carwhich at the

time was the only modern car available in India, its only competitors - the Hindustan

Ambassadorand Premier Padmini - were both around 25 years out of date at that point. Through

2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India and
http://en.wikipedia.org/wiki/Suzuki_Altohttp://en.wikipedia.org/wiki/Kei_carhttp://en.wikipedia.org/wiki/Hindustan_Ambassadorhttp://en.wikipedia.org/wiki/Hindustan_Ambassadorhttp://en.wikipedia.org/wiki/Premier_Padminihttp://en.wikipedia.org/wiki/Premier_Padminihttp://en.wikipedia.org/wiki/Hindustan_Ambassadorhttp://en.wikipedia.org/wiki/Hindustan_Ambassadorhttp://en.wikipedia.org/wiki/Kei_carhttp://en.wikipedia.org/wiki/Suzuki_Alto


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various several other countries, depending upon export orders. Models similar to those made by

Maruti in India, albeit not assembled or fully manufactured in India or Japan are sold by Pak Suzuki

Motors in Pakistan.

The company exports more than 50,000 cars annually and has domestic sales of 730,000

cars annually. Its manufacturing facilities are located at twofacilities Gurgaon and Manesarin Haryana, south ofDelhi. Maruti Suzukis Gurgaon facility has an

installed capacity of 900,000 units per annum. The Manesar facilities, launched in February 2007

comprise a vehicle assembly plant with a capacity of 550,000 units per year and a Diesel Engine

plant with an annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities

have a combined capability to produce over 14,50,000 units annually.

About 35% of all cars sold in India are made by Maruti. The company is 54.2% owned

by the Japanese multinational Suzuki Motor Corporationper cent of Maruti Suzuki. The rest is

owned by public and financial institutions. It is listed on the Bombay Stock Exchangeand National

Stock Exchange of India.

During 2007 and 2008, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported.

In all, over six million Maruti Suzuki cars are on Indian roads since the first car was rolled out on 14

December 1983. Maruti Suzuki offers 15 models, Maruti 800, Alto, Maruti Alto

800, WagonR, Estilo, A-star, Ritz, Swift, SwiftDZire, SX4, Omni, Eeco, Gypsy, Grand

Vitara, Kizashi and the newly launched Ertiga. Swift, Swift DZire, A-star and SX4 are manufactured

in Manesar, Grand Vitara and Kizashi are imported from Japan as completely built units(CBU), all

remaining models are manufactured in Maruti Suzuki's Gurgaon Plant. The company is believed to

be moving towards the introduction of a new version of Maruti 800 by November 2012, which will

be more fuel efficient, though slightly costlier than Alto and existing Maruti 800.[12]The Suzuki

Motor Corporation, Maruti's main stakeholder, has been a global leader in mini and compact cars forthree decades. Suzukis strategy is to utilize light-weight, compact engines with stronger power,

fuel-efficiency and performance capabilities. Nearly 75,000 people are employed directly by Maruti

Suzuki and its partners. It has been rated first in customer satisfaction among all car makers in India

from 1999 to 2009 by J D Power Asia Pacific Maruti Suzuki will be introducing new 800 cc model

by Diwali in 2012.The model is supposed to be fuel efficient, and therefore more expensive. With

increasing market competition in the small car segment, a new model along with the upcoming

WagonR Stingray will be the key fresh products for Maruti Suzuki India (MSI) to defend its market

share amid the ever increasing competition.
http://en.wikipedia.org/wiki/Pak_Suzuki_Motorshttp://en.wikipedia.org/wiki/Pak_Suzuki_Motorshttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_Alto_800http://en.wikipedia.org/wiki/Maruti_Alto_800http://en.wikipedia.org/wiki/Suzuki_Wagon_Rhttp://en.wikipedia.org/wiki/Suzuki_MR_Wagonhttp://en.wikipedia.org/wiki/Suzuki_Alto#Internationalhttp://en.wikipedia.org/wiki/Suzuki_Splashhttp://en.wikipedia.org/wiki/Suzuki_Swifthttp://en.wikipedia.org/wiki/Maruti_Suzuki_Swift_DZirehttp://en.wikipedia.org/wiki/Suzuki_SX4http://en.wikipedia.org/wiki/Maruti_Omnihttp://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/Suzuki_Grand_Vitarahttp://en.wikipedia.org/wiki/Suzuki_Grand_Vitarahttp://en.wikipedia.org/wiki/Suzuki_Kizashihttp://en.wikipedia.org/wiki/Maruti_Ertigahttp://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-12http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-12http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-12http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-12http://en.wikipedia.org/wiki/Maruti_Ertigahttp://en.wikipedia.org/wiki/Suzuki_Kizashihttp://en.wikipedia.org/wiki/Suzuki_Grand_Vitarahttp://en.wikipedia.org/wiki/Suzuki_Grand_Vitarahttp://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/wiki/Maruti_Omnihttp://en.wikipedia.org/wiki/Suzuki_SX4http://en.wikipedia.org/wiki/Maruti_Suzuki_Swift_DZirehttp://en.wikipedia.org/wiki/Suzuki_Swifthttp://en.wikipedia.org/wiki/Suzuki_Splashhttp://en.wikipedia.org/wiki/Suzuki_Alto#Internationalhttp://en.wikipedia.org/wiki/Suzuki_MR_Wagonhttp://en.wikipedia.org/wiki/Suzuki_Wagon_Rhttp://en.wikipedia.org/wiki/Maruti_Alto_800http://en.wikipedia.org/wiki/Maruti_Alto_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Pak_Suzuki_Motorshttp://en.wikipedia.org/wiki/Pak_Suzuki_Motors


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1.2CHRONOLGY

BEGINNING

Maruti's history begins in 1970, when a private limited company named 'Maruti technical

services private limited' (MTSPL) is launched on November 16, 1970. The stated purpose of this

company was to provide technical know-how for the design, manufacture and assembly of "a

wholly indigenous motor car". In June 1971, a company called 'Maruti limited' was incorporated

under the Companies Act and Sanjay Gandhibecame its first managing director. After a series of

scandals, "Maruti Limited" goes into liquidation in 1977. This is followed by a commission of

inquiry headed by Justice A. C. Gupta, which submits its report in 1978. On 23 June 1980 Sanjay

Gandhi dies when a private test plane he was flying crashes. A year after his death, and at the behest

ofIndira Gandhi, the Indian Central government salvages Maruti Limited and starts looking for an

active collaborator for a new company: Maruti Udyog Ltd being incorporated in the same year.

SUZUKI ENTERS.

In 1982, a license and Joint Venture Agreement (JVA) is signed between Maruti Udyog Ltd.

and Suzuki of Japan. At first, Maruti Suzuki was mainly an importer of cars. In India's closed

market, Maruti received the right to import 40,000 fully built-up Suzukis in the first two years, and

even after that the early goal was to use only 33% indigenous parts. This upset the local

manufacturers considerably. There were also some concerns that the Indian market was too small to

absorb the comparatively large production planned by Maruti Suzuki, with the government even

considering adjusting the petrol tax and lowering the excise duty in order to boost sales. Finally, in1983, the Maruti 800 is released. This 796 cc hatchback is based on the SS80 Suzuki Alto and is

Indias first affordable car. Initial product plan is 40% saloons, and 60% Maruti Van. Local

production commences in December 1983. In 1984 the Maruti Van, with the same three-cylinder

engine as the 800, is released. Installed capacity of the plant in Gurgaon, reaches 40,000 units.

In 1985 the Suzuki SJ410-based Gypsy, a 970 cc 4WD off-road vehicle, is launched. In 1986

the original 800 is replaced by an all-new model of the 796 cc hatchbackSuzuki Alto/Fronte. This is

also when the 100,000th vehicle is produced by the company. In 1987 follows the company's first

export to the West, when a lot of 500 cars were sent to Hungary. Maruti products had been exported

to certain neighboring countries already. By 1988, the capacity of the Gurgaon plant is increased to

100,000 units per annum.
http://en.wikipedia.org/wiki/Sanjay_Gandhihttp://en.wikipedia.org/wiki/Commission_of_inquiryhttp://en.wikipedia.org/wiki/Commission_of_inquiryhttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Suzuki_Alto#SS80http://en.wikipedia.org/wiki/Maruti_Omnihttp://en.wikipedia.org/wiki/Gurgaon,_Haryanahttp://en.wikipedia.org/wiki/Suzuki_Jimny#SJ410http://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/Suzuki_Altohttp://en.wikipedia.org/wiki/Suzuki_Altohttp://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/Suzuki_Jimny#SJ410http://en.wikipedia.org/wiki/Gurgaon,_Haryanahttp://en.wikipedia.org/wiki/Maruti_Omnihttp://en.wikipedia.org/wiki/Suzuki_Alto#SS80http://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Commission_of_inquiryhttp://en.wikipedia.org/wiki/Commission_of_inquiryhttp://en.wikipedia.org/wiki/Sanjay_Gandhi


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MARKET LIBERI LAZATION

In 1989 the Maruti 1000 is presented after having been shown earlier. This 970 cc, three-

box is Indias first contemporary sedan. By 1991 , 65 percent of the components, for all vehicles

produced, are indigenized. Meanwhile, the liberalization of the economy opens new opportunitiesbut also brings more competition to the segments in which Maruti operates. In

1992 Suzuki increases its stake in Maruti to 50 percent, making the company a 50-50 JV with the

Government of India the other stake holder.

A flow of new models begin in the early nineties. In 1993 the Zen, a modern 993 cc,

hatchback which is later exported globally as the Suzuki Alto. In 1994 the 1298 cc Esteem appears,

a more luxurious redesigned Maruti 1000. This and other Marutis begin appearing in a plethora of

different equipment levels, to better suit India's increasingly discerning consumers. A Zen

Automatic arrives in 1996, as does the Gypsy King, a 1.3 liter version of the compact off-roader,

and a minibus version of the Omni (the Omni E).

In 1994 Maruti Suzuki produces its 1 millionth vehicle since the commencement of

production, being the first company in India to do so. This is still not enough in a booming market

and the next year Maruti's second plant is opened, with annual capacity reaching 200,000 units.

Maruti also launches a 24-hour emergency on-road vehicle service, the first of its kind in the

country. In 1996 the United Front government is formed, with Murasoli Maran new Industries

Minister. On 27 August the following year the government nominates Mr. S.S.L.N. Bhaskarudu as

the Managing Director, as the then current Managing director R.C. Bhargava, was completing his

tenure. This creates a conflict with Suzuki, discussed closer in the Joint venture related issuessection.

In 1998 the new Maruti 800 is released, the first change in design since 1986. This is simply

a facelift of the existing model, to ensure steady sales. Also, the two millionth vehicle is produced.

Other news includes the Zen D, a 1527 cc diesel hatchback and Maruti's first diesel vehicle.

The Omni van and microbus is also redesigned. The next year the Omni bus arrives in a high roof

version, the Omni XL. The 1.6 literMaruti Baleno three-box saloon, advertised as the 'Maruti

Suzuki Baleno', also appears. This is Maruti's biggest car yet. Finally, in what is a very busy year,

the Wagon Ris launched.

In 2000 Maruti becomes the first car company in India to launch a Call Centerfor internal

and customer services. The new Alto model is also released, somewhat larger and more modern

than the 800. The estate Baleno Alturas is also shown, while IDTR (Institute of Driving Training

and Research) is launched jointly with the Delhi government to promote safe driving habits. In

2001 Maruti True Value, selling and buying used Maruti Suzukis, is launched in Bangalore and

Delhi, later in Mumbai and elsewhere. In October of the same year the Maruti Versa sees the day, a

bigger engine and more luxurious microbus than the Omni. It never catches on in the market and is

discontinued by late 2009. Customer information centers are also launched in Hyderabad, Bangalore

and Chennai. In 2002 the Esteem Diesel appears, as does Maruti Insurance. Two new subsidiaries
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are also started: Maruti Insurance Distributor Services and Maruti Insurance Brokers Limited.

Suzuki Motor Corporation increases its stake in Maruti to 54.2 percent.

In 2003 the new Suzuki Grand Vitara XL-7 appears, while the Zen and the Wagon R are

upgraded and redesigned. The four millionth Maruti vehicle is built and they enter into a partnership

with the State Bank of India. Maruti Udyog Ltd is listed on BSE and NSE after a public issue,

which is oversubscribed tenfold. In 2004 the Altobecomes India's new bestselling car, overtaking

the Maruti 800 which had been number one for nearly two decades. The five-seaterVersa 5-seater, a

new variant, is created while the Esteem undergoes cosmetic changes and is re-launched with a

price cut. Maruti Udyog closed the financial year 2003-04 with an annual sale of 472,122 units, the

highest ever since the company began operations 20 years earlier, and the fiftieth lakh (5 millionth)

car rolls out in April, 2005, with overall sales growing by 15.8%. The 1.3 L Suzuki Swift five-door

hatchback also appears. 2004-05 marked another record year (487,402 domestic sales) and exports

reached 48,899 cars to about fifty different countries. The United Kingdom took the lion's share,

with 10,623 deliveries.

In 2006 Suzuki and Maruti set up another joint venture, "Maruti Suzuki Automobiles India",

to build two new manufacturing plants, one for vehicles and one for engines Cleaner cars were also

introduced, with several new models meeting the new "Bharat Stage III" standards In February

2012, Maruti Suzuki sold its ten millionth vehicle in India.
http://en.wikipedia.org/wiki/Suzuki_Grand_Vitarahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Versahttp://en.wikipedia.org/wiki/Bharat_Stage_emission_standardshttp://en.wikipedia.org/wiki/Bharat_Stage_emission_standardshttp://en.wikipedia.org/wiki/Maruti_Versahttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Suzuki_Grand_Vitara


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1.3 PRODUCT LINE

CARS MANUFACTURED IN INDI A

1. Omni (Launched 1984)2. Gypsy (launched 1985)

3. WagonR(Launched 1999)

4. Alto (Launched 2000)

5. Swift (Launched 2005)

6. Estilo (Launched 2006)

7. SX4 (Launched 2007)

8. Swift DZire (Launched 2008)

9. A-star(Launched 2008)

10.Ritz (Launched 2009)

11.Eeco (Launched 2010)

12.Alto K10 (Launched 2010)

13.Maruti Ertiga(Launched 2012), seven seater MPV R3 designed and developed in India,

will compete with Toyota Innova, Mahindra Xylo, and Tata Sumo Grande. In early 2012,

Suzuki Ertiga will be exported first to Indonesia in Completely Knock Down car.

14.Maruti XA Alphabased compact SUV to compete with the Ford EcoSport & Renault

Duster will be launched in the year 2014

15.Maruti Alto 800(Launched 2012), Maruti Alto 800 is finally out with a price tag of

Rs.2.44 lakh (ex-showroom New Delhi). Maruti has rolled out four Petrol variants-Alto

800 STD, Alto 800 LX, Alto 800 LXI and Alto 800 VXI and three CNG variants -Alto

800 CNG STD,Alto 800 CNG LX and Alto 800 CNG LXi. The 0.8 liter of petrol engine

is very fuel efficient and pushes the car to produce high class mileage of 17 to 22 km per

liter. The 48 ps @ 6000 rpm (Petrol) and 41 ps @ 6000 rpm (CNG)of peak power

produced by the engine is also successful on road by delivering top-notch performance.
http://en.wikipedia.org/wiki/Maruti_Omnihttp://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/Maruti_WagonRhttp://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Suzuki_Swifthttp://en.wikipedia.org/wiki/Suzuki_MR_Wagon#First_generationhttp://en.wikipedia.org/wiki/Maruti_Suzuki_SX4http://en.wikipedia.org/wiki/Maruti_Suzuki_Swift_DZirehttp://en.wikipedia.org/wiki/Maruti_Suzuki_A-STARhttp://en.wikipedia.org/wiki/Suzuki_Splashhttp://en.wikipedia.org/wiki/Suzuki_Splashhttp://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/wiki/Maruti_Alto_K10http://en.wikipedia.org/wiki/Maruti_Alto_K10http://en.wikipedia.org/wiki/Maruti_Ertigahttp://en.wikipedia.org/wiki/Maruti_Ertigahttp://en.wikipedia.org/wiki/Toyota_Innovahttp://en.wikipedia.org/wiki/Maruti_XA_Alphahttp://en.wikipedia.org/wiki/Maruti_XA_Alphahttp://en.wikipedia.org/wiki/Maruti_Alto_800http://en.wikipedia.org/wiki/Maruti_Alto_800http://en.wikipedia.org/wiki/Maruti_Alto_800http://en.wikipedia.org/wiki/Maruti_XA_Alphahttp://en.wikipedia.org/wiki/Toyota_Innovahttp://en.wikipedia.org/wiki/Maruti_Ertigahttp://en.wikipedia.org/wiki/Maruti_Alto_K10http://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/wiki/Suzuki_Splashhttp://en.wikipedia.org/wiki/Maruti_Suzuki_A-STARhttp://en.wikipedia.org/wiki/Maruti_Suzuki_Swift_DZirehttp://en.wikipedia.org/wiki/Maruti_Suzuki_SX4http://en.wikipedia.org/wiki/Suzuki_MR_Wagon#First_generationhttp://en.wikipedia.org/wiki/Suzuki_Swifthttp://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_WagonRhttp://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/Maruti_Omni


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IMPORTED CARS .

1. Grand Vitara (Launched 2007)

2. Kizashi (Launched 2011)

DISCONTINUED CARS

1. 1000 (19902000)

2. Zen (19932006)

3. Esteem (19942008)

4. Baleno (19992007)

5. Versa (20012010)

6. Grand Vitara XL7 (20032007)

7. 800 (1983-2012)

8. Alto (2000-2012)
http://en.wikipedia.org/wiki/Suzuki_Grand_Vitarahttp://en.wikipedia.org/wiki/Suzuki_Kizashihttp://en.wikipedia.org/wiki/Maruti_1000http://en.wikipedia.org/wiki/Maruti_Zenhttp://en.wikipedia.org/wiki/Maruti_Esteemhttp://en.wikipedia.org/wiki/Maruti_Balenohttp://en.wikipedia.org/wiki/Maruti_Versahttp://en.wikipedia.org/wiki/Suzuki_XL7http://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Suzuki_XL7http://en.wikipedia.org/wiki/Maruti_Versahttp://en.wikipedia.org/wiki/Maruti_Balenohttp://en.wikipedia.org/wiki/Maruti_Esteemhttp://en.wikipedia.org/wiki/Maruti_Zenhttp://en.wikipedia.org/wiki/Maruti_1000http://en.wikipedia.org/wiki/Suzuki_Kizashihttp://en.wikipedia.org/wiki/Suzuki_Grand_Vitara


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2.M ISSION AND VISION

STATEMENT

2.1 M ISSION STATEMENTMission is the statement of an organizations purpose, what it want to accomplish

in the larger environment and its goals which are specific, realistic and motivating. Missions are

described over visions and visions demand certain objectives

The main mission/objective of Maruti Suzuki India Limited (MSIL) :

1.Modernization of the Indian Automobile Industry.

2.Developing cars faster and selling them for less.

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

4. Production of large number of motor vehicles which was necessary for economic growth.

5. Market Penetration, Market Development Similarly Product Development and Diversification.

6. Partner Relationship Management , Value Chain , Value Delivery Network

ANALYSIS OF M ISSION

STATEMENT

1.Modernization of the Indian Automobile Industry :

When we talk about modernization of Indian

Automobile Industry the first name come into our mind is Maruti Suzuki . This is because it's the

one of the mission of Maruti . They were first in the country to come up with modern ways of

manufacturing the car . Even the first car launched by the company had the modern technology in

those days. Maruti 800 was a revolution in Indian automobile Industry , since , then they have beenraising the standard of technology and modernizing the Industry .

2.Developing cars faster and selling them for less :

From the statement itself we can understand

their mission .Maruti is known for upgrading its cars quickly to face the competition . Some

company are only good in bringing up upgraded models but cannot sell it at nominal price . But

Maruti has been determined on upgrading it's and even selling it for nominal price .


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3. Production of fuel-efficient vehicles to conserve scarce resources :

The biggest issue ahead of

all the countries in the world is to protect its scarce resources . Scarcity of this resources leads to

increase in fuel charges . Even this has been the problem for automobile industry round the globe .

They had to come up with fuel efficient cars . Maruti has been front runner in the race of

manufacturing fuel efficient engines of the cars . To complete their mission they were first in the

industry to launch car with factory fitted CNG cars in India . CNG cars helps up to large extent in

conversing scarce resources .

4. Production of large number of motor vehicles which was necessary for economic growth. :

Prior

to Introduction of Maruti 800 by Maruti Udyog Ltd . In India cars where manufactured in limited

quantity. The main reason for low production was huge cost of production resulting in high selling

price . Due to high selling price the demand in market was less . Due to which automobile sector

had very less share in GDP. Maruti lead the way for low budget cars. This increased production of

cars leading in increase in share of automobile industry in GDP

5. Market Penetration, Market Development Similarly Product Development and Diversification.:

Maruti had always aimed at developing their products as well as market . The best example of

product development was discontinuing Versa and introducing Eeco by making certain changes in

its discontinued model Versa . Now Eeco is now one of the successful product of Maruti . In the

same way Maruti has also developed its market in current years . Maruti has successfully

contributed in share of luxury car markets with introduction of SX4 , Swift Dzire , XA Alpha ,

Grand Vitara and Kizashi. Maruti has also entered the market of 6-7 seater car segment . Maruti has

also diversified by Starting Maruti finance , Maruti Motor Training schools etc .

6.. Partner Relationship Management , Value Chain , Value Delivery Network:

One of the most

imported mission of Maruti has been maintaining healthy relationship with its partner . They had

also aimed at maintaining relationship with their distributors .


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2.2 VI SION STATEMENT

Visions of any company are those values on which company works

As the MUL is started by Governmental initiatives it tends to be more consumer oriented

and hence cost effective, but on the other hand Suzukis participation ensures not only

need of the profit, but of the need of maximum profit. The only way for this Noras

dilemma of selecting principals for companys working vision ,was to maximize profit and

reducing cost by maximizing output and sales Hence MUL declared its Vision as-

The Leader in the Indian Automobile Industry, Creating Customer Delight and

Shareholder's Wealth ; eventually become a pride of India

ANALYSIS OF VISION

STATEMENT

From the vision statement we can understand the clear cut vision of MSIL . The

company had been working in full force to complete their vision . The company has been no doubt

an leader in Indian Auto-mobile industry since, many years, before the entry of some other

companies into India automobile industry. The company has also created a special place in mind of

customers by giving them complete customer satisfaction . Second part of the statement is "

Creating shareholders wealth " company has always performed as per the expectation of their

shareholders . Company's Earnings per share has always incremented shareholders wealth . And last

part of the statement "becoming a pride of India" . this part do not require any explanation

.Company has been continuingly working for becoming the pride of India by manufacturing and

exporting world class cars to U.S.A and Europe


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5. Encouraging Exports:

Backed by a strong production and a global setup at Gurgaon, Maruti

Suzuki is exporting a lot. MSIL had exported 92000 cars to Non-European Countries in 2012-2013

which was 8000 more than 2011-2012 . In European countries export was of 28000 cars .

6. Awarded Many Awards:

Maruti Suzuki has been awarded with many awards and recognitions

like The Star Company amongst unlisted companies by Business Standard this year. Its various

models like Swift has achieved many awards, thereby increasing the brand value of the company .

In the FY 2012-2013 company was awarded with 16 different awards in different categories around

the globe

7. Economy with technology:

Maruti Suzukis cars have always seen as a company producing

cars blending economy with technology. Swifts initiative of putting a 16-bit microprocessor on

board has proved as one of the major reasons for its success and that too for the lowest price in its

segment. They also introduced cheap cars with built-in audio system and Bluetooth systems

8. One Stop Shop:

At Maruti Suzuki, customers will find all car related needs met under one roof.

Whether it is easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set to

provide a single-window solution for all car related needs.

9. Best after - sales services :Maruti Suzuki has the best after - sales services in the industry . The

main reason for this is they have their own after sales service centre and they had also outsourced it

to many MSE's . Maruti also has mobile service centre to provide technical help to people on

highways and expressways


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3.2 WEAKNESSES

1.Lack of in house R & D:

Maruti Suzuki do not have a comprehensive R & D department . The

reason for lack of R&D house was that company prior to 2000 was controlled largely by

government of India. Even the company during 90's did not had enough funds to finance to R&D .

2.New model introduction to only cosmetic changes:

There is no major design changes

incorporated in Maruti Suzuki products. Only some cosmetic changes have been made. The best

example is Alto 800 , which is currently introduced . It is mixture of Maruti 800 and Maruti alto .

But it seems that people haven't accepted such cosmetic changes .

3. Dominance mainly at lower level:

Maruti Suzuki dominance in Indian market is only at its

lower level segments like Swift in B-Segment and Maruti alto 800 in C-Segment. It has to focus on

its upper segment models to strengthen its position in Indian car industry. Maruti had tried out

certain cars to enter the upper level of industry but it had failed tremendously . This cars where

Maruti Boleno and Maruti Grand Vitara XL 7 .

4. Lack of Premium 8-10 seaters passenger cars :-

Maruti Suzuki lacks premium or luxurious 8-

10 seaters passenger cars. Toyoto Innova , Mahindra Scorpio Mahindra Xylo . are the cars which

shares highest share in this segment . Though they have came up with Ertiga but does not matches

up the standards of the above mentioned

cars


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3.3 OPPORTUNITI ES

1.Indian Market- A Great Long Term Potential :

In the current situation the Indian Market is

not so strong due to many socio-political factors . But things may change in the coming years with

proper government policies and under leadership of better leaders . Maruti Suzuki will have the

good opportunity to capitalize on the situation in future , if they give more emphasis on R&D and

long term decision making .

2. Rise of Indian middle class and small cities:

As a phenomenon growth is seen in recent

times in Indian middle class and the purchasing power of working class individuals. Also a rise in

small cities across the country has given a great opportunity to Maruti Suzuki for achieving a higher

growth rate in coming times. |The purchasing power of middle class people have increased due low

rate of interest on loans .

3.Lack of Economy of scale of other companies :

No automobile company in India has highereconomy of scale as Maruti Suzuki has. They need to take this opportunity to increase their share in

the Indian as well as global market . This can be done only good and aggressive marketing strategy

4.New Plant in Gujarat :

Maruti Suzuki is on the verge of opening one more plant in India . This

time they are going to open plant in Gujarat . This decision will not only help them in increasing

their production but will also help them in cutting down the cost to export their cars. This is because

Gujarat has many major ports which are near to the place of plant .

5.New Fuel options :

As we all know that our scientist had developed new fuel options like CNG

(Compressed Natural Gas) and LPG (Liquidified Petroleum Gas). This fuels are quit cheaper than

petrol and diesel. They are even more environment friendly as compared to diesel and petrol . MSIL

have though introduced two or three models in the CNG and LPG variant but they still require

some changes .If they can make this changes they have a good opportunity to capture the market .


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3.4 THREATS

1. Increase in fuel charges :

In last one year petrol priced has increased by more than Rs12 to Rs

15/liter . The diesel prices have increased by Rs 7 to Rs 8/ liter. This may hit the sales of low fuel

efficient cars . This rise in fuel prices is not the main concern or threat of maruti but of all the

companies in the industry . Company still need to come up with more powerful and fuel efficient

engines . Company also needs to introduce more variants of cars in CNG version and LPG version

as both the gases are cheap and eco friendly

2. Introduction and changes in Tata Nano :

Tata motors came up with Tata Nano in the year

2009 . It was named as "Lakhtakia Car " by the media and experts . Nano is a basic car costing

something between Rs1.25 lakhs to Rs1.30 lakhs . Today Nano is a successful model and

Tata Motors is really working well and are comming up with many changes . If Maruti

Suzuki takes the launch of Tata Nano lightly than it may lose the customers of the low

segment cars .

3. Current Instances of Rift between Management and Workers :

The instance of violence in

Manesar plant is not too old . The General manager of HR department of the company lost his life

and around 100 people were injured in this violence . Since , then there has been a rift between

management and workers . This rift is costing at least 10% to 12% decrease in company's

production . This is the serious threat for MSIL .

4. Emergence Of New Players :

Hyundai , Honda , Volkswogan , Skoda , Nissan, Tata Motors all

these companies with their in- house R&D , new technologies , better production techniques are

coming up with new models in hatchback segments and lower level segment . Now -a- days the big

threats for Maruti Suzuki cars are Hyundai i10 , Nissan Micra , Volkswogan Polo , Tata Indica ,

Tata Nano.

5.Ageing Models :

Models like Omini , Swift , Gypsy appears to be bit outdated as compared to

models like Tata Bolero , VolkWogan polo , Nissan Micra etc. Maruti Suzuki must come up with

major changes in their cars otherwise they may loss the major share in market share .


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4. BUSINESS STRATEGIES

4.1BUSINESS STRATEGIESUNDERTAKEN FOR GROWTH

/EXPANSION

This is an abstract from the Annual Report for the financial year 2012-2013 . This abstract may

give us bit information regarding their company's strategy for the growth in the near future

" The company will continue to introduce new product to meet growing customers'

expectation . The existing products will be refreshed at regular intervals to suit the upcoming trends

. The company will pro-actively work on increasing the fuel efficiency of all its models to offer

economically affordable and environment friendly vehicles to the customers . One of the significant

steps will be to introduce alternate fuel options like LPG (Liquefied Petroleum Gas) and CNG

(Compressed Natural Gas) in the company's vehicles. The company will continue to focus on

developing more products with alternate fuel options . In the long term , the company will focus on

enhancing the capability in the field of EV-HEV (Electric Vehicle - Hybrid Electric Vehicle) and

other environment friendly initiatives. Another step towards making vehicle more affordable will be

by maintaining the cost of development of vehicle through VA/VE and weight reduction activities .

The company will continuously work on alternate materials and newer technology to reduce the

vehicle cost and weight ."

ANALYSIS OF THE ABOVE ABSTRACT :

Maruti Suzuki is planning to

introduce new products in the market in the market . This show their clear cut intension to increase

their market share which has decreased in recent past . The new products would definitely increase

their turn-over resulting in marginal increase in profit due to high cost factor as chairman has

mentioned in his letter to shareholders . The company also want to make changes in its existing

models at regular intervals to match up with running trends in the industry . The new area in which

company is expecting the growth in future is by entering in the market of hybrid cars i.e., cars

running on electric batteries . The reason behind entering this sector is increase fuel prices , scarcity

of resources and increase in pollution. The company is also looking it as a long term growth

decision by entering this sector of the industry . It is expected that by the end of 2014 the market of

hybrid will grow significantly . Maruti would definitely like to take the advantage and grow its

customers , sales and net worth . The company is also planning out to introduce cars with CNG and

LPG fuel option in their existing models . Overall the above abstract may not give complete idea of


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MSIL growth strategy but it gives us at least the intentional growth strategies of the company which

are long term in nature as well profit and wealth generating one

The above mentioned abstract which indicated is not enough to ascertain completely the strategy for

growth or expansion . There one article which I had picked up from the livemint.com which is the

site ofMINT , it's a business newspaper . This article was printed in their edition of 4TH August

2013 , Sunday :

Updated: Sun, Aug 04 2013. 07 25 PM IST

Maruti to expand dealer network in remote parts of north-east

Al to 800, Alto K-10, Omni, WagonR and Swift are driving Maruti Suzukis growth in the region

Guwahati:The countrys largest car makerMaruti Suzuki India Ltd.(MSIL) on Sunday said it will

expand its presence in rural and remote parts of north-east as it expects rapid growth in this

region over the next 3-4 years. The company, which first opened its outlet in north-east 30 years

ago at a time of rolling out its first car in the country, currently sells an average of 3,000 vehicles

every month in the region. North-east market has always been very important for Maruti Suzuki.

We believe that there is huge opportunity in rural areas of north-east states, besides the major

cities, MSIL chief operating officer (marketing and sales) Mayank PareektoldPTI. Currently, this

region contributes around 4% to the total domestic volume of MSIL and it is significant

considering the socio-geographical nature of the region, he added. Asked about growth

expectations from the region, Pareek said: We are very confident that this share will only rise in

coming years as north-east offers vast potential. The region is expected to grow rapidly over the

next 3-4 years. However, putting a number to that will not be prudent. The company had sold a

total of 10.5 lakh vehicles in the domestic market in 2012-13. Out of that, around 40,000 units were

contributed by the north-eastern states, translating to a sales revenue of approximately Rs1,200

crore. Among all the north-eastern states, Assam contributes the highest in terms volume with a

share of almost 60% in the total sales of MSIL from the region.However, as road and other

infrastructure develops, going forward we expect the share of other states to increase. The

awareness about advantages of a dependable personal vehicle will surely bring more opportunity

for us, Pareeksaid. To increase sales, the company is expanding its dealership and service network

across the region that is geographically challenging.We are planning to expand all across north -

east region. However, our primary focus would be to expand our reach in rural areas of the region.

We want to be present to customers in far flung areas of the entire north-east. North-east region has

always found special focus in company strategy for reach, volumes and customer service. Maruti

Suzuki products have always found deep trust among customers in north-east. Based on the

potential, we have progressively increased our sales and service network in the region, Pareek
http://www.livemint.com/Search/Link/Keyword/Maruti%20Suzuki%20India%20Ltd.http://www.livemint.com/Search/Link/Keyword/Mayank%20Pareekhttp://www.livemint.com/Search/Link/Keyword/Mayank%20Pareekhttp://www.livemint.com/Search/Link/Keyword/Maruti%20Suzuki%20India%20Ltd.


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said. At present, MSIL network has 39 dealer showrooms and 52 workshops in the region. The first

showroom came up in the region 30 years back in 1983, when the then Maruti Udyog Ltd. had

begun making and selling cars in India. Talking about the models that are driving the companys

growth in the region, he said petrol-driven compact cars like Alto 800, Alto K-

10, Omni, WagonRand Swift remain the highest in demand, mainly because of the terrain and low-cost of ownership. Asked about MSILs plans regarding manpower in the region, Pareek said: At

present, we have around 3,000 people working in our sales and service network. As we expand our

network, this is likely to increase to around 4,000 over the next three years. On setting up of a

warehouse in the north-east, he declined to comment saying we would not like to elaborate on this

at this stage.

ANALYSIS OF THE ABOVE ARTICLE:The article given above is type of a

interview cum information providing article . The correspondence who has written this article has

talked to Mayank Pareek , The CEO (Marketing and Sales) of MSIL . The company wants to

definitely grow its market in the north - eastern states i.e., Sikkim , Assam, Nagaland , Meghalaya,

Manipur . The reason why company is looking for market expansion in this part of India is because

this states are developing states of India . People in this states can afford their cars due to low cost of

ownership and low - cost of maintenance . Company is only going to sell Alto 800,Alto K-

10,Omni,WagonRandSwift. This cars would be sold in all the variances. The company already

sells 4% of total cars in north eastern states which is generating the revenue of Rs.1200 crores

annually . The company also wants to expand their market in to the rural areas of this states and this

their primary focus for the expansion of network in this area

For the purpose of expansion and growth company has already developed 39

dealers and 52 workshops in the region . This completely proves that company wants expand its

market and does not want to leave anything due to which they cannot increase their sell volume in

North - Eastern part . The company already has 3000 employees and want to increase it to around

4000 , to provide better services to customers . Expansion or growth can been seen easily seen on thecards but whats going to happen in the future no one knows .

The company can also grow or expand by entering into new product market i.e., by

launching products of different segment. We all know that MSIL is the leader in passenger vehicles

especially cars. Maruti wants to expand its market reach by entering in to market of commercial

vehicles . The article which was printed in Business Today magazine will give us more information

regarding it .
http://www.livemint.com/Search/Link/Keyword/Alto%20800http://www.livemint.com/Search/Link/Keyword/Alto%20K-10http://www.livemint.com/Search/Link/Keyword/Alto%20K-10http://www.livemint.com/Search/Link/Keyword/Omnihttp://www.livemint.com/Search/Link/Keyword/WagonRhttp://www.livemint.com/Search/Link/Keyword/Swifthttp://www.livemint.com/Search/Link/Keyword/Alto%20800http://www.livemint.com/Search/Link/Keyword/Alto%20800http://www.livemint.com/Search/Link/Keyword/Alto%20K-10http://www.livemint.com/Search/Link/Keyword/Alto%20K-10http://www.livemint.com/Search/Link/Keyword/Alto%20K-10http://www.livemint.com/Search/Link/Keyword/Alto%20K-10http://www.livemint.com/Search/Link/Keyword/Omnihttp://www.livemint.com/Search/Link/Keyword/Omnihttp://www.livemint.com/Search/Link/Keyword/Omnihttp://www.livemint.com/Search/Link/Keyword/WagonRhttp://www.livemint.com/Search/Link/Keyword/WagonRhttp://www.livemint.com/Search/Link/Keyword/WagonRhttp://www.livemint.com/Search/Link/Keyword/Swifthttp://www.livemint.com/Search/Link/Keyword/Swifthttp://www.livemint.com/Search/Link/Keyword/Swifthttp://www.livemint.com/Search/Link/Keyword/Swifthttp://www.livemint.com/Search/Link/Keyword/WagonRhttp://www.livemint.com/Search/Link/Keyword/Omnihttp://www.livemint.com/Search/Link/Keyword/Alto%20K-10http://www.livemint.com/Search/Link/Keyword/Alto%20K-10http://www.livemint.com/Search/Link/Keyword/Alto%20800http://www.livemint.com/Search/Link/Keyword/Swifthttp://www.livemint.com/Search/Link/Keyword/WagonRhttp://www.livemint.com/Search/Link/Keyword/Omnihttp://www.livemint.com/Search/Link/Keyword/Alto%20K-10http://www.livemint.com/Search/Link/Keyword/Alto%20K-10http://www.livemint.com/Search/Link/Keyword/Alto%20800


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Maruti to enter LCV segment, launch in 2

years timePTI New Delhi Last Updated: July 27, 2013 | 17:23 ISTAmid a slowdown in car sales, Maruti Suzuki India on Saturday said that it will foray into the light

commercial vehicles segment, 30 years after an initial plan was shelved when the company started

operations. The country's largest car maker said it will take about two years to launch the LCV,

which will take on Tata Motor's Ace, the leader in the segment .The vehicle will be developed on the

platform of parent Suzuki Motor Corp (SMC)'s Carry, an LCV that is sold in markets such as China,

Indonesia and Pakistan."It was planned in our original agreement (with SMC) in 1982 that the Carry

LCV would be launched in India but at that time, due to poor response from the market, it was

shelved .Now the situation has changed and the board has given approval to go ahead for launching

the LCV in India," Maruti Suzuki India (MSI) Chairman R C Bhargava told reporters here. He said:

"In the last two years, we have seen a demand for such LCVs growing in India and we think we can

offer a superior product in the segment as Suzuki has been doing for years globally." Bhargava said

MSI has not decided on the name of the LCV, which will available in both CNG and diesel

variants."Our engineers are working on adapting the diesel engine that we have licensed from Fiat to

be used in the LCV. This will be a pure goods carrier," he said.MSI Managing Director and CEO

Kenichi Ayukawa said the diesel engine for the LCV will be produced in India, although thecompany hasn't decided which plant will produce the vehicle. MSI is currently setting up its third

plant in the country in Gujarat, which is expected to go on stream by 2015-16.Asked if the LCV

would be sold separately or in the same showrooms as its cars, MSI Chief Operating Officer

(Marketing & Sales) Mayank Pareek said: "We have not yet decided the strategy for it but in markets

like China, Indonesia and Pakistan, Suzuki has both mixed and exclusive showrooms for the

Carry."Bhargava said plans to enter the LCV segment were a part of diversifying its portfolio based

on the company's strengths and also in a way "de-risking business" considering the slowdown

witnessed in the car market.In 1983, when the then Maruti Udyog Ltd entered the market, it hadopened countrywide bookings for its M800 model and the Carry LCV."While the M800 received

1.21 lakh bookings, the Carry had only about 2,000. Then we had decided to drop the plans for

launching the LCV," he said. .
http://businesstoday.intoday.in/search.jsp?searchword=PTI&searchtype=text&searchphrase=exact&search_type=authorhttp://businesstoday.intoday.in/search.jsp?searchword=PTI&searchtype=text&searchphrase=exact&search_type=authorhttp://businesstoday.intoday.in/story/maruti-suzuki-earnings/1/197180.htmlhttp://businesstoday.intoday.in/story/maruti-launches-limited-edition-of-swift-price/1/196409.htmlhttp://businesstoday.intoday.in/story/maruti-launches-limited-edition-of-swift-price/1/196409.htmlhttp://businesstoday.intoday.in/story/maruti-suzuki-earnings/1/197180.htmlhttp://businesstoday.intoday.in/search.jsp?searchword=PTI&searchtype=text&searchphrase=exact&search_type=author


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ANALYSIS OF THE ABOVE ARTICLE :

As we all know that MSIL is going

to set up its plant in Gujarat . MSIL is planning to enter into the sector of Light Commercial Vehicle

(LCV). LCV is a sector which is growing in India with the great speed . Tata motors LCV ACE has

the highest share in LCV market segment . With the launch LCV MSIL will enter for the second time

in the market of commercial vehicle . For the first time when they launched LCV in 1983 , there

model failed miserably they had only received 2000 bookings for it . MSIL is planning to start the

production of LCV by end of 2014 . The company hasn't made any further decision or announcement

regarding the model . But its sure that MSIL want to expand their market and grow their product

portfolio .

.


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4.2 BUSINESS STRATEGIES UNDERTAKEN TO

INCREASE PRODUCT L INE

Whenever we talk about highest numbers of product in a segment of the industry Maruti Suzuki

automatically comes into our mind . Since the year 2000 MSIL has been introducing two to three

new products in an year . And it has been the history that few products has received negative

response from the people . In last 5 to 6 years company has already launched 10 to 12 cars . This

were totally new products which do not include existing models introduced with different fuel

options .

So, now talking about their new product line in coming years and some existing product with

different fuel option I would like to give some example with help of few articles from variouswebsites

"Maruti Suzuki Alto 800 Diesel expected to be launched in 2014

August 16, 2013, 10:41 IST byCarTrade Editorial Team

Subscribe to Newsletter

India's leading passenger car maker, Maruti Suzuki, has announced its plans of increasing its market

share and cement its stronghold further. Officials from the company have already spoken about the

firm speeding up the production in the Sports Utility Vehicle (SUV) segment. Now, reports have

surfaced that the firm is working aggressively on the production of the diesel variant of Alto 800hatchback. Sources close to the matter have said that the Alto 800 Diesel might make its way to

showrooms in India by 2014. The Maruti Suzuki Alto 800 is, currently, one of the most successful

hatchbacks in the Indian market.

Industry experts feel that the diesel variant of the Alto 800 will create a tremendous buzz among

buyers in India. Alto 800 has totally captured the imagination of buyers in the Indian car market. In

its entirety, the Alto 800 encompasses what a middle class consumer would want from a car. It is

compact, decent looking, fuel efficient, affordable and most of all, carries the name of the country's

most reliable brand. The Alto 800 is powered by a 796 cc 3-cylinder engine that generates an output

of around 46 bhp at 6000 rpm, along with peak torque of 69 Nm. Its engine, controlled by a 32-bit

computer, is mated to a 5-speed manual gearbox. It is being said that the turbo diesel engine is

going to be developed by Maruti Suzuki itself. This automatically means that the firm will not be

required to pay any royalty to another firm for getting the diesel engine. Also, Maruti Suzuki will be

able to further control the pricing strategy of the Alto 800 Diesel, making it much more

affordable.Reports have claimed that the Maruti Suzuki Alto 800 Diesel is going to be the leastpriced oil burning car in the country. Analysts feel that the launch of this car is a smart move by
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India's largest passenger car maker. Interestingly, diesel is the most used car fuel in the world and a

number of diesel powered vehicles have enjoyed a great stint in the Indian market. South Korean

auto maker Hyundai, Maruti Suzuki's biggest rival, has pretty detailed plans for the future, wherein

it hopes to launch a number of new models. To begin with, Hyundai is expected to introduce the

Grand i10 in a month's time. Apart from the Grand i10, Hyundai is also working on launching the

next generation i20 hatchback and the Eon 1. The rivalry between these two brands is clearly a

positive sign for the Indian auto industry, which is currently enduring a torrid time. The rising price

of petrol has further strengthened the case for the demand of diesel cars.The launch of Maruti

Suzuki Alto 800 Diesel might also set a trend in the market, wherein other brands also develop

diesel variants of small cars. Recently, in an interview, an analyst was quoted as saying, Everybody

seems to be working on diesel platforms and from a fundamental standpoint it makes sense. The

acquisition cost and running cost are very important for entry-level car buyers. We have seen people

are willing to shell out Rs. 30,000-40,000 more and get CNG and LPG kits fitted on their petrol cars

to get higher fuel efficiency. So, if the acquisition cost of diesel is not dramatically higher, people

will shift."

ANALYSIS :

As we all know that fuel charges are raising rapidly especially petrol prices .

Government has also decided to decrease marginal subsidy to petroleum companies , due to which

we may see further raise in the petroleum prices. MSIL is using here a strategy due to which they

will attract those people who are hesitating from buying cars due to high fuel charges . And as we

all know that diesel cars are mostly available in sedan cars whose basic models cost minimum of

Rs.5 lakhs . This cars are out of reach for middle class and upper middle class . MSIL also have

their cars with diesel engines but they are priced high . With the help of Alto 800 diesel Maruti

Suzuki may repeat the history of creating a benchmark in the Indian automobile industry. Not only

MSIL but people are expecting a lot out of Alto 800 diesel . Alto800 diesel will help MSIL to attract

those customers which had shifted to Tata Nano.

As we know that MSIL is known for making changes in its cars from time to time in order to meet

the

needs of customers . I would like to give one example which might give us brief idea regarding how

MSIL comes up with changes in the same product . This article was printed in Business Today

magazine


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4.3BUSINESS STRATEGIESUNDERTAKEN FOR

DIVERSIFFICATION

Maruti Suzuki is not known for diversifying its business widely but they have performed fairly .

Diversifications of business has never been the priority for MSIL but still they different businesses

. This businesses are as follows :

1. MARUTI INSURANCE

2. MARUTI FINANCE

3. MARUTI TRUE VALUE

4. N2N FLEET MANAGEMENT

5. MARUTI GENUINE ACCESSORIES

6. MARUTI DRIVING SCHOOL

1. MARUTI INSAURANCE :

Launched in 2002 Maruti Suzuki provides vehicle insurance to its

customers with the help of the National Insurance Company, Bajaj Allianz, New India Assurance

and Royal Sundaram. The service was set up the company with the inception of two subsidiaries

Maruti Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited. This

service started as a benefit or value addition to customers and was able to ramp up easily. By

December 2005 they were able to sell more than two million insurance policies since its inception.

"Maruti Insurance " for all the Insurance needs of your Maruti Suzuki Cars. This is made available

through "Maruti Insurance Broking ". The unique motor insurance products and best in class

services offered by Maruti Insurance are unparalleled and aimed at enhancing your vehicle

ownership experience.You get near cash-less post-accident repairs at the vast service network of

Maruti Suzuki across the country. Maruti Suzuki workshops equipped with State of art facilities and

infrastructure ensures quality repairs with Maruti Genuine Parts and trained technicians. Maruti

Insurance also ensures excellent customer service with utmost fairness and transparency available to

you across the country. No wonder why more than 90% customers buying our cars prefer to buy a

Maruti Insurance Policy for their car


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2. MARUTI FINANCE :

To promote its bottom line growth, Maruti Suzuki launched Maruti

Finance in January 2002. Prior to the start of this service Maruti Suzuki had started two joint

ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywiderespectively to assist its client in securing loan. Maruti Suzuki tied up with ABN Amro Bank,

HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank, and Sundaram to start this

venture including its strategic partners in car finance. Again the company entered into a strategic

partnership with SBI in March 2003. Since March 2003, Maruti has sold over 12,000 vehicles

through SBI-Maruti Finance. SBI-Maruti Finance is currently available in 166 cities across India.

Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India and Maruti

Udyog Limited its primary business stated by the company is "hire-purchase financing of Maruti

Suzuki vehicles". Citi Finance India Limited is a wholly owned subsidiary of Citibank Overseas

Investment Corporation, Delaware, which in turn is a 100% wholly owned subsidiary of Citibank

N.A. Citi Finance India Limited holds 74% of the stake and Maruti Suzuki holds the remaining

26%. GE Capital, HDFC and Maruti Suzuki came together in 1995 to form Maruti Countrywide.

Maruti claims that its finance program offers most competitive interest rates to its customers, which

are lower by 0.25% to 0.5% from the market rates. One stop shop for customers needs: Maruti

Finance offers customer the convenience of one stop shop for all his vehicle finance related needs

customer can complete the finance related formalities at the dealership i.e buying car, availing

finance are all under the same roof. Wide Choice of financier: Maruti Finance has a tie-up with 34

finance partners which have a Pan-India presence. This provides a wide variety of choice to the

customers who can avail finance from any of the tie-up finance partners according to their needs and

profiles. Special offers and benefits: Maruti Finance negotiates with its finance partners to launch

special sales promotion schemes like low down payment schemes, low interest rates and other

promotional offers which are not available otherwise. Creating customer delight: Maruti Finance

through the finance partners endeavours to create customer delight by providing the best deals,

financier for every profile & geography, better Interest rate and Processing time etc .
http://en.wikipedia.org/wiki/Delawarehttp://en.wikipedia.org/wiki/Delaware


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Partners of Maruti Finance :

3. MARUTI TRUE VALUE :

Maruti True service offered by Maruti Suzuki to its customers. It is

a market place for used Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki

vehicles with the help of this service in India. As of 31 March 2010 there are 341 outlets.

4.N2N FLEET MANAGEMENT :

N2N is the short form of End to End Fleet Management and

provides lease and fleet management solution to corporates. Clients who have signed up of this

service include Gas Authority of India Ltd, DuPont, Reckitt Benckiser, Sona

Steering, Doordarshan, Singer India, National Stock Exchange and Transworld. This fleet

management service include end-to-end solutions across the vehicle's life, which includes Leasing,

Maintenance, Convenience services and Remarketing.

5. MARUTI GENUINE ACCESSORIES :

Many of the auto component companies other than

Maruti Suzuki started to offer components and accessories that were compatible. This caused a

serious threat and loss of revenue to Maruti Suzuki. Maruti Suzuki started a new initiative under the

brand name Maruti Genuine Accessories to offer accessories like alloy wheels, body cover,

carpets, door visors, fog lamps, stereo systems, seat covers and other car care products. These

products are sold through dealer outlets and authorized service stations throughout India .
http://en.wikipedia.org/wiki/GAILhttp://en.wikipedia.org/wiki/DuPonthttp://en.wikipedia.org/wiki/Reckitt_Benckiserhttp://en.wikipedia.org/w/index.php?title=Sona_Steering&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Sona_Steering&action=edit&redlink=1http://en.wikipedia.org/wiki/Doordarshanhttp://en.wikipedia.org/w/index.php?title=Singer_India&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Singer_India&action=edit&redlink=1http://en.wikipedia.org/wiki/Doordarshanhttp://en.wikipedia.org/w/index.php?title=Sona_Steering&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Sona_Steering&action=edit&redlink=1http://en.wikipedia.org/wiki/Reckitt_Benckiserhttp://en.wikipedia.org/wiki/DuPonthttp://en.wikipedia.org/wiki/GAIL


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6. MARUTI DRIVING SCHOOL :

As part of its corporate social responsibility Maruti Suzuki

launched the Maruti Driving School in Delhi. Later the services were extended to other cities of

India as well. These schools are modelled on international standards, where learners go through

classroom and practical sessions. Many international practices like road behaviour and attitudes are

also taught in these schools. Before driving actual vehicles participants are trained on simulators. A

the launch ceremony for the school Jagdish Khattar stated "We are very concerned about mounting

deaths on Indian roads. These can be brought down if government, industry and the voluntary sector

work together in an integrated manner. But we felt that Maruti should first do something in this

regard and hence this initiative of Maruti Driving Schools


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PRICING

Maruti caters to all segment and has a product offering at all price points. It has a car priced at

Rs.1,87,000.00 which is the lowest offer on road. Maruti gets 70% business from repeat buyers who

earlier had owned a Maruti car. Their pricing strategy is to provide an option to every customer

looking for up gradation in his car. Their sole motive of having so many product offering is to be in

the consideration set of every passenger car customer in India. Here is how every price point is

covered. Maruti Suzuki prices its cars on the basis of the variants . The different variants of the

Maruti Suzuki cars are as follows :

1. STD - Standard model with petrol engine .

2. LX - Standard model with color matching bumpers with petrol engine .

3. LXI - LX model with power steering and air conditions with petrol engine

4. VXI - LXI model with power windows for front door windows , central locking system , Fog lights

with petrol engine

5. ZXI - VXI model with power windows for all the four doors , Infrared parking system , Automatic

Bracking System (ABS) , Keys for adjusting side mirrors, factory fitted music system with petrolengine.

6. LDI - Standard model with color matching bumpers , power steering , and air condition with diesel

engine

7. VDI - LDI model with power windows for front doors windows , central locking system fog ligths

with diesel engine

8. ZDI - VDI model with power windows for all the four doors , Infrared parking system , Automatic

Bracking System (ABS) , keys for adjusting side mirrors , factory fitted music system with diesel

engine .


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PRICE LIST OF MARUTI CARS FOR ITS DIFFERENT

VARIANTS :

MODEL VARIANTS PRICE (Rs.)

ALTO 800 STD 3,09,576

LX 3,50,726

LXI 3,95,100

VXI 4,19,026

A-STAR LXI 4,67,996

VXI 5,04,559

ZXI 5,57,334

RITZ LXI 5,29,436

VXI 5,95,427

VXI(AUTOMATIC) 7,44,516

ZXI 6,38,992

LDI 6,61,997

VDI 7,22,368

ZDI 7,77,580

SWIFT LXI 5,46,575

VXI 5,97,592

ZXI 6,97,468

LDI 6,88,016

VDI 7,44,885

ZDI 8,39,530

WAGON R LX 4,37,643

LXI 4,76,449

VXI 5.43.542

GREEN 5,22,651


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SX4 VXI 8,96,719

ZXI 10,90,565

VDI 10,16,202

ZDI 11,94,751

GREEN 9,36,863

SWIFT DZIRE LXI 5,97,708

VXI 6,68,818

ZXI 7,66,655

LDI 7,44,134

VDI 9,05,750

OMINI 5-SEATERS 3,15,613

8-SEATERS 3,17,824

EECO 5-SEATERS 4,21,088

7-SEATERS 4,47,119

ERTIGA LXI 7,26,249

VXI 8,19,545

ZXI 9,01,633

LDI 9,13,769

VDI 9,91,882

ZDI 10,67,012

STINGRAY LXI 4,13,724

VXI 4,41,724

ZXI 4,70,724

NOTE : THE ABOVE MENTIONED PRICE ARE ON ROAD MUMBAI (SOURCE':

WWW.ZIGWHEEL.COM)

ANALYSIS OF PRICING STRATEGY :

The pricing strategy is not so complicated when we

compare it to other cars of the different companies . Hyundai do not such simple pricing strategy and its same in

the case of Tata Motors , Volkswogan , Honda . But when we look at prices of the MSIL cars there is huge


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difference between two different variants . But there is also one advantage that price of highest variant of the car

of a lower segment is almost same to the lower variant of a superior model .


MARKETING

The marketing strategy of the Maruti Suzuki Pvt. Ltd. can be measured from the following story:

Just three months after it launched Swift, Maruti Udyog Limited has already sold over 8,000 units

of the car and added another 5,000 next month. There's a four-month waiting period for the 1,298-cc

hatchback -- the company claims more than 9,000 bookings before the car was launched. And that's

even while competitors -- Corsa Sail, Hyundai Getz and Fiat Palio -- are available off the shelf. Not

surprisingly, MUL now has a lot riding on the car: there's over Rs 440 crore (Rs 4.40 billion)

invested in the project (Rs 250 crore-odd is MUL's share). Not only is the company hoping that the

Swift will help expand the market for the B-plus segment (premium hatchbacks), it's also counting

on Swift to make a style statement -- that Suzuki can deliver good-looking cars on Indian roads. For

a company that has been known more for its value-for-money proposition -- from the 800 to the

Esteem -- that's important. "It's not as if our cars weren't style statements. It's just that with Swift,

we have made a break from the past," reveals a company official.

The buzz around Swift began in December 2004 -- five months before its launch. Al l new Wagon

Rs and Maru ti Omnis came with stickers and sunshields that proclaimed " My next car is a

Swif t." Un li ke most car launches, where the look of the vehicle is kept under wraps unti l the last

possible moment, photos and specs were made avail able at showrooms several months earl ier.

Models of the car were placed on hi gh platforms at busy intersections in Delh i; whi le cars were

on display in malls. " I t works well for those who don' t have the incli nation to really go to a dealer

and check out the car," says a company off icial . The launch was staggered over thr ee to four

days in 15 cit ies across the country, coinciding with the worl dwide launch of the car. MUL also

made good use of i ts Rs 20 crore (Rs 200 mil li on) marketing budget. For the fi rst time, it opted

for an in -fi lm placement -- Swift appeared in the Boll ywood hit Bunty Aur Babli , which was

released on the same day as the car launch, May 27. And it trained 1,000 salespeople -- call ed

" energisers" -- to exclusively sell the Swift. Perhaps the Swift' s biggest plus is its price.

Introduced at Rs 387,000 for the base model, it was close to about Rs 50,000 less than its

competitors. Even the top-end version was Rs 70,000 cheaper than the Hyundai Getz GLS. MUL

does not want to give this pricing advantage away. Although it hiked prices by Rs 10,000 in earlyJune, advance bookings were honoured at the introductory price. And since the car is priced at just


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under Rs 400,000, Delhi residents pay only 2 per cent road tax, compared to 4 per cent for a car that

costs more than Rs 400,000.

(ORIGINAL SOURCE : BUSINESS STANDARD JULY 2004)

(ADOPTED FROM www.slideshare.com)

I would also like to give some more example regarding marketing strategies :

As we have read

in newspapers and heard in news channel that maruti suzuki is going to hike the price of the cars by

Rs.10000 . But the most interesting thing about MSIL is that how they converted this hike in car

prices in to the way of forming the strategy for marketing . They have been issuing advertising in

the news paper saying people can save their Rs.10000 by booking Maruti Suzuki cars before 30TH

September , 2013 . They are also offering festival season offers to the customers . This offers are as

follows :

1. SAVE RS.10000 by booking the car before 30th September , 2013 .

2. Exchange Bonus of Rs.35000.

3. Special offers for Government Employee .

4. Assured Gifts of Rs.5100.

5. Signature kit worth Rs.11000. free

6. Total Saving of Rs.75100

7. On the delivery assured gift scratch cards . Under this cards there are chances of winning following

things

I. Rs.1 crore

II. LED television

III. Branded Tablets

IV. Branded Mobile PhonesV. Maruti Suzuki Genuine accessories vouchers

It would be really interesting to see that will this strategy of marketing will work out for Maruti

Suzuki .

(sources :advertisement printed in DNA newspaper from 23rd September to 27th September 2013)


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5.CORPORATE RESTRUCTURING

5.1CORPORATE RESTRUCTURING

FOR PROCESS CHANGE

Today one of the challenge for the companies at the global level is the increasing pollution .

They have to take utmost care to avoid maximum emission of gases which can pollute the air and

even certain factory emits waste which affects the water body

When we talk about automobile industry for them the challenge is double one their production

units and second their cars . MSIL has done restructuring of both their cars and their productionunits too . This I will be explaining with the help of following article which was updated on one of

the NGO which works for providing information to industries on the ways for environment friendly

production techniques .

As environmental concerns grow, carmakers are trying to reduce emissions from every

possible area. Manufacturing is one such area, which has undergone several

improvements and changes in order to extract more efficiency. Maruti Suzuki India

Limited (MSIL) started working on this parameter a long time back and has made

significant progress in the last few years. In this report, we take a look at some of the key

developments and their effect on the companys carbon footprint.


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Adding further to the energy credentials is the fact that both plants are powered by

captive power units, which use natural gas. This significantly reduces the emissions in

comparison with power derived from coal. Total energy consumed by the two plants in

the year 2011-12 was 5,916,312 GJ (gigajoules), while the indirect energy used

amounted to 8,458 GJ.

The Manesar plant derives 100 % of its artificial lighting from LEDs, making it the first

plant in India to do so. The savings in power are of such magnitude that despite the

higher initial cost, LEDs prove cost-effective in the long run. Also, numerous new

smaller measures in the production process have brought down the energy consumption

for various actions. One such measure is the use of gravity conveyors in the weld shop.

This eliminates the need for electric motors to move the conveyor belt and hence results

in significant energy savings. In the paint shop too, new processes have reduced the

number of coats, thereby lowering the power requirement.

:: Water Conservation

Water is one of the most widely used natural resources in manufacturing and optimalusage of it is critical for the future of our planet. Maruti Suzukis plants are presently


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certified for zero waste water discharge. The company is focused on improving recycling

capabilities and in 2011-12, was able to fulfil 41 % of its water requirement through

recycled water.

Owing to waste minimisation and process improvement, the company has been able to

lower water consumption per car by 61 % at the Gurgaon plant in the decade preceding

2011-12. The Manesar facility achieved an improvement of about 56 % in the same area

but in a shorter span of just five years. Water sources for the plants include canal, tubewell and rain.

:: Air Emission Reduction

The power plants account for more than 90 % of the companys overall greenhouse gas

emissions. The emission levels of these units are claimed to be lower than the prescribed

limits by the Pollution Control Board. A recent measure taken to reduce these emissions

includes improvement in the operational efficiency of gas turbines. In addition, a special

fluidised bed type incinerator was installed for cleaning of paint booth gratings instead of

a direct burning type incinerator.

:: Waste Management

An environmentally friendly manufacturing policy is never complete until the waste

management process is well defined and made efficient. At Maruti Suzuki, the list of

hazardous waste materials comprises of paint, phosphate and Effluent Treatment Plant

(ETP) sludge, incinerator ash and used oil.


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Used oil is sold to authorised recyclers while the paint, phosphate and ETP sludge is sent

to the cement industry for co-processing. This process has eliminated the need for

incineration and land-filling, leading to further reduction in emissions. All solid waste

materials such as metal scrap and glass waste are also sold to authorised recyclers.

WAY FORWARD

Going forward, Maruti Suzuki India also plans to increase the efficiency of all operations

along with introduction of new technologies. A key focus for the future is solar energy,

which will progressively be scaled up to support the companys manufacturing and

operational power requirements. In line with this plan, a one MW solar plant has been

set-up at the companys Manesar plant. One MW may not account for a significant part

of the companys requirement but is a good beginning.

Maruti Suzuki India started early in the area of green manufacturing, and the impressive

results in a short span of time prove that the progress has been swift. Having learnt of the

upcoming measures and policies, we can safely say that Maruti Suzuki India will

continue to be at par with the industry and competition standards in terms of green

manufacturing.

Text :Arpit Mahendra

Photo: Maruti Suzuki India Limited

ANALYSIS:

From the above article we can understand that MSIL has done their

best to make the necessary changes in their production process for controlling the air and

water pollution . We can also see that they divided their change in process for the 5

different purposes .

As I mentioned earlier that , automobile industry has two challenges ahead of them one is

emissions from the production units and second of cars their cars emitting the gases. In

this case even MSIL had made certain change in their productions and products these can

be understand from a article written in the annual report of the company for the year

2011-2012


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Such a decision will also hinge on demand for the cars continuing in European

markets after September, when government incentives for buying smaller,

environment-friendly cars expire, Marutis managing executive officer,

production, M.M. Singh, said here late on Wednesday, on the sidelines of the

launch of its Ritz compact car. We are not sure if the demand will continue after

the governments withdraw incentive schemes and dont want to take decisions

on expensive investment, based on two-three months of demand, Singh said.

Demand for the Euro V, left hand drive Alto model that meets the Euro V

emission standards has spiked across the UK, France, Germany and other

countries where governments are offering coupons of 1,500 to buyers as an

incentive to replace old cars, partly in an effort to prod a slowing economy.

Productivity-enhancing measures at the Manesar plant include flexible assembly

operations. Demand for models from the plant keep changing and introducing

flexible body shops, flexible assembly lines that helps us to switch effortlessly to

producing vehicles for which demand is increasing, is one way of working around

a capacity constraint, Singh said. Last year the company introduced a flex ible

body shop (used to create body shells of cars) at Manesar that allows it to

seamlessly manufacture vehicles of different dimensions. With the use of

software and sophisticated electronics, it is now possible to (produce vehicles of

different dimensions), Singh said, adding that his company plans to increase

automation. The number of hours taken to produce a car has halved in the last

five years at Maruti, he said, without giving details. Maruti commenced exporting

the A-Star that sells for 7,500-8,000 in various markets, in January this year,

selling 20,000 units up to 31 March. It plans to export 100,000 units of the car in

fiscal 2010. Some 30,000 of these will be sold to Nissan Motor Co. that will sell it

as the Pixo brand overseas.

ANALYSIS:

The company decided to start exporting its cars due to increase in

demand in the European . For this purpose they made the

Documents

Maruti Sm Project complete analysis