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    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

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    Men

    The company has a multi-tier managementstructure, comprising:1. Board of Directors

    2. Managing Executive Officers

    3. Executive Officers

    4. Divisional Heads

    Through this it is ensured that: Strategic supervision is provided by the board.

    Control and Implementation of Companys strategies isachieved effectively.

    Operational management remains focused on

    implementation.

    Information regarding the companys operations andfinancial performance are made available adequately.

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    Delegation of decision making with accountability is

    achieved.

    Financial and operational control and integrity are

    maintained at operational level.

    Risk is suitably evaluated and dealt with.

    The employees of Maruti, from techniciansto engineers to sales persons, have fully

    imbibed the Japanese work culture of

    making constant improvement, and placing

    the prosperity of the company as the means

    of their own advancement

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    Money

    For its Indian operations, the company plans

    to invest Rs 9,000 Crore by 2010.

    The company has also made huge investment

    in the plant situated at Manesar, that is almost

    ready to reach its peak production level of

    300,000 units.

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    The company also operates at the new enginefacility located at Gurgaon.

    Maruti Suzuki has a good network of internalresources to finance the companys

    operations, expansion plans as well as capital

    investments.

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    Machinery

    The Manesar plant of the company

    established in 2006achieved an expanded

    installed capacity of 1,70,000 units at the end

    of first year.

    The models of Swift, SX4 and Dzire are

    manufactured in Manesar.

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    Recently, the company has introduced a peppy k

    series engine for its new car, Maruti Suzuki A-star.

    In future, it aims to produce more environment-friendly car engines.

    The company plans to design cars that are fuelefficient and lower on CO2 emissions. It also hasplans to develop hybrid, electrical, and multi-fuel engines

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    Materials

    Maruti uses the following materials to reduceits energy consumption while manufacturing

    cars:

    Energy efficient fans in cooling towers

    Special transformers to minimize the energy losses.

    Energy efficient motors and blowers in the air washer

    system for shop cooling

    Energy efficient chillers for air conditioning.

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    Building Management System and Variable Air Volume

    System for optimized cooling in the work places and

    reduce the energy consumption.

    Increased re-use of waste heat of combustion for

    running equipment.

    Energy efficient lighting.

    Energy efficient air driers.

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    Methodology

    Small is Beautiful

    Maruti Suzuki has a firm belief that the future of Indiancar industry belongs to small cars.

    The rising fuel prices, high input costs and congestedcity roads is paving way for small, light-weight and fuelefficient cars.

    Even the government is supporting the introduction ofsmall cars with favorable policies.

    Exuding companys confidence on growth of small cars,

    Maruti Suzuki aims to roll out more numbers of smallcars for the Indian sub-continent.

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    Re-enter Europe

    Maruti Suzuki re-entered European marketwith a global car that is fuel-efficient and

    lower on CO2 emissions.

    This new car christened as Maruti Suzuki A-Star was launched in Europe with the brand

    Suzuki Alto.

    Maruti has announced to launch anotherworld strategic car model, Maruti Suzuki

    Splash.

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    Threat from the new players: Increasing

    Most of the major global players are present in the Indian market; few

    more are expected to enter.

    Financial strength assumes importance as high are required for building

    capacity and maintaining adequacy of working capital.

    Rivalry within the industry: High

    There is keen competition in select segments. (compact and mid size

    segments).New multinational players may enter the market.

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    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.

    Thus the ability to innovate is critical

    Product differentiation via new features, improved performance andafter-sales support is critical

    Increased competitive intensity has limited the pricing power of

    manufacturers

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    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 facilitiesIndia 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 capacitycompetition is likely to intensify in the SUV segment in India following

    the launch of new models at competitive prices

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    The policies & objectives laid down by the Indian

    Government regarding the automobile sector are:

    Exalt the sector as a lever of industrial growth andemployment 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,

    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

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    Conduce incessant modernization of the industry

    and facilitate indigenous design, research anddevelopment

    Steer India's software industry into automotivetechnology. Example: the company developed

    CMA software for carrying out target costing. Assist development of vehicles propelled by

    alternate energy sources

    Development of domestic safety and

    environmental standards at par with internationalstandards

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    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. Not only they made a reasonable

    profit but also didnt give away any pink slips

    Maruti Suzuki is the leading automobile manufacturer in the

    country. Now they are in the process of re-entering the

    European market by introducing A-Star

    The company has now started using CNG Kits. 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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    ECONOMIC ENVIRONMENT OF MARUTI SUZUKI

    The global meltdown has certainly hit the Indian car industry

    hard.The industry posted a growth rate of 11 per cent in the

    year 2007 which has fallen to 3 per cent this year.

    Maruti now plans to tap the rural market, 60 per cent of

    which runs on cash .

    Maruti has appointed 2,000 sales executives to target

    customers in the rural areas.

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    The company is offering discounts ranging from Rs 3,000 to8,000 on various models in 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 twofiscal years.

    Currently, Maruti Suzuki manufactures 9 Lakh cars annually

    to cater to the biggest segment - small cars in India.

    It will be spending nearly Rs 1,800 Crore to develop the

    capacity.

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    Maruti Suzuki sold 7.92 Lakh cars in the last 2008-09 fiscal

    year which combines the domestic sales and those madeabroad.

    It recorded the highest sales in April with a 15 percent jump

    and sale of 71,748 units in one month.

    Company has allocated Rs 9,000 Crore for a new engine plant

    and new research and development centre, in japan.

    In January 2009, Maruti exported 4774 units and accounts for

    a total car sales of 71,779 units.

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    The recession affect on Automobile Prices

    The pricing of the following cars have gone up by:

    A-Star hatchback - Rs 10,000All variants of SX4 sedan - Rs 9,000.

    The price of Swift Petrol LXi Rs 5,000.

    For the higher variants of Swift-VXi and Zxi- Rs 6,000.

    The new prices for Swift DZire Rs. 7,000

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    SocialenvironmentWelfare Camps

    Medical support & welfare

    Education to underprivileged

    Road SafetyMaruti Driving Schools

    Greening of Supply Chain

    Adopting energy saving

    technologiesReducing water wastage

    Green Growth

    http://www.infibeam.com/Cars/search?ccondition=New&model=Ritz
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    Launched CNG kit for Alto, its highest selling

    small car.

    The company as a proactive move is all set tomake 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.

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    The company is involved with the

    development of small and fuel-efficient car

    engines.

    In future, the company has high plans to

    increase the engine development work in

    India along with other R&D operations.

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    The company uses next generation KB series

    Engine in its new Hatchback car A-star.

    The company added Virtual Design Review toits R&D activity to enable virtual validation toreduce cycle time and development cost.

    In the field of alternate fuel technology, the

    company developed LPG system for MPIengine.

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    3R- reduce, reuse, and recycle.

    Continuous process of promoting 100%

    recyclable and reusable car parts.

    Targets reducing fresh water consumption andimplement rain water harvesting.

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    The newly launched Maruti Suzuki A-Star is

    designed to meet the European ELV (End-of-

    Life Vehicle) norms.

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    Encourages its customers to act uponenvironment friendly approach.

    The company conducts regular training andeducation programmes at the supplier end.

    Sessions are also held at all possible placescomprising people from all arenas of the carindustry.

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    Researches are done to learn innovative ways

    of improving ecological balance and reduce

    automotive emissions.

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    Education, and improvement initiatives aretaken on the shop floor.

    The company has introduced three-coat-one-bake painting system at its facility.

    The company is moving towards making itsentire fleet of cars green with advanced andefficient technologies.

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    1999- Certified for establishing and

    maintaining EMS as per ISO 14001:1996

    standards. The company was again recertified

    for the same in 2002.

    Certified for changing its EMS from ISO

    14001:1996 version to ISO 14001:2004version.

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    Golden Peacock award for Environment

    Management in 2007 was honored by World

    Environment Foundation.

    First prize for excellence in implementation of

    Energy Conservation measures in industrial

    sector was awarded by renewable energy

    department of Haryana Government.

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    Legal Environment

    Follows highest standards of Corporate Governance

    Customer can contact the Secretarial & Legal Department for anyquestions/clarifications.

    Legal compliance reporting

    The board periodically reviews reports of compliance with all lawsapplicable to the Company, as well as steps taken by the Company to rectifyinstances of non-compliances.

    The Company has developed comprehensive legal compliance schedulingand management software by which specific compliance tasks are assignedto each individual. The software enables in planning and monitoring allcompliance activities across the Company.