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Seminar Report on

Automobiles

Topic:-Maruti Suzuki Ltd.

Submitted to:-kanwal Gurleen Sir

In partial fulfillment of the Requirements for the award of Degree of Bachelor of Business Adminstration

the award of Degree of Bachelor of Business Adminstration Submitted by: KashishVadhera University Registration No.

Submitted by: KashishVadhera

University Registration No. 3020070114

Section:- B

DEPARTMENT OF MANAGEMENT LOVELY PROFESSIONAL UNIVERSITY PHAGWARA

(2008)

2

INDEX

S.no

Contents

Page no.

1.

Acknowledgement

3

2.

Overview of the company

4

3.

India and automobile industry

5

4.

Growth pace of the industry

6

5.

Auto export in India

10

6.

SWOT anyalsis of exports

12

7.

Factors responsible for exports

13

8.

Major players

13

9.

Profile of the company

16

10.

Get to know the Company better

20

11.

Why go for Maruti Suzuki?

22

12.

Code of conduct

24

13.

Achievements and milestones

27

14.

Facilities provided

31

15.

Maruti and its Stakeholders

34

16.

Product range of Maruti

38

17.

Social activities

39

18.

Performance over last few years

41

19.

Finacial status

46

20.

Furture prosepects

47

21.

Critical appraisal and suggestions

50

22.

Bibliography

53

ACKNOWLEDGEMENT

To complete a task all you require is some hard work and efforts, but with a blend of these two you also need the support and guidance of many people. So I pleasure is all mine to first of all thank Mr.Rahul, professor of seminar on corporate profile without whose able guidance, Co-operation & Supervision the present study couldn’t have ‘been possible.

I would like to thank my greatest source of support, my god for giving me the strength and confidence to complete the same. I m truly thankful to him for showering his blessings on me time to time.

I would like to thank my sister, Miss. Preeti for her valuable guidance and suggestions.

I m also thankful to all my friends and my group members for their support and encouragement.

Kashish Vadhera

OVERVIEW OF THE INDUSTRY

HISTORY OF AUTOMOBILE INDUSTRY:

With the invention of the wheel in 4000 BC, man’s journey on the road of mechanized transport had begun. Since then he continually sought to devise an automated, labour saving machine to replace the horse. Innumerable attempts reached conclusion in the early 1760s with the building of the first steam driven tractor by a French Captain, Nicolas Jacob Cugnot.

It was however left to Karl Benz and Gottlieb Damlier to produce the first vehicles powered by the internal combustion engine in 1885. It was then that the petrol engine was introduced, which made the car a practical and safe proposition. The cars in this period were more like the cars on our roads today. With cars came the era of speed. The first ever land-speed record was established about a 100 years back, in 1898.

The Automobile Industry finally came of age with Henry Ford in 1914 for the bulk production of cars. This lead to the development of the industry and it first begun in the assembly lines of his car factory. The several methods adopted by Ford, made the new invention (that is, the car) popular amongst the rich as well as the masses.

Count Gaston de Chasseloup-Laubat of France drove an electric car (in Acheres near Paris) at a speed of 39.24 miles per hour. This flagged off the era of ‘wheels racing’, which lasted till 1964, after which jet and rocket -propelled vehicles were allowed.

Then onwards, it has been one big journey

business of producing and selling self-powered vehicles, including passenger cars, trucks, farm equipment, and other commercial vehicles. By allowing consumers to commute long distances for work, shopping, and entertainment, the auto industry has

encouraged the development of an extensive road system, made possible the growth

the roads.Automobile industry, the

on

of suburbs and shopping centers around major cities, and played a key role in the growth of ancillary industries, such as the oil and travel businesses.

The auto industry has become one of the largest purchasers of many key industrial products, such as steel. The large number of people the industry employs has made it a key determinant of economic growth.

INDIA AND AUTOMOBILE INDUSTRY

PAST SCENARIO OF THE INDUSTRY IN INDIA:

Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of India has come a long way. During its early stages the auto industry was overlooked by the then Government and the policies were also not favorable. The liberalization policy and various tax reliefs by the Govt. of India in recent years has made remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently growing at the pace of around 18 % per annum, has become a hot destination for global auto players like Volvo, General Motors and Ford.

PRESENT SCENARIO OF THE INDUSTRY IN INDIA:

A well developed transportation system plays a key role in the development of an economy, and India is no exception to it. With the growth of transportation system the Automotive Industry of India is also growing at rapid speed, occupying an important place on the 'canvas' of Indian economy.

Today Indian automotive industry is fully capable of producing various kinds of vehicles and can be divided into 03 broad categories : Cars, two-wheelers and heavy vehicles.

SOME UNKOWN FACTS ABOUT THE INDUSTRY IN INDIA:

The first automobile in India rolled in 1897 in Bombay.

India is being recognized as potential emerging auto market.

Foreign players are adding to their investments in Indian auto industry.

Within two-wheelers, motorcycles contribute 80% of the segment size.

Unlike the USA, the Indian passenger vehicle market is dominated by cars

(79%).

Tata Motors dominates over 60% of the Indian commercial vehicle market.

2/3rd of auto component production is consumed directly by OEMs.

India is the largest three-wheeler market in the world.

India is the largest two-wheeler manufacturer in the world.

India is the second largest tractor manufacturer in the world.

India is the fifth largest commercial vehicle manufacturer in the world.

The number one global motorcycle manufacturer is in India.

India is the fourth largest car market in Asia - recently crossed the 1 million mark.

GROWTH PACE OF THE INDUSTRY:

Following India's growing openness, the arrival of new and existing models, easy availability of finance at relatively low rate of interest and price discounts offered by the dealers and manufacturers all have stirred the demand for vehicles and a strong growth of the Indian automobile industry.

The data obtained from ministry of commerce and industry, shows high growth obtained since 2001- 02 in automobile production continuing in the first three quarters of the 2004-05. Annual growth was 16.0 per cent in April-December, 2004; the growth rate in 2003-04 was 15.1 per cent The automobile industry grew at a compound annual growth rate (CAGR) of 22 per cent between 1992 and 1997. With investment exceeding Rs. 50,000 crore, the turnover of the automobile industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component sector, the automotive industry's turnover, which was above Rs. 84,000 crore in 2002- 03, is estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 billion) in 2003-04.

“The passenger car and motorcycle segment in Indian auto Industry is growing by 8-9 per cent”.

GROWTH IN INDIA:

The Indian automobile industry crossed a landmark with total vehicle production of 10 million units.

Car sales was 8,82,094 units against 8,20,179 units in 2004-05.

The two-wheeler market grew by 13.6 per cent with 70,56,317 units against 62,09,765 units in 2004-05.

Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430 units in 2004-05.

India, sourcing base for global auto majors.

Passenger car and motorcycle segment is set to grow by 8-9%.

The two-wheeler segment will clock 11.5% rise by 2007.

Commercial vehicle to grow by 5.2 per cent.

Estimated component market size is US$ 6.7 bn.

India, in auto sector, is turning to be a sourcing base for the global auto majors. The passenger car and the motorcycle segment is set to grow by 8-9 per cent in coming couple of years, says the ICRA report. The industry is likely to maintain the growth momentum picked up in 2002-03.

The ICRA's analysis points on the auto sector that the passenger car market in the country was inching towards cars with higher displacements. The sports-utility- vehicle (SUV) that was getting crowded everyday, would witness intense competition as many SUVs had been competitively priced, the report said.

Honda, Suzuki, General Motors and Hyundai, the global automakers had already launched their premium SUVs in the market to broaden their portfolio and create product excitement in the segment estimated at about 10,000 units annually.

In the two-wheeler segment, according to the report, the motorcycles would clock

11.5 per cent rise during 2004-2007 over its siblings-scooters and mopeds. Scooters sales would decelerate and mopeds would also see the same. Overseas market would present huge opportunities for the two-wheeler makers.

The commercial vehicles are likely to grow at a CAGR of 5.2 per cent. Heavy commercial vehicles market would rise at 5.5 per cent and sales of light buses and trucks would achieve 4.7 per cent growth. For the tractors, the report predicts a growth at 4.6 per cent.

Indian Auto Market Growth for the year 2005-06:

The domestic automobile industry sales grew 12.8 per cent at 89,10,224 units as against 78,97,629 units in 2004-05.

The automotive industry crossed a landmark with total vehicle production of 10 million units.

According to the Society of Indian Automobile Manufacturers (SIAM), car sales was 8,82,094 units against 8,20,179 units in 2004-05.

The growth of domestic passenger car market was 7.5 per cent

Car exports stood at 1,70,193 units against 1,60,670 units in 2004-05.

The two-wheeler segment, the market grew by 13.6 per cent with 70,56,317 units against 62,09,765 units in 2004-05.

Motorcycles had the upward march, 17.1 per cent in domestic market touching 58,15,417 units against 49,64,753 units in 2004-05.

Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against 9,22,428 units in 2004-05.

Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430 units in 2004-05.

Medium and heavy commercial vehicles managed a growth of 4.5 per cent against 23 per cent growth in the year ended March 31, 2005.

Light commercial vehicles sales growth was 19.4 per cent at 1,43,237 units against 1,19,924 units in 2004-05.

Three-wheelers sales rose by 17 per cent at 3,60,187 units against 3,07,862 units in 2004-05.

AUTO EXPORT IN INDIA

In auto export, passenger vehicle exports have grown over five times from the start of

the decade and two-wheeler exports have reached more than double

EXPORTS AND INDIAN DEALINGS:

Foreign auto makers, including Ford Motor Co. , General Motors Corp.,

and

Hyundai Motor Co. Ltd., are looking to increase their presence in India and use it as an export hub.

Exports of auto components, whose manufacturing costs are 30-40 per cent lower than in the West, have grown at 25% a year between 2000 to 2005.

In 2003-04 the export of the industry was 55.98%.

Two-wheelers are mostly exported from India.

The reason behind the export is cost competitiveness in terms of labor and raw material.

The export of auto components has grown to 19% from the start of the decade.

Honda

Motor

Co.

Ltd.,

DaimlerChrysler AG

SOME FACTS AND FIGURES:

The Indian automotive export industry presently is finding a good recognition

globally. The auto industry along with the component industry is contributing to the

export effort of the country. In 2002-03, the export of the automobile industry had

registered a growth rate of 65.35%. In 2003-04, it was 55.98%. The following table

briefs about the 2003-04 and 2004-05 (upto April-Dec. 2004) automobile export in

numbers.

Category

1998-99

2004-05 (Apr-Dec)

Passenger Car

25468

121478

Multi Utility Vehicles

2654

3892

Commercial Vehicles

10108

19931

Two Wheelers

100002

256765

Three Wheelers

21138

51535

Percentage Growth

-16.6

32.8

AUTO COMPONENTS : Any automobile is the assembly of several auto parts with each part

AUTO COMPONENTS :

Any automobile is the assembly of several auto parts with each part contributing to its machinery and polishing its quality. Lack or failure of just one part can breakdown the entire system so every component plays its part. We have provided the detailed list of all the components of any vehicle. This list would enable the user to gain complete knowledge about various auto parts. It would allow the user to access the importance and uses of various integral parts of automobile.

EXAMPLES OF AUTO COMPONENTS:

Chassis and Frame

Springs

Fuel Supply System

Electrical System

Braking System

Lubrication System

Gauges

Gaskets and Seals

Lighting System

Exhaust System

Suspension and Steering

Transmission System

Wheels and Tyres

Fasteners

Valves

Cooling System

Engine

Export of Auto Components:

Investments in the auto ancillary sector are rising rapidly. In 1997, the size of the auto component industry was US$ 2.4 billion and now in 2004-05 it has become US$ 8.7 billion industry. The export of auto components has grown at a compounded growth rate of 19 per cent over the past six years.

Jai Parabolic Springs (JPSL) is a leading manufacturer of parabolic springs in India and has bagged two major orders from international auto majors, General Motors (GE) and Ford.

Robert Bosch, auto parts maker of Germany has relocated manufacture of certain products to MICO, India. Crosslink International Wheels, Malaysia's leading automobile security provider Wheels Electronic SDN, is setting up its manufacturing unit at Baddi to make India the export hub for the SAARC region.

PSA Peugeot Citroën, French automobile group has placed orders for components worth US$ 10 million with Indian companies.

Fiat India exported components worth US$ 8.3 million in 2004-05 to its operations in South Africa. GKN Driveline and Dubai based auto ancillary major Parts International plans for an investments in India.

Bar graph showing exports of auto components . SWOT ANYALSIS OF INDIAN EXPORTS: STRENGTHS: ∑

Bar graph showing exports of auto components .

SWOT ANYALSIS OF INDIAN EXPORTS:

STRENGTHS:

Cost competitiveness in terms of labor and raw material.

Established manufacturing base. Economics of scale due to domestic market.

Potential to harness global brand image of the parent company.

Global hub policy for small car like Hyundai, Suzuki, etc.

WEAKNESS:

Perception about quality.

Infrastructure bottlenecks.

OPPORTUNITIES:

Huge export markets such as Europe, America, Africa, and others for Indian cars.

THREATS:

China, Malaysia, Thailand, etc.

Many other countries also have strategies for export promotion.

FACTORS RESPONSIBLE FOR EXPORTS:

Internal Factors:

Attaining high quality for global standards.

Continuous cost reduction for global competitiveness.

Supply chain management (logistics).

Attaining economies of scale & scope.

External Factors:

Improve infrastructure (ports, roads, etc).

Improve EXIM regulations.

MAJOR PLAYERS IN INDUSTRY

All those people who are crazy about speed, automobile are indeed a prized possession for them. With the increased number of car and two wheeler loans and finance schemes available in today's market, it is not that difficult to purchase the same. However, if you have already decided to purchase a vehicle, then before the act of purchase, do get to know something about the key players who dominate this market.

In terms of Car dealer networks and authorized service stations, Maruti leads the pack with Dealer networks and workshops across the country. The other leading

automobile manufactures are also trying to cope up and are opening their service stations and dealer workshops in all the metros and major cities of the country. Dealers offer varying kind of discount of finances who in tern pass it on to the customers in the form of reduced interest rates.

These are the companies that bring to us our dream machines. This is where it all starts from; the bourgeoisie Maruti 800, the upmarket Astra, the stately Mercedes, the 'Indian' Indica, the racy Hero Honda, the Tata truck and the rest.

Wend your way through the automobile companies, their history and product lines. Find out hitherto unknown facts about the vehicles you use. Did you know that the Hindustan Motors was the first vehicle manufacturing company to be set up in India? And it is the same Hindustan Motors which manufactures both the sturdy Ambassador and the elegant Lancer, in association with Mitsubishi of course.

In the two- wheeler segment, the biggest player in India is hero honda. A joint venture between the famous Hero group of India and Hondagroup of Japan, it has the record of producing 1.3 million motorbikes in a single business year in its kitty. All its produ Most popular two- wheelers produced by this company include the likes of Glamour, Karizma, splendor, CD Dawn, Passion and Passion plus.

Next we have Bajaj Auto, which is known to be worlds third largest two as well as

three wheeler manufacturing company. It offers enormously popular bikes like

CT100, Platina, Discover, Pulsar, Pulsar DTS I and Avenger DTS I. All its products

are popular for their mileage offerings and attractive looks.

In the four wheeler segment, the most reputed Indian global brand is Maruti Udyog, a

joint venture between SuzukiMotors, Japan and the Government of India. It is a listed

company and is credited for producing and subsequent selling of more than one

million cars in a financial year. It is the largest producer of four wheeler automobiles

in the entire south Asia. Its popular products include Maruti 800, Maruti 1000, Omni,

Esteem, Alto, Wagon -R and Zen. cts are known to be user friendly and fuel efficient.

MARKET SHARES OF THE INDUSTRY IN INDIA:

Among the two-wheeler segment, motorcycles have major share in the market. Hero

Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in

scooter and TVS makes 82% of the mopeds in the country.

40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of

the market share. Among the passenger transport, Bajaj is the leader by making 68%

of the three-wheelers.

Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in

passenger cars and is a complete monopoly in multi purpose vehicles. In utility

vehicles Mahindra holds 42% share.

In commercial vehicle, Tata Motors dominates the market with more than 60% share.

Tata Motors is also the world's fifth largest medium & heavy commercial vehicle

manufacturer.

PROFILE OF THE ORGANIZATION

Maruti Suzuki India Limited is a publicly listed automaker in India. It is a leading four-wheeler automobile manufacturer in South Asia. Suzuki Motor Corporation of

Japan holds a majority stake in the company. It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India. On 17 September 2007, Maruti Udyog was renamed to Maruti Suzuki India Limited. The company's headquarters remain in Gurgaon, near Delhi.

Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983. Through 2004, Maruti has produced over 5 Million vehicles. Marutis are sold in India and various several other countries, depending upon export orders. Cars similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki in Pakistan and other South Asian countries.Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The Indian government held an initial public offering of 25% of the company in June 2003. 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 30,000 cars and has an extremely large domestic market in India selling over 500,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Alto tops the sales charts.

Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used to refer to this compact car model. Till recently the term "Maruti", in popular Indian culture, was associated to the Maruti 800 model.

Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for over two decades.

A BIT ABOUT ITS PARENT COMPANY ITS OWNER:

Suzuki Motor Corporation is a Japanese multinational corporation that specializes in

manufacturing compact automobiles, a full range of motorcycles, All-Terrain Vehicles

(ATVs), outboard marine engines, wheelchairs and a variety of other small internal

combustion engines. Suzuki is the 12th largest automobile manufacturer in the world,

employs over 45,000 people, has 35 main production facilities in 23 countries and 133

distributors in 192 countries.

"Suzuki" is pronounced in Japanese as "soo-zoo-kee" suzuki, with emphasis on a high

"kee". It is almost always wrongly pronounced as "suh-ZOO-kee" with a stressed

"zoo". This pronunciation is used by the English-speaking public and by the Suzuki

company in marketing campaigns directed towards this demographic

In 1909, Michio Suzuki founded the Suzuki Loom Company in the small seacoast village of Hamamatsu, Japan. Business boomed as Suzuki built weaving looms for Japan's giant silk industry. Suzuki's only desire was to build better, more user-friendly looms. In 1929, Michio Suzuki invented a new type of weaving machine, which was exported overseas. Suzuki filed as many as 120 patents and utility model rights. The company's first 30 years focused on the development and production of these exceptionally complex machines.

Despite the success of his looms, Suzuki realized his company had to diversify and he began to look at other products. Based on consumer demand, he decided that building a small car would be the most practical new venture. The project began in 1937, and within two years Suzuki had completed several compact prototype cars. These first Suzuki motor vehicles were powered by a then-innovative, liquid-cooled, four-stroke, four-cylinder engine. It featured a cast aluminum crankcase and gearbox and generated 13 horsepower (9.7 kW) from a displacement of less than 800cc.

With the onset of World War II, production plans for Suzuki's new vehicles were halted when the government declared civilian passenger cars a "non-essential commodity."

After the war, the Japanese had a great need for affordable, reliable personal transportation. A number of firms began offering "clip-on" gas-powered engines that could be attached to the typical bicycle. Suzuki's first two-wheel ingenuity came in the form of a motorized bicycle called, the "Power Free." Designed to be inexpensive and simple to build and maintain, the 1952 Power Free featured a 36 cc two-stroke engine. An unprecedented feature was the double-sprocket gear system, enabling the rider to either pedal with the engine assisting, pedal without engine assist, or simply disconnect the pedals and run on engine power alone.

The system was so ingenious that the patent office of the new democratic government granted Suzuki a financial subsidy to continue research in motorcycle engineering, and so was born Suzuki Motor Corporation.

In 1953, Suzuki scored the first of many racing victories when the tiny 60 cc "Diamond Free" won its class in the Mount Fuji Hill Climb.

By 1954, Suzuki was producing 6,000 motorcycles per month and had officially changed its name to Suzuki Motor Co., Ltd. Following the success of its first motorcycles, Suzuki created an even more successful automobile: the 1955 Suzulight. Suzuki showcased its penchant for innovation from the beginning. The Suzulight included front-wheel drive, four-wheel independent suspension and rack-and-pinion steering -- features common on cars half a century later.

HISTORY OF MARUTI SUZUKI :

Maruti Suzuki India Limited (MSIL) was established in Feb 1981 through an Act of Parliament, as a Government company with Suzuki Motor Corporation of Japan holding 26 per cent stake. It was entrusted the task of achieving the following:

Modernization of the Indian Automobile Industry.

Production of vehicles in large volumes

Production of fuel efficient vehicles.

Suzuki was an obvious choice because of its unparalled expertise in small cars.The Joint Venture agreement was signed between Government of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982. The company went into production in a record time of 13 months and the first car was rolled out from Maruti Suzuki India Limited Gurgaon in December, 1983 and heralded a revolution in the Indian car industry.

Maruti collaborated with Suzuki of Japan to produce the first affordable car for the average Indian. At this time, the Indian car market had stagnated at a volume of 30,000 to 40,000 cars for the decade ending 1983. This was from where Maruti took over.

The sales figure for the year 1993 reached up to 1,96,820. The company reached a total production of one million vehicles in March 1994 becoming the first Indian Company to cross this milestone. It crossed the two million mark in 1997. India's largest automobile company, it entered the Indian car market with the avowed aim to provide high quality, fuel - efficient, low - cost vehicles. Its cars

operate on Japanese technology, adapted to Indian conditions and Indian car users. Maruti comes in a variety of models in various segments.

In the small car segment it produces the Maruti 800 and the Zen.The big car segment includes the Maruti Esteem and the Maruti 1000.

Maruti Suzuki was born as a Government of India company, with Suzuki as a minor partner, to make a people’s car for middle class India. Over the years, the product range has widened, ownership has changed hands and the customer has evolved.

The old logo of Maruti Suzuki India Limited.

has evolved. The old logo of Maruti Suzuki India Limited. Later the logo of Suzuki Motor

Later the logo of Suzuki Motor Corp. was also added to it.

Limited. Later the logo of Suzuki Motor Corp. was also added to it. GET TO KNOW

GET TO KNOW COMPANY BETTER.

Maruti Suzuki India Ltd

Type

Founded

Headquarters

Key people

Industry

Products

Revenue

Employees

Parent

Website

people Industry Products Revenue Employees Parent Website Public (BSE MARUTI, NSE MARUTI) 1981 G urgaon, Haryana,

Public (BSE MARUTI, NSE MARUTI)

1981

Gurgaon, Haryana, India Shinzo Nakanishi, CEO G J agdish Khattar, Managing Director Automotive Cars ▲ US$2.5 billion (2005) Jagdish Khattar, Managing Director Automotive Cars US$2.5 billion (2005)

6,903

Director Automotive Cars ▲ US$2.5 billion (2005) 6,903 Suzuki www.marutisuzuki.com BACKGROUND OF THE COMPANY:

Suzuki

BACKGROUND OF THE COMPANY:

Incorporation Year

1981

Registered Office

11th floor Jeevan Prakash, 25 Kasturba Gandhi Marg, New Delhi - 110001, New Delhi

Telephone

91-11-23316831/23712854

Fax

91-11-23318754/23713575

Industry

Automobiles - Passenger Cars

House

MNC Associate

Face Value

5

Market Lot

1

Listing

Mumbai, NSE

Registrar

Karvy Computershare Pvt Ltd Karvy House 46, Road No 4 Street No1, Banjara Hills, Hyderabad -

500034

BOARD OF DIRECTORS:

Managing Director And CEO

Shinzo Nakanishi

Managing Director And CEO Shinzo Nakanishi

Director (Production)

Tsuneo Ohashi

Director (Production) Tsuneo Ohashi

Director (Marketing & Sales)

Shuji Oishi

Director (Marketing & Sales) Shuji Oishi

Director

O

Suzuki

Director O Suzuki

Chairman (Non-Executive)

R

C Bhargava

Chairman (Non-Executive) R C Bhargava

Directors

Amal Ganguli

D

S Brar

Company Secretary Whole-time Director Additional Director Director

Manvinder Singh Banga Pallavi Shroff Anil Rustgi Keilchi Asai Kenichi Ayukawa

D

S Brar

 

Tsuneo Kobayashi

 

WHY GO FOR MARUTI SUZUKI?

The Quality Advantage

Maruti Suzuki owners experience fewer problems with their vehicles than any other car manufacturer in India (J.D. Power IQS Study 2004). The Alto was chosen No.1 in the premium compact car segment and the Esteem in the entry level mid - size car segment across 9 parameters.

The J.D. Power APEAL Study 2004 proclaimed the Wagon R no. 1 in the premium compact car segment and the Esteem No.1 in the entry level mid - size car segment. This study measures owner in terms of design, content, layout and performance of vehicles across 8 parameters.

A Buying Experience Like No Other

Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to guide our customers in finding the right car. Our high sales and customer care standards led us to achieve the No.1 nameplate in the J.D. Power SSI Study 2004.

Quality Service Across 1036 Cities

In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced, highest service quality, best in-service experience, best service delivery, best service advisor experience, most user-friendly service and best service initiation experience.

92% of Maruti Suzuki owners feel that work gets done right the first time during service. The J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle.

One Stop Shop

At Maruti Suzuki, you will find all your 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 your car related needs.

The Low Cost Maintenance Advantage

The acquisition cost is unfortunately not the only cost you face when buying a car. Although a car may be affordable to buy, it may not necessarily be affordable to maintain, as some of its regularly used spare parts may be priced quite steeply. Not so in the case of a Maruit Suzuki. It is in the economy segment that the affordability of spares is most competitive, and it is here where Maruti Suzuki shines.

Lowest Cost of Ownership

The highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto and Omni.

We are proud to have the lowest cost of operation/km (among petrol vehicles) - the top 5 models are all Maruti Suzuki models : Maruti 800, Alto, Zen, Omni and Wagon R.

QUALITY FOR SURE :

At Maruti, our approach to quality is in keeping with the Japanese practice--"build it into the product". Technicians themselves inspect the quality of work. Supervisors educate and instruct technicians to continually improve productivity and quality. The movement of quality indicators is reviewed in weekly meetings by the top management.

In 2001, Maruti Suzuki India Ltd became one of the first automobile companies anywhere in the world to get an ISO 9001:2000 certification. AV Belgium, global

auditors for International Organization for Standardisation(ISO), certified Maruti after a four day long audit, covering varied parameters like Customer Focussed organisation, Leadership, Involvement of people, Process approach, System approach to Management, Continual improvement, etc.

System approach to Management, Continual improvement, etc. ISO 9001:2000 CERTIFICATION CODE OF CONDUCT WHAT EXACTLY IS

ISO 9001:2000 CERTIFICATION

CODE OF CONDUCT

WHAT EXACTLY IS CODE OF CODUCT FOR MARUTI:

As a responsible corporate citizen, Maruti Suzuki India Limited (‘Maruti’ or “the Company”) has always believed in following highest standards of Corporate Governance. Being a listed Company, every act of the Company, its Board Members and its employees is the focus of public attention and accordingly, there is a need to reinforce Maruti’s commitment towards maintaining highest standards of Corporate Governance. This Code of Business Conduct and Ethics (“Code of Conduct” or “Code”) helps ensure compliance with our standards of business conduct & ethics and also with regulatory requirements. All Senior Management Personnel are expected to read and understand this Code of Business Conduct and Ethics, uphold these standards in day-

to-day activities and also comply with all applicable standards, policies and procedures of the company. This policy should be read in conjunction with applicable regulations & existing policies & procedures of the Company.

APPLICABILITY:

This Code of Conduct is applicable to all Senior Management Personnel which would include the directors of the Company, the top management personnel (i.e., executive directors & advisors at executive director level) & all functional heads (including management personnel with direct functional reporting to directors & top management personnel). All Senior Management Personnel are expected to comply with the letter and spirit of this Code. The Senior Management Personnel should continue to comply with other applicable laws & regulations and the relevant policies, rules and procedures of the Company.

INTERPRETATION OF THE CODE:

In this Code the term “Relative” shall have the same meaning as defined in Section 6 of the Companies Act, 1956. In this Code, words importing the masculine shall include feminine and words importing singular shall include the plural or vice versa. Any question or interpretation under this Code of Business Conduct and Ethics will be considered and dealt with by the Board or any person authorized by the Board on their behalf.

HONESTY, INTEGRITY & ETHICAL CONDUCT:

Senior Management Personnel shall act in accordance with the highest standards of integrity, honesty, fairness and ethical conduct while working for the Company as well when representing the Company. Honest conduct means conduct that is free from fraud or deception. Integrity & ethical conduct includes ethical handling of actual or apparent conflicts of interest between personal and professional relationships. Senior Management Personnel should promote ethical behavior and take steps to ensure that the Company promotes ethical behavior and also encourages employees to freely report violations of laws, rules, regulations or the Company's Code of Conduct to the appropriate personnel.

BUSINESS OPPORTUNITIES:

Senior Management Personnel should not exploit for their own benefit, opportunities that are discovered through the use of Corporate property, information or position unless the opportunity is disclosed fully in writing to the Company’s Board of Directors and the Board of Directors authorizes the said Senior Management Personnel to pursue such opportunity. Further, the Senior Management Personnel must refrain from using the Company's property or information for personal gain.

EQUAL OPPORTUNITY & ANTI HARASSMENT:

Maruti is committed to a policy of equal employment opportunity so as to assure that there shall be no discrimination or harassment against an employee or applicant on the grounds of race, color, religion, sex,age, marital status, disability, national origin, or any other factor made unlawful by applicable laws and regulations. This policy relates to all phases of employment including recruitment, hiring, placement, promotion, transfer, compensation, benefits, training, educational, social and recreational programs and the use of Company facilities. Sexual harassment or exploitation is specifically prohibited.

DISCIPLINARY ACTIONS:

The matters covered in this Code of Business Conduct and Ethics are of the utmost importance to the Company, its stockholders and its business partners, and are essential to the Company's ability to conduct its business in accordance with its stated values. They expect all of their Senior ManagementPersonnel to adhere to these rules in carrying out their duties for the Company. The Company will take appropriate action against any Senior Management Personnel whose actions arefound to violate these policies or any other policy of the Company. Disciplinary actions may

include immediate termination of directorship, employment or business relationship at the Company's sole.

ACHIEVEMENTS AND MILESTONES

MARUTI AND MOTOR SPORTS:

Be it a motorsport enthusiast, an amateur or a professional, Maruti Suzuki offers the thrill and joy of motorsport to all of them. The Maruti Suzuki motorsport calendar is packed with exciting motoring events. For families, there are events like Women's Fun Drive and Treasure Hunt throughout the year, across cities. The Maruti Suzuki Autocross brings action for amateurs and professionals, together.

But what makes the Maruti Suzuki motorsport calendar an attraction in India (and internationally too) are Maruti-Suzuki Raid-de-Himalaya, Maruti Suzuki Rally Desert Storm and Maruti Suzuki Monsoon Car Rally of Kerala.

Maruti Suzuki Raid-de-Himalaya

Maruti Suzuki Raid-de-Himalaya is India's longest and most demanding motorsport rally.It is open to both, car and bike enthusiasts. Maruti Suzuki provides opportunity to professional as well as amateur motorsport lovers to participate in the Maruti Suzuki Raid Raid-de-Himalaya.

Every year, more and more people are coming for the Maruti Suzuki Raid-de- Himalaya, many of them from abroad. In 2007, as many as 145 teams participated in car and bike categories.

MILESTONES:

2005

The fiftieth lakh car rolls out in April, 20052005 Growth in overall sales by 15.8% 2004 New (non A/C) variant of Alto Alto becomes

Growth in overall sales by 15.8%2005 The fiftieth lakh car rolls out in April, 2005 2004 New (non A/C) variant of

2004

New (non A/C) variantout in April, 2005 Growth in overall sales by 15.8% 2004 of Alto Alto becomes India's

of Alto

Alto becomes India's new best selling car in overall sales by 15.8% 2004 New (non A/C) variant of Alto LPG variant of 'Omni
Alto becomes India's new best selling car

LPG variant of 'Omni Cargo'

Versa 5-seater, a new variantLPG variant of 'Omni Cargo' Baleno LXi, a new variant Maruti closed the financial year 2003-04

of 'Omni Cargo' Versa 5-seater, a new variant Baleno LXi, a new variant Maruti closed the

Baleno LXi, a new variantof 'Omni Cargo' Versa 5-seater, a new variant Maruti closed the financial year 2003-04 with an

Maruti closed the financial year 2003-04 with an annual sale of 472122 units, the highest ever since the company began operations 20 years agoLPG variant of 'Omni Cargo' Versa 5-seater, a new variant Baleno LXi, a new variant

2003

New Suzuki Grand Vitara XL-7ever since the company began operations 20 years ago 2003 Redesigned and all- new Zen New

Redesigned and all- new Zenoperations 20 years ago 2003 New Suzuki Grand Vitara XL-7 New upgraded WagonR Enters into partnership

New upgraded WagonR Enters into partnershipwith State Bank of India Production of 4 millionth vehicle. Listed on BSE and NSE

with State Bank of IndiaNew upgraded WagonR Enters into partnership Production of 4 millionth vehicle. Listed on BSE and NSE

Production of 4New upgraded WagonR Enters into partnership with State Bank of India millionth vehicle. Listed on BSE

WagonR Enters into partnership with State Bank of India Production of 4 millionth vehicle. Listed on

millionth vehicle. Listed on BSE and NSE after

a public issue

oversubscribed 10

times

2002

WagonR Pride Esteem Diesel. Alland NSE after a public issue oversubscribed 10 times 2002 other variants upgraded Maruti Insurance. Two

other variants upgradedoversubscribed 10 times 2002 WagonR Pride Esteem Diesel. All Maruti Insurance. Two new subsidiaries started: Maruti

Maruti Insurance. Two new subsidiaries started: Maruti Insurance Distributor Services and Maruti Insurance Brokers Limited Alto Spin LXi, withelectronic power steering Special edition of Maruti 800, India’s first colour-coordinated car Maruti True value

and Maruti Insurance Brokers Limited Alto Spin LXi, with electronic power steering Special edition of Maruti

electronic power steeringand Maruti Insurance Brokers Limited Alto Spin LXi, with Special edition of Maruti 800, India’s first

Special edition of Maruti 800, India’s first colour-coordinated car Maruti True value in Mumbai Maruti Finance in
Mumbai Maruti Finance inSpecial edition of Maruti 800, India’s first colour-coordinated car Maruti True value in

Mumbai with 10 finance companiescar Maruti True value in Mumbai Maruti Finance in Suzuki Motor Corporation (SMC) increases its stake

Suzuki Motor Corporation (SMC) increases its stake in Maruti to 54.2 percentfirst colour-coordinated car Maruti True value in Mumbai Maruti Finance in Mumbai with 10 finance companies

2001

Zen LXi Maruti True Valuelaunched in Bangalore and Delhi Maruti Versa, India’s first luxury MPV Alto Spin LXi, with

launched in Bangalore and DelhiZen LXi Maruti True Value Maruti Versa, India’s first luxury MPV Alto Spin LXi, with electronic

Maruti Versa, India’s first luxury MPV Alto Spin LXi, withZen LXi Maruti True Value launched in Bangalore and Delhi electronic power steering Alto Vxi Customer

electronic power steeringVersa, India’s first luxury MPV Alto Spin LXi, with Alto Vxi Customer information centers launched in

Alto Vxiluxury MPV Alto Spin LXi, with electronic power steering Customer information centers launched in Hyderabad,

Customer information centers launched in Hyderabad, Bangalore and ChennaiMPV Alto Spin LXi, with electronic power steering Alto Vxi Launch of versa 2000 First car

Launch of versacenters launched in Hyderabad, Bangalore and Chennai 2000 First car company in India to launch a

launched in Hyderabad, Bangalore and Chennai Launch of versa 2000 First car company in India to

2000

First car company in India to launch a Call Centerin Hyderabad, Bangalore and Chennai Launch of versa 2000 New Alto Altura, a luxury estate car

New Alto2000 First car company in India to launch a Call Center Altura, a luxury estate car

Altura, a luxury estate carFirst car company in India to launch a Call Center New Alto IDTR (Institute of Driving

IDTR (Institute of Driving Training and Research) launched jointly with the Delhi government to promote safe driving habitsto launch a Call Center New Alto Altura, a luxury estate car PRODUCTION MILESTONES: 1st vehicle

with the Delhi government to promote safe driving habits PRODUCTION MILESTONES: 1st vehicle produced, December 1983

PRODUCTION MILESTONES:

1st vehicle produced, December 1983

1,00,000 vehicles produced by August,

1986

5,00,000 vehicles produced by June, 1990

10,00,000 vehicles produced by March,

1994

15,00,000 vehicles produced by April, 1996

20,00,000 vehicles produced by October,

1997

25,00,000 vehicles produced by March,

1999

30,00,000 vehicles produced by June, 2000

35,00,000 vehicles produced by December

2001

40,00,000 vehicles produced by April, 2003

45,00,000 vehicles produced by April, 2004

AWARDS:

JD Power SSI: 1st Rank, 3 years in a row 2004 – 2006

JD Power SSI: 1st Rank, 3 years in a row 2004 – 2006

Tops TNS TCS Survey in key segments, 5 years in a row 2002 - 2006

Tops TNS TCS Survey in key segments, 5 years in a row 2002 - 2006

Among Top 5 car companies in the Forbes list of the Worlds Most Reputed Companies

Among Top 5 car companies in the Forbes list of the Worlds Most Reputed Companies – Nov 06

Features in Business Today’s annual list of “20 companies to look for in 2007” –

Features in Business Today’s annual list of “20 companies to look for in 2007” – Nov 06

The only automobile manufacturer to feature in Business Today’s list of “India’s Best 10 Marketers

The only automobile manufacturer to feature in Business Today’s list of “India’s Best 10 Marketers – Nov 06

Ranks 1st for Corporate Social Responsibility by TNS Automotive

Ranks 1st for Corporate Social Responsibility by TNS Automotive

2005

Ranks 1st among Automobile companies in the Corporate Image Monitor (CIM) Study 2005 conducted by

Ranks 1st among Automobile companies in the Corporate Image Monitor (CIM) Study 2005 conducted by AC Nielsen ORG-MARG

Receives a commendation from Ministry of Economy, Trade and Industry (MITI)

Receives a commendation from Ministry of Economy, Trade and Industry (MITI)

 

of

Japan – Sept 05

Number one in JD Power SSI for the second consecutive year

Number one in JD Power SSI for the second consecutive year

Number one in JD Power CSI for the sixth time in a row - the

Number one in JD Power CSI for the sixth time in a row - the only car to win

 

it

so many times

M800, WagonR and Swift topped their segments in the TNS Total

M800, WagonR and Swift topped their segments in the TNS Total

Customer Satisfaction Study

Leadership in the JD Power Initial Quality Study - Alto number one in its

Leadership in the JD Power Initial Quality Study - Alto number one in its

segment for the 2nd time in a row, Esteem number one in its segment for

the 3 rd year in a row, Swift number one in the premium compact segment

WagonR and Esteem top their segments in the JD Power APEAL study

WagonR and Esteem top their segments in the JD Power APEAL study

Ranks 1st in Auto sector for Corporate Reputation Strength (CSR) study – Feb

Ranks 1st in Auto sector for Corporate Reputation Strength (CSR) study – Feb

05

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

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

(#1 in Auto sector)-Feb 05

Maruti bagged the "Manufacturer of the year" award from Autocar-CNBC

Maruti bagged the "Manufacturer of the year" award from Autocar-CNBC

( 2nd time in a row)-Feb 05

First Indian car manufacturer to reach 5 million vehicles sales

First Indian car manufacturer to reach 5 million vehicles sales

Business World ranks Maruti among top five most respected companies in

Business World ranks Maruti among top five most respected companies in

India-Oct 04

Maruti ranked among top ten (Rank7) greenest companies in India by

Maruti ranked among top ten (Rank7) greenest companies in India by

Business Today - Sep '04

2004

 

Maruti Suzuki was No. 1 in Customer Satisfaction, No. 1 in Sales Satisfaction

No.1 in Product Quality (Esteem and Alto) and No. 1 in Product Appeal (Esteem and

No.1 in Product Quality (Esteem and Alto) and No. 1 in Product Appeal (Esteem and Wagon R)

No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto)

No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto)

Business World ranked us among the country's five most respected companies

Business World ranked us among the country's five most respected companies

Business World ranked us the country's most respected automobile company

Business World ranked us the country's most respected automobile company

Voted Manufacturer of the year by CNBC

Voted Manufacturer of the year by CNBC

Voted one of India's Greenest Companies by Business Today-AC Nielson ORG-MARG

Voted one of India's Greenest Companies by Business Today-AC Nielson ORG-MARG

2003

Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10 automotive brands

Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10 automotive brands in "Most Trusted Brand survey 2003"

J D Power ranked 3 models of Maruti on top: Wagonr, Zen and Esteem

J

D Power ranked 3 models of Maruti on top: Wagonr, Zen and Esteem

Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study 2003.

Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study 2003.

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

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

2001

MUL tops in J D Power CSI (2001) for 2nd time in a row: another international first2001 2000

2000

Maruti bags JD Power CSI - 1st rank; unique achievement by market leader anywhere in the worldfor 2nd time in a row: another international first 2000 Awards achieved during the time period

unique achievement by market leader anywhere in the world Awards achieved during the time period of

Awards achieved during the time period of 2000-2007

FACILITIES PROVIDED BY THE COMPANY

The Gurgaon facility:

Our facility in Guragoan houses three fully integrated plants. While the three plants have a total installed capacity of 350,000 cars per year, several productivity improvements or shop floor Kaizens over the years have enabled the company to manufacture nearly 700,000 cars per year at the Gurgaon facilities.

The entire facility is equipped with more than 150 robots, out of which 71 have been developed in-house. More than 50 per cent of our shop floor employees have been trained in Japan.

The Manesar facility:

in-house. More than 50 per cent of our shop floor employees have been trained in Japan.

Our Manesar facility has been made to suit Suzuki Motor Corporation (SMC) and Maruti Suzuki India Limited's (MSIL) global ambitions. The plant was inaugurated in February 2007. The World Car derived from concept A-Star would be manufactured here.At present the plant rolls our World Strategic Models Swift & SX4 and DZire.The plant has several in-built systems and mechanisms.

There is a high degree of automation and robotic control in the press shop, weld shop and paint shop to carry on manufacturing work with acute precision and high quality.The plant is designed to be flexible: diverse car models can be made here conveniently owing to automatic tool changers, centralized weld control system and numerical control machines that ensure high quality. The plant at Manesar is the company's fourth car assembly plant and started with an initial capacity of 100,000 cars per year. This will be scaled up to 300,000 cars per year by October 2008.

Diesel Engine Plant- Suzuki Powertrain India Limited:

Suzuki Powertrain India Limited the diesel engine plant at Manesar is Suzuki & Maruti's first and perhaps the only plant designed to produce world class diesel engine and transmissions for cars. The plant is under a joint venture company, called Suzuki Powertrain India Limited (SPIL) in which SMC holds 70 per cent equity the rest is held by MSIL.

This facility has an initial capacity to manufacture 100,000 diesel engines a year. This will be scaled up to 300,000 engines/annum by 2010.

SAFETY PROVIDED:

WOMEN N DRIVING:

In the early 1990s, it was quite a discovery to see women drive a car in India. It was completely a man's domain, and women mostly used public transport or were led by chauffeur - driven cars.

One of the limiting factors were the kind of cars that were available in the Indian market at that time; cars were often bulky and difficult to drive. Today, the Indian woman has moved beyond her traditional roles. The transition from a humble homemaker to a tech savvy, independent, decision maker has happened and women in India today occupy an important place in the society.One of the factors that has contributed significantly to the success of women in India is "Mobility", and this mobility has come in the form of personal transport.

Maruti Suzuki brought in the first car that was easy to drive and park in the Indian sub-continent. Today the latest cars and the technology adaptations like power steering make driving very easy and enjoyable. However, one important aspect was to 'learn to drive'.Only in this decade, organized players like Maruti have ventured into imparting driving skills through organized schools with world class training modules. Maruti Suzuki has taken up to train them 'how to drive safely' through its network of 40 Maruti Driving Schools spread over 36 cities. Over 21,000 women have been trained at these Maruti Driving Schools.

While the individual woman gains from learning driving, in many cases this skill leads to flexibility for the whole family.

ITS COMPLETELY A GREAT EXPEREINCE:

Majority of these women are homemakers with little or limited access to affluence. Some of them are college students, some are grandmothers, yet what is common is their sheer passion to learn driving. Lady instructors have been appointed to train women at these schools. These schools are equipped with the world class, state of the art driving simulators and cars in good condition. At MDS, the training modules are as per international standards and include both theory and practical. Difficult driving situations such as fog, uphill terrain, rain and night driving is simulated on state-of-the-art simulators to give learners a first hand experience of the weather conditions. Only after class room and simulator training the learners are taken for actual driving on road.

WHAT DO THE WOMEN LEARNERS HAVE TO SAY ABOUT IT?

Anjana Khare, a homemaker, age 50, Bhopal: "Yeh bahut Zaroori Hai, kya maloom kab kya zaroorat pad jaye".

Mrs. Kalpana Rajpoot, veterinary doctor, Madhya Pradesh : "I kept postponing my decision to learn how to drive for almost 8 years till I got tired of my driver's 'nakhras' and walked upto , Maruti Driving School at Gwalior.

Rachna Garg, age 20, Jammu and Yashmi: "With the basic Learner's course I drive confidently on highways and city streets without being hassled.”

Neeraj Wason , Allahabad : "When ever I would see a lady driving a car I would wonder when I would be independent. I am glad that now I am a source of inspiration for many other ladies in the town.”

Institute of Driving Training and Research:

Our first major effort in promoting road safety was in the year 2000 when we took management control of Delhi Government's Institute of Driving Training and Research (IDTR). We introduced training facilities and infrastructure including world-class driving test tracks, advanced computer simulators and training modules based on the ones followed in the UK and adapted to Indian conditions.

IDTR (Institute of Driving, Training and Research) is a professional school for driving, managed and sponsored by Maruti Suzuki. The institute is well equipped for both practical as well as theoretical training using TV and other visual aids. Successful participants get an IDTR certificate, which enables them to procure a driving license from the regional transport office. The IDTR has trained and evaluated more than 400,000 people, predominantly commercial drivers.

MARUTI AND IT’S STAKE HOLDERS:

CUSTOMERS:

The aspiration to give more for less to the customers has given the company a

competitive edge in competitive times. The VA-VE initiatives (Value Analysis &

Value Engineering) pursued aggressively by the company in partnership with

suppliers have helped the company reduce cost of making a car without

compromising on quality.

A wide and deep service network spread across the country has helped the company

reach customers not only in metro cities but also in semi-urban, tier-2 and tier-3 cities.

In addition, the company introduced many new initiatives such as car pick & drop

facility by service workshops for women car owners, Maruti Mobile Support to offer

door step car servicing, Express service bays, special bays that can offer maintenance

service in less than 2 hours, and so on. The company has a stringent customer

complaint monitoring system.

has a stringent customer complaint monitoring system. In these competitive times the challenge is to keep

In these competitive times the challenge is to keep inventing newer ways of doing

things to keep the customers in your fold. Over the last few years ,the company

strengthened the existing practices and experimented with many new initiatives by

way of kaizens (continuous improvements) to delight its customers.

These initiatives ranged from product design and quality to network expansion, and

included new service programs to meet unsaid needs of customers.

Servicing customers 24X7

365 days

The company takes great pride in sharing that customers have rated Maruti Suzuki first once again in Customer Satisfaction Survey conducted by independent body, J.D.Power Asia Pacific. It is 8th time in a row. The award mirrors the company's commitment towards "Customer Obsession".

Key Initiatives:

Car pickup & delivery facility for women car owners

Service at your Door Step through Maruti Mobile Support:

Another unique initiative is the door step service facility through Maruti Mobile Support.Maruti Mobile Support is a first of it's kind initiative and is expected not only to help the company reach out customers in metro cities but also as a mean to reach semi urban /rural areas where setting up of new workshop may not be viable.

SUPPLIERS:

In manufacturing where a sizeable percentage of inputs are bought from vendors and

suppliers, the ability to continuously improve quality and reduce costs is directly

dependent on vendors doing the same.

In light of this statement, the company guides suppliers in adopting latest

technologies, and transfers its best practices in the areas of productivity improvement,

quality enhancement and cost reduction. The company has set up Maruti Centre for

Excellence (MACE) in collaboration with some of its suppliers to achieve these

objectives. With the help of MACE, now the company is assisting its direct suppliers

in upgrading their sub-suppliers or (Tier-2 suppliers).

DEALERS:

The company has been passionately building its sales and service network since its

inception. The company has set up 16 Regional Training Centres across the country to

continuously upgrade skills of dealer employees as per new technologies and

customers'requirements.

In recent years, the company has conducted a comprehensive national survey of its

dealer employees to gauge their level of satisfaction. By many accounts, this is a rare

initiative by any principal company. Based on the results of the survey, the company

formed a cross functional team of senior management from sales, network

development and HR to identify an action plan to improve satisfaction levels of dealer

employees. One of the initiatives, for instance, was providing car loans at low rates of

interest for good performers with repayment guarantee provided by the dealer.

SHAREHOLDERS AND INVESTORS:

The company has put in place a strong mechanism for Corporate Governance to enhance confidence of its large number of shareholders and investors in the company. The company complies with all guidelines of SEBI, including new guidelines of Clause 49. With an objective to ensure timely compliance of all applicable laws and regulations, the company has hired an agency called 'Chess Management' to assist in further strengthening systems of Corporate Governance including installation of new software 'eLCM', which tracks compliance using sophisticated IT systems and generates compliance reports.

sophisticated IT systems and generates compliance reports . EMPLOYEES: The company has enforced highly conducive working

EMPLOYEES:

The company has enforced highly conducive working environment for its employees. MSIL does not support favouritism in recruitment, promotion, providing compensation, or termination based on caste, religion, gender or age. The company offers equal opportunity for growth to all employees.

During the year, the company finalised its policy on affirmative action as per the guidelines laid down by Confederation of Indian Industries.

guidelines laid down by Confederation of Indian Industries . Maruti culture: Open office culture, easy accessibility

Maruti culture:

Open office culture, easy accessibility and innovative HR practices comprise the Maruti culture. Our Human Resources team views an employee as an "internal customer" and strives to deliver maximum satisfaction to him through transparent, sensitive and innovative HR practices. Participative management, team work and

kaizen, communication and information sharing are the pillars of employee- management relationship. Following our open office culture we have a flat organizational structure with only three levels of responsibilities via Board of Directors, Division Heads and Department Heads. Carrying the philosophy forward, we have an open office, common uniforms and a common canteen for all to create an environment of trust, transparency and a sense of belonging amongst employees.

transparency and a sense of belonging amongst employees. Growth opportunities : Maruti Suzuki offers one of

Growth opportunities:

Maruti Suzuki offers one of the best environments to learn and grow and to be associated with some of the best processes and methods in the business of automotive manufacturing. Apart from this, the company offers many services like Finance, Insurance, and Driving School. As with any progressive world class company, Maruti Suzuki 'listens' to employees and acts on the feedback. Many innovative schemes and practices through the years are results of having a good communication system across the organization.

PRODUCT RANGE OF MARUTI:

CARS

Alto

Alto Lx

Grand Vitara Swift DZire COMMERCIAL VEHICLES >> AMBULANCE Omni Ambulance AWAITED MODELS Maruti Escudo Maruti

COMMERCIAL VEHICLES

>> AMBULANCE

AWAITED MODELS

Maruti Escudo

Maruti Kazshi

Maruti Suzuki Splash

Maruti A-Star

SOCIAL ACTIVITIES DONE BY THE

COMPANY

Community initiatives:

The company works closely with local communities around its manufacturing facilities to improve their quality of life. The company has adopted four villages surrounding its Manesar plant, i.e. Kasan, Dhana, Alihar and Baas Kusla and launched sustainable livelihood programmes for unprivileged communities. The initiatives are focused on four key areas: Health, Education, Employment Generation through Vocational Trainings & Basic Infrastructure Development.

Trainings & Basic Infrastructure Development . Environment initiatives :: The company has remained ahead of
Trainings & Basic Infrastructure Development . Environment initiatives :: The company has remained ahead of
Trainings & Basic Infrastructure Development . Environment initiatives :: The company has remained ahead of

Environment initiatives::

The company has remained ahead of regulatory requirements in pursuit of environment protection and energy conservation at its manufacturing facilities, and in development of products that use fewer natural resources and are environment friendly.

Total energy consumption at the facilities has come down by 26 percent compared to the beginning of the decade.

down by 26 percent compared to the beginning of the decade. Adopting energy saving technologies: While

Adopting energy saving technologies:

While the company continuous to improve energy saving initiatives through numerous Kaizens (continuous improvements) on the shop floor, thrust on adopting energy saving technologies has increased phenomenally.

Three-coat-one-bake painting system: The company introduced the three-coat one- bake system at its Manesar facilities.

In this state of the art painting system, three wet-on-wet coats are applied and baked together. Conventional painting systems use two baking steps before the final finish. This helps is lower energy consumption and yet improving the productivity levels.

consumption and yet improving the productivity levels. Practicing 3R (Reduce, Reuse and Recycle): The company has

Practicing 3R (Reduce, Reuse and Recycle):

The company has been promoting 3R since its inception. As a result the company has not only been able to recycle 100% of treated waste water but also reduced fresh water consumption by 28%. The company has implemented rain water harvesting to recharge the aquifers. Also, recyclable packing for bought out components is being actively promoted.

Greening of Supply Chain:

The company has been facilitating implementation of Environment Management

System (EMS) at its suppliers' end. Regular training programs are conducted for all

the suppliers on EMS. Surveys are conducted to assess the vendors who need more

guidance. The systems and the environmental performance of suppliers are audited.

PERFORMANCE OVER THE LAST FEW

YEARS

Car market leader Maruti Suzuki India Limited sold 59,908 vehicles in August

2008.The company had sold 65,968 vehicles in August 2007.During the month, the

A3 segment, grew strongly with 12.2 per cent.

The sales figures for August 2008 are given below:

Segment

Models

For August

Till August

April'07 -

 

2008

2007

% Change

2008-09

2007-08

% Change

March'08

A1

M800

3717

5480

-32.2%

25319

29444

-14.0%

69553

C

Omni, Versa

6540

7889

-17.1%

33554

35734

-6.1%

89729

A2

Alto, Wagon-R, Zen, Swift

37667

41736

-9.7%

197889

186886

5.9%

499280

A3

SX4, Esteem*

5427

4839

12.2%

27376

20289

34.9%

49335

Total Passenger Cars

53351

59944

-11.0%

284138

272353

4.3%

707897

MUV

Grand Vitara *, Gypsy

762

285

167.4%

2979

1319

125.9%

3921

Domestic

54113

60229

-10.2%

287117

273672

4.9%

711818

Export

5795

5739

1.0%

23918

19874

20.3%

53024

Total Sales

59908

65968

-9.2%

311035

293546

6.0%

764842

SALE OF CARS FROM EARLY 80’S:

Maruti Suzuki road car timeline, Indian market, 1980s–present

Type

1980s

1990s

2000s

 

0 1 2 3 4 5 6 7 8 9

0 1 2 3 4 5 6 7 8 9

0

1 2 3 4

5

6

7

8

9

Subcompact

 

Swift

 
 

Gypsy

SUV

 

Grand

Grand

 

Vitara

Vitara

Compact

 

SX4

 
 

DZiRE

Microvan

 

Omni

 
 

Versa

 
800 Alto Wagon-R Wagon-R City car Zen Estilo Suzuki Splash Zen Zen Historic 1000 Baleno
800
Alto
Wagon-R
Wagon-R
City car
Zen Estilo
Suzuki
Splash
Zen
Zen
Historic
1000
Baleno
models
Esteem

THE SUCCESS OF THE JOINT VENTURE:

The success of the joint venture led Suzuki to increase its equity from 26% to 40% in

1987, and further to 50% in 1992. In 1982 both the venture partners had entered into

an agreement to nominate their candidate for the post of Managing Director and every

Managing Director will have a tenure of five years .

Initially R.C.Bhargava, was the managing director of the company since the inception

of the joint venture. Till today he is regarded as instrumental for the success of Maruti

Udyog. Joining in 1982 he held several key positions in the company before heading

the company as Managing Director. Currently he is on the Board of Directors. After

completing his five year tenure, Mr. Bhargava later assumed the office of Part-Time

Chairman. The Government nominated Mr. S.S.L.N. Bhaskarudu as the Manging

Director on August 27, 1997. Mr. Bhaskarudu had joined Maruti in 1983 after

spending 21 years in the Public sector undertaking Bharat Heavy Electricals Limited

as General Manager. Later in 1987 he was promoted as Chief General Manager, 1998

as Director, Productions and Projects, 1989 Director, Materials and in 1993 as Joint

Managing Director.

EXPORTS:

Maruti Exports Limited is the subsidiary of Maruti Udyog Limited with its major

focus on exports and it does not operate in the domestic Indian market. The first

commercial consignment of 480 cars were sent to Hungary. By sending a

consignment of 571 cars to the same country Maruti crossed the benchmark of

300,000 cars. Since its inception export was one of the aspects government was keen to encourage. Every political party expected Maruti to earn foreign currency.

Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Sri Lanka, Uganda, Chile, Guatemala, Costa Rica and El Salvador are some of the markets served by Maruti Exports .

The Middle-East region has also opened up and is showing good potential for growth. Some markets in this region where Maruti has a good presence are Saudi Arabia, Jordan, Kuwait, Bahrain, Qatar and UAE. Maruti has won several national and international accolades. Forbes magazine ranked Maruti at 91 in the list of "World's Most Reputed Companies". The TNS Automotive Global Corporate Social Responsibility (CSR) study has rated Maruti as India 's "Most Trusted" passenger car company.

Social Responsibility (CSR) study has rated Maruti as India 's "Most Trusted" passenger car company. 45
Social Responsibility (CSR) study has rated Maruti as India 's "Most Trusted" passenger car company. 45

The export portfolio, so far dominated by Alto and Maruti 800, will be bolstered with

the launch of A-Star during the latter part of 2008-09. The Company has entered into

a partnership with Mundra Port for a dedicated car terminal, including a stockyard and

parking area, in preparation for the sharp scale-up in

exports in the next few years.

The Company sold 53,024 units during 2007-08. This is the highest ever export

volume in a year for the Company, and marked a growth of 35 percent over the

previous year. The Company's contribution towards total exports by the industry

increased to 25% from 20% last year. Cumulative exports made by the Company

crossed the milestone of 500,000 vehicles.

The Company has decided that while focussing on volume growth,it will enhance

efforts to improve profitability from export operations.Exports will enable the

Company to be at the frontier of technology,

quality and manufacturing excel.

MARKET SHARES OF MARUTI SUZUKI:

Till date, over 6 million (60,00,000) Maruti cars have rolled out from its

manufacturing facilities. At the end of 2005-06, Maruti had a market share of

about 54 per cent of the Indian passenger car market. The company sold 5,61,822

vehicles in 2005-06 including exports of 34784 units. Maruti’s cumulative

exports are over 4 lakh units.

RECOGNITION FOR THE WORK DONE IN PREVIOUS YEARS:

The Company is India's most awarded car Company. Some of the awards won by the Company during the year under review are:

The prestigious Golden Peacock Award for excellence in the field of Environment Management in Automobile Sector.

JD Power Customer Satisfaction Award. This award has been received for the

8 th time in a row.

2007 India IQS Award for Maruti Swift which has been highest ranked model in the Premium Compact car segment.

2007 India APEAL for Maruti Zen Estilo which has been highest ranked model in Compact car segment.

2007 India APEAL for Maruti Swift which has been highest ranked model in Premium Compact car segment.

2007 India APEAL for Maruti SX4 which has been highest ranked model in Midsize car segment.

"Car Manufacturer of the Year" Award by NDTV.

ICICI-NDTV Profit Viewers Choice Award for Maruti SX4 in the Midsize car segment.

CNBC TV-18 Autocar Midsize Car Award for Maruti SX4.

CNBC TV-18 Autocar Value for Money for Maruti SX4.

CNBC TV 18 Autocar Award for Viewers Choice for Maruti SX4.

CNBC TV-18 Autocar Manufacturer Award.

"Manufacturer of the Year" Award in the Passenger Car category by Auto Monitor.

FINANCIAL STATUS OF THE

ORGANIZATION

Year

Mar 08

Mar 07

Mar 06

Mar 05

Mar 04

Share Capital Reserves & Surplus Total Shareholders Funds Secured Loans Unsecured Loans Total Debt Total Liabilities Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors

144.50

144.50 144.50 144.50 144.50

8,270.90 6,709.40 5,308.10 4,234.30 3,446.70

8,415.40 6,853.90 5,452.60 4,378.80 3,591.20 0.10 63.50 71.70 307.60 311.90

900.10

567.30 0.00 0.00 0.00

900.20

630.80 71.70 307.60 311.90

9,315.60 7,484.70 5,524.30 4,686.40 3,903.10 7,285.30 6,146.80 4,954.60 5,053.10 4,566.70 3,988.80 3,487.10 3,259.40 3,179.40 2,735.90

3,296.50 2,659.70 1,695.20 1,873.70 1,830.80

736.30

250.70 92.00 42.10 74.90

5,180.70 3,409.20 2,051.20 1,516.60 1,677.30

1,038.00 701.40 881.20 666.60 439.80

655.50

747.40 646.10 599.50 689.40

Cash and Bank Balance Loans and Advances Current Liabilities Provisions Net Current Assets Miscellaneous Expenses not w/o Total Assets Contingent Liabilities

324.00 1,422.80 1,401.60 1,029.40 240.20

1,920.00 1,643.50 933.10 801.90 775.00

2,718.90 2,288.60 1,704.80 1,454.20 1,520.20 1,116.50 1,061.40 471.30 389.20 320.40

102.10 1,165.10 1,685.90 1,254.00 303.80

0.00 0.00 0.00 0.00 16.30 9,315.60 7,484.70 5,524.30 4,686.40 3,903.10 1,241.33 874.90 881.40 1,051.40 1,297.30

The gross revenue (net of excise) ofthe Company for the year was Rs. 188,238 million

as against Rs. 152,523 million in the previous year showing an impressive growth of

23.4%. Earnings before depreciation,interest, tax and amortization (EBDITA) stood at

Rs. 31,308 million against Rs. 25,888 million in the previous year, recording a jump

of 20.9%.Based on technical evaluation and market considerations, the Company has,

with effect from 1st April 2007, revised the estimated useful life of certain assets

which resulted in depreciation being higher by Rs. 2,122 million for the current year

with a corresponding reduction in profit for the year and net fixed assets. Profit before

tax (PBT) stood at Rs. 25,030 million against Rs. 22,798 million in the previous year

showing a growth of 9.8% and Profit after Tax (PAT) stood at Rs. 17,308 million

against Rs. 15,620 million in the previous year showing a growth of 10.8%.

DIVIDEND:

The Board recommends a dividend of100% (i.e. Rs. 5 per equity share of Rs. 5 each) for the year ended 31 March 2008 amounting to Rs. 1,445million as against a dividend of 90% amounting to Rs. 1,300 million, paid for the year ended 31 March

2007.

CAPITAL HISTORY:

Year

Equity Capital

Remarks

200307

144.46

Public Issue

199903

132.3

As Per Annual Report

199303

132.29

As Per Annual Report

FURTURE PROSPECTS

To develop capability for full model change.

To upgrade R&D capabilities for total evaluation of products.

Emphasis on VA-VE & innovative cost reduction ideas to cut down costs.

Carry out continuous up-gradation of existing models.

Maximum localisation for achieving cost reduction in existing as well as new models.

Compliance with Bharat Stage IV emission norm and other new regulations.

Developing knowledge of costing of various Automotive Technologies through standard cost tables and cost benchmarking.

Cost planning of new products coinciding with the new Product planning to put cost in the right perspective at the concept stage and give target cost to designers.

Design in cost reduction to reduce costs from concept stage itself.

Develop more products with alternative fuel option.

Keeping promises to get closer to out the customers.

Using technology to give our customers more for less.

THE FURTURE PROMISES:

The Company is taking its interpretation of connect with the customer into a new paradigm. After investing in manufacturing facilities,the Company is now ready to invest in marketing infrastructure. It has identified some mega projects to build the foundation of this new initiative:

Car display showrooms or brand centres in prominent urban locations, where customers can see the entire range of models, experience technology and so on.

Car stockyards is an effort to ensure that customers are able to get their choice of model, variant and colour, in time.

Spares stockyards in select centres across the country to meet customer requirements faster.

WHAT’S LATEST IN NEWS ?

Maruti Suzuki to launch 'World Car' from India by end -2008:

Motors'next world car will come from its venture at Gurgaon, near Delhi, by the end of 2008, Shinzo Nakanishi, managing director of Maruti Suzuki India, has said."The new model will be launched by end-2008," he said. "To begin with, we have plans to export 100,000 units of the new model annually to Europe and the rest of the world," Nakanishi said in an interview. The Manesar plant at Gurgaon was set up under a joint venture company, called Maruti Suzuki Automobiles India in which Maruti Udyog Ltd holds 70 per cent equity while Suzuki Motors of Japan holds the remaining 30 per cent. The total investment in the new car plant was Rs 15.24 bn. The capacity of the plant will initially be 100,000 cars per annum, with a potential to scale it up to 250,000 units.

A member of Suzuki Motor's board of directors worldwide, Nakanishi expressed confidence that the auto major would be able to "maintain its leadership in the Indian auto market". Suzuki currently holds a 54% stake in Maruti Suzuki India.

He also added, "What this means is that the Indian customers get international levels of quality and design. Specifically for India, Splash and A-Star models will be introduced here as part of our overall World Strategic Model approach."

Suzuki aims to make India car unit production hub: Japan's Suzuki Motor

Corp expects to make its Indian unit a major production hub and pursue an aggressive strategy to retain its dominant market share in India, the unit's new managing director. Japan's Suzuki Motor Corp expects to make its Indian unit a major production hub and pursue an aggressive strategy to retain its dominant market share in India, the unit's new managing director said

The company, which is expanding its capacity to hit 1 million units by 2010, will launch other models that will upgrade consumers from its popular small

cars such as the Alto and Zen Estillo, Shinzo Nakanishi said in e-mailed responses a day after taking over as managing director.

He said, "We have an aggressive plan for new model launches," said Nakanishi, who has previously worked in China, Indonesia, Hungary, Pakistan and the Middle East. "Maruti Suzuki is ready to play a much bigger role in Suzuki's global operations," he said. "Its manufacturing capability has reached a level where we want to make small cars exclusively in India for export to Europe." Of the 3 million cars that Suzuki wants to sell worldwide by fiscal 2010, Maruti Suzuki will account for a third.

"Small cars would continue to grow", says Chairman, Maruti Suzuki: Car market leader Maruti Suzuki India Limited had its 27th Annual General meeting.Addressing the shareholders Chairman Mr. RC Bhargava said emphatically, "The future belongs to small cars."Supporting his statement he said, "Worldwide there seems to be no respite from increasing fuel prices. In addition, the commodity prices have also shot up manifold. Therefore, the demand for small, light-weight, fuel efficient cars would grow and strengthen. This trend is clearly visible in global markets and is likely to enter India as well."

Small is beautiful:Exuding confidence on growth of small cars in the Indian sub-continent Chairman, MSIL said, "The Government has laid down policies that favour small cars. We are at an advantageous position because we have an expertise in designing small cars. With demand for small cars going up we will quickly scale up our R&D capabilities to design cars that are best suited for the Indian market."

Investment:The Company has committed to invest Rs 9,000 Crore by 2010 in India operations. The world class plant at Manesar (part of this investment) is ready to reach its peak production level of 300,000 units next month. In addition, the diesel facility and the suppliers' park at Manesar which were commissioned last fiscal are progressively building capacities, as per plan. The company will soon commence operations at the new engine series plant at

Gurgaon

On further investment the Chairman remarked, "Maruti Suzuki's great strengths is that we have internal resources to finance both R&D expansion as well as capital investments. The higher interest rates, and the risk of making large borrowings to finance capital costs, will not affect us."

CRITICAL APRAISAL AND SUGGESTIONS:

The company Maruti Suzuki India Limited.(MSIL) has always reacted to the changes in a positive manner so it could be any thing.

To being with “Maruti Udyog” had changed its name to “Maruti Suzuki”. Suzuki besides being the parent company, imparts a international dimension in corporate world. Suzuki Motor Corporation is a leading player in the global automobile market so with the alteration in the company’s name, it has become a leader in India as well as in other parts of the world.

Maruti Suzuki a leading company in the automobile industry, thereby its chairman Mr.R.C Bhargava has decided that it wouldn’t response to any other company’s plan.

He has also said that every company has its own strategies and if they would start reacting on them their statergy would fail.

Maruti Suzuki has no plans to enter in to the competitions with Nano of the TATA company as Maruti has already been in the small car segment since very beginning, where as the managing director and the chairman of the company say that Nano has entered into a completely different segment and they are not competing in that segement. The introduction of TATA Nano cars is a threart to the two wheelers and not the Maruti Suzuki products.

Recently in an auto expo in delhi Maruti Suzuki India has show cased three conpect cars. Namely,Concept A-Star, Concept Splash and Concept Kizashi. Production models, based on Concept A-Star and Concept Splash, will be launched in India in the near future, and will contribute to the company’s goal of achieving one million unit sales by 2010.

SUGGESTIONS FOR THE COMPANY:

I believe Maruti Suzuki is ready to play a major role in global automobile operations, as they pursue a good code of conduct and has always worked as a corporate governance and have excellent leadership qualities which are essential for any corporate to a leader in any industry.

As ,maruti has enterd in wide range of exporting its products in the middle east and asian countries I wish it can have its dealings worldwide.

As a suggestion or piece of advice I would like to say that the company should produce more an more smaller and affordable cars for its customers.

BIBILOGRAPHY

1.

www.maurtisuzuki.com

2.

http://www.topnews.in/maruti-will-not-react-another-company-s-plan-

khattar-21433

3. http://www.cmlinks.com/moneypore/profilenew/financial.asp?mainopt

=9&cocode=5496

4. http://www.marutiexports.com/rhdv.asp

5. http://www.infoplease.com/ce6/bus/A0805415.html

6. http://auto.indiamart.com/auto-industry/

7. http://auto.indiamart.com/auto-industry/component-industry.html

8. http://www.surfindia.com/automobile/auto-export.html

9. http://www.energymanagertraining.com/automobile/IndiaAutomobileI

ndustry.htm

10. http://www.pcra.org/English/transport/dilipchenoy.p