2010

Maruti Udyog Limited

International
Academy Balkrushna
of Ajudiya
Management PGPM/0911/030
& 2009-2011
Entrepreneurship
 Maruti Udyog Limited
Contents

Nature of Business 3
Present turnover 3
History 3
Milestones 3
How Honor Idea, Expansion, Extend 5
Strategic initiatives
Vision 5
The objectives of MUL 5
Marketing Analysis
Product Profile 6
Target Customers 6
Positioning Strategies 6
Nature of Competition 7
Pricing Strategies 7
Financial Analysis
Financial statement 7
Ratio Analysis 8
Value Chain 8
Core Competencies 8
Quality Management Initiative 8
SWOT Analysis 9
Future Outlook 9

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Nature of Business
Automotive - Four Wheelers
Small size
Mid size
Transport

Present turnover
2008-09
Turnover 2, 03,583 million
Profit after tax 12,187 million

History
Established in February 1981.
The actual production commenced in 1983 with the Maruti 800.

Milestones
• 1981
Maruti Udyog Ltd. was incorporated.
• 1982
Stepped into a Joint Venture with Suzuki Motor Corporation of Japan.
• 1983
Maruti 800, a 796 cc hatchback, India's first affordable car was
produced.
• 1984
Installed capacity reached 40,000 units. Omni, a 796 cc MUV was in
production.
• 1985
Launch of Maruti Gypsy (970cc, 4WD off-road vehicle).

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 • 1986
Produced 100,000 vehicles (cumulative production).
• 1987
Exported first lot of 500 cars to Hungary.
• 1988
Installed capacity increased to 100,000 units.
• 1992
SMC increases its stake to 50 per cent.
• 1994
Produced the 1 millionth vehicle since the commencement of
production.
• 1995
Second plant launched, the installed capacity reached 200,000 units.
• 1996
Launch of 24-hour emergency on-road vehicle service.
• 1997
Produced the 2 millionth vehicle since the commencement of
production.
• 1998
Launch of website as part of CRM initiatives.
• 1999
Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai
as social initiatives.
• 2000
IDTR (Institute of Driving Training and Research) launched jointly
with Delhi government to promote safe driving habits.
• 2001
Launch of customer information centers in Hyderabad, Bangalore, and
Chennai.
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 • 2002
SMC increases its stake to 54.2 per cent.
Launch of Maruti Finance with 10 finance companies in Mumbai.
Start of Maruti True value in Mumbai.
• 2003
Production of 4 millionth vehicle.
Listed on BSE and NSE after a public issue oversubscribed 10 times.
• 2004
Maruti closed the financial year 2003-04 with an annual sale of
472122 units, the highest ever since the company began operations 20
years ago.
• 2005
The fiftieth lakh car rolls out in April, 2005.

How Honor Idea, Expansion, Extend

Prime objective to meet the growing demand of a personal mode of

transport, caused due to lack of efficient public transport system
• The incorporation of the company through an Act of Parliament
• A license and a Joint Venture agreement was signed between
Government of India and Suzuki Motor Company (now Suzuki
Motor Corporation of Japan) in Oct 1982

Strategic initiatives

Vision
"The Leader in The Indian Automobile Industry, Creating Customer
Delight and Shareholder's Wealth; A pride of India.”
The objectives of MUL
• Modernization of the Indian Automobile Industry
• Production of fuel-efficient vehicles to conserve scarce resources

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

Marketing Analysis

 Product Profile
• Offer full range of cars
• Entry level Maruti 800 & Alto
• Stylish hatchback Ritz, A-star, Swift, Wagon R, Estillo and sedans
DZire, SX4
• Sports utility vehicle Grand Vitara
• With range of 11 models in 50 variants, Maruti Suzuki has a vehicle
for every consumer

 Target Customers
Domestic
• Middle Income
• Higher Income

Foreign
• Middle level for Entry Level Car
(Exports Entry Level Car In 100 Countries)

 Positioning Strategies
• Domestic Indian market
More than half the number of cars sold in India wears a Maruti
Suzuki badge
• Exports entry-level models across the globe to over 100 countries
• The focus to identify new markets
• Some important markets include Latin America, Africa and South
East Asia
• A brand new offering A-star, Maruti Suzuki is ready to take on
European markets
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 Nature of Competition
• With the arrival of Matiz, Santro and Indica (the small car market
has become more competitive)
• Keen competition in select segments (compact and mid size
segments)
• Most of the major global players are present in the Indian market;
few more are expected to enter
• As the demand is unlikely to grow, Maruti Udyog Ltd will face
lower capacity utilization

 Pricing Strategies
• Aggressive Pricing Strategy
• Reasonable Pricing
• It helped the company to retain its leadership position amidst
fierce competition by foreign players in India

Financial Analysis

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Value Chain

• Production/ R&D is spread across 297 acres

• 3 fully-integrated production facilities
• Plant has already rolled out 4.3 million vehicles

Core Competencies

• On an average two vehicles roll out of the factory in every single

minute
• The company takes approximately 14 hours to make a car
• With range of 11 models in 50 variants, Maruti Suzuki fits every
car-buyer's budget and any dream

Quality Management Initiative

• In 2001, MUL became one of the first automobile companies,

globally, to be honored with an ISO 9000:2000 certificate

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SWOT Analysis

 Strength
Customer base-Market share & Reliability

 Weakness
Brand building-Have builds an image from 1983/84
-Provide Cheapest, Affordable cars in India

 Opportunity
Infrastructure, Network, past performance

Threats
Ever changing customer's taste, purchasing power
& global manufacturer's presence in India

Future Outlook

• Enhanced Production Capacity

• Greater Depth and Breadth of Knowledge
• Enhanced Flexibility
• Improved Research Efficiency
• Lower Research Costs
• Capability to Track New Trends & Markets

Thank You

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