Long report assignment

Submitted by :
ANUPAM SHARMA
221030

Executive summary
Maruti Udyog Limited (MUL) was established in February 1981, though the
actual production commenced in 1983 with the Maruti 800, based on the
Suzuki Alto kei car which at the time was the only modern car available in
India, its only competitors - the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti
Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India
and various several other countries, depending upon export orders. Models
similar to those made by Maruti in India, albeit not assembled or fully
manufactured in India or Japan are sold by Pak Suzuki Motors in Pakistan.
The company exports more than 50,000 cars annually and has domestic sales
of 730,000 cars annually.[citation needed] Its manufacturing facilities are
located at two facilities Gurgaon and Manesar in Haryana, south of Delhi.
Maruti Suzukis Gurgaon facility has an installed capacity of 900,000 units per
annum. The Manesar facilities, launched in February 2007 comprise a vehicle
assembly plant with a capacity of 550,000 units per year and a Diesel Engine
plant with an annual capacity of 100,000 engines and transmissions. Manesar
and Gurgaon facilities have a combined capability to produce over 14,50,000
units annually. About 35% of name="marketshare" all cars sold in India are
made by Maruti. The company is currently 56.21% owned by the Japanese
multinational Suzuki Motor Corporation per cent of Maruti Suzuki. The rest is
owned by public and financial institutions. It is listed on the Bombay Stock
Exchange and National Stock Exchange of India.[citation needed] During 2007
and 2008, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In
all, over six million Maruti Suzuki cars are on Indian roads since the first car
was rolled out on 14 December 1983.

The report talks about the performance of the company during g the recession
and how its came out of the slump by introducing new passenger car called
ertiga .
Report also states the new possibilities into he market and also the available
threats to the company and how can maruti overcome the threats.
Findings suggest the new possible areas to focus upon and also the weak
points of the company .

Introduction
Overview
Maruti Suzuki India Limited is indias no.1 car manufacturer in india ,
commonly referred to as Maruti and formerly known as Maruti Udyog
Limited, is an automobile manufacturer in India. It is a subsidiary of
Japanese automobile and motorcycle manufacturer Suzuki. As of November
2012, it had a market share of 37% of the Indian passenger car market.
Maruti Suzuki manufactures and sells a complete range of cars from the
entry level Alto, to the hatchback Ritz, A-Star, Swift, Wagon R, Zen and
sedans DZire, Kizashi and SX4, in the 'C' segment Eeco, Omni, Multi Purpose
vehicle Suzuki Ertiga and Sports Utility vehicle Grand Vitara. The
company's headquarters are at No 1, Nelson Mandela Road, New Delhi. In
February 2012, the company sold its ten millionth vehicle in India.
Relationship between the Government of India, under the United Front
(India) coalition and Suzuki Motor Corporation over the joint venture was a
point of heated debate in the Indian media until Suzuki Motor Corporation
gained the controlling stake. This highly profitable joint venture that had a
near monopolistic trade in the Indian automobile market and the nature of
the partnership built up till then was the underlying reason for most issues.

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
Maruti Suzuki has 933 dealerships across 666 towns and cities in all states
and union territories of India. It has 3,013 service stations (inclusive of
dealer workshops and Maruti Authorised Service Stations) in 1,436 towns
and cities throughout India. It has 30 Express Service Stations on 30
National Highways across 1,436 cities in India.
Service is a major revenue generator of the company. Most of the service
stations are managed on franchise basis, where Maruti Suzuki trains the
local staff. Other automobile companies have not been able to match this
benchmark set by Maruti Suzuki. The Express Service stations help many
stranded vehicles on the highways by sending across their repair man to
the vehicle.
Relevance of study
This study finds about the position of the company , growth of the company ,
its various functions around the world , what work does it performs , how the
people involved affects the company and its functions , how does the company
performs against its competitors . The study tries to find out the current
position of the company in the current scenario.
Objective
The objectives of the study are:
Companys current position in the market
Performance during recession

 Future possibilities
How company have grown since the inception
Methodology
There were no primary resources involved in the study, this was complete with
the help of secondary resources like websites, articles etc.

Company analysis
Manufacturing facilities
Maruti Suzuki has two manufacturing facilities in India. Both manufacturing
facilities have a combined production capacity of 14,50,000 vehicles annually.
During a recent meeting of the Gujarat chief minister with Suzuki Motor Corp
chairman & CEO Osamu Suzuki,the Chairman had said that the work on car
manufacturing plant at Mandal near Ahmedabad would be started soon.[54]
Maruti Suzuki to set up second plant in Gujarat; acquires 600 acres
Sales and service network
As of 31 March 2014 Maruti Suzuki has 933 dealerships across 666 towns and
cities in all states and union territories of India. It has 3,013 service stations
(inclusive of dealer workshops and Maruti Authorised Service Stations) in 1,436
towns and cities throughout India.[58] It has 30 Express Service Stations on 30
National Highways across 1,436 cities in India.
Service is a major revenue generator of the company. Most of the service
stations are managed on franchise basis, where Maruti Suzuki trains the local
staff. Other automobile companies have not been able to match this
benchmark set by Maruti Suzuki. The Express Service stations help many
stranded vehicles on the highways by sending across their repair man to the
vehicle.

Maruti Insurance
Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers
with the help of the National Insurance Company, Bajaj Allianz, New India
Assurance and Royal Sundaram. The service was set up the company with the
inception of two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd
and Maruti Insurance Brokers Pvt. Limited
This service started as a benefit or value addition to customers and was able to
ramp up easily. By December 2005 they were able to sell more than two
million insurance policies since its inception
Maruti Finance
To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in
January 2002. Prior to the start of this service Maruti Suzuki had started two
joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE
Countrywide respectively to assist its client in securing loan. Maruti Suzuki tied
up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard
Chartered Bank, and Sundaram to start this venture including its strategic
partners in car finance. Again the company entered into a strategic partnership
with SBI in March 2003 Since March 2003, Maruti has sold over 12,000
vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently available
in 166 cities across India.
Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance
India and Maruti Udyog Limited its primary business stated by the company is
"hire-purchase financing of Maruti Suzuki vehicles". Citi Finance India Limited is
a wholly owned subsidiary of Citibank Overseas Investment Corporation,
Delaware, which in turn is a 100% wholly owned subsidiary of Citibank N.A. Citi
Finance India Limited holds 74% of the stake and Maruti Suzuki holds the

remaining 26%.[66] GE Capital, HDFC and Maruti Suzuki came together in 1995
to form Maruti Countrywide. Maruti claims that its finance program offers
most competitive interest rates to its customers, which are lower by 0.25% to
0.5% from the market rates
Maruti TrueValue
Maruti True service offered by Maruti Suzuki to its customers. It is a market
place for used Maruti Suzuki Vehicles. One can buy, sell or exchange used
Maruti Suzuki vehicles with the help of this service in India. As of 31 March
2010 there are 341 outlets.

Maruti under recession

The recessionary period has been a huge opportunity for the company to come
out with innovative solutions to grow sales, he said. For example, it focused
more on rural markets, which is now paying dividends. According to Pareek,
more than one-third of total sales now come from that segment. With Ertiga, a
life utility vehicle, the company tapped into the Indian preference for a car
that looks small but offers vast interior space. Yet another initiative has been
to seek feedback from employees on ways to reduce costs. A total of 4 lakh
suggestions came through. The implementation saved the company as much as
Rs 350 crore. Some of the suggestions included an automated car wash system
in workshops and the use of tablets by service professionals while taking
service orders. To transport kits from ports to its facilities, Maruti has opted for
rail in the place of road. The company now sources over 85 per cent of parts by
value from within a 100-km radius of its facilities. Between April and November

this fiscal, Maruti Suzuki sold a total of 6,68,480 car units in the domestic
market, up 1.3 per cent from the corresponding period in the previous year.

Current position and market share

Shares of auto major Maruti Suzuki surged higher in trade and hit 52-week
high after the company beat estimates by reporting better-than-expected
results on Friday. Investors should hold on the stock at current levels and wait
for management comments on growth outlook and foreign exchange rates, say
analysts. The company reported a net profit at Rs 1,150 crore for the quarter
ended March 2013, up 79.6 per cent, against a net profit of Rs 640 crore in the
corresponding quarter last fiscal. Net sales for the fourth quarter increased to
Rs 13,056 crore, up 13.62 pe rcent, from Rs 11,490 crore in the same period
last fiscal.

Findings
Maruti is the leader in the passenger vehicle market but its share has been
dropped since 2009 as can be seen from the table, this has happened because
of the new competitors into the market , the main threat to the maruti is
companies like Toyota & Volkswagen.
Suggestions
Looking at the current market scenario companies like Mahindra are snatching
the market share on the power of their SUV market, Indias SUV market is
growing hence maruti shall take this step of jumping into SUV market as well .
Indias SUV market has seen huge potential.
Limitations
The study is limited by the scope of the data available on the internet and from
the annual report .