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An assignment on Maruti Suzuki India Limited.
Under the Guidance of
Dr. Sonia Munjal
(Associate Professor.
Asia pacific institute of management)
Submitted By:
Umar Faruque Laskar
Roll no: 2K18GB064
Section: B
Batch 2018-20
Date:
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Acknowledgement
In the name of Almighty the most beneficent and merciful
who give me strength and knowledge to complete the
assignment.
I would like to express my gratitude to my subject teacher
“Prof. Dr. Sonia Munjal” Ma’am who gives me this
opportunity to prepare assignment on ‘a specific
company(Maruti Suzuki)’ Ma’am gives me moral support
and guided in different matters regarding this topic. Ma’am
you are very liberal while suggesting me. I thank ‘Sonia
Ma’am’ for overall support.
I am also thankful to everyone who all supported me, for
that I completed my assignment effectively and more over
on time. They give me many helpful comments which
helped me a lot to preparing this assignment.
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Introduction
Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is
an automobile manufacturer in India. It is a 56.21% owned subsidiary of the
Japanese car and motorcycle manufacturer Suzuki Motor Corporation.As of
July 2018, it had a market share of 53% of the Indian passenger car
market.Maruti Suzuki manufactures and sells popular cars such as
the Ciaz, Ertiga, Wagon R, Alto K10, Swift, Celerio, Swift Dzire, Baleno and
Baleno RS, Omni, Alto 800, Eeco, Ignis, S-Cross.The company is
headquartered at New Delhi.
History
Maruti was established in February 1981 with production starting in 1983
with the Maruti 800, based on the Suzuki Alto kei car. As of May 2007, the
Government of India, through Ministry of Disinvestment, sold its complete
share to Indian financial institutions and no longer has any stake in Maruti
Udyog.
Chronology
Under the Maruti name
In 1970, a private limited company named Surya Ram Maruti technical
services private limited (MTSPL) was launched on 16 November 1970. The
stated purpose of this company was to provide technical know-how for the
design, manufacture and assembly of "a wholly indigenous motor car". In
June 1971, a company called Maruti limited was incorporated under the
Companies Act. Maruti Limited went into liquidation in 1977. Maruti Udyog
Ltd was incorporated through the efforts of V. Krishnamurthy.
Affiliation with Suzuki
In 1982, a licence and joint venture agreement (JVA) was signed between
Maruti Udyog Ltd, and Suzuki of Japan. At first, Maruti Suzuki was mainly
an importer of cars. In India's closed market, Maruti received the right to
import 40,000 fully built-up Suzuki is in the first two years, and even after
that the early goal was to use only 33% indigenous parts. This upset the local
manufacturers considerably. There were also some concerns that the Indian
market was too small to absorb the comparatively large production planned
by Maruti Suzuki, with the government even considering adjusting the petrol
tax and lowering the excise duty in order to boost sales. Finally, in 1983,
the Maruti 800 was released. This 796 cc hatchback was based on the SS80
Suzuki Alto and was India's first affordable car. Initial product plan was 40%
saloons, and 60% Maruti Van. Local production commenced in December
1983. In 1984, the Maruti Van with the same three-cylinder engine as the 800
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was released and the installed capacity of the plant in Gurgaon reached
40,000 units.
In 1985, the Suzuki SJ410-based Gypsy, a 970 cc 4WD off-road vehicle, was
launched. In 1986, the original 800 was replaced by an all-new model of the
796 cc hatchback Suzuki Alto and the 100,000th vehicle was produced by the
company. In 1987, the company started exporting to the West, when a lot of
500 cars were sent to Hungary. By 1988, the capacity of the Gurgaon plant
was increased to 100,000 units per annum.
Market liberalization
In 1989, the Maruti 1000 was introduced and the 970 cc, three-box was
India's first contemporary sedan. By 1991, 65 per cent of the components, for
all vehicles produced, were indigenized. After liberalization of the Indian
economy in 1991, Suzuki increased its stake in Maruti to 50 per cent, making
the company a 50-50 JV with the Government of India the other stake holder.
In 1993, the Zen, a 993 cc, hatchback was launched and in 1994 the
1298 cc Esteem was introduced. Maruti produced its 1 millionth vehicle since
the commencement of production in 1994. Maruti's second plant was opened
with annual capacity reaching 200,000 units. Maruti launched a 24-hour
emergency on-road vehicle service. In 1998, the new Maruti 800 was
released, the first change in design since 1986. Zen D, a 1527 cc diesel
hatchback and Maruti's first diesel vehicle and a redesigned Omni were
introduced. In 1999, the 1.6 litre Maruti Baleno three-box saloon and Wagon
R were also launched.
In 2000, Maruti became the first car company in India to launch a Call
Center for internal and customer services. The new Alto model was released.
In 2001, Maruti True Value, selling and buying used cars was launched. In
October of the same year the Maruti Versa was launched. In
2002, Esteem Diesel was introduced. Two new subsidiaries were also started:
Maruti Insurance Distributor Services and Maruti Insurance Brokers Limited.
Suzuki Motor Corporation increased its stake in Maruti to 54.2 per cent.
In 2003, the new Suzuki Grand Vitara XL-7 was introduced while the Zen
and the Wagon R were upgraded and redesigned. The four millionth Maruti
vehicle was built and they entered into a partnership with the State Bank of
India. Maruti Udyog Ltd was Listed on BSE and NSE after a public issue,
which was oversubscribed tenfold. In 2004, the Altobecame India's best
selling car overtaking the Maruti 800 after nearly two decades. The five-
seater Versa 5-seater, a new variant, was created while the Esteem was re-
launched. Maruti Udyog closed the financial year 2003-04 with an annual
sale of 472,122 units, the highest ever since the company began operations
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and the fiftieth lakh (5 millionth) car rolled out in April 2005. The 1.3 litre
Suzuki Swift five-door hatchback was introduced in 2005.
In 2006 Suzuki and Maruti set up another joint venture, "Maruti Suzuki
Automobiles India", to build two new manufacturing plants, one for vehicles
and one for engines. Cleaner cars were also introduced, with several new
models meeting the new "Bharat Stage III" standards. In February 2012,
Maruti Suzuki sold its ten millionth vehicles in India. In July 2014 it had a
market share of more 45%.
Maruti Suzuki is now looking to shift its current manufacturing facility
located in the downtown Gurgaon as apparently it is short of space and
logistics. It is hunting for a huge 700 acres of plot of land.
Joint venture related issues
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 to 50% in 1992, and further to 56.21% as of 2013. In 1982,
both the venture partners entered into an agreement to nominate their
candidate for the post of Managing Director and every Managing Director
would have tenure of five years.
Manufacturing facilities
Maruti Suzuki has three manufacturing facilities in India. All manufacturing
facilities have a combined production capacity of 1,700,000 vehicles
annually. The Gurgaon manufacturing facility has three fully integrated
manufacturing plants and is spread over 300 acres (1.2 km2). The Gurgaon
facilities also manufacture 240,000 K-Series engines annually. The Gurgaon
Facilities manufactures the Alto 800, WagonR, Ertiga, S-Cross, Vitara
Brezza, Ignis and Eeco.
The Manesar manufacturing plant was inaugurated in February 2007 and is
spread over 600 acres (2.4 km2). Initially it had a production capacity of
100,000 vehicles annually but this was increased to 300,000 vehicles
annually in October 2008. The production capacity was further increased by
250,000 vehicles taking total production capacity to 800,000 vehicles
annually. The Manesar Plant produces the Alto 800, Alto
K10, Swift, Ciaz, Baleno, Baleno RS and Celerio. On 25 June 2012, Haryana
State Industries and Infrastructure Development Corporation demanded
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Maruti Suzuki to pay an additional Rs 235 crore for enhanced land
acquisition for its Haryana plant expansion. The agency reminded Maruti that
failure to pay the amount would lead to further proceedings and vacating the
enhanced land acquisition. The launch of the Dzire happened in the month of
May 2017 and the variant is said to have good mileage.
The Gujarat manufacturing plant became operational in February 2017. The
plant current capacity is about 250,000 units per year. But with new
investments Maruti Suzuki has plan to take it to 450,000 units per year.
In 2012, the company decided to merge Suzuki Power train India Limited
(SPIL) with itself. SPIL was started as a JV by Suzuki Motor Corp. along
with Maruti Suzuki. It has the facilities available for manufacturing diesel
engines and transmissions. The demand for transmissions for all Maruti
Suzuki cars is met by the production from SPIL.
Industrial relations
Since its founding in 1983, Maruti Udyog Limited has experienced problems
with its labour force. The Indian labour it hired readily accepted Japanese
work culture and the modern manufacturing process. In 1997, there was a
change in ownership, and Maruti became predominantly government
controlled. Shortly thereafter, conflict between the United Front
Government and Suzuki started. In 2000, a major industrial relations issue
began and employees of Maruti went on an indefinite strike, demanding
among other things, major revisions to their wages, incentives and pensions.
Employees used slowdown in October 2000, to press a revision to their
incentive-linked pay. In parallel, after elections and a new central government
led by NDA alliance, India pursued a disinvestment policy. Along with many
other government owned companies, the new administration proposed to sell
part of its stake in Maruti Suzuki in a public offering. The worker's union
opposed this sell-off plan on the grounds that the company will lose a major
business advantage of being subsidised by the Government, and the union has
better protection while the company remains in control of the government.
The standoff between the union and the management continued through
2001. The management refused union demands citing increased competition
and lower margins. The central government privatized Maruti in 2002 and
Suzuki became the majority owner of Maruti Udyog Limited.
Sales and service network
Maruti Suzuki has 1,820 sales outlets across 1,471 cities in India. The
company aims to double its sales network to 4,000 outlets by 2020. It has
3,145 service stations across 1,506 cities throughout India. Maruti's
dealership network is larger than that of Hyundai, Mahindra, Honda, Tata,
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Toyota and Ford combined.[61] 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 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%.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.
Below are the 12 main Maruti Suzuki competitors:
1. Honda Motors
2. Toyota Motor Corporation
3. Nissan Motors
4. Hyundai Motors
5. Fiat
6. Mitsubishi Motors
7. Chevrolet
8. Tata Motors
9. Skoda Auto
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10. Volkswagen
11. Ford Motor Company
12. Volvo
Vision:
Visions of any company are those values on which company works. As the
MUL is started by Governmental initiatives it tends to be more consumer
oriented and hence cost effective, but on the other hand Suzuki’s
participation ensures not only need of the profit, but of the need of maximum
profit. The only way for this Nora’s dilemma of selecting principals for
company’s working vision ,was to maximize profit and reducing cost by
maximizing output and sales Hence MUL declared its Vision as-
“The Leader in the Indian Automobile Industry, Creating Customer Delight1
and Shareholder's Wealth2; eventually become a pride of India”
Customer Delight1 is making sure that performance, after sales service and
customer support are best and beyond expectation. Shareholder’s wealth2 is
the prime concern for running business smoothly.MUL knows this and
understands “customer is king”, he can change the fortune of any company,
hence goes company’s brand line: COUNT ON US!
Mission:
Mission is the statement of an organization’s purpose, what it want to
accomplish in the larger environment and its goals which are specific,
realistic and motivating. Missions are described over visions and visions
demand certain objectives. The main objectives/Missions of MUL are:
- Modernization of the Indian Automobile Industry.
- Developing cars faster and selling them for less.
- Production of fuel-efficient vehicles to conserve scarce resources.
- Production of large number of motor vehicles which was necessary for
economic growth.
- Market Penetration, Market Development Similarly Product Development
and Diversification.
- Partner relationship management, Value chain, Value delivery network.
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Documents of Job analysis
Designation – Human Resource manager
Summary –HR Manager for Plan, directs, or coordinates human resources
activities and staff of the organization. Plan, direct, supervise, and coordinate
work activities of subordinates and staff relating to employment,
compensation, labor relations, and employee relations. The role of an HR
manager is to manage, create, implement and supervise policies/regulations,
which are mandatory for every employee and also have knowledge of its
appropriate functioning. Monitoring attendance and tracking leaves forms a
major chunk of the HR management function.
Job description
Name of the job – Human Resource manager.
Job Code: HRM11019
Location – Delhi
Timing of the job – 10:00AM-5:00PM
Holiday: All national holiday including Sunday will be considered as holiday.
Duties and responsibilities:
Serve as a link between management and employees by handling
questions, interpreting and administering contracts and helping resolve
work-related problems.
Advise managers on organizational policy matters, such as equal
employment opportunity and sexual harassment, and recommend
needed changes.
Analyze and modify compensation and benefits policies to establish
competitive programs and ensure compliance with legal requirements.
Perform difficult staffing duties, including dealing with understaffing,
refereeing disputes, firing employees, and administering disciplinary
procedures
Maintains the work structure by updating job requirements and job
descriptions for all positions.
Maintains organization staff by establishing a recruiting, testing, and
interviewing program; counseling managers on candidate selection;
conducting and analyzing exit interviews; recommending changes.
Prepares employees for assignments by establishing and conducting
orientation and training programs.
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Maintains a pay plan by conducting periodic pay surveys; scheduling
and conducting job evaluations; preparing pay budgets; monitoring and
scheduling individual pay actions; recommending, planning, and
implementing pay structure revisions.
Ensures planning, monitoring, and appraisal of employee work results
by training managers to coach and discipline employees; scheduling
management conferences with employees; hearing and resolving
employee grievances; counseling employees and supervisors.
Maintains employee benefits programs and informs employees of
benefits by studying and assessing benefit needs and trends;
recommending benefit programs to management; directing the
processing of benefit claims; obtaining and evaluating benefit contract
bids; awarding benefit contracts; designing and conducting educational
programs on benefit programs.
Ensures legal compliance by monitoring and implementing applicable
human resource federal and state requirements; conducting
investigations; maintaining records; representing the organization at
hearings.
Maintains management guidelines by preparing, updating, and
recommending human resource policies and procedures.
Negotiate bargaining agreements and help interpret labor contracts.
Identify staff vacancies and recruit, interview, and select applicants.
Prepare personnel forecast to project employment needs.
Provide current and prospective employees with information about
policies, job duties, working conditions, wages, opportunities for
promotion, and employee benefits.
Job specification
Human Resources Director Experience
Experience in multiple locations and globally is a plus for the HR
Manager Job candidates.
Education
Bachelor's Degree in Human Resources, Business, or a related field
required.
Masters Degree in Business or Human Resources Management or a
related field preferred.
Required Skills, Knowledge, and Characteristics
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These are the most important qualifications of the individual selected as the
human resources Manager.
Strong effective communicator in writing, business presentations and
in interpersonal communication.
Highly developed, demonstrated teamwork skills.
Demonstrates a high degree of confidentiality in interpersonal
interaction.
Exhibits an unusual degree of common sense in working with co-
workers and the executive team.
Experience directing the efforts of a team of diverse human resources
professionals.
Demonstrated ability to increase productivity and continuously
improve methods, approaches, and departmental contribution while
remaining cost-sensitive.
Ability to lead in an environment of constant change.
Success Factor
Record keeping; talent management modules such as employee performance
management, compensation management, succession management, learning,
recruiting, on boarding, workforce planning, and workforce analytics; and
employee engagement tools such as collaboration and social media.
