Synopsis analysis on Maruti Suzuki

1. A RESEARCH DESIGN SEMINAR
PRESENTATION
ON
A STUDY ON PROJECT FINANCE ANALYSIS AT MARUTI SUZUKI
INDIA LIMITED
SUBMITTED TO
PRESENTED BY:
Name of the Student
Hallticket Number
MBA
Specialization
:
:
:
:
C Ravi Chandra
141722672101
II YEAR/SEM-III
Finance Analysis
SHADAN INSTITUTE OF MANAGEMENT STUDIES FOR BOYS
(Affiliated to Osmania university) BATCH 2022-2024

2. “A STUDY ON PROJECT MARUTI SUZUKI FINANCE ANALYSIS ”
INTRODUCTION
Maruti Suzuki India Limited (formerly Maruti Udyog Limited) is the Indian subsidiary of Japanese automaker Suzuki
Motor Corporation.[8]
As of September 2022, the company had a leading market share of 42 percent in the Indian
passenger car market.[9]
Logo of Maruti Udyog
The Government of India established Maruti Udyog Limited in February 1981 as a joint venture with Suzuki
Motor Corporation as a small partner. The Government of India partially departed the business in 2003 and then sold
all of its remaining shares to Suzuki Motor Corporation in 2007.[2][10][11][8]
In 1982, Maruti opened its first production
facility in Gurugram, Haryana, India.[12]
Affiliation with Suzuki
In 1982, Suzuki of Japan and Maruti Udyog Ltd. signed a license and joint venture agreement (JVA). Initially,
Maruti Suzuki was primarily an automobile importer. Maruti was granted permission to import two Suzuki vehicles
that were completely assembled in the first two years of India's closed market, with an initial target of using just 33%
domestic components. This greatly displeased the nearby manufacturers. There were some worries that the Indian
market wouldn't support Maruti Suzuki's relatively high production levels, and the government even considered changing
the petrol tariff and decreasing the excise fee to increase sales.[13]
Local production commenced in December 1983 with
the introduction of the SS30/SS40 Suzuki Fronte/Alto-based Maruti 800.[14]
In 1984, the Maruti Van with the same
three-cylinder engine as the 800 was released and the installed capacity of the plant in Gurgaon reached 40,000
units.
STATEMENT OF THE PROBLEM: - As of my last update, some of the major challenges faced by Maruti
Suzuki, a leading automobile manufacturer in India, included increasing competition from other automakers, changing
consumer preferences and demands, regulatory changes related to emissions and safety standards, and the need to adapt
to emerging
NEED OF THE STUDY: - Maruti Suzuki India Limited (MSIL), a subsidiary of Suzuki Motor Corporation, Japan, is
India's largest passenger car maker. Maruti Suzuki is

3. SCOPE OF THE STUDY: - The country's largest car manufacturer, Maruti Suzuki India Ltd (MSIL), is
working towards achieving full-body capability in manufacturing vehicles. This means MSIL will design and develop
its models on its own
OBJECTIVES OF THE STUDY
In today's competitive era, "strategy" word is very important for all business
organizations. Today's organizations began to realize that the strategies of customer-centric marketing and plays an
important role for a successful leader. Globalization has opened doors of opportunity for all, the market is still full of
some of the risks are unknown and a lot of competition. Because of this competition, marketing strategy must be
aligned to be unique, and construction and feature-creation. A unique feature of the differential and the organization
must be creative in their marketing strategy. Today, through innovative marketing strategies, Maruti Suzuki has
become the largest and leading car seller in India.
CAR ADVISOR FOR LIFE
At Maruti Suzuki Sales Consultant's role as a customer's car advisor for life is very crucial & should have the following
qualities
•Good knowledge of systems & processes of all Maruti Suzuki Offerings
•Ability to quickly understand customer's additional car-related requirements
•Convert that requirement into a 'Need' through consultative selling
•If the customer requires any details, assist him/her and satisfy his/her needs (such as
Finance, Insurance, MGA Section, etc.)
RESEARCH METHODOLOGY
Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited was established through the efforts of Dr. V
Krishnamurthy in 1981. In 1982, a license and joint venture agreement (JVA)was signed between Maruti Udyog
Ltd, and Suzuki of Japan wherein Suzuki owned 26% stake.

4. Maruti Van (1983)
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 in the first two years. After two years in December, 1983
the company went ahead and started local production with its first plant Gurgaon. But the early goal was to
use only 33% indigenous parts as there were some concerns from Suzuki that the Indian market was too
small to absorb the comparatively large production planned by Maruti Suzuki. But as thing gradually
progressed, the company started receiving strong demand for its vehicles “Maruti Van” and “Gypsy”.
Because of this strong growth and demand, the Japanese company raised its stake from 26% to 4o% by
1987.

5. MANAGEMENT
Dr. V Krishnamurthy
As earlier mentioned, Dr. V Krishnamurthy established Maruti Udyog Limited. He was the chairman and
CEO from the inception of the company till 1990. Mr. Krishnamurthy is an Indian civil servant born in
TamilNadu, widely regarded as a “Man with a golden touch”. Mr. Krishnamurthy is also known as the
“Father of Public Sector undertakings in India” for his leadership and successful contribution in turning
around BHEL, Maruti Udyog Limited, SAIL and GAIL into the most profit making industry in India and
globally.
Mr R.C. Bhargava
The current chairman is Mr. R.C. Bhargava.After a long career in administrative and industrial services, he
joined Maruti in 1981where he has remained ever since. In 2016, he was awarded “Padma Bhushan”third
highest civilian award in the Republic of India.

6. Mr. Kenichi Ayukawa is the Managing Director and CEO of the company. When he took control of Maruti
Suzuki in 2013, it was a tough phase for the company as repeated labour unrests at Manesar manufacturing
facility had hit Maruti Suzuki’s market share. Since then, Maruti Suzuki has settled the labour issues. And, with
Ayukawa, in control, it has moved from being a small car specialist to one that is a significant force in
more premium segments of the Indian market. We will try understand Mr. Ayukawa strategy in the
business model section ahead.
So, lets jump straight into its business model.
BUSINESS MODEL
90% of the Business
It’s quite a straight forward business. The company manufactures and sells passenger
vehicles which constitutes almost 90% of the business. The rest 10% of the business comes from sale of
spare parts, vehicle components and other services.

7. The point here is to understand that how Maruti Suzuki has turned itself such into a huge giant in the
Indian Automobile sector. They own close to 50% of the market share in India. This means that
out of 100 cars sold, half of the cars are sold by Maruti
COMPANY PROFILE:
MARUTI SUZUKI WORLD
Cars are what Maruti Suzuki builds. Experiences are what it creates.
Experiences fuelled by innovations, forward thinking, and a commitment to bring the very best to Indian roads.
From the day the iconic Maruti 800 was launched in 1983, the company has been spearheading a revolution of
change. Turning an entire country’s need for driving, into its love for driving.
However, tastes and demands keep on evolving with each new generation of Indians. This has not been looked at
by Maruti Suzuki as a challenge, but as an inspiration to go beyond traditional boundaries of car-making. Infusing
design and technology is one such step it has
taken to make its cars meet new age expectations smoothly.
Today, Maruti Suzuki has its eyes set firmly on the possibilities of tomorrow. And everybody is invited on this
journey.
CHAPTERIZATIONCHAPTE
R 1-INTRODUCTION
CHAPTER 2-REVIEW OF LITERATURE
CHAPTER3-RESEARCHMETHODOLOGY
CHAPTER 4-COMPANY PROFILE
CHAPTER 5-DATAANALYSIS AND
INTERPRETATION CHAPTER6-
FINDINGS,SUGGESTIONS&CONCLUSIONS

8. REFRENCES
1.^ Aulbur, Wilfried (9 February 2017). "Suzuki drives India's car manufacturing story".
Thehindubusinessline.com.
2.^ Jump up to:a b
"Office Addresses - Maruti Suzuki India Limited". Marutisuzuki.com. Retrieved 13
September 2018.
3.^ Jump up to:a b c
"Our Leadership - Maruti Suzuki India Limited". Marutisuzuki.com.
4.^ "Maruti Suzuki Annual Report 2020" (PDF). Maruti Suzuki Limited.
5.^ Jump up to:a b c d e
"SEBI Standalone and Consolidated FY2022-23" (PDF).
6.^ Jump up to:a b
"Annual Integrated Report 2020-21" (PDF). Maruti Suzuki.
7.^ "MARUTI SUZUKI INDIA LTD SHARE HOLDINGS". Financial Express. 12 May 2021.
8.^ Jump up to:a b
"Maruti Suzuki India - Details and Nature of the Business". MarutiSuzuki. Retrieved
7 April 2023.
9.^ "Maruti Suzuki chases market share but losing 'mind share' to Tata Motors". Moneycontrol.
Retrieved 14 December 2022.
10.^ Maruti Suzuki Corporate Information Archived 26 January 2013 at the Wayback Machine.
Retrieved 2013-02-01.
11.^ "Govt exits Maruti, sells residual stake for 2,360 cr". The Times of India. 10 May 2007. ISSN
0971-8257. Retrieved 7 April 2023.
12.^ "Maruti Suzuki Case Study - History and Success in India". StartupTalky. 27 August 2021.
Retrieved 7 April 2023.