arag Shah – 04
Hiren Trivedi 06
The time when scooters had a waiting period.
Maruti Udyog Limited (MUL) was established
in Feb 1981 through an Act of Parliament.
To meet the growing demand of a personal
mode of transport caused by the lack of an
efficient public transport system.
MUL launched its first car Maruti800 on
December 14, 1983 at initial price of Rs.
47,500. Mr. Harpal Singh, the first Maruti
owner, still drives the car after 26 years.
EVOLUTION OF MARUTI
1981- MARUTI UDYOG LTD was
incorporated on under the INDIAN
COMPANIES ACT, 1956.
1982- License and Joint Venture
agreement signed between Maruti
Udyog Ltd. & Suzuki Motor
1983 “ The people’ s car is born” .
1987 Maruti goes overseas, exported
500 cars to Hungary.
1990 Launched India’ s first sedan.
1992 Suzuki Motor Company increases
stake in MUL to 50 %.
1993 Launched Maruti Zen “ the world’ s
2000 JD power customer Satisfaction
index Award (SIA).
2001 JD power customer SIA.
2001 Maruti Versa & Maruti true value
2002 JD power customer SIA.
2002- Maruti Finance in Mumbai with
10 Finance companies was introduced.
Children’ s park inaugurated in Delhi.
SMC(Suzuki Motor Corporation)
acquires majority stake in MUL
(increases to 54.2%).
Maruti finance and insurance
2003- IPO (JUNE- ISSUE
oversubscribed 11.2 times) Maruti gets
listed on BSE and NSE- July.
2003 JD power customer SIA.
2004 JD power customer SIA.
K – series engines
2005 JD power customer SIA &
2006 JD power customer SIA.
2006- New car plant and the diesel
engine facility commences operations
during 2006-2007 at Manesar, Haryana.
2007- Board of Directors give approval
to new name MUL to become Maruti
Suzuki India Limited(MSIL). Corporate
Social Responsibility: adopts three
villages in Manesar
2007 Launched SX4 Luxury Sedan and
SUV Grand Vitara.
2007 JD power customer SIA.
2008 M-800 crosses 25 lakh mark &
launched M800 LPG
MSIL launches National Road Safety
Program & celebrates its Silver
2008 JD power customer SIA.
2008 World premier of concept A-Star
at Auto Expo , New Delhi
2009- A-STAR or Suzuki Alto debuts at
Geneva Motor Show sales begins & won
JD power customer SIA.
Capacity to manufacture expanded from
800,000 to a million units (Gurgaon plus
Manesar plants) annually.
2010- Eeco was launched & Introduces
new generation CNG technology & &
won JD power customer SIA.
2011- Sport Sedan Kizashi was unveils
& SX4 Diesel & won JD power
2012- launched Alto800 & unveiled the
concept of XA Alpha & new Swift Dzire
& won JD power customer SIA.
BOARD OF DIRECTORS
Mr. Shinzo Nakanishi
Managing Director and
Mr. SHUJI OISHI
Director & Managing Executive
Officer (Marketing & Sales)
Mr. MANVINDER SINGH BANGA
Mr. Amal Ganguli
Mr. R.C. Bhargava
Chairman, Board of
Mr. OSAMU SUZUKI
Mr. TSUNEO OHASHI
Director & Managing Executive
Mr. DAVINDER SINGH BRAR
MUL established in February 1981, though the
actual production commenced in 1983 with
the Maruti 800, based on Suzuki Alto.
MUL was renamed as Maruti Suzuki India
Limited.(MSIL on 17 Sept. 2007,)
Given the fact that the only other known cars
available at that time were Hindustan
Ambassador and Premier Padmini , Maruti
cars in India brought about the muchneeded technological evolution.
The two plants of Maruti Udyog were:1.
Area: 300 Acres
Manufacturing Capacity: 9,00,000 Vehicle
annually. Initially it use to produce
1,00,000 vehicles annually but this was
increased to 3,00,000 vehicles annually in
The branch manufactures 2,40,000 KSeries engines annually.
The entire facility is equipped with more than
Area: 6oo Acres
The manufacturing capacity was
2,50,000 vehicles annually which
was increased to 5,50,000 vehicles
Cars Manufacturing: A-
OF MUL IN LATE 1980’S
Maruti was the first company in India which
studied the consumer demand and responded to
Market segmentation policy was adopted that
targeted different type of consumers with
different type of models.
Maruti800 targeted medium income group, while
the deluxe model targeted rich income group.
Maruti Van targeted businessmen and
The Gypsy targeted the paramilitary forces and
This resulted in complete control of Maruti over
The company advertised its different products
according to costumers.
A special cell was made to make direct dealing of
Gypsy with the government & the army.
MARUTI SUZUKI INDIA
Maruti Suzuki is India’s leading
automobile manufacturing company and
is the market leader in the car segment
both in terms of volume of vehicles sold
and revenue earned.
Until recently, 18.28% of the company
was owned by the Indian government and
54.2% by Suzuki of Japan.
The BJP led government held an initial public
offering of 25% of the company in June 2003.
As of 10 May 2007 Govt. of India sold its
complete share to Indian financial institutions.
The Govt. of India no longer has stake in
Maruti Suzuki India Limited has an impressive
portfolio with a total of 15 brands and over
150 variants of Maruti cars in India, ranging
from the Maruti 800 to the latest Ertiga.
The company offers equally competitive
services through its network of 933
dealerships, 2, 946 service stations and 30
express service stations spread across the
Other than Maruti cars, the company also
offers a wide range of services to enhance
their customers’ experience via Maruti
Insurance, Maruti Finance, Maruti True
Value, and Maruti Driving School among
The two upcoming plants of MSIL
It is expected to start its production by
The manufacturing is going to begin by 2017.
The fourth plant is been purchased with a
thought to roughly doubling annual
production capacity of Maruti’s all plants to
about 3 million units.
The company purchased the land for a new
factory with manufacturing capacity of
about 7,50,000 units a year but it will
manufacture 2.5lakh units per annum.
Relationship between the Government
of India and Suzuki Motor Corporation
over the joint venture was a point of
debate in the Indian media till Suzuki
Motor Corporation gained the
The success of the joint venture led
Suzuki to increase its equity from 26%
to 40% in 1987, and further to 50% in
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.
R.C. Bhargava was the initial managing
director of the company since the
inception of the joint venture.
The Government nominated Mr. S.S.L.N.
Bhaskarudu as the Managing Director on
27 August 1997.
In 1987 he was promoted as Chief
General Manager. In 1988 he was named
Director, Productions and Projects.
The next year (1989) he was named
Director of Materials and in 1993 he
became Joint Managing Director.
Suzuki did not attend the Annual General
Meeting of the Board with the reason of
it being called on a short notice.
Suzuki Motor Corporation state that
Bhaskarudu was "incompetent" and
wanted someone else.
Government of India refuted the charges.
Media stated from the Maruti Suzuki
sources that Bhaskarudu was interested to
adapt most of components for the models
including gear boxes especially for Maruti
Suzuki also felt that Bhaskarudu was a
substitute for the Government and would
not let it increase its stake in the venture.
If Maruti Suzuki would have been able to
adapt gear boxes then Maruti Suzuki
would have been able to manufacture all
the models without the technical
assistance from Suzuki. Till today the
issue of localization of gear boxes is
highlighted in the press.
Industrial relations is a
multidisciplinary field that studies the
It is called as employment
relations because of the
importance of non-industrial
experienced few problems with its
Change in ownership
Conflict between the Government
Employees went on an indefinite strike
Demanding revisions to their wages,
incentives and pensions.
In parallel, after elections and a new
central government, led India pursued a
disinvestments policy. 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, that the company will lose a major
business advantage of being subsidized
by the Government, and the union has
better protection while the company
The management refused union demands
citing increased competition and lower
The central government prevailed and
privatized Maruti in 2002.
Suzuki became the majority owner of Maruti
In September and October 2011 production
at Manesar was severely affected by due
The Manesar union had demanded a five-fold
increase in basic salary:
A monthly conveyance allowance
A laundry allowance of 3,000
Gift with every new car launch
A house for every worker who wants one
In addition to this
four paid weeks of vacation be
increased to 7 weeks
40 days allowance of sick and
8 J 2012
Maruti's Manesar plant was hit by violence
The incident is the worst-ever for Suzuki since the
company began operations in India in 1983.
Workers attacked supervisors and started a fire that killed a
company official and injured 100 managers
The violent mob also injured nine policemen.
The company's General Manager of Human Resources had
both arms and legs broken by his attackers, and was
charred to death.
HOW IT HAPPENED ?
7am : Employees of shift-A turn in for work
11am : An employee, Jiya lal, gets scolded by his
supervisor, Ramprakash Majhi
11:45am : Jiya lal is suspended from work
12pm : Local union members protest the suspension,
demand that Lal get reinstated
1:30pm : Higher Management officials called in;
3pm:Shift-A gets over, but the workers refuse to
leave the premises, shift-B employees start coming
5:30pm : General shift, for administration employees,
gets over. Police was called in
6:00 pm : Police reach, but shift-A workers refuse to exit
6:30 pm : Talks fail and violence erupts on the first floor
of the admin building, which is right next to gate no.2
7:00pm : Violence Spreads to different departments.
Workers, armed with rods and raw automobile parts, come
out & beat managers.
7:30pm: The HR wing catches fire. Fire brigade rushes 22
fire engines to the spot. More than 20 ambulances came.
8:00pm: Rioters allegedly block the entrance and
attack the fire vehicles and disrupt rescue operations.
8:30pm: More than 2500 policeman, including riot
control units, take charge.
9:30pm: Police clear entire plant, start rounding up
suspects. Over 20 arrests made.
10:30pm: Maruti plant evacuated and sealed
UPDATES TILL NOW
“ Manesar plant will not be opened until the
investigation are over” .
This results in an indefinite lock out at the Manesar
facility of Maruti Suzuki India.
It will reduce the number of contract workers at its
plants and will start hiring them directly through its
own HR department for better workforce and smooth
Consider to follow a zero-tolerance policy with the
workers who were involved in violence.
Maruti Suzuki may lay-off as many as 600 workers
from the Manesar plant which is a big move.
Considering options to strengthen its security system
by deploying Central Industrial Security Force.
Because of lockout at the plant, leads in the
shortages of supply of Maruti Swift and Maruti Swift
Haryana Govt. has constituted a special investigation
team(SIT) to probe the case
Police has arrested about 100 workers in connection with
Maruti Suzuki has reported a 23 percent fall in their
quarterly profits to Rs. 4.24 billion down from the previous
R s. 5.49 billion in the same period in year 2011
Maruti Suzuki is facing losses of the tune of Rs. 70 crore
per day .
16th August 2012
Will partially resume production at the Manesar
plant in the week starting 20th August 2012.
21st August 2012
Started partial operations at Manesar plant under
tight security arrangements.
Over 500 Police-men and security personnel
are deployed in and around the plant .
Only 300 workers will join for a single shift starting
today which will roll out 150 cars per day.
2000 No of employees working at Maruti Suzuki
Manesar plant 105 Injured, most of them
90 Crore is per day production loss,91 Employees
were arrested & 55 in search.
Rs 3183cr decline in market due to failing
confidence of investor.
550000 No. of vehicle produced at plant every year
THE CHANGING AUTO
In 2003 there was a change in
automobile market which where due to:
The government has reduced
regulation on the industry and more
foreign players were invited.
Banks and other financing companies
started providing car loans at
reasonable interest rate.
IMPACTS OF THE
CHANGING AUTO INDUSTRY
The Indian consumer now started buying the
mid-size cars rather than small cars ,the
luxury cars also gained popularity, SUV’s also
started coming in the market.
The increasing level of income of urban
people, the small cars were not considered
to be luxury item any more.
THE MAJOR FAULTS
The MUL depended more on its M800
model, so when in late 1990’ s the new
players like when Matiz, Santro and
Indica came into the market with more
space and better comfort ,at same
price, then Maruti lost a major share of
Maruti Suzuki was far behind in luxury
and SUV car ,the other player like GM,
TATA, Mahindra , Mitsubishi and
Toyota were already established in the
market ,so replacing them was not
THE RESPONSES OF
To gain back its lost share Maruti
launched Zen ,Alto and WagonR. These
small segment car gained huge response
Maruti also launched aggressive
promotional policy to promote them like
announcing Zen as the “world’s car”.
Maruti also made a slogan “count on
us”. To emphasize its reliability.
In 2003 Maruti came up with “change
your life campaign", it provided vehicle
insurance at just Rs 1 to attract the
customers. advertisement such as of Alto
in which a small boy says to his father
“papa ki karan petrol khatam hi nahi
hoonda” was make customer feel that
Alto was best fuel efficient.
During 2003 and 2004, MUL
visualized and implemented a strategy
for its dealers to increase their
profitability levels in view of increased
According to the strategy, the 300 plus
-odd dealers of the company were asked
to strengthen their manpower, increase
the salaries of their sales agents, and
offer them better incentives.
'2599' offer-In 2004, MUL introduced
the '2599' offer under which a consumer
could buy an M-800 by paying an EMI
of Rs 2,599 only, for a period of seven
years. The down payment was fixed at
Rs 40,000. MUL entered into an
agreement with the State Bank of India
(SBI), to promote this scheme.
MARUTI SUZUKI’S BRAND
A. Authorized Service
Maruti is one of the companies
in India which has unparalleled
service network. To ensure the
vehicles sold by them are
serviced properly Maruti has
2628 listed Authorized service
B. Maruti Insurance
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.
C. Maruti Finance
To promote its bottom line
growth, Maruti launched Maruti
Finance in January
2002.Maruti claims that its
finance program offers
competitive interest rates to its
customers, which are lower by
D. Maruti True Value
Maruti True service offered by
Maruti Udyog to its customers. It
is a market place for used Maruti
Vehicles. One can buy, sell or
exchange used Maruti vehicles
with the help of this service in
Maruti started a new initiative under
the brand name Maruti Genuine
Accessories to offer accessories like
alloy wheels, body cover, carpets,
door visors, fog lamps, stereo
systems, seat covers and other car
care products. These products are
COMPLETE FLEET SOLUTIONS
F. N2N Fleet Management
N2N is the short form of End
to End Fleet Management and
provides lease and fleet
management solution to
corporate. This fleet
management service include
G. Maruti Driving School
As part of its corporate social
responsibility Maruti Udyog
launched the Maruti Driving School
in Delhi. Later the services were
extended to other cities of India as
well. These schools are modelled
on international standards, where
learners go through classroom and
Modernization of the Indian
Production of fuel-efficient vehicles to
conserve scarce resources.
Production of large number of motor
vehicles which was necessary for
800 (Launched 1983)
Omni (Launched 1984)
Gypsy (launched 1985)
WagonR (Launched 1999)
Alto (Launched 2000)
Swift (Launched 2005)
Maruti Ertiga(Launched 2012), is competing
with Toyota Innova, Mahindra Xylo, and Tata Sumo
Grande. In early 2012, Suzuki Ertiga was exported
first to Indonesia.
Maruti XA Alpha based compact SUV to compete with
the Ford Eco Sport and Renault Duster will be
launched in the year 2014.
Maruti Alto 800 (Launched 2012),
Maruti Alto 800 was out with a price
tag of Rs.2.44 lakh.
Maruti has rolled out:
three standard variants Alto 800 Base,
Alto 800 LX
Alto 800 LXI
THE UPCOMING CAR
The first commercial consignment of
480 cars was sent to Hungary.
By sending a consignment of 571 cars
to the same country Maruti Suzuki
crossed the benchmark of 3,00,000
Every political party expected Maruti
Suzuki to earn foreign currency.
The company annually exports more
Some of the markets Morocco,
served by Maruti Exports
Costa Rica ,
FINANCIALS AND MARKET
SHARE AS PER MARCH 2012
Sales Turnover- 39495.30(in crore)
2011- 2288.64 (in crore)
Earning per share – 56.60
BSE rate:- 1588.30
NSE rate:- 1587.70
Unit Sales in
Sales of Mid Size Sedans
Maruti Suzuki sx4
Car market leader Maruti Suzuki
India Limited sold a total of 95,145
units in December 2012, a growth
of 3.2 per cent over December 2011.
This includes 13,072 units for
export. The Company had sold a
total of 92,161 units in December
Car market leader Maruti Suzuki
India Limited sold a total of
114,205 units in January 2013. This
included 103,026 units in the
domestic market, a growth of 2 per
cent over January 2012. Exports
during January 2013 were 11179
It also went on to become the first
company in India to sell more than
a million cars. There is surprise that
Maruti is given the credit for
bringing about the automobile
revolution in our country.
Together Gurgaon and Manesar
plants have a production capacity
of over 1.5 million units per year.
Maruti plans to expand the capacity
to up to 1.75 million units by 2013.
Maruti Suzuki is the only Indian
Company to have crossed the 10
million sales mark since its
inception. In fiscal year of 2011-12,
the company sold over 1.13 million
vehicles including 1,27,379 units of
The company is listed on the
Bombay Stock Exchange and
National Stock Exchange of India.
In January 2012 at the New Delhi
Auto Expo, Maruti presented a new
car called the Maruti Suzuki XA
Alpha, to commence production in
The sales figures for January 2013 are given below:
The sales figures for December 2012 are given below:
The sales figures for December 2009 are given below:
Maruti Suzuki India
Plot no.1, Phase
umbai:602, Madhava Building,
Bandra Kurla Complex
Mumbai - 400051