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Maruti
- 2. P arag Shah –04 P ooja B hayani – 05 Hiren Trivedi 06 Shruti P oddar -
- 3. BRIEF HISTORY The timewhen 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.
- 4. 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 Corporation Japan(SMC). 1983 “ The people’ s car is born” .
- 5. 1987 Maruti goesoverseas, exported 500 cars to Hungary. 1990 Launched India’ s first sedan. (Esteem). 1992 Suzuki Motor Company increases stake in MUL to 50 %. 1993 Launched Maruti Zen “ the world’ s car” .
- 6. 2000 JD powercustomer Satisfaction index Award (SIA). 2001 JD power customer SIA. 2001 Maruti Versa & Maruti true value were launched. 2002 JD power customer SIA.
- 7. 2002- Maruti Financein 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 launched.
- 8. 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.
- 9. K – seriesengines 2005 JD power customer SIA & Launched Swift. 2006 JD power customer SIA. 2006- New car plant and the diesel engine facility commences operations during 2006-2007 at Manesar, Haryana.
- 10. 2007- Board ofDirectors 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.
- 11. 2008 M-800 crosses25 lakh mark & launched M800 LPG MSIL launches National Road Safety Program & celebrates its Silver Jubilee. 2008 JD power customer SIA. 2008 World premier of concept A-Star at Auto Expo , New Delhi
- 12. 2009- A-STAR orSuzuki 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.
- 13. Sedan Kizashi 2011- SportSedan Kizashi was unveils & SX4 Diesel & won JD power customer SIA. 2012- launched Alto800 & unveiled the concept of XA Alpha & new Swift Dzire & won JD power customer SIA.
- 14. BOARD OF DIRECTORS Mr.Shinzo Nakanishi Managing Director and the CEO Mr. KENICHI AYUKAWA Director Mr. SHUJI OISHI Director & Managing Executive Officer (Marketing & Sales) Mr. MANVINDER SINGH BANGA Director Mr. Amal Ganguli Director Mr. R.C. Bhargava Chairman, Board of Director Mr. OSAMU SUZUKI Director Mr. TSUNEO OHASHI Director & Managing Executive Mr. DAVINDER SINGH BRAR Director
- 15. MARUTI UDYOG LIMITED MUL establishedin 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,)
- 16. Given the factthat 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. Gurgaon plant 2. Manesar plant.
- 17. GURGAON PLANT Area: 300Acres 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 October 2008. The branch manufactures 2,40,000 KSeries engines annually. The entire facility is equipped with more than
- 18. MANESAR PLANT Area: 6ooAcres The manufacturing capacity was 2,50,000 vehicles annually which was increased to 5,50,000 vehicles annually. Cars Manufacturing: A-
- 19. MARKETING STRATEGY OF MULIN LATE 1980’S Maruti was the first company in India which studied the consumer demand and responded to it well. 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 doctors(ambulance)
- 20. The Gypsy targetedthe paramilitary forces and the police. This resulted in complete control of Maruti over the market. 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.
- 21. MARUTI SUZUKI INDIA LTD. MarutiSuzuki 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.
- 22. The BJP ledgovernment 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 Udyog. 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.
- 23. The company offersequally competitive services through its network of 933 dealerships, 2, 946 service stations and 30 express service stations spread across the nation. 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 others.
- 24. The two upcomingplants of MSIL are: Mehsana Plant Bechraji Plant
- 25. MEHSANA DISTRICT PLANT It isexpected to start its production by March 2015.
- 26. BECHRAJI PLANT (VADODARA) The manufacturingis 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.
- 27. JOINT VENTURE Relationship betweenthe 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 controlling stake. The success of the joint venture led Suzuki to increase its equity from 26% to 40% in 1987, and further to 50% in 1992.
- 28. In 1982 boththe 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.
- 29. JOINT VENTURE ISSUE/PROBLEMS R.C. Bhargavawas 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.
- 30. 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.
- 31. Government of India refutedthe 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 800. Suzuki also felt that Bhaskarudu was a substitute for the Government and would not let it increase its stake in the venture.
- 32. Issues If Maruti Suzukiwould 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.
- 33. INDUSTRIAL RELATION Industrial relationsis a multidisciplinary field that studies the employment relationship. It is called as employment relations because of the importance of non-industrial employment relationships. 1983 experienced few problems with its
- 34. 1997 Change in ownership Conflictbetween the Government and Suzuki 2000 Employees went on an indefinite strike Demanding revisions to their wages, incentives and pensions.
- 35. In parallel, afterelections 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
- 36. The management refusedunion demands citing increased competition and lower margins. The central government prevailed and privatized Maruti in 2002. Suzuki became the majority owner of Maruti Udyog Limited. 2011 In September and October 2011 production at Manesar was severely affected by due
- 37. April 2012 The Manesarunion had demanded a five-fold increase in basic salary: A monthly conveyance allowance of 10,000 A laundry allowance of 3,000 Gift with every new car launch A house for every worker who wants one
- 38. In addition tothis four paid weeks of vacation be increased to 7 weeks 40 days allowance of sick and casual leave
- 39.
- 40. MANESAR VIOLENCE 8 J2012 uly 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.
- 41. 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; negotiations begin 3pm:Shift-A gets over, but the workers refuse to leave the premises, shift-B employees start coming inside.
- 42. 5:30pm : Generalshift, for administration employees, gets over. Police was called in 6:00 pm : Police reach, but shift-A workers refuse to exit the premises 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.
- 43. 8:00pm: Rioters allegedlyblock 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
- 44. UPDATES TILL NOW 23/2012 07/ “ 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 operations
- 45. 25/ 2012 07/ Consider tofollow 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 Dzire.
- 46. 31/ 2012 07/ Haryana Govt.has constituted a special investigation team(SIT) to probe the case Police has arrested about 100 workers in connection with this incident. 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 7/ 2012 08/ Maruti Suzuki is facing losses of the tune of Rs. 70 crore per day .
- 47. 16th August 2012 Willpartially 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.
- 48. VITAL STATS 2000 Noof employees working at Maruti Suzuki Manesar plant 105 Injured, most of them management staff. 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
- 49. THE CHANGING AUTO INDUSTRY In2003 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.
- 50. IMPACTS OF THE CHANGINGAUTO 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.
- 51. THE MAJOR FAULTS TheMUL 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 market.
- 52. Maruti Suzuki wasfar 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 easy.
- 53. THE RESPONSES OF MARUTI Togain back its lost share Maruti launched Zen ,Alto and WagonR. These small segment car gained huge response for consumers. 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.
- 54. In 2003 Maruticame 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.
- 55. During 2003 and2004, MUL visualized and implemented a strategy for its dealers to increase their profitability levels in view of increased competition. 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.
- 56. '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.
- 57. MARUTI SUZUKI’S BRAND EQUITY A.Authorized Service Stations 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
- 58. B. Maruti Insurance Thisservice 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.
- 59. C. Maruti Finance Topromote 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
- 60. D. Maruti TrueValue 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 India.
- 61. E. Accessories Maruti starteda 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
- 62. 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
- 63. G. Maruti DrivingSchool 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
- 64. THE OBJECTIVES Modernization ofthe Indian Automobile Industry. Production of fuel-efficient vehicles to conserve scarce resources. Production of large number of motor vehicles which was necessary for economic growth.
- 65. PRODUCTS AND SERVICES Current automobiles 800 (Launched1983) Omni (Launched 1984) Gypsy (launched 1985) WagonR (Launched 1999) Alto (Launched 2000) Swift (Launched 2005)
- 66. Estilo (Launched 2006) SX4 (Launched 2007) SwiftDZire (Launched 2008) A-star (Launched 2008) Ritz (Launched 2009) Eeco (Launched 2010) Alto K10 (Launched 2010)
- 67. 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.
- 68. 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
- 69. three CNG variantsAlto 800 CNG Base, Alto 800 CNG LX Alto 800 CNG LXI. Imported automobiles Grand Vitara (Launched 2007) Kizashi (Launched 2011)
- 70.
- 71.
- 72. EXPORTS The first commercialconsignment 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 cars. Every political party expected Maruti Suzuki to earn foreign currency. The company annually exports more
- 73. Some of themarkets Morocco, served by Maruti Exports Nepal, are:Angola, Sri Lanka, Benin, Uganda, Djibouti, Chile, Ethiopia, Guatemala, Europe, Costa Rica , Kenya, El Salvador
- 74. FINANCIALS AND MARKET SHAREAS PER MARCH 2012 Sales Turnover- 39495.30(in crore) Net Profit 2012-1635.20(in crore) 2011- 2288.64 (in crore) Earning per share – 56.60 BSE rate:- 1588.30 NSE rate:- 1587.70
- 75.
- 77. Year 2011 Unit Salesin Compact Segment COMPETITORS ANALYSIS Sales of Mid Size Sedans Maruti Suzuki Hyundai Motor Ind. 21185 Hyundai Verna 18908 Volkswagen Vento 2403 Tata Motors 8748 Maruti Suzuki sx4 2702 Ford 5608 Honda City 1828 Volkswagen 3486 Fiat Linea 845 General motors 2270 Skoda 1556 Nissan 1303 4357
- 78. CURRENT STATUS Car marketleader 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 2011.
- 79. Car market leaderMaruti 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 units.
- 80. It also wenton 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.
- 81. Together Gurgaon andManesar 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.
- 82. Maruti Suzuki isthe 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 exports.
- 83. The company islisted 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 mid-late 2013.
- 85. The sales figuresfor January 2013 are given below:
- 86. The sales figuresfor December 2012 are given below:
- 87. The sales figuresfor December 2009 are given below:
- 88. LOCATIONS Head Office:- Maruti SuzukiIndia Limited Nelson Mandela Road, Vasant Kunj, New Delhi-110070
- 89. PLANTS Gurgaon P lant Maruti Suzuki India Ltd. GurgaonPlant Old Palam Gurgaon Road M anesar P lant Maruti Suzuki India Ltd. Manesar Plant Plot no.1, Phase 3A
- 90. M ehsana P lant Maruti Suzuki India Ltd. MehsanaPlant, Mehsana district, B echraji P lant Maruti Suzuki India Ltd. Bechraji Plant, Vadodara,
- 91. REGIONAL OFFICE M umbai:602, MadhavaBuilding, Bandra Kurla Complex Bandra (East), Mumbai - 400051 T 26590478 el: