Project report on MARUTI SUZUKI

SUBMITTED TO MISS.____________________________
BY AJAY VERMA
ROLL NO.104302462229
CHANDIGARH GROUP OF COLLEGES
LANDRAN,MOHALI.

Maruti Suzuki India Limited

Type Public
Traded as BSE: 532500
NSE: MARUTI
BSE SENSEX Constituent
Industry Automotive
Predecessor(s) Maruti Udyog Limited
Founded 1981
Headquarters New Delhi, India
Key people Shinzo Nakanishi
(CEO & MD)
Products Automobiles
Revenue 37,522 crore (US$7.49 billion)(2010-
11)
Net income 2,288 crore (US$456.46
million)(2010-11)
Employees 6,903 (2011)
Parent Suzuki Motor Corporation
Website www.marutisuzuki.com
Maruti Suzuki India Limited (Hindi: /maruti suzuki/) ( (NSE: MARUTI, BSE: 532500),
commonly referred to asMaruti, is a subsidiary company of Japanese automaker Suzuki Motor
Corporation. It has a market share of 44.9% of the Indian passenger car market as of March
2011. Maruti Suzuki offers a complete range of cars from entry level Maruti 800 and Alto, to
hatchback Ritz, A-Star, Swift, Wagon-R, Estillo and sedans DZire, SX4, in the 'C' segment Maruti
Eeco and Sports Utility vehicleGrand Vitara.
It was the first company in India to mass-produce and sell more than a million cars. It is largely
credited for having brought in an automobile revolution to India. It is the market leader in India, and on
17 September 2007, Maruti Udyog Limited was renamed asMaruti Suzuki India Limited. The
company's headquarters are located in New Delhi. In February 2012, the company sold its 10th
million vehicle in India.
Contents
1 Profile
2 Joint venture related issues
3 Industrial relations
4 Services offered
o 4.1 Current sales of automobiles
4.1.1 Imported
o 4.2 Discontinued car models
o 4.3 Manufacturing facilities
4.3.1 Gurgaon Manufacturing Facility
4.3.2 Manesar Manufacturing Facility
o 4.4 Sales and service network
o 4.5 Maruti Insurance
o 4.6 Maruti Finance
o 4.7 Maruti TrueValue
o 4.8 N2N Fleet Management
o 4.9 Accessories
o 4.10 Maruti Driving School
5 Issues and problems
6 Exports
7 Awards and recognition
Profile


Te old logo of Maruti Suzuki India Limited. Later the logo of Suzuki Motor
Corp. was also added to it


To Munsiyari on a Maruti 800',Uttarakhand Himalayas

Maruti Suzuki plant in Manesar
Maruti Suzuki is India and Nepal's number one leading automobile manufacturer and 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, the government of India sold its complete share to Indian financial
institutions and no longer has any stake in Maruti Udyog.
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 Maruti Suzukis (but not manufactured by Maruti
Udyog) are sold by Suzuki Motor Corporation and manufactured in Pakistan and other South
Asian countries.
The company exports more than 50,000 cars annually and has an extremely large domestic market in
India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact
car ever since it was launched in 1983. More than a million units of this car have been sold worldwide
so far. Currently, Maruti Suzuki Alto tops the sales charts.
Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used
to refer to this compact car model. Its manufacturing facilities are located at two
facilities Gurgaon and Manesar south of Delhi. Maruti Suzukis Gurgaon facility has an installed
capacity of 350,000 units per annum. The Manesar facilities, launched in February 2007 comprise a
vehicle assembly plant with a capacity of 100,000 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 700,000 units annually. More than half the cars sold in India are
Maruti Suzuki cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns
54.2 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 in India
.

During 2007-08, 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.
Maruti Suzuki offers 15 models, Maruti 800, Alto, WagonR, Estilo, A-star,Ritz, Swift, Swift
DZire, SX4, Omni, Eeco, Gypsy, Grand Vitara, Kizashiand the newly launched Ertiga. Swift, Swift
DZire, A-star and SX4 are manufactured in Manesar, Grand Vitara and Kizashi are imported from
Japan as completely built units(CBU), remaining all models are manufactured in Maruti Suzuki's
Gurgaon Plant.
Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for three
decades. Suzukis technical superiority lies in its ability to pack power and performance into a
compact, lightweight engine that is clean and fuel efficient. Nearly 75,000 people are employed
directly by Maruti Suzuki and its partners. It has been rated first in customer satisfaction among all car
makers in India from 1999 to 2009 by J D Power Asia Pacific.
Joint venture related issues


Maruti Suzuki's A-Star vehicle during its unveiling in Pragati Maidan, Delhi. A-Star, Suzuki's fifth global car model, was
designed and is made only in India. Maruti Suzuki is also Suzuki's leading research and development arm outside
Japan
Relationship between the Government of India, under the United Front (India) coalition and Suzuki
Motor Corporation over the joint venturewas a point of heated debate in the Indian media till 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
.

R.C. Bhargava was the initial managing director of the company since the inception of the joint
venture. Till today he is regarded as instrumental for the success of Maruti Suzuki. Joining in 1982 he
held several key positions in the company before heading the company as Managing Director.
Currently he is on the Board of Directors.

After completing his five year tenure, Mr. Bhargava later
assumed the office of Part-Time Chairman. The Government nominated Mr. S.S.L.N. Bhaskarudu as
the Managing Director on 27 August 1997. Mr. Bhaskarudu had joined Maruti Suzuki in 1983 after
spending 21 years in the Public sector undertaking Bharat Heavy Electricals Limited as General
Manager. 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 Motor Corporation didn't attend the Annual General Meeting of the Board with the reason of it
being called on a short notice. Later Suzuki Motor Corporation went on record to state that
Bhaskarudu was "incompetent" and wanted someone else. However, the Ministry of
Industries, Government of India refuted the charges. Media stated from the Maruti Suzuki sources
that Bhaskarudu was interested to indigenise most of components for the models including gear
boxes especially for Maruti 800. Suzuki also felt that Bhaskarudu was a proxy for the Government and
would not let it increase its stake in the venture. If Maruti Suzuki would have been able to indigenise
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.
The relations strained when Suzuki Motor Corporation moved to Delhi High Court to bring a stay order
against Bhaskarudu's appointment. The issue was resolved in an out-of-court settlement and both the
parties agreed that R S S L N Bhaskarudu would serve up to 31 December 1999, and from 1 January
2000, Jagdish Khattar, Executive Director of Maruti Udyog Limited would assume charges as the
Managing Director.Many politicians stated in parliament that the Suzuki Motor Corporation is unwilling
to localize manufacturing and reduce imports. As of 2011 Gear boxes are still imported from Japan
and are assembled at the Gurgaon facility.

Industrial relations
For most of its history, Maruti Udyog Limited had relatively few problems with its labour force. Its
emphasis of a Japanese work culture and the modern manufacturing process, first instituted in Japan
in the 1970s, was accepted by the workforce of the company without any difficulty. But with the
change in management in 1997, when it became predominantly government controlled for a while,
and the conflict between the United Front Government and Suzuki may have been the cause of
unrest among employees. A major row broke out in September 2000 when employees of Maruti
Udyog Ltd (MUL) went on an indefinite strike, demanding among other things, revision of the incentive
scheme offered and implementation of a pension scheme
Employees struck work for six hours in October 2000, irked over the suspension of nine employees,
going on a six-hour tools-down strike at its Gurgaon plant, demanding revision of the incentive-linked
pay and threatened to fast to death if the suspended employees were not reinstated. About this time,
the NDA government, following a disinvestments policy, proposed to sell part of its stake in Maruti
Suzuki in a public offering. The Staff union opposed this sell-off plan on the grounds that the company
will lose a major business advantage of being subsidised by the Government.
The standoff with the management continued to December with a proposal by the management to
end the two-month long agitation rejected with a demand for reinstatement of 92 dismissed workers,
with four MUL employees going on a fast-unto-death. In December the company's shareholders met
in New Delhi in an AGM that lasted 30 minutes. At the same time around 1500 plant workers from the
MUL's Gurgaon facility were agitating outside the company's corporate office demanding
commencement of production linked incentives, a better pension scheme and other benefits. The
management has refused to pass on the benefits citing increased competition and lower margins.
Services offered
Current sales of automobiles


Red Bull Maruti Suzuki Swift


Maruti Omni


India's Corps of Military Police personnel patrolling the Wagah border crossing
in thePunjab in a Maruti Gypsy

Maruti Alto


Maruti Suzuki Swift


Maruti Suzuki Zen Estilo


Suzuki SX4


7th Generation Suzuki Alto is sold as Maruti Suzuki A-Star in India.


Maruti Suzuki Swift DZire


Suzuki Splash is sold as Maruti Suzuki Ritz in India.
1. 800 (Launched 1983)
2. Omni (Launched 1984)
3. Gypsy (launched 1985)
4. WagonR (Launched 1999)
5. Alto (Launched 2000)
6. Swift (Launched 2005)
7. Estilo (Launched 2009)
8. SX4 (Launched 2007)
9. Swift DZire (Launched 2008)
10. A-star (Launched 2008)
11. Ritz (Launched 2009)
12. Eeco (Launched 2010)
13. Alto K10 (Launched 2010)
14. Maruti Ertiga, seven seater MPV R3 designed and developed in India, will compete
with Toyota Innova, Mahindra Xylo, and Tata Sumo Grande. In early 2012, Suzuki
Ertiga will be exported first to Indonesia in Completely Knock Down car.
15. Maruti XA Alpha will be launched in the year 2014 Imported


Suzuki Grand Vitara
1. Grand Vitara (Launched 2007)
2. Kizashi (Launched 2011)
Discontinued car models
1. 1000 (19901994)
2. Zen (19932006)
3. Esteem (19942008)
4. Baleno (19992007)
5. Zen Estilo (20062009)
6. Versa (20012010)
7. Grand Vitara XL7 (20032007)

Manufacturing facilities
Maruti Suzuki has two manufacturing facilities in India. Both manufacturing facilities have a combined
production capacity of 1,250,000 vehicles annually.
Gurgaon Manufacturing Facility
The Gurgaon Manufacturing Facility has three fully integrated manufacturing plants and is spread
over 300 acres (1.2 km
2
). All three plants have an installed capacity of 350,000 vehicles annually but
productivity improvements have enabled it to manufacture 700,000 vehicles annually. The Gurgaon
facilities also manufacture 240,000 K-Series engines annually. The entire facility is equipped with
more than 150 robots, out of which 71 have been developed in-house. The Gurgaon Facilities
manufactures the 800, Alto, WagonR, Estilo,Omni, Gypsy, Ertiga and Eeco.
Manesar Manufacturing Facility
The Manesar Manufacturing Plant was inaugurated in February 2007 and is spread over 600 acres
(2.4 km
2
). 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 550,000 vehicles annually. The Manesar Plant
produces the A-star, Swift, Swift DZire , SX4 and Ritz.
Sales and service network
As of 31 March 2011 Maruti Suzuki has 933 dealerships across 666 towns and cities in
all states and union territories of India. It has 2,946 service stations (inclusive of dealer workshops
and Maruti Authorised Service Stations) in 1,395 towns and cities throughout India. It has 30 Express
Service Stations on 30 National Highways across 1,314 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.
"Maruti Finance marks the coming together of the biggest players in the car finance business. They are the
benchmarks in quality and efficiency. Combined with Maruti volumes and networked dealerships, this will enable
Maruti Finance to offer superior service and competitive rates in the marketplace".
Jagdish Khattar, Managing director of Maruti Udyog Limited in a press conference announcing the launch of
Maruti Finance on 7 January 2002
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.
Maruti TrueValue
Main Article: Maruti True Value
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 Maruti True Valueoutlets.
N2N Fleet Management
N2N is the short form of End to End Fleet Management and provides lease and fleet management
solution to corporates. Clients who have signed up of this service include Gas Authority of India
Ltd, DuPont, Reckitt Benckiser, Sona Steering, Doordarshan, Singer India, National Stock Exchange
and Transworld. This fleet management service include end-to-end solutions across the vehicle's life,
which includes Leasing, Maintenance, Convenience services and Remarketing.
Accessories
Many of the auto component companies other than Maruti Suzuki started to offer components and
accessories that were compatible. This caused a serious threat and loss of revenue to Maruti Suzuki.
Maruti Suzuki 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 sold through dealer outlets and authorized
service stations throughout India.
Maruti Driving School


A Maruti Driving School in Chennai
As part of its corporate social responsibility Maruti Suzuki 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 practical sessions. Many
international practices like road behaviour and attitudes are also taught in these schools. Before
driving actual vehicles participants are trained on simulators.
"We are very concerned about mounting deaths on Indian roads. These can be brought down if government,
industry and the voluntary sector work together in an integrated manner. But we felt that Maruti should first do
something in this regard and hence this initiative of Maruti Driving Schools."
Jagdish Khattar, at the launch ceremony of Maruti Driving School, Bangalore
Issues and problems
On 24 February 2010, Maruti Suzuki India announced recalling of 100,000 A-Star hatchbacks to fix a
fuel leakage problem. the company will replace the gaskets for all 100,000 A-Star cars.
Exports
Maruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on exports and it does
not operate in the domestic Indian market. The first commercial consignment of 480 cars were sent
to Hungary. By sending a consignment of 571 cars to the same country Maruti Suzuki crossed the
benchmark of 300,000 cars. Since its inception export was one of the aspects government was keen
to encourage. Every political party expected Maruti Suzuki to earn foreign currency. Angola, Benin,
Djibouti, Ethiopia, Europe, Kenya, Morocco, Nepal, Sri Lanka, Uganda, Chile, Guatemala, Costa Rica
and El Salvador are some of the markets served by Maruti Exports.
Awards and recognition
The Brand Trust Report published by Trust Research Advisory has ranked Maruti Suzuki in the
seventh position in 2011 and the sixth position in 2012 among the brands researched in India.
Bluebytes News, a news research agency, rated Maruti Suzuki as India's Most Reputed Car
Company in their Reputation Benchmark Study conducted for the Auto (Cars) Sector launched in April
2012.





The Vehicleades Group is spread across 4 states( New Delhi, Punjab,Himachal Pradesh and J&K)
annually.Vehicleades is among the Top 5 Maruti dealers in the country. It started operations in
1987, with an employee strength of 15,which now stands at 2000 plus.The success is attributed
to the loyal patronage of esteemed customers,supported by an excellent,dedicated
team.Commitment towards Customer Care has,time and time again, been appreciated by MSIL,in
the form of numerous awards.We say: 'Think Maruti,Think Vehicleades'.

The Outlets are as under:
1
Pathankot Vehicleades ,
Pathankot (1997)
2
J&K Vehicleades ,
Udhampur (2001)
3
Jamkash Vehicleades ,
Jammu (2002)
4
Jamkash Vehicleades ,
Srinagar (2003)
5
Kangra Vehicleades ,
Nagrota Baghwan(2006)
6
AAA Vehicleades Outlets,
New Delhi (2007)