31479198 maruthi suzuki ltd

COMPANY ANALYSIS REPORT

ON

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 1

Submitted By:

R. ANANDM.B.A. II Sem

A STUDY ON

COMPANY ANALYSIS OF MARUTHI UDYOG LTD

Submitted in partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

BY

R.ANAND

MBA II SEMESTER

R.No:

08931E0027

Under the esteemed guidance of

S.A.HASEENA SULTANA

Assistant Professor KOTTAM GROUP OF INSTITUTIONS Department of Management

SRI KOTTAM TULASI REDDY MEMORIAL ENGINEERING COLLEGE OF

KONDAIR ITIKYALA MANDAL MAHABOOB NAGAR DISTRICT-519125(AP)

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION


DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

SRI KOTTAM TULASI REDDY MEMORIAL

COLLEGE OF ENGINEERING

KONDAIR, ITIKYALA (MANDAL)

MAHABOOBNAGAR (DIST)-509125(A.P)

(Affiliated to J.N.T.U.H)

CERTIFICATE

This is to certify that the company analysis report entitled on “MARUTHI UDYOG

LTD” submitted by “Mr.R.ANAND” in partial fulfillment of the requirements for the award

of degree of MASTER OF BUSINESS ADMINISTRATION in Jawaharlal Nehru

Technological University –Hyd is a record of bonafide work carried out by her in this

department.

Internal guide Head of the department

CONTENTS


1. INTRODUCTION

2. METHODOLOGY

(a) OBJECTIVES OF THE STUDY

(b) PROFILE OF THE COMPANY

3. VISSION& MISSION

4. ANALYSIS & INTERPRETATION OF FUNCTIONAL AREAS

(a) HRM

(b) MARKETING MANAGEMENT

(C) FINANCIAL MANAGEMENT

5. FINDINGS AND CONCLUSION

6. BIBLIOGRAPHY


SNO TITLE PAGE NO

OBJECTIVES OF THE STUDY

The objectives of the study are:

To narrate the profile of the company

• Overview of Maruti and Suzuki

• Building understanding of the car market in India and various segments

• Understand MUL’s product range and positioning in each segment

• Understanding the basics in the automobile industry

• Overview of each Maruti model and the MUL ‘Advantage’

• Overview of the selling process and how to uncover needs of a customer to do need based selling

• Role of financing as a sales tool and the various financing options available

• Ensuring personal effectiveness

To study the HRM of the company

• To enhance my knowledge about Recruitment and Selection.

• To convert my theoretical knowledge into practical knowledge.

• To prepare myself as a H.R. person who can easily identify the training need through his experience which is very essential quality of a H.R. Person & for the organization as well.

• To enhance my knowledge about Training & Development

To analysis the Marketing Management of the Company

To study the financial position of the company


ACKNOWLEDGEMENT

The goal was fixed, moves were calculated and I moved with full of enthusiasm, vigour and keen interest. There was a time when it proved to be on up hill task, the goal seeming beyond my reach. But as work progressed my determination and will power grew stronger and completion of this work further confined my belief that,

“WHERE THERE IS A WILL THERE IS A WAY”.

It’s a sheer pleasure for me to state with candidly that this entire project is a heartily attempt

to reach maximum accuracy. I therefore take this opportunity top express my atmost

gratitude and indebtness to all who have contributed in some way

I am thankful to our guide, for her motivation, help and continuous support, which

made this company analysis happen. I am also indebted to her for her invaluable

suggestions, which made me to correct my faults and improve myself.

I express my deep sense of gratitude and thanks to B.PARIMALADEVI (Head of

Department) for her consistent support and guidance. I am also thankful to her for helping

me find and overcome many problems faced during the period.


I am very much obliged to “SRI KOTTAM TULASI REDDY MEMORIAL

COLLEGE” which has given me opportunity to carry out our project work in its premises. I

feel privileged to thank wholeheartedly our Principal, “NAYANATARA” (MA.ME).for

giving me this great opportunity.

DECLARATION

I here by declare mat this project entitled “A STUDY OF COMPANY

ANALYSIS REPORT ON BRITANNIA is a bonafied work carried out by me under the

guidance of S.A.HASEENA SULTANA, Assistant professor, Dept. of Management

SKTRMC, Kondair. I also declare that report is original and not submitted to any other

university of Institution for the award of any degree of Diploma.

Date:

Place:

Signature of the student.


OVERVIEW

Maruti Suzuki India Limited is a publicly listed automaker in India. It is a leading

four-wheeler automobile manufacturer in South Asia. Suzuki Motor Corporation of Japan

holds a majority stake in the company. 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

was renamed Maruti Suzuki India Limited. The company headquarter is in Gurgaon,

Haryana (near Delhi).

Profile

Maruti Suzuki is one of India's leading automobile manufacturers 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 Indian government held an initial public offering of 25% of the company in June 2003. As of May 10, 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has 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 has produced over 5 Million vehicles. Marutis are sold in India and various several other countries, depending upon export orders. Cars similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki and manufactured in Pakistan and other South Asian countries.

The company annually exports more than 50,000 cars 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 Alto tops the sales charts and Maruti Swift is the largest selling in A2 segment.

More than half the cars sold in India are Maruti cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is owned by the public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange in India.


http://en.wikipedia.org/wiki/Maruti_Alto

http://en.wikipedia.org/wiki/Maruti_800

http://en.wikipedia.org/wiki/South_Asia

http://en.wikipedia.org/wiki/Pakistan

http://en.wikipedia.org/wiki/Premier_Padmini

http://en.wikipedia.org/wiki/Hindustan_Ambassador

http://en.wikipedia.org/wiki/Hindustan_Ambassador

http://en.wikipedia.org/wiki/Kei_car

http://en.wikipedia.org/wiki/Suzuki_Alto

http://en.wikipedia.org/wiki/2007

http://en.wikipedia.org/wiki/May_10

http://en.wikipedia.org/wiki/Initial_public_offering

http://en.wikipedia.org/wiki/Japan

http://en.wikipedia.org/wiki/Suzuki

http://en.wikipedia.org/wiki/Government_of_India

http://en.wikipedia.org/wiki/Delhi

http://en.wikipedia.org/wiki/Haryana

http://en.wikipedia.org/wiki/Gurgaon


http://en.wikipedia.org/wiki/September_17


http://en.wikipedia.org/wiki/South_Asia

http://en.wikipedia.org/wiki/Manufacturing

http://en.wikipedia.org/wiki/Automobile

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Automaker

Maruti Suzuki was born as a government company, with Suzuki as a minor partner to make a people's car for middle class India. Over the years, the product range has widened, ownership has changed hands and the customer has evolved. What remains unchanged, then and now, is Maruti’s mission to motorise India.

Partner for the Joint venture

Pressure started mounting on Indira and Sanjay Gandhi to share the details of the progress on the Maruti Project. Since country's resources were made available by mother to her son's pet project. A delegation of Indian technocrats was assigned to hunt a collaborator for the project. Initial rounds of discussion were held with the giants of the automobile industry in Japan including Toyota, Nissan and Honda. Suzuki Motor Corporation was at that time a small player in the four wheeler automobile sector and had major share in the two wheeler segment. Suzuki's bid was considered negligible.

Industrial relations

For most of its history, Maruti Udyog 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.

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 stations and 30 Express Service Stations on 30 highways across India.

Service is a major revenue generator of the company. Most of the service stations are managed on franchise basis, where Maruti trains the local staff. Other automobile companies have not been able to match this benchmark set by Maruti. 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 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.



http://en.wikipedia.org/wiki/Honda

http://en.wikipedia.org/wiki/Nissan

http://en.wikipedia.org/wiki/Toyota

http://en.wikipedia.org/wiki/Japan

http://en.wikipedia.org/wiki/Automobile

http://en.wikipedia.org/wiki/Collaborator

Maruti Finance

To promote its bottom line growth, Maruti launched Maruti Finance in January 2002. Prior to the start of this service Maruti had started two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan.[15] Maruti 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[16] 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 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 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.

Exports

Maruti Suzuki has helped India emerge as the fourth largest exporter of automobiles in Asia. Shown here is Maruti Gypsy in Malta.

Maruti Exports Limited is the subsidiary of Maruti Udyog Limited 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 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 to earn foreign currency.


http://en.wikipedia.org/wiki/Hungary

http://en.wikipedia.org/wiki/Malta

http://en.wikipedia.org/wiki/Maruti_Gypsy

http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-15


OBJECTIVES OF THE STUDY

The objectives of the study are:

To narrate the profile of the company

• Overview of Maruti and Suzuki

• Building understanding of the car market in India and various segments

To study the HRM of the company

• To enhance my knowledge about Recruitment and Selection.

• To convert my theoretical knowledge into practical knowledge.

• To prepare myself as a H.R. person who can easily identify the training need through his experience which is very essential quality of a H.R. Person & for the organization as well.

• To enhance my knowledge about Training & Development

To analysis the Marketing Management of the Company

• Understand MUL’s product range and positioning in each segment

• Understanding the basics in the automobile industry

• Overview of each Maruti model and the MUL ‘Advantage’

• Overview of the selling process and how to uncover needs of a customer to do need based selling

To study the financial position of the company

• Role of financing as a sales tool and the various financing options available

• Ensuring Company effectiveness in implementing accounting standards

• Analyzing companies financial statements in ratios


PROFILE ( Snap Shot)


Year of Establishment February 1981

Vision"The Leader in The Indian Automobile Industry, Creating Customer Delight and Shareholder's Wealth; A pride of India."

Industry Automotive - Four Wheelers

Listings & its codes

BSE - Code: 532500NSE - Code: MARUTI Bloomberg: MUL@IN Reuters: MRTI.BO

Joint VentureWith Suzuki Motor Company, now Suzuki Motor Corporation, of Japan in October 1982.

Registered & Corporate Office

11th Floor, Jeevan Prakash25, Kasturba Gandhi MargNew Delhi - 110001, India Tel.: +(91)-(11)-23316831 (10 lines)Fax: +(91)-(11)-23318754, 23713575 Telex: 031-65029 MUL IN

Works

Palam Gurgaon Road Gurgaon -122015 Haryana, India Tel.: +(91)-(124)-2340341-5, 2341341-5

Website www.marutiudyog.com

http://www.marutiudyog.com/

http://www.surfindia.com/automobile/suzuki-motor-corporation.html

http://www.surfindia.com/automobile/suzuki-motor-corporation.html

http://www.surfindia.com/automobile/maruti-udyog-ltd.html


Type Public (BSE MARUTI, NSE MARUTI)

Founded 1981 [1]

Headquarters Gurgaon, Haryana, India

Key people Mr. Shinzo Nakanishi, Managing Director and CEO

Industry Automotive

Products Cars

Revenue ▲US$3.5 billion (2009)

Employees 6,903 [2]

Parent Suzuki

Website MarutiSuzuki.com

http://www.marutisuzuki.com/

http://en.wikipedia.org/wiki/Website


http://en.wikipedia.org/wiki/Holding_company


http://en.wikipedia.org/wiki/Employment

http://en.wikipedia.org/wiki/US$

http://en.wikipedia.org/wiki/Revenue

http://en.wikipedia.org/wiki/Cars

http://en.wikipedia.org/wiki/Product_(business)

http://en.wikipedia.org/wiki/Automotive

http://en.wikipedia.org/wiki/Industry

http://en.wikipedia.org/wiki/CEO

http://en.wikipedia.org/wiki/Managing_Director

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Haryana

http://en.wikipedia.org/wiki/Gurgaon



http://www.nse-india.com/marketinfo/equities/quotesearch.jsp?companyname=MARUTI&series=EQ&submit1=Go&flag=0

http://en.wikipedia.org/wiki/National_Stock_Exchange_of_India

http://www.bseindia.com/price_finder/stockreach.asp?scripcd=532500

http://en.wikipedia.org/wiki/Bombay_Stock_Exchange

http://en.wikipedia.org/wiki/Types_of_business_entity

MILE STONES



1981

• Maruti Udyog Ltd. was incorporated.

1982

• Steped into a JV with SMC of Japan.

1983

• Maruti 800, a 796 cc hatchback, India's first affordable car was produced.

1984

• Installed capacity reached 40,000 units. Omni, a 796 cc MUV was in production.

1985

• Launch of Maruti Gypsy (970cc, 4WD off-road vehicle).

1986

• Produced 100,000 vehicles (cumulative production).

1987

• Exported first lot of 500 cars to Hungary.

1988

• Installed capacity increased to 100,000 units.

1992

• SMC increases its stake to 50 per cent.

1994

• Produced the 1 millionth vehicle since the commencement of production.

1995

• Second plant launched, the installed capacity reached 200,000 units.

1996

• Launch of 24-hour emergency on-road vehicle service.

1997

• Produced the 2 millionth vehicle since the commencement of production.

1998

• Launch of website as part of CRM initiatives.

1999

• Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai as social initiatives.

2000

• IDTR (Institute of Driving Training and Research) launched jointly with Delhi government to promote safe driving habits.

2001

• Launch of customer information centers in Hyderabad, Bangalore, and Chennai.

2002

• SMC increases its stake to 54.2 per cent. • Launch of Maruti Finance with 10 finance companies in Mumbai.

• Start of Maruti True value in Mumbai. 2003

• Production of 4 millionth vehicle.

• Listed on BSE and NSE after a public issue oversubscribed 10 times. 2004

• Maruti closed the financial year 2003-04 with an annual sale of 472122 units, the highest ever since the company began operations 20 years ago.

2005

• The fiftieth lakh car rolls out in April, 2005.

2007

• Swift diesel launched.

2008

• World premier of concept A-star at 9th expo.

2009

• Ritz has launched.

http://www.surfindia.com/automobile/maruti-udyog-ltd.html

JOURNEY OF MARUTHI SUZUKI

Feb 1981 - The result, Maruti Suzuki India Limited (MSIL) was born in February

1981. Maruti Suzuki started as a government company, with Suzuki as a minor partner, to

make a people's car for middle class India. Over the years, the company's product range has

widened and ownership has changed hands. A subsidiary of Suzuki Motor Corporation

(SMC) of Japan, the Maruti Suzuki India Limited headquartered in Delhi, running with 3

vehicle assembly plants at Gurgaon and 1 vehicle assembly.

1983 Dec 14, 1983 - Maruti completes 25 years Maruti Suzuki recently completed 25 years. On December 14, 1983, the first Maruti 800, India's iconic car, rolled off the assembly line at the company's Gurgaon plant. Since then, Maruti Suzuki

has produced and sold around

2000 Nov 21, 2000 - Also, Suzuki is registered under trademark laws in various countries. They hybrid trademark 'Maruti Suzuki' has been used on products of the joint venture company in India. The Indore-based World Information Pages

had claimed that the word Maruti is name of an Indian god.

2002 Jan 25, 2002 - The rights issue will thus witness Suzuki becoming the largest shareholder in Maruti. In return for this, the Government will get a renunciation

premium for forgoing its portion of the rights in favour of Suzuki as well as control premium for giving up majority control in Maruti to the .

2003 May 31, 2003 - Osamu Suzuki, chairman & CEO, Suzuki Motor Corporation, said: "Maruti is controlled by Suzuki and will continue to be managed by

Suzuki in India." Responding to queries on the future control of Maruti, Suzuki said: "General Motors has a 20 per cent stake in Suzuki, Japan.

2004 May 2004 - Maruti Suzuki's all-conquering hatchback Swift has just added another feather to its crown by becoming the fastest car model to reach the 3-

lakh milestone. Launched in May 2005, the sporty car achieved this feat in only three years and eight months. On the occasion .

2005 June 26, 2005 - Maruti Suzuki's all-conquering hatchback Swift has just added another feather to its crown by becoming the fastest car model to reach the 3-lakh milestone. Launched in May 2005, the sporty car achieved this feat in only


http://www.google.co.in/search?hl=en&tbo=1&tbs=tl:1&q=swift&ei=mpVhSszmKsaAkQXf45X6Dw&sa=X&oi=toolbelt_timeline_result&resnum=6&ct=timeline-snippet&cd=1

http://www.google.co.in/search?q=history+of+maruthi+suzuki&hl=en&sa=X&tbo=1&tbs=tl:1,tll:2005,tlh:2005&ei=mpVhSszmKsaAkQXf45X6Dw&oi=toolbelt_timeline_result&resnum=6&ct=timeline-date

http://www.google.co.in/search?hl=en&tbo=1&tbs=tl:1&q=swift&ei=mpVhSszmKsaAkQXf45X6Dw&sa=X&oi=toolbelt_timeline_result&resnum=6&ct=timeline-snippet&cd=1


http://www.google.co.in/search?hl=en&tbo=1&tbs=tl:1&q=suzuki%20motor%20corporation&ei=mpVhSszmKsaAkQXf45X6Dw&sa=X&oi=toolbelt_timeline_result&resnum=5&ct=timeline-snippet&cd=2

http://www.google.co.in/search?hl=en&tbo=1&tbs=tl:1&q=osamu%20suzuki&ei=mpVhSszmKsaAkQXf45X6Dw&sa=X&oi=toolbelt_timeline_result&resnum=5&ct=timeline-snippet&cd=1




http://www.google.co.in/search?hl=en&tbo=1&tbs=tl:1&q=gurgaon&ei=mpVhSszmKsaAkQXf45X6Dw&sa=X&oi=toolbelt_timeline_result&resnum=2&ct=timeline-snippet&cd=1


http://www.google.co.in/search?hl=en&tbo=1&tbs=tl:1&q=india&ei=mpVhSszmKsaAkQXf45X6Dw&sa=X&oi=toolbelt_timeline_result&resnum=1&ct=timeline-snippet&cd=4

http://www.google.co.in/search?hl=en&tbo=1&tbs=tl:1&q=maruti&ei=mpVhSszmKsaAkQXf45X6Dw&sa=X&oi=toolbelt_timeline_result&resnum=1&ct=timeline-snippet&cd=3

2006

three years and eight months. On the occasion

Nov 13, 2006 - The former India bureaucrat is managing director of Maruti Suzuki, the Indian subsidiary of Suzuki Motor, the Japanese automaker's biggest operation outside of ... Such are the current competitive dynamics facing Maruti Suzuki in one of the fastest-growing auto markets in the world

2007 Dec 11, 2007 - India's rapidly expanding automobile market is key for Suzuki, its chairman has often said. Maruti Suzuki, in which Suzuki owns a 54.2% stake, is expanding its lineup and dealer network here. Suzuki also faces competition from global automakers like Toyota (nyse: TM - news - people ).

2008 Apr 25, 2008 - `The best year': Mr S. Nakanishi, Managing Director and CEO, Maruti Suzuki India Ltd, addressing a press conference in the Capital on ... Announcing the results, Mr Shinzo Nakanishi, the company's Managing Director, said, "The year 2007-08 was the best year in the history of Maruti."

2009 Jul 1, 2009 - MUMBAI, July 1 (Reuters) - Maruti Suzuki, India's top car maker, said its car sales rose 22.6 percent in June, up for the six month in a row, 'This month's export numbers are the highest ever monthly export volume in the company's history,' Maruti said in a statement on Wednesday. ...



http://www.google.co.in/search?hl=en&tbo=1&tbs=tl:1&q=shinzo%20nakanishi&ei=mpVhSszmKsaAkQXf45X6Dw&sa=X&oi=toolbelt_timeline_result&resnum=9&ct=timeline-snippet&cd=2

http://www.google.co.in/search?hl=en&tbo=1&tbs=tl:1&q=maruti%20suzuki%20india%20ltd&ei=mpVhSszmKsaAkQXf45X6Dw&sa=X&oi=toolbelt_timeline_result&resnum=9&ct=timeline-snippet&cd=1



http://www.google.co.in/search?hl=en&tbo=1&tbs=tl:1&q=managing%20director&ei=mpVhSszmKsaAkQXf45X6Dw&sa=X&oi=toolbelt_timeline_result&resnum=7&ct=timeline-snippet&cd=1


VISION & VALUES

VISION VALUES

“The leader in the Indian Automobile Industry, creating customer delight and shareholders’ wealth A pride of

India.”

• CUSTOMER OBSESSION• FAST, FLEXIBLE & FAST MOVER• INNOVATION AND CREATIVITY• NETWORKING AND PARTNERSHIP• OPENNESS AND LEARNING

BOARD OF DIRECTORS

Name Designation Name Designation

R C Bhargava Chairman / Chair Person Shinzo NakanishiManaging Director & CEO

Shuji Oishi Director Tsuneo Ohashi DirectorKeilchi Asai Director Osamu Suzuki DirectorKenichi Ayukawa Director Amal Ganguli Director

Pallavi Shroff DirectorManvinder Singh Banga

Director

Davinder Singh Brar

Director Hirofumi Nagao Director


HUMAN RESOURCE MANAGEMENT:

Personnel management is that part of management process which is primarily concerned with the human constituents of an organization.

Objectives:

• To help the organization reach its goals.

• To employ the skills and abilities of the workforce efficiently.

• To provide the organization with well-trained and well-motivated employees.

• To increase to the fullest the employee’s job satisfaction and self-actualization.

• To develop and maintain a quality of work life.

• To communicate HR policies to all employees.

• To be Ethically and Socially Responsive to the needs of society.

Importance:

• Social significance: proper management of personnel’s, enhances their dignity by satisfying their social needs.


• Professional significance: By providing healthy working environment, it promotes team work in the employees.

• Significance for Individual Enterprise: It can help the organization in accomplishing.

HR VISION :

Lead and Facilitate continuous Change towards organisational Excellence ; create a learning And vibrant organisation with High sense of pride amongst its Members

CULTURE BUILDING INITIATIVES

SINCE INCEPTION:

Japanese Spirit Management philosophy of Team

Common uniform

Open office

Common Canteen

FOCUS OF EFFECTIVE MANAGENENT PROCESS

Top Driven HR – MD is also Director HR


HR’s role of a facilitator

Line managers as HR Managers

Year of the Customer –

HR INTERNAL CUSTOMER FOCUS

Focus on Internal & External Customer

HR INITIATIVES

Prepare MUL Strategic Business Plan-2000-2003; To achieve the Vision & Goal

Improve the performance Appraisal system - it’s process, skill & usage

Introduce a Potential Appraisal System

Improvements in internal & external Training & it’s effective utilisation. Training

need identification.

Systematic career planning ; Job Rotation ; Empowerment; Job enrichment

Periodic communication meeting at various level; Roll out of Vision

Raise cost consciousness for cost control and reduction

Exposure on Brand Strategy to all non- marketing staff

Retention of Talent.


INDUCTION SUCCESSION:

Transparent Recruitment & Selection process

Recruitment on an All India Basis – no sectoral or

Region specific

Recruitment of Best available Talent in the Country

ENGINEERS – CAMPUS - IITS/RECS/RORKEE/HBTI

ALL-INDIA TEST

MBAs – IIMs/XLRI

CAs - Rank Holders

Technicians - ITI’s diploma holders after All

India Exam & Apprenticeship In MUL

Lateral Entry for Experienced Professionals

SUCCESSION PLANNING

POTENTIAL & PERFORMANCE

VACANCY – BASED


Open Office – Easy accessibility, Speedy

Communication and decision making

Morning Meetings

Morning Exercises

Management Committee Meetings – every

Tuesday

Single unaffiliated Union

Excellent Industrial Relations scenario – no

loss of mandays due to strike/lockout etc. in

past 5 yrs.

Maruti Udyog Sahyog Samiti – a forum for

Non-Unionised Staff

Delayered Organisation Structure

Workers(Techn. / Asst.), Supervisors,

Executives, Managers


INDUCTION PROGRAMME

Objective:

The objective of this program is to facilitate smooth induction of the new DSEs into

their place of work i.e. Maruti dealerships. This program attempts to orient the new DSEs on

a few important parameters, which are listed below:

Overview of Maruti and Suzuki:

Building understanding of the car market in India and various segments

Understand MUL’s product range and positioning in each segment

Understanding the basics in the automobile industry

Overview of each Maruti model and the MUL ‘Advantage’

Overview of the selling process and how to uncover needs of a customer to do need based selling

Role of financing as a sales tool and the various financing options available

Ensuring personal effectiveness

Understand the attributes of a good DSE


MEANING OF RECRUITMENT

It is the process of searching the potential candidate and offers him or her the job

It is positive in nature in the Indian context. Process of identifying and hiring best-qualified candidate.

RECRUITMENT PROCESS OF MARUTI UDYOG LTD:

The recruiting procedure at a Maruti dealership is as follows:

FOR A PARTICULAR DEALERSHIP

The dealership should release an advertisement.

Depending on availability of infrastructure

Interview of shortlisted/ qualified personnel


MEANING OF SELECTION:

It is the process of searching the potential candidate. It is negative in nature in the Indian context. But it is positive in the US context.

Steps in Selection Process of Maruti udyog ltd:

Selection process consists of a series of steps, at each stage, facts may come light

which may lead to the rejection of the applicant. It is a series of successive hurdles or

barriers which an applicant must cross. These hurdles or screens are designed to

eliminate an unqualified candidate at any point in the selection process There is no

standards selection procedure to be used in all organizations or for all jobs.

The complexity of selection procedures increases with the level and responsibility of

the position to be filled.

Preliminary Interview (screening applications)

Application Form

Selection Test

Employment Interview


Medical Examination

Reference Checks

Final Approval

Employment.

Induction.

Follow – up (Evaluation)

IMPORTANCE OF TRAINING

Training and Development helps in optimizing the utilization of human resource that

further helps the employee to achieve the organizational goals as well as their individual

goals.

Annual Training Plan - All Levels

Training customised to meet Organisational Objectives

Topics selected based on Vision, Values & Departmental

Feedback of Company-wide Managers

Competency Mapping to identify Individual Training Needs

Technical Training on latest Technologies abroad at SMC, Japan


STRONG FOCUS ON TRAINING INITIATIVES:

Build a Learning Organisation

Continuous Value Additions to Professional Skills

Customised Training

Training to the personnel of Business Partners

OVERSEAS TRAINING :

Training held in co-ordination with SMC, Japan and

AOTS (Assoc. for Overseas Tech. Scholarship)

(covered 1600 employees under the various schemes)

6 months SMC Training for Technicians

OJT in SMC, Japan (2 batches/yr of 50 each)

9 months Javada Training for Press, Tool & Die

Specialists - Design & Maintenance

AOTS Managerial Training (4-10weeks) for Manager &above - Managerial Best Practices

AOTS Technical Training (3.5 to 6 months) for

Supervisors & above - Technological Knowhow


R & D Training (2 yrs.) - Research on new Technologies

APPRAISAL REWARD

Appraisal:

A systematic, periodic and so far as humanly possible, an impartial rating of an employee’s excellence in matters pertaining to his present job and to his potentialities for a better job.

New Appraisal System based on KRAs &Targets

Review of Targets at regular Intervals

People Development an important KRA

REWARD

Promotions based on Performance

Productivity & Profit-linked Incentive Schemes

Training including Long-term SMC Japan Trg.

Highest paid workforce in the Industry, if not the Country

LEADERSHIP

Vision, Value & Team Building Workshops for Top Management

CFT (Cross Functional Teams) of Managers for Major Thrust Areas

Managers sent to Joint Ventures to upgrade their practices to MUL standards

CAREER DESIGN

It is defined as the process of deciding on the content of a job in terms of its duties and responsibilities on the methods to be used in carrying out the job, in terms of techniques, systems and procedures and on the relationships that should exist between the job holder and his superiors, subordinates and colleagues

Performance & Potential based Appraisals

Fast Track Option for High-performers

Promotions after Managers Vacancy based

Interviews for promotions above Managers


SELECTION OF SUPERVISORS:

Performance / Attendance / Discipline record

Written Test & Interview

Job Rotation - including Inter-functional

OUTSOURCING HR:

Part of our Long-term Strategic Plan

Currently Trainers hired from outside

RETENTION EMPLOYEE WELFARE :

Employee retention is a process in which the employees are encouraged to remain

with the organization for the maximum period of time or until the completion of the project.

Employee retention is beneficial for the organization as well as the employee.

EMPLOYEE WELFARE:

Residential Colonies for Employees – Chakkarpur & Bhondsi

Hospitalisation Reimbursement – on actuals without Ceiling

Vehicle Loans

Household Equipment Loans

House Building Advance

Annual Advance


MUL PF Trust – for better Mgt., Service & speedy redress

Proposed MUL Pension Scheme

Learning Opportunity - Benchmark in Auto Technology

Professional Value addition through Training

Opportunity for foreign training at SMC, Japan

Job Rotation & Job enrichment

EMPLOYEE ENGAGEMENT -ESOPs

Maruti Udyog Ltd. Employees Mutual Benefit Fund Scheme Managed by a 10-

member Trust Fixed Equity of 0.26% Lock-in period of 3 years Transferable Internally

SUGGESTION SCHEME QUALITY CIRCLES:

For better quality and productivity

Through involvement of all employees and teamwork

During the year 1999-2000 :-

Suggestions Implemented - 52,054


Cost Saving (in crores) - Rs. 131.69 Crores

Number of QC Groups - 510

QC Meetings held - 7189

Target for SS & QC for 2000-01 :

Suggestions Implemented - Prod. & VI - 1implmented/employee/month

Other areas - 8.4 implemented/employee/month

Cost Saving Rs. 165 crores (25%)increase for the Company

QC Meeting - 13 meetings/QC Gp./ Year

Target - 34 marks / suggestion

Company-wide QC Groups (8-15 members per group)

Monthly QC Meetings on the First Wednesday each Month

Company-wide QC Competitions - Best Team sent to SMC

MD’s lunch with Best QC Team & Best Suggestion Winner

SUGGESTIONS : MONETARY REWARD:

Criteria - Idea

Efforts

Result : Cost reduction / Q Improvement / Productivity

Improvement

FUTURE CHALLENGES

Realigning organisation culture based on new vision & values

Objective performance management & development system


Transparent job rotation & job enrichment

Performance linked reward and recognition system

Career planning & promotion policy

Revised recruitment policy

Competency mapping

Strong fucus on training initiatives

Build a learnng organisation

Continuous value addition to professional skill

Customised training

Training to the personnel of business partners

Internal Communication

Union alignment

Employee involvment & participation

CODE OF BUSINESS CONDUCT AND ETHICS:

As a responsible corporate citizen, Maruti Suzuki India Limited

(‘Maruti’ or “the Company”) has alwaysbelieved in following highest

standards of Corporate Governance. Being a listed Company, every act of

the Company, its Board Members and its employees is the focus of public

attention and accordingly, there is a need to reinforce Maruti’s

commitment towards maintaining highest standards of Corporate

Governance. This Code of Business Conduct and Ethics (“Code of


Conduct” or “Code”) helps ensure compliance with our standards of

business conduct & ethics and also with regulatory requirements. All

Senior Management Personnel are expected to read and understand this

Code of Business Conduct and Ethics,

Uphold these standards in day-to-day activities and also comply

with all applicable standards, policies and procedures of the company.

This policy should be read in conjunction with applicable regulations &

existing policies & procedures of the Company. You can also contact the

Secretarial & Legal Department if you have any questions or

clarifications.

APPLICABILITY :

This Code of Conduct is applicable to all Senior Management

Personnel which would include the directors of the Company, the top

management personnel (i.e., executive directors & advisors at executive

director level) & all functional heads (including management personnel

with direct functional reporting to directors & top management

personnel). All Senior Management Personnel are expected to comply

with the letter and spirit of this Code. The Senior Management Personnel

should continue to comply with otherapplicable laws & regulations and

the relevant policies, rules and procedures of the Company.The Code

comes into immediate effect.

INTERPRETATION OF THE CODE :

In this Code the term “Relative” shall have the same meaning as

defined in Section 6 of the Companies Act, 1956. In this Code, words

importing the masculine shall include feminine and words importing

singular shall include the plural or vice versa. Any question or

interpretation under this Code of BusinessConduct and Ethics will be

considered and dealt with by the Board or any person authorized by the

Board on their behalf.


COMPLIANCE WITH APPLICABLE LAWS & REGULATIONS :

Senior Management Personnel must comply and where applicable,

oversee compliance by employees with all the laws, rules and regulations

applicable to the Company and its employees. Each Senior Management

Personnel must acquire appropriate knowledge of the requirements

relating to his duties sufficient to enable him to recognize potential non

compliance issues and to know when to seek advice from the Legal

Department on specific Company policies and procedures. No payment or

transaction should be made or undertaken, by a Senior Management

Personnel or authorized or instructed to be made or undertaken by any

other person or the Company if the consequence of that transaction or

payment would be the violation of any law in force.

HONESTY, INTEGRITY & ETHICAL CONDUCT :

Senior Management Personnel shall act in accordance with the

highest standards of integrity, honesty, fairness and ethical conduct while

working for the Company as well when representing the Company.

Honest conduct means conduct that is free from fraud or deception.

Integrity & ethical conduct includes ethical handling of actual or apparent

conflicts of interest between personal and professional relationships.


MARKETING MANAGEMENT:

Marketing is the creation and delivery of standard of living to the society.

Objectives:

The various objectives of marketing include the following :.

Intelligent and capable application of modern marketing policies.

To develop the marketing field.

To develop guiding policies and their implementation for a good result.

To suggest solution by studying the problems relating to marketing.

To find source for further information concerning the market Problems.

To revive existing marketing function, if shortcoming are found.


To take appropriate action in the course of actions.

Importance :

Importance of marketing to the society.

Importance of marketing to the firm.

Importance of marketing in Developed Economy.

Importance of marketing in underdeveloped or Developing Economy.

Importance of marketing in a Seller’s or Buyer’s market.

PRODUCTS OF MARUTHI SUZUKI :


Available Car Models Starting Price(Ex-showroom, Mumbai)

Maruti Suzuki 800 Rs. 1,97,214

•

Maruti Suzuki Omni Rs. 2,03,565

•

Maruti Suzuki Alto Rs. 2,36,843

•

Maruti Suzuki Zen Estilo

Rs. 3,13,085

•

Maruti Suzuki Wagon R Rs. 3,22,157

•

Maruti Suzuki Wagon R Duo Rs. 3,39,532

•


http://www.carwale.com/research/cars/maruti_suzuki/wagon_r_duo/


http://www.carwale.com/research/cars/maruti_suzuki/wagon_r/

http://www.carwale.com/research/cars/maruti_suzuki/zen_estilo/

http://www.carwale.com/research/cars/maruti_suzuki/alto/

http://www.carwale.com/research/cars/maruti_suzuki/omni/

http://www.carwale.com/research/cars/maruti_suzuki/800/

http://www.carwale.com/research/cars/maruti_suzuki/omni/

http://www.carwale.com/research/cars/maruti_suzuki/alto/

http://www.carwale.com/research/cars/maruti_suzuki/wagon_r/


Maruti Suzuki A-Star Rs. 3,58,942

•

Maruti Suzuki Versa Rs. 3,86,953

•

Maruti Suzuki Ritz Rs. 4,05,872

•

Maruti Suzuki Swift Rs. 4,22,859

•

Maruti Suzuki Swift Dzire Rs. 4,82,300

•

Maruti Suzuki Gypsy Rs. 5,23,325

•

Maruti Suzuki SX4 Rs. 6,81,091

•

Maruti Suzuki Grand Vitara Rs. 16,92,000

•


http://www.carwale.com/research/cars/maruti_suzuki/grand_vitara/

http://www.carwale.com/research/cars/maruti_suzuki/sx4/

http://www.carwale.com/research/cars/maruti_suzuki/gypsy/

http://www.carwale.com/research/cars/maruti_suzuki/swift_dzire/

http://www.carwale.com/research/cars/maruti_suzuki/swift/

http://www.carwale.com/research/cars/maruti_suzuki/ritz/

http://www.carwale.com/research/cars/maruti_suzuki/versa/

http://www.carwale.com/research/cars/maruti_suzuki/a_star/

http://www.carwale.com/research/cars/maruti_suzuki/a_star/

http://www.carwale.com/research/cars/maruti_suzuki/versa/

http://www.carwale.com/research/cars/maruti_suzuki/ritz/

http://www.carwale.com/research/cars/maruti_suzuki/swift/

http://www.carwale.com/research/cars/maruti_suzuki/swift_dzire/

http://www.carwale.com/research/cars/maruti_suzuki/gypsy/

http://www.carwale.com/research/cars/maruti_suzuki/sx4/

http://www.carwale.com/research/cars/maruti_suzuki/grand_vitara/

4P’s OF MARUTI SUZUKI SWIFT:


PRODUCT

PRICE

PLACE

PROMOTION

PRODUCT:

The all-new Maruti Suzuki Swift is fully loaded with a range of exciting new features. It's a perfect complement to your evolved tastes and lifestyle. And the best way to take your driving pleasure to a brand-new high.European Styling. Japanese Engineering. Dream-Like Handling.

The new Swift is a generation different from Suzuki design. Styled with a clear sense of muscularity, its one-and-a-half box, aggressive form makes for a look of stability, a sense that it is packed with energy and ready to deliver a dynamic drive.Its solid look is complemented by an equally rooted road presence and class-defining ride quality. New chassis systems allow for the front suspension lower arms, steering, gearbox and rear engine mounting to be attached to a suspension frame. You get lower road noise, and a greater feeling of stability as you sail over our roads with feather-touch ease.

There are three variants of Maruti Suzuki Swift :

• Swift LXi

• Swift VXi

• Swift ZXi

3 assist grips, 3 spoke urethane steering wheel, antenna, cabin light (3 position), console box (lower), cup holders (front 2, rear1), front door trim pockets, green tinted glass window, halogen headlamps, headlamp leveling device, heater and manual Air conditioning, OVRM (internally adjusted), rear fog lamps, wind screen wiper 2 speed plus 1 speed intermittent, tailgate opener key type, trip meter (digital display), sun visors (both sides), brake assist , child lock (rear door), high mounted stop lamp, power steering, rear seat belts etc. are the features available in this model.

Swift VXi:

Apart from the features found in other model, striking features of this model are black colored A & B pillars, 12v accessory socket in center console, day and night rear view mirror, door ajar warming lamp, driver's seatbelt warning lamp, tachometer, driver's seat belt


warning lamp, vanity mirrors (sun visor co-driver side), rear seat head restraints, fabric accented door trims, central door locking (4 door), front and rear electronic windows, front fog lamps, light off/ key reminder, manual air-conditioning, key not removed warning buzzer, etc.

Swift ZXi

Special features that have made this model more market friendly are rear window demister, rear parcel shelf, rear window wiper, room lamp and luggage room, keyless entry,dual front airbags, colored outside door mirror cowls, colored outside door handles, 12v accessory socket in luggage room, driver seat height adjuster, central door locking (5 doors), seat belts 3-point ELR with shoulder adjusters, seat belts front 3-point ELR with pretensioning,tailgate opener electromagnetic type etc.

PRICE :

Maruti is expected to take Hyundai heads on with the pricing of their upcoming Maruti Suzuki Swift car. After launching cars for the masses since so many years, India’s largest automobile manufacturer is now targeting the premium segment with their latest model from the Suzuki’s stable. The analysts predict the pricing of this premiumhatchback to start from Rs. 4 lakh.This price range would practically rip apart Hyundai’s offering in Getz, which is priced at a much higher tag of Rs. 4.5 lakh. Both the companies are known for their value based offerings and Maruti with their extensive service network and brand reputation for making reliable cars should get the customer’s nod over their competition.The official pricing however is still not out. However, the company is said to be studying the prospects of launching the base model at the 4-lakh price tag. There is another advantage in doing so considering in the capital city of Delhi NCR road tax on the sub 4 lakh priced cars is comparatively lower at 2%. Cars at a price higher than 4 lakh have to pay a 4% road tax.Delhi NCR is one of the major targeted markets and it might get the benefit of this policy. And if they indeed do take the chance of pricing Suzuki Swift at a considerable lower price than Hyundai Getz, they would quite likely force the competition to rethink their strategy.

PROMOTION:

When Maruti Udyog launched the Swift in May last year, the automotive industry was agog with expectation that the car had the makings of a real winner. Three versions were launched with the base variant carrying a retail tag of Rs 3.85 lakh, ex-showroom, New COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 44

Delhi, and this aggressive pricing only reinforced this feeling. A year later, the company says the Swift is now the most-sold car in the first year of any car in the history of the Indian automobile industry, having totted up sales of 61,200 units.

This is higher than what Maruti had initially planned to sell. The car recorded an estimated 4,000 bookings at the time of its launch, and the initial output of 200 units a day on a two-shift basis, wasn’t enough to cope with demand.

In October, the company increased capacity for the Swift which helped cut down on the waiting time from an estimated three months.

PLACE :

The car manufacturing company, called Maruti Suzuki Automobiles India Limited, is a joint venture between Maruti Udyog and Suzuki

Motor Corporation holding a 70 per cent and 30 per cent stake respectively. The Rs1,524.2 crore plant has a capacity to roll out 1 lakh cars per year with a capacity to scale up to 2.5 lakh units per annum. The car manufacturing plant will begin commercial production by the end of 2006.The engine and the transmission plant has owned by Suzuki Powertrain India Limited in which Suzuki Motor Corporation would hold 51 per cent stake and Maruti Udyog holding the balance. The ultimate total plant capacity is three lakh diesel engines. However, the initial production is 1 lakh diesel engines, 20,000 petrol engines and 1.4 lakh transmission assemblies.

SALES PERFORMANCE

:


INTERPRETATION :

The sales volumes of Maruthi Suzuki had increased randomly from 2001-2008, in 2001 it was 352,415 crores it increased to 764,842 in the year 2008.this report says that Maruthi Suzuki has out standng it’s performance in producing and marketing its products.

MARKET SHARE :


INTERPRETATION:

Market Share:

Currently Suzuki holds 54.2% stake of Marti, the balance being held by various QIBs, PCBs

Public. On BSE, Marti has the highest market capitalization in the auto sector. We are the largest car company in the country. So far, we have produced more than

6.6 million cars. We are Suzuki's largest manufacturing facility, outside Japan offering 11 models

in over 150 variants. The turnover last year was USD 3.37 Bn employing more than 6700 employees. The high localization of parts within India is one of our distinct strengths. Where the company has 3 plants in Gurgaon facility, 4th plant was added with

the capacity of 100000 Cars Hundred thousand at Manesar in 2006-07.

The market share of Maruthi Suzuki had decreased gradually from the year 2001-

2008 due to its rigid competitors HYUNDAI and TATA motors etc.

BRAND HIERARCHY OF THE COMPANY:


The Product Line:

The Indian passenger car market was divided into various segments and sub-

segments on the basis of price, size (i.e. length of the model and its weight) and other factors

(including engine capacity). MUL had a presence in all the segments and sub-segments.

COMPETITORS :


Major Competitors:

Since 1985, Maruti Udyog Limited (MUL) has been the market leader in the passenger car industry in India. Its flagship product - M800 had the distinction of being the


M&M PAL HYUNDAI

FORD MISTSUBUSHI TOYOTA

HIND MOTORS GM TATA MOTORS

largest selling car model in India since its launch in December 1983.Positioned as people's car, M800 ruled the Indian passenger car market and remained unchallenged ever since it occupied the top slot, five months after its introduction In March 2003, MUL sold 20,687 units of M800, the highest ever sales by any single model in a month. It was also the highest sales since M800 debuted, surpassing its previous monthly high of 18,735 units in August 1999

For the first few months of 2004, M800 performed well, selling 15,301 units in January, 13,518 units in February and 15,540 in March. But gradually Alto, another MUL product, began eating into M800's share. Alto reported In April, its sales increased to 9,350 units and in May 2004, Alto took over M800's position as the largest selling car with sale of 10,373 units, slightly over M800's sales of 10,016 units.

Analysts felt that Alto had taken the top spot because of its price reduction in September 2003 by Rs. 23,000 followed by the launch of the non-AC Alto for Rs. 0.23 mn in the first week of April 2004. On reducing the gap between its bread and butter model M800 and its compact car Alto, MUL said it had "long term" plans for M800.

Commenting on Alto's pricing strategy, Jagdish AKhattar (Khattar), managing director of MUL, said, "The new price positioning of the Alto would cannibalize existing A1 segment product the M800 which is also considered an old model. But, the cannibalization will remain within the Maruti family and the bigger numbers will help Maruti depreciate Alto faster. Net M800 sales may be less but we would be pushing more Alto and the more we sell the Alto the faster it will depreciate."

Though industry analysts said this move would boost MUL's profits, they also expressed their views that MUL's long-term plan might be to discontinue M800 and replace the entry segment with Alto. However, Khattar clarified that MUL's pricing strategy was not meant to replace M800 with Alto. He said, "Now, we have two cars in entry-level. Maruti 800 is still a dream of Indians, how can I replace it?"

Current and Future Market Strategies:


Design small cars suitable for the Indian conditions as a strategy to beat the stiff competition with development capabilities and internal resources to finance its expansion, thereby cushioning itself Company’s plan to stay away from the ultra low-cost segment.Maruti Suzuki is looking to make India an exclusive base to manufacture small cars

The Pricing Strategy :

Due to the fierce competition in the Indian passenger car industry, price emerged as an important factor affecting the purchasing decisions of customers. Since it had been in the industry for more than two decades, and as a market leader, MUL adopted aggressive pricing strategies.

The company had products at various price points (Refer Exhibit IV for a comprehensive list of MUL's products, their variants and prices). In the early 2000s, when the passenger car industry was witnessing stagnation, MUL slashed the prices of its various models, to revive the industry.

KEY STRATEGIC INITIATIVES BY MARUTI

Turnaround Strategies Maruti Followed :

Maruti was the undisputed leader in the automobile utility-car segment sector, controlling about 84% of the market till 1998. With increasing competition from local players like Telco, Hindustan Motors, Mahindra & Mahindra and foreign players like Daewoo, PAL, Toyota, Ford, Mitsubishi, GM, the whole auto industry structure in India has changed in the last seven years and resulted in the declining profits and market share for Maruti. At the same time the Indian government permitted foreign car producers to invest in the automobile sector and hold majority stakes.

OFFERING ONE STOP SHOP TO CUSTOMERS:

Maruti has successfully developed different revenue streams without making huge investments in the form of MDS, N2N, Maruti Insurance and Maruti Finance. These help them in making the customer experience hassle free and helps building customer satisfaction.

Maruti Finance: In a market where more than 80% of cars are financed, Maruti has strategically entered into this and has successfully created a revenue stream for Maruti. This has been found to be a major driver in converting a Maruti car sale in certain cases. Finance is one of the major decision drivers in car purchase. Maruti has tied up with 8 finance companies to form a consortium. This consortium comprises Citicorp Maruti, Maruti Countrywide, ICICI Bank, HDFC Bank, Kotak Mahindra, Sundaram Finance, Bank of Punjab and IndusInd Bank Ltd.( erstwhile-Ashok Leyland Finance).

Maruti Insurance :


Insurance being a major concern of car owners. Maruti has brought all car insurance needs under one roof. Maruti has tied up with National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram to bring this service for its customers. From identifying the most suitable car coverage to virtually hassle-free claim assistance it's your dealer who takes care of everything. Maruti Insurance is a hassle-free way for customers to have their cars repaired and claims processed at any Maruti dealer workshop in India.

TRUE VALUE :

Another significant development is MUL's entry into the used car market in 2001, allowing customers to bring their vehicle to a 'Maruti True Value' outlet and exchange it for a new car, by paying the difference. They are offered loyalty discounts in return.This helps them retain the customer. With Maruti True Value customer has a trusted name to entrust in a highly unorganized market and where cheating is rampant and the biggest concern in biggest driver of sale is trust.

REPOSITIONING OF MARUTI PRODUCTS :

Whenever a brand has grown old or its sales start dipping Maruti makes some facelifts in the models. Other changes have been made from time to time based on market responses or consumer feedbacks or the competitor moves. Here are the certain changes observed in different models of Maruti.

CUSTOMER CENTRIC APPROACH:

Maruti’s customer centricity is very much exemplified by the five times consecutive wins at J D Power CSI Awards. Focus on customer satisfaction is what Maruti lives with. Maruti has successfully shed off the public- sector laid back attitude image and has inculcated the customer-friendly approach in its organization culture. The customer centric attitude is imbibed in its employees. Maruti dealers and employees are answerable to even a single customer complain. There are instances of cancellation of dealerships based on customer feedback.

KEY SUCCESS FACTORS :

The Quality Advantage :

Maruti Suzuki owners experience fewer problems with their vehicles than any other car manufacturer in India (J.D. Power IQS Study 2004). The Alto was chosen No.1 in the premium compact car segment and the Esteem in the entry level mid - size car segment across 9 parameters.


A Buying Experience Like No Other:

Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to guide MUL customers in finding the right car.

Quality Service Across 1036 Cities :

In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced, highest service quality, best in-service experience, best service delivery, best service advisor experience, most user-friendly service and best service initiation experience.

One Stop Shop :

At Maruti Suzuki, customers will find all car related needs met under one roof. Whether it is easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set to provide a single-window solution for all car related needs.

The Low Cost Maintenance Advantage :

The acquisition cost is unfortunately not the only cost customers face when buying a car. Although a car may be affordable to buy, it may not necessarily be affordable to maintain, as some of its regularly used spare parts may be priced quite steeply. Not so in the case of a Maruti Suzuki. It is in the economy segment that the affordability of spares is most competitive, and it is here where Maruti Suzuki shines.

Lowest Cost of Ownership :

The highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto and Omni.

Technological Advantage :

It has introduced the superior 16 * 4 Hypertech engines across the entire Maruti Suzuki range. This new technology harnesses the power of a brainy 16-bit computer to a fuel-efficient 4-valve engine to create optimum engine delivery. This means every Maruti Suzuki owner gets the ideal combination of power and performance from his car.

SWOT ANALYSIS OF MARUTI UDYOGCOMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 53

STRENGTHS :

Established distribution and after-sales networks

Understanding of the Indian market and ability to liaison with the government:-

Ability to design products with differentiating features:-

Brand Image

Experience and Know-how in technology:-

WEAKNESSES :

Lack of experience with the foreign market:-

Inexperience with foreign workforce

Heavy Import tariffs

OPPORTUNITY:

Increased purchasing power of Indian middleclass category

Govt. subsidies

Tax benefits

Foreign collaboration

THREATS :

Threats from Chinese manufacturers

Indian as well as foreign competitors


FINANCIAL MANAGEMENT

DEFINITION :

Financial management is concerned with the efficient use of an important economic resource namely Capital Funds.

Objectives:

The main objective of a business is to maximize the owner’s economy welfare. This objective can be achieved by:

Profit/EPS maximization Wealth maximization.

Profit /EPS maximization: Profit /EPS earning is the main aim of every economic activity. A business being an economic institution must earn profit to cover its costs and provide funds for growth.

Profit / EPS is the test of economic efficiency.

Efficient allocation of fund.

Social welfare.

Internal resources for expansion.

Reduction in risk and uncertainty.

More competitive.

Desire for controls.

Basis of decision-making.

Wealth maximization: this is also known as value maximization or net present worth maximization approach, it takes into consideration the time value of money.

IMPORTANCE:

The following are the points to highlight the importance of finance.

Finance for business promotion.

Finance management for optimum use firms.


Use for co-operation in business activities.

Useful in decision making.

Determinant of business success.

Measurement of business.

Basis of planning, co-ordination and control.

Useful to shareholders and investors.

BALANCE SHEET

DEFINITION : A Balance sheet may be described as a statement of the financial position of a concern at a given data. The financial position of a concern is revealed by its assets on a given data and its liabilities on that date. Excess of assets over liabilities represents Capital, such excess may be taken as an indicator of the financial soundness of a concern.

Interpretation : The balance sheet amount has increased gradually from the year 2004-


Balance sheet Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04Sources of fundsOwner's fund Equity share capital 144.50 144.50 144.50 144.50 144.50Share application money - - - - -Preference share capital - - - - -Reserves & surplus 8,270.90 6,709.40 5,308.10 4,234.30 3,446.70Loan fundsSecured loans 0.10 63.50 71.70 307.60 311.90Unsecured loans 900.10 567.30 - - -Total 9,315.60 7,484.70 5,524.30 4,686.40 3,903.10Uses of funds Fixed assets Gross block 7,285.30 6,146.80 4,954.60 5,053.10 4,566.70Less : revaluation reserve - - - - -Less : accumulated depreciation 3,988.80 3,487.10 3,259.40 3,179.40 2,735.90Net block 3,296.50 2,659.70 1,695.20 1,873.70 1,830.80Capital work-in-progress 736.30 238.90 92.00 42.10 74.90Investments 5,180.70 3,409.20 2,051.20 1,516.60 1,677.30Net current assets Current assets, loans & advances 3,190.50 3,956.00 3,870.70 3,097.40 2,144.40Less : current liabilities & provisions

3,088.40 2,779.10 2,184.80 1,843.40 1,840.60

Total net current assets 102.10 1,176.90 1,685.90 1,254.00 303.80Miscellaneous expenses not written - - - - 16.30Total 9,315.60 7,484.70 5,524.30 4,686.40 3,903.10Notes: Book value of unquoted investments

5,169.60 3,398.10 2,040.10 1,505.50 1,666.20

Market value of quoted investments

219.50 270.40 289.80 200.10 150.90

Contingent liabilities 2,734.20 2,094.60 1,289.70 893.60 1,119.80Number of equity sharesoutstanding (Lacs)

2889.10 2889.10 2889.10 2889.10 2889.10

Analysation : This indication shows the company operations reach in wide in facing the market efficiently.

PROFIT & LOSS ACCOUNT:

Definition: Net profit represents the excess of gross profit plus other revenue incomes over sales expense including sales costs and other expenses. The debit side of P&L a/c shows the expenses and the credit side the incomes. If the total of the credit side is more, it will be net profit. And if the debit side happens to be more, it would be net loss.

Interpretation : The operating and non operating expenses and income are incresing gradually from the year 2004-2008

Analysation : This trend shows that company,s productivity is increasing yearly to extend its market operations.


P&L Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04

Operating income 18,066.80 14,806.40 12,197.90 11,046.30 9,449.50

Expenses

Material consumed 13,622.00 11,063.70 9,223.70 8,508.50 7,033.50

Manufacturing expenses 670.60 489.80 359.60 273.80 219.40

Personnel expenses 356.20 288.40 228.70 196.00 177.90

Selling expenses 560.20 499.90 356.00 369.90 666.20

Adminstrative expenses 326.30 274.50 170.60 150.20 112.90

Expenses capitalised -19.80 -14.30 -6.70 -22.40 -12.80Cost of sales 15,515.50 12,602.00 10,331.90 9,476.00 8,197.10

Operating profit 2,551.30 2,204.40 1,866.00 1,570.30 1,252.40

Other recurring income 456.10 361.10 268.10 218.90 198.90

Adjusted PBDIT 3,007.40 2,565.50 2,134.10 1,789.20 1,451.30

Financial expenses 59.60 37.60 20.40 36.00 44.90

Depreciation 568.20 271.40 285.40 456.80 494.90

Other write offs - - - 16.30 72.40

Adjusted PBT 2,379.60 2,256.50 1,828.30 1,280.10 839.10Tax charges 763.30 705.30 560.90 446.50 227.70Adjusted PAT 1,616.30 1,551.20 1,267.40 833.60 611.40Non recurring items 37.90 -23.00 -83.70 -31.40 -151.90Other non cash adjustme 76.60 33.40 5.40 51.40 82.60Reported net profit 1,730.80 1,561.60 1,189.10 853.60 542.10Earnigs before appropriation

7,368.10 5,947.10 4,631.20 3,611.00 2,878.00

Equity dividend 144.50 130.00 101.10 57.80 43.30Preference dividend - - - - -Dividend tax 24.80 21.90 14.20 8.20 5.60Retained earnings 7,198.80 5,795.20 4,515.90 3,545.00 2,829.10

RATIO ANALYSIS

Meaning of Ratio Analysis:

Ratio Analysis can be defined as the study and interpretation of relationships between various financial variables, by investors or lenders. It is a quantitative investment technique used for comparing a company's financial performance to the market in general. A change in these ratios helps to bring about a change in the way a company works. It helps to identify areas where the management needs to change.

Steps in Ratio Analysis:

The firs task of the financial analyst is to select the information relevant to the decision under consideration from the statements and calculates appropriate ratios.

The second step is to compare the calculated ratio with the ratios of the same firm relating to past or with the industry ratios. This step facilitates in assessing success or failure of the firm.

The third step involves interpretation, drawing of inferences and report-writing. Conclusions are drawn after comparison in the shape of report or recommended course of action.

Importance:

Ratios are useful for the following reasons:

• The ratios can be used by financial managers for future financial planning. Ratios calculated for a number of years work as a guide for the future.

• Ratios are useful in co-ordination which is very needed in business. The efficiency and weakness of an enterprise if communicated properly will establish a better co-ordination among areas of appreciation and control.

• Ratios are used for communication of weak and good points to the concerned parties.

• Ratios should be shown the better financial position of the firm. For example, better solvency ratio speaks out good financial position.

• The ratios are economic barometer useful to all mentioned above as they can know the good and bad position of a company by making a comparative study of financial statement.



RATIOS Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04Per share ratios Adjusted EPS (Rs) 55.94 53.69 43.87 28.85 21.16Adjusted cash EPS (Rs) 75.61 63.09 53.75 45.23 40.80Reported EPS (Rs) 59.91 54.07 41.16 29.55 18.76Reported cash EPS (Rs) 79.57 63.46 51.04 45.92 38.40Dividend per share 5.00 4.50 3.50 2.00 1.50Operating profit per share (Rs) 88.31 76.30 64.59 54.35 43.35Book value (excl rev res) per share (Rs) 291.28 237.23 188.73 151.56 123.74Book value (incl rev res) per share (Rs.) 291.28 237.23 188.73 151.56 123.74Net operating income per share (Rs) 625.34 512.49 422.20 382.34 327.07Free reserves per share (Rs) 286.28 231.89 183.18 144.13 116.91Profitability ratios Operating margin (%) 14.12 14.88 15.29 14.21 13.25Gross profit margin (%) 10.97 13.05 12.95 10.08 8.01Net profit margin (%) 9.34 10.29 9.53 7.57 5.61Adjusted cash margin (%) 11.79 12.01 12.45 11.59 12.21Adjusted return on net worth (%) 19.20 22.63 23.24 19.03 17.10Reported return on net worth (%) 20.56 22.78 21.80 19.49 15.16Return on long term funds (%) 27.35 30.74 33.47 28.12 22.71Leverage ratios Long term debt / Equity 0.05 0.08 0.01 0.06 0.08Total debt/equity 0.10 0.09 0.01 0.07 0.08Owners fund as % of total source 90.33 91.57 98.70 93.43 92.00Fixed assets turnover ratio 2.48 2.41 2.46 2.19 2.07Liquidity ratios Current ratio 1.03 1.42 1.77 1.68 1.17Current ratio (inc. st loans) 0.91 1.40 1.77 1.67 1.15Quick ratio 0.66 1.13 1.31 1.25 0.85Inventory turnover ratio 22.93 28.76 18.78 22.97 30.43Payout ratios Dividend payout ratio (net profit) 9.78 9.72 9.69 7.73 9.02Dividend payout ratio (cash profit) 7.36 8.28 7.81 4.97 4.40Earning retention ratio 89.53 90.21 90.91 92.09 92.01Cash earnings retention ratio 92.25 91.67 92.58 94.95 95.86Coverage ratios Adjusted cash flow time total debt 0.41 0.34 0.04 0.23 0.26Financial charges coverage ratio 50.46 68.23 104.61 49.70 32.32Fin. charges cov.ratio (post tax) 39.57 49.76 73.28 37.85 25.71Component ratios Material cost component (% earnings) 77.25 73.36 77.25 78.30 74.47Selling cost Component 3.10 3.37 2.91 3.34 7.05Exports as percent of total sales 4.10 3.90 4.78 8.89 9.96Import comp. in raw mat. consumed 10.84 12.62 18.75 19.69 20.40Long term assets / total Assets 0.74 0.61 0.49 0.52 0.62Bonus component in equity capital (%) - - - - -

PER SHARE RATIOS:

EPS is measured by dividing the net profits after taxes and preference dividend by the total number of equity shares.

EPS = net profit after tax- preference dividend

Per share ratios 2008 2008 2007 2006 2005Adjusted EPS (Rs) 55.94 53.69 43.87 28.85 21.16Adjusted cash EPS (Rs) 75.61 63.09 53.75 45.23 40.80Reported EPS (Rs) 59.91 54.07 41.16 29.55 18.76Reported cash EPS (Rs) 79.57 63.46 51.04 45.92 38.40Dividend per share 5.00 4.50 3.50 2.00 1.50

Operating profit per share (Rs) 88.31 76.30 64.59 54.35 43.35

Book value (excl rev res) per share (Rs) 291.28 237.23 188.73 151.56 123.74Book value (incl rev res) per share (Rs.)

291.28

237.23

188.73

151.56

123.74

Net operating income per share (Rs) 625.34 512.49 422.20 382.34 327.07

Free reserves per share (Rs)

286.28

231.89

183.18

144.13 116.91

Interpretation: Due To Incresing Profits And Market Sustainability The Per Share Value Of Maruthi Suzuki Had Been In Incresing Trend From 2004-2009.

Analysis: As a result of that the per share value in the market is above 1100rs.


PROFITABILITY RATIOS:

Profitability is a ratio. Being a ratio profitability is a meaningful measure and reveals the relation of different individuals items with sales of the concern. Profitability of a concern can be known through the analysis of general and overall profitability.

Gross profit ratio=Gross profit (100) /Net sales

Gross profit ratio= net sales-cost of goods sold (100) / Net sales

Profitability ratios 2008 2008 2007 2006 2005

Operating margin (%) 14.12 14.88 15.29 14.21 13.25Gross profit margin (%) 10.97 13.05 12.95 10.08 8.01Net profit margin (%) 9.34 10.29 9.53 7.57 5.61Adjusted cash margin (%) 11.79 12.01 12.45 11.59 12.21Adjusted return on net worth (%) 19.20 22.63 23.24 19.03 17.10Reported return on net worth (%) 20.56 22.78 21.80 19.49 15.16Return on long term funds (%) 27.35 30.74 33.47 28.12 22.71

0

5

10

15

20

25

30

35

2008 2007 2006 2005 2004

Operating margin (%)

Gross profit margin (%)

Net profit margin (%)

Adjusted cash margin

Adjusted return on net worth (%)

Reported return on net worth

Interpretation: The gross profit and net profit had increased initially from the year 2004-2007 from 8.01-13.05,5.61-10.29 and decreased in the year 2008 as 10.95 and 9.34.

Analysis: Due to the implementation latest organisational aspects company increased its expenses in the year 2008.


LEVERAGE RATIOS:

Leverage ratios can be computed from the balance sheet items to determine the proportions of debt in total financing. Leverage ratios can also be calculated from the income statement items by determining the exact to which operating profits are sufficient to cover the fixed charges.

Debt –equity ratio = Long –term debit / Shareholder’s Equity

0

2

4

6

8

10

12

2008 2007 2006 2005 2004

Long term debt / Equity

Total debt/equity

Owners fund as % of total source

Fixed assets turnover ratio

Interpretation: The Debt Equity Ratio Is Expected To Be 2:1 Ratio But It Is In 1:2 Ratio

Analysis: This Situation Creates Insecurity To Creditor’s.


Leverage ratios 2008 2008 2007 2006 2005Long term debt / Equity 0.05 0.08 0.01 0.06 0.08Total debt/equity 0.10 0.09 0.01 0.07 0.08Owners fund as % of total source 90.33 91.57 98.70 93.43 92.00Fixed assets turnover ratio 2.48 2.41 2.46 2.19 2.07

LIQUIDITY RATIOS:

Liquidity means the ability of a concern to meet its current obligations as and when these become due. Thus the liquidity ratios indicate the ability of a concern to meet its short-term obligations.

Quick ratio= Quick assets / Current liabilities

Current ratio = Current assets / Current liabilities

Liquidity ratios 2008 2007 2006 2005 2004Current ratio 1.03 1.42 1.77 1.68 1.17Current ratio (inc. st loans) 0.91 1.40 1.77 1.67 1.15Quick ratio 0.66 1.13 1.31 1.25 0.85Inventory turnover ratio 22.93 28.76 18.78 22.97 30.43

Interpretation: The current ratio is in between 2:1 ratio, this is in increasing trend from initial stage. From 2004-2007 and decreased in the year 2008 as 1.03.

Analysis: One way this trend shows the, balancing of current assets and liabilities. This trend is continued even in quick ratio and liquid ratios.


PAYOUT RATIO:

This is the relationship between the returns belonging to the equity shareholders and the dividend paid to them. Thus is calculated as:

Pay out ratio = dividend per share / Earning per share

Payout ratios 2008 2008 2007 2006 2005Dividend payout ratio (net profit) 9.78 9.72 9.69 7.73 9.02Dividend payout ratio (cash profit) 7.36 8.28 7.81 4.97 4.40Earning retention ratio 89.53 90.21 90.91 92.09 92.01Cash earnings retention ratio 92.25 91.67 92.58 94.95 95.86

0

20

40

60

80

100

120

2008 2007 2006 2005 2004

Dividend payout ratio (

Dividend payout ratio (cash

Earning retention ratio

Cash earnings retention ratio

Interpretation: The Dividend Pay Out Ratio And Retention Ratio Is Increasing From The Year 2004-2008.

Analysis: This Is Proseperous Trend To Share Holders And Company.


COVERAGE RATIOS

This ratio indicates the times-interest-earned. It is used to examine the firm’s debt-servicing capacity. The interest coverage ratio is the sum of net profit before interest and taxes dividend interest charges.

Coverage Ratio = sum of net profit before interest / Taxes dividend by interest charges

COVERAGE RATIOS 2008 2007 2006 2005 2004Adjusted cash flow time total debt 0.41 0.34 0.04 0.23 0.26

Financial charges coverage ratio

50.46

68.23

104.61

49.70 32.32

Fin. charges cov.ratio (post tax)

39.57

49.76 73.28

37.85

25.71

Interpretation: The Cash Balance Is Being Adjusted From 2004-2008 Between Creditors,

Debtors And Shareholders Dividend .


Analysis: This Is In Incresing Trend From 2004-2008.This Is Prosperous To Company And Its Stake Holders

COMPONENT RATIOS:

This ratio ensures whether the capital employed has been effectively used or not. This is also the test of managerial efficiency and business performance. High total capital ratio is always required in the interest of the company.

Long term assets Turnover Ratio = Sales(net) / Capital employed

Component ratios 2008 2007 2006 2005 2004

Material cost component (% earnings)

77.25

73.36

77.25

78.30 74.47

Selling cost Component 3.10 3.37 2.91 3.34 7.05Exports as percent of total sales 4.10 3.90 4.78 8.89 9.96

Import comp. in raw mat. consumed

10.84

12.62

18.75

19.69 20.40

Long term assets / total Assets 0.74 0.61 0.49 0.52 0.62Bonus component in equity capital (%)

- - - - -


Interpretation: The Material Cost Component Ratio Is Increasing From 2004-2008.

Analysis: As the Productivity is increasing simultaneously but the selling cost component

ratio decreased gradually from the year 2004-2008,which can decline the sales percentage of company.

FINDINGS

This company analysis done by me, brought out many findings.I would like to state some from them:Maruthi Suzuki can be termed as an greater example for merging industries (Govt. & foreign investments).

HRM:

Maruthi suzuki has finite recruiting and training procedures .

There are quality circles which can motivate employee and employer relationship.


MARKETING MANAGEMENT:

This segment is the initial cause for the sustainability of maruthi as an leader in the market of passenger cars.

Maruthi suzuki conducts r&d, in developing marketing strategies and products , which are near to customer preferences and tastes.

FINANCIAL MANAGEMENT:

As Maruthi Suzuki is an company which consists of Indian government’s capital , it follows lawful and ethical practices impractically in accounting its finance.

This company at most reaches the standard ratio in every ratio every year.

CONCLUSION

I have analyzed the attached Balance Sheet of Maruti Suzuki India Limited

(Formerly Maruti Udyog Limited), as of Five years comparison and the related Profit and

Loss Account and Cash Flow Statement for the year ended on that dates Annexed thereto !

These financial statements are the Responsibility of the company's management.

My pleasure is to express an opinion on these financial statements based on

analysis Those Standards An analysis includes examining, on a test basis, evidence


supporting the amounts and disclosures in the financial statements. An analysis also

includes assessing the accounting principles used and significant estimates, marketing

Techniques, HRM strategies, financial position of the Maruthi Udyog Limited.

The company analysis done by me on Maruthi Udyog Limited, sorted out that the automobile industry in India is prosperous and growing with innovating technology.

Cars in the market through different marketing strategies such as pricing strategy, products development etc. Finally “Maruthi Udyog Limited” has it financial trend in ascending order from previous four years.

Thus, Maruthi Udyog Limited, is counting its profits, and fulfilling the Social responsibility, by making its tag line to be implemented i.e

.

“Count on us”


31479198 maruthi suzuki ltd

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