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CHAPTER 1
INTRODUCTION
1.1 General
Maruti Suzuki India Limited, a partial subsidiary ofSuzuki Motor Corporation of Japan, is
India's largest passenger car company, accounting for over 45% of the domestic car market.
The company offers a complete range of cars from entry level Maruti 800 and Alto, to
hatchbackRitz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4 and Sports Utility
vehicle Grand 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 Maruti Suzuki India
Limited. The company's headquarters are located inNew Delhi.
Maruti Suzuki at a glance:-
Type Public
Traded asBSE: 532500
NSE:MARUTI
Industry Automotive
Founded 1981 (as Maruti Udyog Limited)
Headquarters New Delhi, India
Key peopleMr. Shinzo Nakanishi, Managing
Directorand CEO
Products Automobiles
Revenue US$4.8 billion (2009)
Employees 6,903
Parent Suzuki Motor Corporation
Website MarutiSuzuki.com
1.2 Company profile
Maruti Suzuki is India and Nepal's number one leading automobile manufacturer and the
market leader in the car segment, both in terms of volume of vehicles sold and revenue earned.
http://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_Ritzhttp://en.wikipedia.org/wiki/Maruti_Ritzhttp://en.wikipedia.org/w/index.php?title=Maruti_A_star&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Maruti_A_star&action=edit&redlink=1http://en.wikipedia.org/wiki/Maruti_Swifthttp://en.wikipedia.org/wiki/Maruti_Swifthttp://en.wikipedia.org/wiki/Maruti_Wagon-Rhttp://en.wikipedia.org/w/index.php?title=Maruti_Estillo&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Maruti_DZire&action=edit&redlink=1http://en.wikipedia.org/wiki/Maruti_SX4http://en.wikipedia.org/wiki/Maruti_Grand_Vitarahttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=532500http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=MARUTI§ion=7http://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=MARUTI§ion=7http://en.wikipedia.org/wiki/Automotivehttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/CEOhttp://en.wikipedia.org/wiki/Automobileshttp://en.wikipedia.org/wiki/US$http://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Suzuki_Motor_Corporationhttp://www.marutisuzuki.com/http://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_Ritzhttp://en.wikipedia.org/w/index.php?title=Maruti_A_star&action=edit&redlink=1http://en.wikipedia.org/wiki/Maruti_Swifthttp://en.wikipedia.org/wiki/Maruti_Wagon-Rhttp://en.wikipedia.org/w/index.php?title=Maruti_Estillo&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Maruti_DZire&action=edit&redlink=1http://en.wikipedia.org/wiki/Maruti_SX4http://en.wikipedia.org/wiki/Maruti_Grand_Vitarahttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=532500http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=MARUTI§ion=7http://en.wikipedia.org/wiki/Automotivehttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/CEOhttp://en.wikipedia.org/wiki/Automobileshttp://en.wikipedia.org/wiki/US$http://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Suzuki_Motor_Corporationhttp://www.marutisuzuki.com/http://en.wikipedia.org/wiki/Suzuki -
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Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by
Suzuki of Japan. The BJP-led government held an initial public offering of 25% of the
company in June 2003. As of 10 May 2007, Govt. of India sold its complete share to Indian
financial institutions. 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. Through 2004, Maruti Suzuki has produced over 5
Million vehicles. 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 Suzuki Altotops the sales
charts and Maruti Suzuki Swift is the largest selling in A2 segment.
Maruti Suzuki has been the leader of the Indian car market for over two decades. Its
manufacturing facilities are located at two facilities Gurgaon and Manesar south ofDelhi.
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 andNational 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.
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.
1.3 Products
Maruti New Swift
Maruti RIII Concept
http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/National_Stock_Exchangehttp://en.wikipedia.org/wiki/National_Stock_Exchangehttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/National_Stock_Exchange -
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Maruti Suzuki Kizashi
Maruti Eeco
Maruti Suzuki XL7
Maruti Suzuki Grand Vitara 2.4
Omni
Maruti Alto
Maruti Zen Estilo
Wagon R
Versa
Maruti Esteem
Baleno
Swift
Swift DZire
Maruti Gypsy
Maruti SX4
Maruti A-Star
Maruti Suzuki Ritz
Maruti Suzuki Concept R3
Maruti 800
1.4 Plant locations
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Maruti Suzuki has two facilities in Gurgaon and Manesar, Haryana, India with a combined
manufacturing capacity close to one million cars per annum. In term of number of cars
produced and sold worldwide, the company is the largest subsidiary of SMC, Japan.
Gurgaon Manufacturing Facility
The Gurgaon Manufacturing Facility has three fully integrated manufacturing plants and is
spread over 300 acres (1.2 km2). 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, Gypsyand
Eeco.
Manesar Manufacturing Facility
The Manesar Manufacturing Plant was inaugurated in February 2007 and is spread over
600 acres (2.4 km2). 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 and SX4.
1.5 Mission
To provide maximum value for money to their customers through continuous improvement of
products and services.
1.6 Vision
The leader in the India automobile industry, creating customer delight and shareholders
wealth; A pride of India.
http://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_WagonRhttp://en.wikipedia.org/wiki/Suzuki_MR_Wagonhttp://en.wikipedia.org/wiki/Maruti_Omnihttp://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Maruti_Suzuki_A-STARhttp://en.wikipedia.org/wiki/Maruti_Suzuki_Swifthttp://en.wikipedia.org/wiki/Maruti_Suzuki_Swift_DZirehttp://en.wikipedia.org/wiki/Suzuki_SX4http://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_WagonRhttp://en.wikipedia.org/wiki/Suzuki_MR_Wagonhttp://en.wikipedia.org/wiki/Maruti_Omnihttp://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Maruti_Suzuki_A-STARhttp://en.wikipedia.org/wiki/Maruti_Suzuki_Swifthttp://en.wikipedia.org/wiki/Maruti_Suzuki_Swift_DZirehttp://en.wikipedia.org/wiki/Suzuki_SX4 -
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1.7 Organisational structure
CHAPTER 2
MARKET SURVEY
2.1 Market Potential
2.2 Competitors
Main competitors of Maruti Suzuki are:-
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CHAPTER 3
FINANCIAL DETAILS
3.1 Risks involved in Business
3.2 Profitability
Useful information about the trend of profitability is from profitability ratio. On the basis of
this ratio, investors get an idea about overall efficiency of managers and bank as well as other
creditors draw useful conclusion about repaying capacity of the borrowers.
Profitability ratio expresses relationship between Gross Profit earned to Net Sales. It is
significant indicator of the profitability of business. It expresses in percent. The ratio shows
whether the mark up obtained on cost of production is sufficient or not. If this ratio is low, it
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indicates that the cost of sales is high or that the purchasing is inefficient. Alternatively, it may
also mean that due to depression, the selling price is reduced but there are may be no
corresponding reduction in cost of sales.
Formula:-
3.3 Return
Balance Sheets(Last five years):- (In RS CRORES)
Particulars Mar'10 Mar'09 Mar'08 Mar'07 Mar'06Liabilities 12 Months 12 Months 12 Months 12 Months 12 Months
Share Capital 144.50 144.50 144.50 144.50 144.50
Reserves &
Surplus11,690.60 9,200.40 8,270.90 6,709.40 5,308.10
Net Worth 11,835.10 9,344.90 8,415.40 6,853.90 5,452.60
Secured Loans 26.50 0.10 0.10 63.50 71.70
Unsecured Loans 794.90 698.80 900.10 567.30 0.00
TOTAL
LIABILITIES 12,656.50 10,043.80 9,315.60 7,484.70 5,524.30
Assets
Gross Block 10,406.70 8,720.60 7,285.30 6,146.80 4,954.60
(-) Acc.
Depreciation5,382.00 4,649.80 3,988.80 3,487.10 3,259.40
Net Block 5,024.70 4,070.80 3,296.50 2,659.70 1,695.20
Capital Work in
Progress.387.60 861.30 736.30 238.90 92.00
Investments. 7,176.60 3,173.30 5,180.70 3,409.20 2,051.20
Inventories 1,208.80 902.30 1,038.00 713.20 881.20Sundry Debtors 809.90 918.90 655.50 747.40 654.80
Cash And Bank 98.20 1,939.00 324.00 1,422.80 1,401.60
Loans And
Advances1,739.10 1,809.80 1,173.00 1,072.60 933.10
Total Current
Assets3,856.00 5,570.00 3,190.50 3,956.00 3,870.70
Gross Profit / Sales X 100
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Current Liabilities 3,160.00 3,250.90 2,718.90 2,288.60 1,704.80
Provisions 628.40 380.70 369.50 490.50 480.00
Total Current
Liabilities3,788.40 3,631.60 3,088.40 2,779.10 2,184.80
NET CURRENT
ASSETS67.60 1,938.40 102.10 1,176.90 1,685.90
Misc. Expenses 0.00 0.00 0.00 0.00 0.00
TOTAL ASSETS 12,656.50 10,043.80 9,315.60 7,484.70 5,524.30
CHAPTER 4
SWOT ANALYSIS
Strengths
Largest network of dealers and after
sales service caters in the country.
Self competing product range in small
car segment (Maruti 800,Omni,Alto,Zen
and Wagon R)
Good promotional strategy is adopted by
MUL to transform its thoughts to thepeople about its products.
Entered into second hand car market
with a brand name Maruti True Value.
Loyal Customer Base. Awarded
consequently 5th year for best customer
satisfaction.
Strong Brand Value
Availability of raw material
Weaknesses
Lack of having products in mid size car
segment could result in shifting of loyal
customers who has a desire to upgrade
their cars.
Low interior quality in side the cars.
Labour Laws and Labour Unions are notin a good form in India.
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Threats
Tata Motors has launched a car with a
price tag of Rs.1 Lac (Nano) and it has a
considerable impact on sales of Maruti.
HMIL is a challenger and trying hard to
achieve number one position in the
market.
China may give a good competition as
they are also planning to enter into car
segment.
Opportunities
MUL may encash the opportunity to
enter again into the diesel segment of the
cars to compete its nearest competitor
TATA in diesel segment of small cars.
Launched its LPG version of Wagon R.
Can start R&D on electric cars for a
much better substitute of the fuel.
Economic growth of the country is
sound and promising in future.
Liberal policies of GOI.
Big Market: Domestic and Abroad
CHAPTER 5
SUGGESTIONS AND RECOMMENDATIONS
REFERENCES