PROJECT REPORT

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ON
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MARUTI SUZUKI INDIA

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LIMITED
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{M S I L}
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By

Name : Vishal Madan

Course : BBA - IV

Roll No. : 75

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 ACKNOWLEDGEMENT
The successful completion of the project would have been far from reality without mentioning
the people who made an indelible impression while making the project.

All the very outset thanks to Ms. Rachna for instructing me and providing me the opportunity to
participate in the project and sharing her invaluable knowledge and experience with me. Her
innovative ideas provided me clarity of thoughts which helped me to think in the right way.

Without her help and guidance completion of the project report would have been very difficult. I
would also like to give gratitude to all the other faculties who helped me in making the project
worth wile and successful.

I would also like to express my gratitude to Dr. S.S Vernekar [director], BVIMR, New Delhi
for providing all needful facilities in the campus and the best faculty for the students.

Their thoughtful ideas, comments and conceptual insight into the subject kept me from
floundering in my quest. Despite their busy schedule they spared valuable moments for
reviewing and rectifying this project work.

Due to the proper guidance the making of project report became an enjoyable experience and
easy to workout.

Vishal Madan

B.B.A - IV Sem

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 DECLARATION

I Vishal Madan hereby declare that the work presented in this project entitled “Maruti Suzuki
India Limited [MSIL]” submitted towards completion of project in Fourth Semester of B.B.A
at Bharatiya Vidyapeeth University Institute of Management and Research, New Delhi, is an
authentic record of my original work carried out under the guidance of Ms. Rachna, Professors,
BVUIMR, New Delhi.

I have not submitted the matter embodied in this project for the award of any other degree.

Vishal Madan
B.V.U.S.D.E
Semester Four

Place: New Delhi

Date: 12-04-09

----------------------------------- -----------------------------------
-
Ms. Rachna Dr. S.S Vernekar
[Professor] [Director]

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 INDEX
CHAPTER 1 : INTRODUCTION OF THE COMPANY.

1.1 Introduction of the group. …… 11

1.2 Group Companies. …… 12
1.3 Introduction of company. …… 12
1.4 Nature of Business. …… 15
1.5 Type & Ownership Pattern. …… 15
1.6 Vision. …… 18
1.7 Mission. …… 19
1.8 Board of Directors. …… 19
1.9 Registered office. …… 21
1.10 Subsidiaries. …… 21

CHAPTER 2 : PRODUCTS AND OTHER DETAILS.

2.1 Brand. …… 24

2.2 Products. …… 25

2.3 Product Mix. …… 27

2.4 Product Line. …… 28

2.5 Target Customers. …… 30

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 2.6 Regional Presence of the company. …… 30

2.7 No. of Branches. …… 31

2.8 Distributional Channel Competitors. …… 33

2.9 Market Share. …… 35

2.10 Positioning. …… 35

2.11 Marketing Strategies. …… 36

2.12 Advertisement Expenses.

2.13 Packaging, Selling and Distribution

Expenses …… 38

CHAPTER 3 : DETAILED FINANCIAL STATEMENT.

3.1 Stock Exchange on which the company is listed. …… 40

3.2 Weight age in Index. …… 40

3.3 Capital Structure Authorized Capital. …… 41

3.4 Turnover. …… 41
3.5 Balance sheet. …… 42

CHAPTER 4 : ORGANIZATIONAL STRUCTURE.

4.1 Organization Structure. …… 45

4.2 Recruitment and Selection Procedures. …… 46

4.3 Training & Development Policies. …… 53

4.4 Conflict Resolution Mechanism. …… 54

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CHAPTER 5 : FACTORY AND PLANT LOCATION.

5.1 Factory Location. …… 57

CHAPTER 6 : SWOT ANALYSIS OF COMPANY

6.1 SWOT Analysis. …… 61

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 PREFACE
Maruti Suzuki India Limited, India deals in automotive vehicles and is the leader in Indian auto
industry due to its value for money products. It is a subsidiary of Suzuki Motor Corporation of
Japan which holds 54.21 percent of equity shares of Maruti Udyog Limited, also according to
India Income Tax Act, due to Suzuki holding more than 20 percent of shares it has a substantial
interest in maruti that’s why it was renamed to Martui Suzuki India Limited.

It has a flat organizational structure which makes it simple for communication and problem
solving it helps company in taking faster and much more rational decisions which helps making
employee feel that they also have power to give suggestions and hence improve some
management decision. Also it makes employee feel like home and results in their motivation.

As communication is faster and employees are also welcomed for giving suggestions so
therefore it leads in controlling any future loss and also leads in generation of new ideas.

Maruti produces a wide range of products and their spare parts. Maruti 800 was its first car
which was much better than those existing vehicles which were 25 Yr. backward at that time. Its
competitors were Ambassador and Padmini. Maruti 800 is a car which has under gone all stages
when it was introduced it was a symbol of comfort and luxury it was a status symbol and now it
is a cheapest car and dream of most of the people to own it.

Due to flat organizational structure it is faster to communicate and easy for problem solving
because if any employee has some problem he can discuss it with concerned authority easily and
hence results in faster problem solving and makes employee confident that they are also taken
care of.

Maruti Suzuki has total 12 products and each one of them has variance in relation to interior,
color, Comfort, etc.

Its products are Maruti 800, Alto, Zen Estilo, Wagon R, Versa, Omni, Swift, SX 4, Swift Desire,
Grand Vitara, Gypsy and A Star.

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MARUTI SUZUKI

COMPANY

PROFILE

8
 PROFILE
1. Name : MARUTI SUZUKI INDIA LTD.

2. Incorporated : February 24, 1981.

3. Memorandum Signed : April 4, 1982.

4. Plants Location : Gurgaon, Manesar.

5. Head Office Location : New Delhi, India.

6. Business Dealing : Automobile Industry.

7. Type of Company : Private.

8. Main Share Holders : Suzuki Ltd. : 54.21 %

Others : 45.79 %
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Total : 100 %
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 DETAILED PROFILE
INDIAN AUTO INDUSTRY : AN OVERVIEW

1. Domestic sales of over 1.2 million passenger cars in Financial Year 2007, 5 Years CAGR
of over 15%.

2. Low Car Penetration, 8 cars per 1000 Population.

3. Industry Capacity building up to 4 Main units by Financial year 2010 - 11.

4. Car Market composition predominantly a compact car market.

5. Rest of the market is fragmented by other similar players. Like: Honda, Toyota, Hyundai
and others.

6. The company was first named as Maruti Udyog, but renamed on September 17, 2007, as
Maruti Suzuki India Limited.

7. Currently have two plants first in Gurgaon and other in Manesar.

8. Production capacity of more than 7,00,000 units annually.

9. Sale are around 7,15,000 units on an average.

10. The first car and the most famous car of the company is Maruti 800, which got so popular
that it was said as Maruti instead of Maruti 800.
[Source: NCAER, Industry Research, Announcements by auto companies

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 CHAPTER 1

INTRODUCTION

OF THE COMPANY

11
TOPICS UNDER THIS CHAPTER

1.1 Introduction of the group.

1.2 Group Companies.
1.3 Introduction of company.
1.4 Nature of Business.
1.5 Type & Ownership Pattern.
1.6 Vision.
1.7 Mission.
1.8 Board of Directors.
1.9 Registered office.
1.10 Subsidiaries.

1.1 INTRODUCTION OF THE GROUP

Maruti Suzuki India Limited is not a group; it’s a company, in more simple term it is a
subsidiary company. ‘Subsidiary’ means that a company is owned and controlled by other
company of same or different nature of trading holding more than half of total equity shares.

First the company was named as Maruti Udyog but now renamed to Maruti Suzuki India
Limited because Suzuki Motor Corporation has more than half of equity shares in the
company.

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1.2 GROUP COMPANIES

As above said Maruti Suzuki India Limited is not a group so there are no group companies, but
it is owned and controlled by Suzuki Motor Corporation which owns around 54 percent of
total equity shares of the company.

Maruti Suzuki India Limited has its subsidiary companies. Like: Maruti True Value, etc.

Maruti Suzuki says that we all are group including our Authorized Dealers, Raw Material
Providers, Our Employees, Customers, Competitors and everyone who is connected with us
because without these people we can not function and improve our products time to time.

1.3 INTRODUCTION OF COMPANY

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.

Suzuki Motor Corporation is a renowned company and is one of the best automobile
manufacturers at international level. As being Japanese company it is much better in technology.

When Maruti Udyog was incorporated Suzuki Motor Corporation had few shares and
government of India hold majority of shares but due to change in time and increasing
competition it was sold to Suzuki Motor Corporation.

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. Maruti is the market leader in
India.

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On 17 September 2007, Maruti Udyog was renamed to Maruti Suzuki India Limited. The
company's headquarters remain in Gurgaon, near Delhi.

Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the
Compact and Sedan 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 on May 10, 2007, Government of India sold its complete share to Indian
financial institutions. With this, Government of India no longer has stake in Maruti Udyog.

Maruti Suzuki is the subsidiary of Suzuki Motor as Suzuki holds more than half of equity
shares in the company.

According to Income Tax Act, 1961, Chapter Profit and Gains from Business and Profession,
Under Section 40A Sub Clause 2. We can say that Suzuki Motor Corporation has Substantial
interest in Maruti Suzuki India Limited because Suzuki Motor Corporation has more than 20
percent of the total Equity Shares of Maruti Suzuki India Limited.

Maruti Udyog Limited [MUL] was established in February 24, 1981, though the actual
production commenced in 1983 with the car Maruti 800, based on the Suzuki Alto kei car
which at the time was the only modern car available in India, its' only competitors were 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. Maruti sold its cars in India and
various several other countries, depending upon export orders. Cars similar to Maruti’s [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 7,30,000 cars annually. Maruti 800, till 2004, was the India's

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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.

Due to the large number of Maruti 800 sold in the Indian market, the term "Maruti" is commonly
used to refer to this compact car model. Till recently the term "Maruti", was associated to the
Maruti 800.

It’s manufacturing plants are located at two places Gurgaon and Manesar and head office in near
south New Delhi. Maruti’s Gurgaon plant has an installed capacity of 3,50,000 units per annum.
The Manesar plant, launched in February 2007 comprise a vehicle assembly plant with a
capacity of 1,00,000 units per year and a Diesel Engine plant with an annual capacity of 1,00,000
engines and transmissions. Manesar and Gurgaon facilities have a combined capability to
produce over 7,00,000 units annually.

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’s Shares. The rest is
owned by the public and financial institutions.

Maruti Suzuki India Limited is registered or listed on the Bombay Stock Exchange and
National Stock Exchange in India.

During 2007-08, Maruti Suzuki sold 7,64,842 cars, of which 53,024 were exported. In all, over
six million Maruti cars are on Indian roads since the first car was rolled out on December 14,
1983.

Maruti Suzuki offers 12 models, Maruti 800, Omni, Alto, Versa, Gypsy, A Star, Wagon R, Zen
Estilo, Swift, Swift Dzire, SX4 and Grand Vitara.

Swift, Swift dzire, A star and SX4 are manufactured in Manesar Plant.

Grand Vitara is imported from Japan as a completely built unit (CBU)

Remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant.

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Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for
three decades. Suzuki’s technical superiority lies in its ability to pack power and performance
into a compact, lightweight engine that is clean and fuel efficient.

Maruti is clearly an “employer of choice” for automotive engineers and young managers from
across the country. Nearly 75,000 people are employed directly by Maruti and its partners.

The company vouches for customer satisfaction. For its sincere efforts it has been rated [by
customers] first in customer satisfaction among all car makers in India for nine years in a
row. In an annual survey by J D Power Asia Pacific.

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 motorize India.

1.4 NATURE OF BUSINESS

Maruti Suzuki India Limited is dealing in Automobiles and their spare parts. The company
produces all from Compact to Sedan class and MUV’s to SUVs.
Maruti Suzuki is a manufacturing company it is the producer of automotive products such as
cars.
Maruti Suzuki comes under Secondary industry as its nature is manufacturing.

1.5 TYPE AND OWNERSHIP PATTERN

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It is a private company because majority of its shares are held by private companies, financial
institutions.
It’s majority of shares are held by Suzuki Motor Corporation.

OWNERSHIP PATTERN

S NO. SHAREHOLDERS QUANTITY PERCENTAGE

1. BODIES CORPORATE {FOREIGN}

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A. SUZUKI MOTOR CORPORATION : 156618360 : 54.21 %

B. KINJI SAITO NOM OF SUZUKI : 20 : 00.00 %

C. MOTOHIRO ATSUMI NOM OF SUZUKI : 20 : 00.00 %

D. SHINZO NAKANISHI NOM OF SUZUKI : 20 : 00.00 %

E. SHINICHI TAKEUCHI NOM OF SUZUKI : 20 : 00.00 %

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TOTAL : 156618440 : 54.21 %

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Total Number 5

{PUBLIC SHAREHOLDINGS}

2. MUTUAL FUND : 17619663 : 06.10 %

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Total Number 135

3. FINANCIAL INSTITUTIONS / BANKS : 6443670 : 02.23 %

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Total Number 38

4. INSURANCE COMPANIES [LIC, HSBC] : 48280995 : 16.71 %

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=

Total Number 17

5. FOREIGN INSTITUTIONAL INVESTORS : 41586504 : 14.39 %

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 Total Number 261

{NON INSTITUTIONAL}

6. BODIES CORPORATE : 9124072 : 03.16%

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Total Number 1572

{INDIVUDUALS}

7. CAPITAL UPTO 1 LAKH : 7227618 : 02.50 %

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Total Number 117007

8. CAPITAL MORE THAN 1 LAKH : 1258560 : 00.44 %

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Total Number 5

{OTHER’S}

9. FINANCIAL INSTITUTIONS / BANKS : 302817 : 00.10 %

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Total Number 1801

10. TRUSTS : 4581 : 00.00 %

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Total Number 20

11. FOREIGN NATIONALS : 450 : 00.00 %

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Total Number 1

12. CLEARING MEMBERS : 442690 : 00.15%

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Total Number 283

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NET TOTAL : 288910060 : 100 .00 %

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 ==============================================================================================

INDIAN PROMOTERS : 29681349 : [10.27 %]

FOREIGN PROMOTERS : 156618440 : [54.21 %]

Materialized Shares are 13,22,84,324 in quantity and numbers of holders are 1,21,145.

From above one can know exact type of ownership pattern and who all are owners, how much
share they hold.

1.6 VISION

Maruti Suzuki India Limited has a, vision,

“To be the leader in the Indian automobile industry, Creating customer delight and
shareholders Wealth; a pride of India.”
Maruti Suzuki captures huge share of automobile market in India which no other company holds,
Maruti Suzuki also targets on rural area because more than half of India comes under rural area
due to its being a developing country. Maruti’s future vision is to capture whole rural market and
also compete in urban market area.
When Maruti was incorporated it had a vision to automate India, from that point every thing has
changed in company and outside it but the vision of the company is still the same To Automate
India
The company also visions to produce the best customer satisfying car, and develop and expand
its business.
Currently Maruti Suzuki has 2 plants, its vision is to have 4 plants in near by 2011.

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1.7 MISSION

Maruti has a National Road Safety Mission for its achievement Maruti Suzuki has opened
Driving Schools where it provides training to the drivers to drive safely.
Maruti Suzuki wants to make roads safer like our homes because in today’s world life has
become fast and more complicated and no one has time, everyone is busy and wants to reach
his/her destination faster and therefore some times neglects safety measure.
So Maruti Suzuki has taken initiative to make people understand importance of safety measures.
No extra time or money is needed to wear seat belt but everyone of us neglect it that’s why
Maruti Suzuki has made National Road Safety its Mission

1.8 BOARD OF DIRECTORS

These are the Board of Directors Of Maruti Suzuki India Limited.

In total there are 11 Board of Directors.
A. Among them 5 are Indian Board of Directors :
1. Mr. R.C. Bhargava Chairman
2. Mr. Amal Ganguli Director
3. Ms. Pallavi Shroff Director
4. Mr. Manvinder Singh Banga Director
5. Mr. Davinder Singh Brar Director
B. The other 6 are Japanese Board of Directors :
1. Mr. Shinzo Nakanishi Director and CEO

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 2. Mr. Shuji Oishi Director
3. Mr. Tsuneo Ohashi Director
4. Mr. Kellchi Asai Director
5. Mr. Osamu Suzuki Director
6. Mr. Kenichi Ayukawa Director

PHOTO WITH NAME SHOWING ALL DIRECTORS, CEO, CHAIRMAN :

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1.9 REGISTERED OFFICE

The registered office of a company means a place from where the company will take all needed
important decisions. Registered office is the mind of the company because the business thinks
from that place.
The registered office of Maruti Suzuki India Limited is situated in New Delhi, India but the
plants are located in Manesar and Gurgaon, Haryana, India.

1.10 SUBSIDIARY

Subsidiary means that any company or business enterprise withholds more than 50 percent of
shares of other company or enterprise and has control on decision making of the business.
Maruti Suzuki has subsidiary company, and it is also subsidiary of its parent company Suzuki
Motor Corporation.
First, it was an Indian company “Maruti Udyog Limited” and was established on February 24,
1981 and Indian government at that time had more than 50 percent of shares, but due to change
in ownership pattern, market scenario now it has become a subsidiary of foreign company
Suzuki Motor Corporation and now on September 17, 2007 Maruti Udyog Limited was
renamed as Maruti Suzuki India Limited.

A brief note on the profile of the subsidiary companies and their financial performance for 2006-
07 is provided below:

a) Maruti Insurance Business Agency Limited [Maruti Insurance Brokers Limited]

The name of the company was changed from Maruti Insurance Brokers Limited to
Maruti Insurance Business Agency Limited.The company is engaged in the business of
selling insurance policies to Maruti car owners in a tie-up with National Insurance
Company Ltd.The company recorded total revenue of Rs. 569.24 million, profit before
tax of Rs. 162,25 million and profit after tax of Rs. 109.01 million.

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b) Maruti Insurance Distribution Services Limited

The company is engaged in the business of selling insurance policies to Maruti car
owners in a tie-up with Bajaj Allianz General Insurance Company Ltd.The company
recorded total revenue of Rs. 106.29 million, profit before tax of Rs. 32.56 million and
profit after tax of Rs. 21.96 million.

c) True Value Solutions Limited.

The company has contributed towards smooth operation of business processes at

Maruti True Value outlets and supported the dealerships in enhancing the sale of
certified pre-owned cars under the brand Maruti True Value. It has earned an income of
Rs.21.15 million with an expenditure of Rs. 17.50 million and profit before tax of Rs.
3.65 million in the financial year 2006-07.The Board hopes to continue its high
standards of service in increasing the network in the financial year 2007-08.

d) Maruti Insurance Agency Solutions Limited

The Company has recorded a total revenue of Rs. 107.47 million, profit before tax of
Rs. 32.25 million and profit after tax of Rs. 21.35 million.

e) Maruti Insurance Agency Network Limited

The company has recorded a total revenue of Rs. 162.68 million, profit before tax of
Rs. 48.82 million and profit after tax of Rs. 32.32 million.

f) Maruti Insurance Agency Services Limited

The company was incorporated on 17th July 2006 the Company shall play an
intermediate role under changed environment of de-tarrifed scenario.

The above companies shall continue to focus on customer retention and enhancing volume
through renewals. Along with enhancing volumes, the endeavour to improve the service levels to
dealers and customers through a process driven approach and effective use of information
technology systems will also continue.

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CHAPTER 2

PRODUCTS

AND

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 OTHER DETAILS
TOPICS UNDER THIS CHAPTER

2.1 Brand.

2.2 Products.

2.3 Product Mix.

2.4 Product Line.

2.5 Target Customers.

2.6 Regional Presence of the company.

2.7 No. of Branches.

2.8 Distributional Channel Competitors.

2.9 Market Share.

2.10 Positioning.

2.11 Marketing Strategies.

2.12 Advertisement Expenses.

2.13 Packaging & Selling and Distribution Expenses for the last three

years and their proportion to Net Sales.

2.1 BRAND

Maruti Suzuki is a customer loyal brand, and it will be unfair to say that Maruti Suzuki target is
middle class or rich class or differentiating on any other basis.

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Maruti Suzuki is the brand which concentrates on every kind of customer.
So, It’s the brand of every one, It is best in compact as well as sedan and suv cars.
The brand is so famous that when any one sees any Maruti product they don’t name it they just
say it’s a Maruti.
It’s a brand due to its superior quality, low running cost, high comfort, low maintenance cost.
Maruti became a brand in 1981 when it just started its production because at that time their were
very few players and their products were out of date, at that time Maruti came up with new
design Maruti 800.
Due to its being customer loyal it has become a brand.

2.2 PRODUCTS

Maruti Suzuki currently has 12 cars in the automobile market.

1. Maruti 800.
2. Alto.
3. Zen Estilo.
4. Swift.
5. Swift Dezire.
6. A Star.
7. Omni.
8. Gypsy.
9. Wagon R.
10. Versa.
11. SX 4.
12. Grand Vitara.

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 Maruti 800 Swift

Zen Estilo Alto

Swift Desire A Star

Omni Gypsy

27
 Wagon R Versa

SX 4 Grand Vitara

ALL CAR OF MARUTI SUZUKI INDIA LIMITED

Maruti Suzuki has discontinued one of its famous car Esteem.

Cars still to come are Splash, SX 4 Compact, Cervo.

2.3 PRODUCT MIX

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Major product-mix strategies:
1. Positioning.
2. Expansion.
3. Alteration.
4. Contraction.
5. Trading up and trading down.

The product mix is the set of all products offered for sale by a company. A product mix has two
dimensions:
a. Breadth - the number of product lines carried.
b. Depth - the variety of sizes, colors, and models offered within each product line.

Maruti Suzuki has 12 cars each best in its class it has all from compact to sedan, simple to
sporty, lower class to upper class.

Maruti Product Mix :

A. Compact :
1. Simple, Cheaper, Best Average Cars : Maruti 800, Alto, Zen Estilo.
2. Stylish, Sporty, Comfortable : Swift, A Star, Wagon R.

B. Sedan :
1. Big Size, Reliable, Comfortable : Swift Desire, SX 4.

C. MUV :
1. Family Car, Reliable, Tough : Omni, Versa

D. SUV :
1. Luxury, Stylish, Powerful : Grand Vitara, Gypsy.

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2.4 PRODUCT LINE

In product mix there are different products but in product line there is classification of one
product on basis of color, accessories etc.
A product line is a broad group of products, intended for similar uses and having similar
characteristics.
As Maruti Suzuki only deals in cars so its product line will be differentiated on the basis of the
size or class of the car, as a compact car, sedan, Muv, Suv. Because there are no other type of
products so its product mix and product line will be almost same.
And further these are classified on the basis of different products.

A. Compact :
1. Simple, Cheaper, Best Average Cars : Maruti 800, Alto, Zen Estilo.
2. Stylish, Sporty, Comfortable : Swift, A Star, Wagon R.

B. Sedan :
1. Big Size, Reliable, Comfortable : Swift Desire, SX 4.

C. MUV :
1. Family Car, Reliable, Tough : Omni, Versa

D. SUV :
1. Luxury, Stylish, Powerful : Grand Vitara, Gypsy.

In case of cars the Product Line will include different colors of a car, facility provided,
accessories of the car.
Like, in case of swift,
a. it comes in various colors. like white, blue, red, black, etc.

30
 b. it has variance on basis of accessories provided. like power steering,
stereo, leather seats, etc.
c. it has deviation on basis of engine. Like diesel, petrol,etc.

2.5 TARGET CUSTOMER

Maruti Suzuki has every kind of customer from lower middle to upper middle class which
comprises of more than half of Indian automobile market.
Maruti Suzuki focuses on every customer as it is customer loyal brand it has products like,
a. Maruti 800, Zen Estilo, Wagon R which are cars simple but trendy cars for lower income
group people.
b. Swift, A Star are cars of slightly upper middle people as these cars are sporty, stylish
cars.
c. Omni, Versa are large family cars as their sitting capacity is large.
d. Swift Desire, SX 4 are big size cars which are high performance, luxury cars.
e. Grand Vitara is Suv which is for upper class and is trendy, stylish, powerful.

Maruti Suzuki has a future planning to capture whole rural market, because they say no other
brand focuses on that huge part of market and it will be an opportunity on our part to satisfy their
emerging needs of automotive products.

So its very difficult to classify target customer for Maruti Suzuki because they are modifying
their products and company and are inventing new products to capture whole automobile market
and each and every customer.

2.6 REGIONAL PRESENCE OF THE COMPANY

31
It will not be false to say that Maruti Suzuki is present in whole of India because it has its
dealers, authorized service centers at those places where other competitors don’t have, like,
dehradun, mansuro, bangluro, Chennai, goa, west Bengal, etc.
So the company has spread its nerves in whole of India and also exports it products which make
it capture foreign market also.
Therefore, we can say Maruti Suzuki is present in whole of India.

2.7 NUMBER OF BRANCHES

There is no branch of Maruti Suzuki but it just has 2 plants in Gurgaon and Manesar and 1 head
office in New Delhi and 16 Regional offices mentioned below.

ADDRESSES

1. Head Office

Maruti Suzuki India Limited

Plot No. 1, Nelson Mandela Road,
Vasant Kunj,
New Delhi-110070
Board no.46781000
Fax : 46150275 and 46150276

2. Plants

a. Gurgaon Plant
Maruti Suzuki India Ltd.
Gurgaon Plant
Old Palam Gurgaon Road
Gurgaon - 122015
Tel: (0124) 2346721 Manesar Plant

b. Manesar Plant
Maruti Suzuki India Ltd.
Plot no.1, Phase 3A
IMT Manesar
Gurgaon - 122051.

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3. Regional Offices

a. Kolkatta
L & T Chamber, 4th floor, b. Ranchi
16th Camac Street 303, Commerce Tower, Beside Mahavir
Kolkatta - 700 017 Tower
Tel: (033) 30281308 Opp. G.E.L. Church Complex, Main
Road
Ranchi
Tel: (0651) 2563931, 61

c. Guwahati d. Indore
403, Orion Towers, 3rd Floor, Commerce House,
Christan Basti 7 Race Course Road,
Guwahati Indore - 452 001
Tel: (0361) 2340850,140 Tel: (0731) 4069481, 2

e. New Delhi f. Chandigarh

Maruti Suzuki India Limited SCO-39-40, Sector 8-C,
Plot No. 1, Nelson Mandela Road, Madhya Marg
Vasant Kunj, Chandigarh - 160018
New Delhi-110070 Tel: (0172) 2780057, 3058077
Board no.46781000
Fax : 46150275, 46150276

g. Lucknow h. Chandigarh
B-1, Pick Up Bhawan (Ground Floor) SCO-39-40, Sector 8-C,
Vibhuti Khand, Gomti Nagar Madhya Marg
Lucknow - 226010 Chandigarh - 160018
Tel: (0522) 2720931-4, 2721145 Tel: (0172) 2548234(D), 2780057

i. Chennai j. Bangalore
7th Floor, Capital Towers, 202, 2nd Floor, Embassy Classic
180, Kodambakkam High Road Vittal Mallya Road,
Nungambakkam, Chennai - 600 034 Bangalore - 560001
Tel: (044) 28233051-3 Tel: (080) 51120017, 19

k. Cochin l. Hyderabad
2nd floor, Tutus Tower, NH-47 Byepass Mahavir Chambers, Door No. 3-6-363 &
Padivattom, 3-6-1/1
Cochin - 682 024 Chamber Bearing No. 101 & 102, 1st
Tel: (0484) 4088400 Floor,
Liberty Square Stanza, Himayatnagar,
Hyderabad
Tel: (040) 55250102, 203

33
 m. Mumbai n. Pune
602, Madhava Building, Bandra Kurla 7th Floor, North Block,
Complex Sacred World, Wanowarie
Bandra (East), Pune- 411040
Mumbai - 400051 Tel: (020) 26856041(D)
Tel: 26590478

o. Ahmedabad p. Jaipur
211, Iskon Mall, Above Star India 7th Floor, Pooja Towers
Bazaar, 3, Gopalpura Byepass, Tonk Road
Satellite Road Jaipur 302 018
Ahmedabad 380 015 Tel: (0141) 5118006, 7
Tel: (079) 40036660

2.8 Distributional Channel Competitors

Maruti Suzuki has the widest distributional channel in India. Distributional channel means the
outlets of the company from were the company distributes its products in the market to the
customer.

Network Details

34
Maruti Suzuki has 683 Dealers in India, 1,120 cities are covered under its service network, has
265 True value outlets and has 2,628 service points in India.
No other company has such a vide network like Maruti Suzuki.

Distribution Channel

35
Maruti Suzuki has an efficient and wide spread network and is explained through the above
diagram.
Maruti’s competitors don’t have such a wide spread distributional channel and hence lag behind
Maruti in distribution channel.

2.9 MARKET SHARE

36
As can be seen from above diagram that Maruti has captured more than half of the automobile
market from 1986 and still holds the major portion of the automobile market. Maruti Suzuki is
the leader in automobile industry and all its other competitors hold the rest of the portion of the
market from the share of less than 50 percent.
The major competitors of Maruti Suzuki in the Indian market are Hyundai, Tata, and Honda.

2.10 POSITIONING

Maruti Suzuki ranked fourth amongst auto companies.

37
The World's Best Corporate Reputations award ranked by Maruti Suzuki India Limited proves it
to be fourth amongst the automakers. Maruti Suzuki India Limited of India scored better than
its parent company, Suzuki Motor Corporation of Japan. Toyota topped the overall most
reputed companies' list.

2.11 MARKETING STRATEGIES

A marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable competitive
advantage. A marketing strategy should be centered on the key concept that customer satisfaction
is the main goal.
The 'Marketing Strategies of Maruti Udyog Limited is to examine the market expansion
strategies adopted by it, India's biggest car maker, in response to intense competition and a
decline in sales of its bread-and-butter model - the Maruti 800. MUL enjoyed a near monopoly
status, until the Government of India liberalized the economy in 1991.

This led to the entry of foreign players like Hyundai, Fiat, Mitsubishi, and Toyota. Even Indian
auto players like Tata Motors and Mahindra and Mahindra entered the fray to give MUL tough
challenges. MUL began to introduce new models, and upgrade its existing models in response to
market demand.

For instance, the company introduced the hatchback 'Swift' to shed its image of being a
manufacturer of low-cost and simple cars. The case study looks into how Maruti Suzuki India
Limited came back from the crunch to retain its place as the top carmaker in India. It also deals
with the tussle between Suzuki Motor Corporation and the Government of India over ownership
issues.

The case highlights the promotional offers undertaken by MUL in its quest for market
dominance and examines how the company was able to mould itself according to the market
requirements, by entering new domains and reaching out to potential customers through its 'True
Value' and other promotional offers.

Maruti organizes races, competitions, family gathering, low monthly EMI, better quality and
other such promotional offers.

MSIL targets on whole market except the rich class customer but now it has started focusing on
them also.

38
STRATEGY OF MSIL

1. Maruti 800, Zen Estilo, Alto are marketed as cheaper cars, with all basically needed items
with modern technology pre installed.
2. Omni, Versa are large family cars.
3. Gypsy, Grand Vitara are SUVs for those who want to go off road.
4. Swift, A Star are stylish and sporty cars.
5. Swift Desire, SX 4 are Sedan cars for a luxury feeling.

2.12 ADVERTISEMENT EXPENSES

As we can see that {Q1-Quarter 1, Q2-Quarter 2} in all on an average Maruti’s expenses on

advertisement are increasing. Due to the rise in competition and entrance of new players into the
market the company now has to spend a huge amount on the advertisement of its products.

2.13 PACKAGING, SELLING AND DISTRIBUTION EXPENSES

The full detail of Selling and Distribution Expenses for 3 years.

39
 Currency in Millions April April April April
[ Indian Rupees ] 2005 2006 2007 2008

6,356.
Selling General & Admin Expenses 5,657.0 8,133.0 9,924.0
0

2,891.
Depreciation & Amortization 4,621.0 2,755.0 5,727.0
0

Other Operating Expenses -- -- 831.0 -17.0

10,278. 9,247. 11,719. 15,634.

Other Operating Expenses
0 0 0 0

Interest Expense -377.0 -223.0 -404.0 -625.0

1,576.
Net Interest Expense 1,052.0 2,239.0 2,464.0
0

3,196.
Other Non-Operating Income (Expenses) 3,052.0 1,683.0 1,620.0
0

5,740.
Income Tax Expense 4,580.0 7,280.0 7,878.0
0

This comparison of three year data proves that the company Maruti Suzuki India Limited is
incurring huge expenses on selling and distribution every year, and this amount is increasing
every year.

40
It is so because of the tough competition in the auto market and changing taste of consumers for
car also there are huge variety of cars in Indian automotive industry due to such a flood of cars
the company has to show consumers that how their cars are different and superior from their
competitor’s vehicles.

CHAPTER 3

DETAILED

41
 FINANCIAL

STATEMENT

TOPICS UNDER THIS CHAPTER

3.1 Stock Exchange on which the company is listed.

3.2 Weight age in Index.

3.3 Capital Structure Authorized Capital.

3.4 Turnover.

3.5 Balance sheet for the last three years and Ratio Analysis Auditing Company.

3.1 Stock Exchange on which the company is listed

Maruti Suzuki India Limited is listed on both National Stock Exchange [NSE] and Bombay
Stock Exchange [BSE], India, South Asia.

3.2 Weight age in Index

42
BSE Auto index slipped 1.59 percent to 3,050.43. The index came sharply off intra-day high of
3,152.99 which it struck soon after the Reserve Bank of India announced the repo rate cut at
about 12:45 IST.

Shares of top five auto shares in terms of weight age in the BSE Auto index showed mixed trend.
However, all these shares were off their day’s highs.

Mahindra & Mahindra down 4.31% to Rs 422, off day’s high of Rs 450, Tata Motors down
0.10% to Rs 243.10, off day’s high of Rs 259, Hero Honda Motors down 0.30% to Rs 808.90, off
day’s high of Rs 824, slipped. Their share prices fell and loose their weight age.

However, Maruti Suzuki India up 3.05% to Rs 660.15, off day’s high of Rs 674 and Bajaj Auto
up 0.55% to Rs 370, off day’s high of Rs 376, gained. The share price of MSIL still gained some
more weight age.

Maruti Suzuki India Limited has a high weight age in the auto share market due to its being
customer and investor loyal the fluctuation in the market does not majorly affect the company.

3.3 Authorized Capital Structure

Maruti Suzuki India Limited has total 28,89,10,060 shares in the market.

(Rs. Crore)

PARTICULAR Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04

Equity share capital 144.50 144.50 144.50 144.50 144.50

Share application money - - - - -
Preference share capital - - - - -
Reserves & surplus 8,270.90 6,709.40 5,308.10 4,234.30 3,446.70

43
3.4 Turnover

The Net Sales or turnover of the company Maruti Suzuki India Limited of the year March 31, 2008
was 1,78,916 Million Rs.

If we compare it with its last three years result than we will come to know that its turnover is increasing
every year.

For March 31, 2008 Turn Over 1,78,916 Million Rs.

For March 31, 2007 Turn Over 1,469,63 Million Rs.

For March 31, 2006 Turn Over 1,20,159 Million Rs.

As from above details one can understand that Maruti Suzuki is not a small player it has a very high
turnover which is increasing every year on an average by amount 20,000 Million Rs.

3.5 Balance sheet and Ratio Analysis

Balance Sheet with Ratio Analysis for 3 years

BALANCE SHEET

PARTICULAR 31-Mar-08 Ratio 31-Mar-07 Ratio 31-Mar-06 Ratio

ASSETS Rs [Mn] % BST Rs [Mn] % BST Rs [Mn] % BST
Gross Block 72853.00 58.73 61468.00 59.89 49546.00 64.27
Net Block 32965.00 26.58 26597.00 25.91 16952.00 21.99
Capital WIP 7363.00 5.94 2389.00 2.33 920.00 1.19
Investments 51807.00 41.77 34092.00 33.22 20512.00 26.61
Inventory 10380.00 8.37 7132.00 6.95 8812.00 11.43
Receivables 6555.00 5.28 7474.00 7.28 6548.00 8.49
Other Current Assets 14970.00 12.07 24954.00 24.31 23347.00 30.28
Balance Sheet Total(BT) 124040.00 100.00 102638.00 100.00 77091.00 100.00

44
 LIABILITIES Rs [Mn] %BT Rs [Mn] %BT Rs [Mn] %BT
Equity Share Capital 1445.00 1.16 1445.00 1.41 1445.00 1.87
Reserves 82709.00 66.68 67094.00 65.37 53081.00 68.85
Total Debt 9002.00 7.26 6308.00 6.15 717.00 0.93
Creditors and Acceptances 8549.00 6.89 9096.00 8.86 5551.00 7.20
Other current liab. / prov. 22335.00 18.01 18695.00 18.21 16297.00 21.14
Balance Sheet Total(BT) 124040.00 100.00 102638.00 100.00 77091.00 100.00

RATIO ANALYSIS

PARTICULAR 31-Mar-08 31-Mar-07 31-Mar-06

OPBIT/Production capital employed (%) 63.22 52.77 48.61
PBIT/Cap. Employed (%) 28.90 30.87 33.92
PAT/Net worth (%) 20.57 22.79 21.81
Tax/PBT (%) 30.78 28.68 33.28
Total Debt/Net worth (x) 0.11 0.09 0.01
Long Term Debt/Net worth (x) 0.06 0.08 0.01
PBDIT/Finance Charges (x) -142.39 53.37 35.23
Current Ratio (x) 1.03 1.42 1.77
RM Inventory (days consumption) 10.39 12.58 12.33
FG inventory (days cost of sales) 12.64 6.45 17.16
Receivables (days gross sales) 11.38 15.86 16.20
Creditors (days cost of sales) 19.99 26.12 19.61
Opening current assets (days OI) 61.00 94.00 112.00

45
 CHAPTER 4

ORGANIZATIONAL
46
 STRUCTURE

TOPICS UNDER THIS CHAPTER

4.1 Organization Structure.

4.2 No. of Employees Recruitment and Selection Procedures.

4.3 Training & Development Policies.

4.4 Conflict Resolution Mechanism.

4.1 ORGANIZATION STRUCTURE

Maruti Suzuki India Limited has a Flat organizational Structure.

47
REASONS FOR CHOOSING FLAT ORGANIZATIONAL STRUCTURE

1. Employees are free to make suggestions.

2. Team work & quality are basic ingredients of Maruti Suzuki.
3. Maruti practices problem solving approach.
4. Information sharing, team work, participative management.

These points make Maruti Suzuki organizational structure simple for problem solving,
communication, achieving target.

In more elaborated form it is like this,

48
4.2 EMPLOYEES RECRUITMENT AND SELECTION PROCEDURES

Maruti Suzuki India Limited has around 6,560 employees total in combination to employees
working in its both Gurgaon and Manesar Plant.

EMPLOYEE SELECTION PROCEDURE

I. Policy

The purpose of this policy is to provide uniform guidelines for the recruitment and
selection of employees at Maruti Suzuki India Limited.

49
II. Process

The recruitment and selection process includes

a. Creating a new position.

b. Filling an existing vacancy.

c. Hiring a person.

d. Reclassification of a position.

e. Transferring an employee from one position to another.

All requests should be submitted at least 30 days prior to the effective date of the requested
action. This will require proper planning.

The process for executing any of the above actions is as follows:

1. The requestor must complete a Personnel Action Request form. A blank form may be
obtained from the Office of Human Resources. It is the requestor’s responsibility to
work with the area Manager to ensure that funding is available for the requested
action.

2. In addition, the requestor works directly with the Office of Human Resources to create
an accurate position description. If necessary, an advertisement document will be
generated by the Office of Human Resources based upon the information contained in
the position description.

3. The Personnel Action Request form and all supporting documents are routed to the
necessary authorizer’s manager. Each responsible person should sign the document
within two business days of receipt.

4. Once the Manager signs the Personnel Action Request form, it is returned to the Office
of Human Resources, and the Office of Human Resources will forward a copy of the
completed document to the requestor.

If the requested action requires identifying qualified candidates, then there are
additional steps in the process:

1. A position announcement/advertisement will be created by the Office of Human

Resources using the information contained in the position description in order to
maintain consistency.

50
2. As resumes are received for the posted/advertised positions, the Office of Human
Resources will send acknowledgement cards to the prospective candidates.

3. A search committee and search committee chairperson will be formed by the area
Manager in consultation with the Manager or by the Manager.

4. The Manager will contact the Director of Human Resources. The role of the Human
Resources Director will be to collaborate and serve as a consultant for area Managers
and recommend or not recommend that certain constituency groups be included on
search committees.

51
5. The Office of Human Resources will meet with the search committee within one
week after the identification of the members for a briefing to include the discussion of

a. The role of the search committee.

b. The role of the search committee chairperson.

c. Position requirements.

d. Scoring/evaluation forms.

e. Minutes (if necessary).

f. Veteran’s preference law.

g. Confidentiality.

h. Interviewing skills and techniques.

i. Interviewing etiquette.

6. The search committee develops a resume scoring form and interview questions (with
the assistance of the Office of Human Resources) within one week of the initial
meeting of the committee.

7. The Office of Human Resources must approve the scoring form and interview
questions.

8. The Office of Human Resources will review all resumes and application materials to
insure that all applicants meet the minimum qualifications for the position and create

a. Folder for the position containing.

b. The approved “Personnel Action Request” form.

c. Job posting.

d. Resumes and other supporting documents that are received.

e. Evaluation tools.

9. The search committee members will begin reviewing resumes in the Office of Human
Resources after instruments have been approved and will continue until one week
after the closing date of the advertisement.

52
10. The search committee members will evaluate the resumes received using the
evaluation tools that were approved. This step must be completed in the Office of
Human Resources and may require multiple visits. Only copies of resumes can be
removed from the office of human resources by the search committee chairperson.

11. The search committee person will work with the committee members to determine
who will be considered for an interview based upon the requirements of the position
and possible interview times.

12. A designee from the search committee will arrange interviews with candidates and
deliver the interview schedule with candidate names to the search committee
members and the Office of Human Resources.

13. The Office of Human Resources will send a “Confidential Employment Applicant
Data Collection” form to each candidate.

14. The search committee will conduct interviews and evaluate candidates using the
forms developed. Note: If candidates are interviewing for a director, Manager
Position, then the search committee chairperson should consult the Office of the
Manager to ensure that the Manager is placed on the interview schedule.

15. The search committee will identify the top three candidates. The managers will
submit the recommendation to the hiring personnel, along with a cover memo citing
any pertinent information about candidates, with a copy to the Office of Human
Resources. All other pertinent information [copy of the position announcement,
resume and supporting documentation for each person, completed scoring forms,
cover memo citing any pertinent information about candidate] should be forwarded to
the Office of Human Resources within three business days after completing the
interviews.

16. The Office of Human Resources will meet with the hiring manager/supervisor,
committee chair and area Manager to discuss the results of the search.

17. Depending upon the level of the position, the candidates may need to be submitted to
the Office of the Manager for review. If this is necessary, the information will be
forwarded to the Manager from the area Manager.

18. The search process should be completed within eight weeks after the position has
been posted and advertised.

53
 19. Once a person is identified for the position, the Office of Human Resources will
request an official transcript and references, check references [if necessary], assist in
determining the appropriate salary, and make a verbal offer via telephone [obtaining
actual start date].

Once a person is identified for a position, the following steps should be completed:

1. The Office of Human Resources will assist the hiring manager/supervisor in

completing the Hiring Recommendation form.

2. The Hiring Recommendation form will be routed for the necessary signatures and
returned to the Office of Human Resources after completion.

3. The Office of Human Resources will draft the offer letter/contract and submit it to the
Manager for signature.

4. The Office of Human Resources will send the offer letter/contract via regular mail
after the Manager has signed it.

5. Once the candidate returns the signed offer letter, the Office of Human Resources will
distribute copies to the Office of the Manager, the appropriate Manager, payroll, the
appropriate collective bargaining unit and any other office that has a need to know.

III. Responsibilities

The purpose of the search committee is to evaluate candidates for vacant positions on campus
and make recommendations for hire. The Office of Human Resources will oversee each search
committee and monitor the committee’s progress to ensure that positions are being filled
expeditiously. In addition, the Office of Human Resources must ensure that the process remains
fair.

The following table outlines the responsibilities of all parties who are involved in the search
process

54
RESPONSIBLE PARTY RESPONSIBILITIES
Hiring Manager/Supervisor

• Work with the Office of Human

Resources to create an accurate
position description and obtain
classification and appropriate salary
level.

• Ensure that budget is available.

• Submit Personnel Action Request

form for approval.

• Make recommendations for search

committee members to the area
Manager.

• Function on search committees.

• Meet with the search committee to

discuss requirements (if not a member
of the committee).

Area Manager

• Work with the hiring

manager/supervisor on budget
requirements/issues.

• Identify search committee members

and inform members that they have
been selected.

• Complete sign-off of “Personnel

Action Request” form.

• Participate in interview process when

necessary.

• Forward recommendations to the

Manager for approval.

55
OVERVIEW OF PROCESS

a. Assess the need for the job and ensure there is adequate funding for it

b. Review the job description to ensure that it meets the present and future requirements

c. Review the person specification to ensure it meets the requirements of the job description

d. Design the selection process

e. Draft the advertisement and select the advertising media

f. Short list using the person specification only

g. Interview and test short-listed candidates

h. Validate references, qualifications and security clearances

i. Make appointment

Managers hold the responsibility for ensuring this framework is followed. HR is available for
advice and will assist in general administration of the recruitment process.

SELECTION

Decision to Appoint

In selecting the successful candidate, the panel must make a decision based on the merit and
eligibility of the candidates as judged by:

a. Content of application

b. Qualifications (if required for the post)

c. Performance at Interview

d. Outcome of any selection tests

e. Right to work in the UK.

56
The panel must seek to ensure that candidates appointed will actively promote the IPCC’s Core
Values.

CHECKS

As part of assessing the merit of each candidate, Managers must satisfy themselves that the
information the candidate gives is authentic, consistent and honest. This includes being satisfied
about information regarding the candidate’s:

a. Application.

b. Work history.

c. Qualifications [where a qualification is a requirement for the post, supporting evidence or

certification must be obtained from the candidate and recorded].

d. Evidence presented at interview.

Human Resources are responsible for processing:

a. Reference checks.

b. Security Clearances.

c. Ensuring the candidate has the right to work in the India.

Should any of these not meet the required standards, HR must immediately discuss the issue with
the Manager.

4.3 Training & Development Policies

Maruti Suzuki has a 360 Degree Appraisal system as it consumes less time and is more
effective as communication is much faster.
360 Degree Feedback, also known as 'Multi Rater Feedback', it is employee development
feedback that comes from all around the employee. The feedback would come from

57
subordinates, peers, and managers in the organizational hierarchy, as well as self-assessment, and
in some cases external sources such as customers and suppliers or other interested stakeholders.
The results from 360-degree feedback are often used by the person receiving the feedback to
plan their training and development. The results are also used by some organizations for making
promotional or pay decisions, which are sometimes called "360-degree review."

360 degree feedback enables leaders to:

1. Take advantage of under-utilized personnel strengths to increase productivity.

2. Avoid the trap of counting on skills that may be weak in the organization.
3. Apply human assets data to the valuation of the organization.
4. Make succession planning more accurate.
5. Design more efficient coaching and training initiatives.
6. Support the organization in marketing the skills of its members.

360 degree appraisal is also a powerful developmental tool because when conducted at regular
intervals it helps to keep a track of the changes in others perceptions about the employees.
A 360 degree appraisal is generally found more suitable for the managers as it helps to assess
their leadership and managing styles.
This technique is being effectively used across the globe for performance appraisals. Some of the
organizations following it are Wipro, Infosys, Reliance Industries, Maruti Udyog and HCL etc.

360 degree offers an unprecedented opportunity to the employees than the traditional top- down
approach could ever offer, providing as it does, the feed back from the broad Swathe of people.

4.4 Conflict Resolution Mechanism

1. Our relationship with the Future Group is essential to our business model, and we believe
that it will operate to benefit of shareholders of our Company. This relationship may also
create conflicts of interest with respect to potential opportunities between our Company
and other entities within the Future Group.

2. See “Risk Factors -- Conflicts of interest may arise and our failure to deal with them
appropriately could damage our reputation and adversely affect our business.” on page of
this Draft Red Herring Prospectus.

58
 3. We have developed a strategy to seek to minimize potential conflicts of interest. Our
Consultant will constitute an advisory committee (the “Advisory Committee”) consisting
of its CEO and CFO and at least two other persons, who will be responsible for screening
potential opportunities for conflicts of interest. If any conflict arises with respect to a
business opportunity, the Advisory Committee will consult with the relevant Future
Group entity and our Company and may rely on third-party advisors to assist it in
resolving such conflict.

4. In respect of opportunities of strategic importance where operational control is intended,

a right of first offer will be granted to the Future Group entity operating in the specific
industry or sector in which those opportunities have arisen. For a description of the
agreements containing these right of first offer and conflict resolution arrangements, see
the section titled beginning on page

The Maruti Suzuki has 360 Degree Appraisal System and other departments are made to directly
get in touch with employee to know the source and problem deeply and find a suitable solution
for it.
For the solution of conflicts of upper level management third parties are selected who are
responsible to make the situation under control.

59
CHAPTER 5

FACTORY AND

PLANT

60
 LOCATION

TOPICS UNDER THIS CHAPTER

5.1 Factory Location.

5.1 FACTORY LOCATION

The plant of Maruti Suzuki India Limited is situated in Gurgaon and Manesar in Haryana and the
head office of MSIL is located in New Delhi.

61
 ONE OF THE FACTORY LOCATIONS OF MSIL
MANESAR, HARYANA, INDIA

INDIA MAP SHOWING THE FACTORY LOCATION OF BOTH THE

GURGAON AND MANESAR PLANTS OF MSIL

Maruti Suzuki has two plants in Haryana and one head office in New Delhi and their locations
are

62
 ADDRESSES

1. Head Office
Maruti Suzuki India Limited
Plot No. 1, Nelson Mandela Road,
Vasant Kunj,
New Delhi-110070
Board no.46781000
Fax : 46150275 and 46150276

2. Plants

a. Gurgaon Plant
Maruti Suzuki India Ltd.
Gurgaon Plant
Old Palam Gurgaon Road
Gurgaon - 122015
Tel: (0124) 2346721 Manesar Plant

b. Manesar Plant
Maruti Suzuki India Ltd.
Plot no.1, Phase 3A
IMT Manesar
Gurgaon - 122051.

The actual production is done in the Gurgaon and Manesar plant and the managing decisions are taken
from head office which is situated in New Delhi.

In the Gurgaon plant Maruti 800, Zen Estilo, Alto, versa, Omni, Gypsy, Wagon R are produced.

In the Manesar plant Swift Desire, SX 4, A Star are produced.

Also when any new car is designed and to be produced it is manufactured in Gurgaon plant and when it
captures market its main production line is then shifted it Manesar plant.

All the newer version vehicles designed by Maruti Suzuki are manufactured from Manesar plant and all
other vehicles are produced in Gurgaon plant.

63
CHAPTER 6

SWOT ANALYSIS

OF

MARUTI SUZUKI
64
TOPICS UNDER THIS CHAPTER

6.1 SWOT Analysis.

6.1 SWOT ANALYSIS

SWOT Analysis means Strength, Weakness, Opportunity, and Threat.

These are the factors and the conditions prevailing in the company, industry and out side its
environment. Those factors which prevail inside the company are known as Internal Factors and
other which affect decision making and strategies of the business from outside are known as
External Factors.

STRENGTHS

1. Name Recognition

The name Maruti Suzuki is the most recognizable auto manufacturer in India

2. Company Image

Maruti Suzuki’s image is that of tough, dependable, long lasting vehicles. It’s "Like a
Rock". Its name "Maruti, According to Indian culture hanuman is known as Maruti
which is a holly name," and the people like Maruti’s cars so much that they call all
Maruti Suzuki’s vehicles as Maruti it helps the company to continue the company image
of producing durable products.

3. Product Diversity

Maruti Suzuki’s features many different products for many different target groups. It has
four divisions of vehicles: Compact Cars, Sport Utility Vehicles, Vans, Sedan. Because
of its diversity it can market its products to almost any target group. It produces a 800 cc

65
 compact car for just Rs. 1,70,000 and also produces 2,000 cc SUV for Rs. 15,00,000. So
it captures a vide variety of consumers.

4. Racing Sponsor

One of Maruti's biggest marketing assets is its racing team. Maruti Suzuki organizes
racing events both in India and Japan. These events provide Maruti with a unique
opportunity to prove to consumers that its products are superior to competitors on an even
scale.

WEAKNESSES

1. No Luxury Vehicle

Maruti Suzuki does not feature, and has no intent to feature any type of luxury vehicle.
Without this they cannot compete with foreign manufacturers. Even Ford and Chrysler
have developed a luxury vehicle for their fleets.

2. Weak In Horse Power

Besides the Grand Vitara, all Maruti Suzuki’s vehicles are substandard to their foreign
competition when comparing horse power. The Maruti’s all vehicles features less than
120 bhp engine, while the Honda, Ford, Tata its direct competitor, boasts a 180 bhp
engine.

3. Dull Product Design

Once again, with exception to the Swift, Maruti Suzuki’s vehicles have a very
conventional and boring design. This hurts the company drastically because people want
power, reliability and style and Maruti lacks in style.

OPPORTUNITY

1. Rural Market

66
 Maruti Suzuki is the only one automotive player who wants to focus on the rural market.
All the other competitive players neglect that sector as India is a developing economy
here major part of population is rural. So focusing on that neglected sector Maruti has an
opportunity to grab and increase its market share.

2. Increasing Plant Capacity

Maruti Suzuki is increasing its production capacity by creating two more plants in near
2011 which will result in mass production and will help in reducing per unit cost and
company will be able to capture more share in market.

THREAT

1. Foreign Competitor

Maruti Suzuki has a threat from foreign players as their technology is much more new
and so products are more upgraded, they have much more funds to invest in research and
development, it makes Maruti unsafe in globalised market.

As every business has some strength, weakness, opportunities and threats so Maruti Suzuki also
has, but if one goes deeply inside the company one will find that,

Maruti Suzuki has more Strengths and opportunities and very less weakness and threats.

So the business has more chances to flourish than any other competitor.

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CONCLUSION

OF

THE

REPORT
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1. Maruti Suzuki India Limited was first known as Maruti Udyog but was renamed to
Maruti Suzuki India Limited.

2. Maruti Suzuki is one of the most reputed companies in the automobile industry. Maruti
Suzuki has the highest automobile market share in India.

3. Maruti Suzuki Produces Compact, Sedan, MUV, SUV vehicles.

a. Compact Vehicles means Small Cars. Like, Maruti 800, Alto, Zen.

b. Sedan means Big Size Cars. Like, Swift Desire, SX 4.

c. MUV means Multi Utility Vehicles. Like, Gypsy, Omni, Versa.

d. SUV means Sports Utility Vehicle. Like, Grand Vitara.

4. Maruti Suzuki has same amount of investment from past 5 years but its revenue and net
profit after tax is increasing every year.

5. It has around 6,560 employees in total in its Gurgaon and Manesar plant in Haryana,
India.

6. Maruti Suzuki has its registered office in New Delhi but its plants are located in Haryana,
India.

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7. Maruti Suzuki is listed of National Stock Exchange and Bombay Stock exchange of
India.

8. Maruti Suzuki wants to make Indian roads more safer than ever hence running a driving
school for drivers to drive safely.

9. Maruti Suzuki has a vision to make India Automotive.

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