Maruti Suzuki

INTRODUCTION
Maruti Suzuki India Limited is a leading four-wheeler automobile
manufacturer in South Asia. It is largely credited for having brought
in an automobile revolution to India.
It was a joint venture between the Indian government, and Suzuki of
Japan. 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.
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 Suzuki offers 13 models, Maruti 800, Omni, Alto, Versa, Ritz,
Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and
Grand Vitara.
Maruti Suzuki has manufacturing plants in Gurgaon & Manesar

nternal Environment

Men
The company has a multi-tier
management structure, comprising:
1.
2.
3.
4.

Board of Directors
Managing Executive Officers
Executive Officers
Divisional Heads

Through this it is ensured that:

. Strategic supervision is provided by the board.
. Control and Implementation of Companys
strategies is achieved effectively.
. Operational management remains focused on
implementation.
. Information regarding the companys operations
and financial performance are made available
adequately.

 Delegation of decision making with

accountability is achieved.
Financial and operational control and
integrity are maintained at operational level.
Risk is suitably evaluated and dealt with.

The employees of Maruti, from

technicians to engineers to sales
persons, have fully imbibed the
Japanese work culture of making
constant improvement, and placing
the prosperity of the company as the
means of their own advancement

Money
For its Indian operations, the company
plans to invest Rs 9,000 Crore by
2010.
The company has also made huge
investment in the plant situated at
Manesar, that is almost ready to reach
its peak production level of 300,000
units.

 The company also operates at the

new engine facility located at
Gurgaon.
Maruti Suzuki has a good network of
internal resources to finance the
companys operations, expansion
plans as well as capital investments.

Machinery
The Manesar plant of the
company established in
2006achieved an expanded
installed capacity of 1,70,000
units at the end of first year.
The models of Swift, SX4 and
Dzire are manufactured in
Manesar.

 Recently, the company has introduced a

peppy k series engine for its new car,
Maruti Suzuki A-star.
In future, it aims to produce more
environment-friendly car engines.
The company plans to design cars that are
fuel efficient and lower on CO2 emissions.
It also has plans to develop hybrid,
electrical, and multi-fuel engines

Materials
Maruti uses the following materials to
reduce its energy consumption while
manufacturing cars:
Energy efficient fans in cooling towers
Special transformers to minimize the energy
losses.
Energy efficient motors and blowers in the air
washer system for shop cooling
Energy efficient chillers for air conditioning.

 Building Management System and Variable

Air Volume System for optimized cooling in
the work places and reduce the energy
consumption.
Increased re-use of waste heat of
combustion for running equipment.
Energy efficient lighting.
Energy efficient air driers.

Methodology
Small is Beautiful
Maruti Suzuki has a firm belief that the future of
Indian car industry belongs to small cars.
The rising fuel prices, high input costs and
congested city roads is paving way for small,
light-weight and fuel efficient cars.
Even the government is supporting the
introduction of small cars with favorable policies.
Exuding companys confidence on growth of small
cars, Maruti Suzuki aims to roll out more numbers
of small cars for the Indian sub-continent.

Re-enter Europe
Maruti Suzuki re-entered European
market with a global car that is fuelefficient and lower on CO2 emissions.
This new car christened as Maruti
Suzuki A-Star was launched in Europe
with the brand Suzuki Alto.
Maruti has announced to launch
another world strategic car model,
Maruti Suzuki Splash.

ternal Environmen

Micro

Threat from the new players: Increasing

Most of the major global players are present in the Indian
market; few more are expected to enter.
Financial strength assumes importance as high are
required for building capacity and maintaining adequacy
of working capital.

Rivalry within the industry: High

There is keen competition in select segments. (compact
and mid size segments).
New multinational players may enter the market.

Market strength of suppliers: Low

A large number of automotive components suppliers
Automotive players are rationalizing their vendor base to
achieve consistency in quality
Market strength of consumers: Increasing
Increased awareness among consumers has increased
expectations. Thus the ability to innovate is critical
Product differentiation via new features, improved
performance and after-sales support is critical
Increased competitive intensity has limited the pricing
power of manufacturers

Threat from substitutes: Low to medium

Consumer preference is changing (Mini cars are being
replaced by compact or mid sized cars)
Setting up integrated manufacturing facilities may
require higher capital investments than establishing
assembly facilities
India is also likely to increasingly serve as the sourcing
base for global automotive companies, and automotive
exports are likely to gain increasing importance over the
medium term
Indian passenger car market is moving towards cars of
higher capacity
competition is likely to intensify in the SUV segment in
India following the launch of new models at competitive

ternal Environment
Macro- PESTEL

litical Environme

The policies & objectives laid down by the Indian

Government regarding the automobile sector are:
Exalt the sector as a lever of industrial growth and
employment and to achieve a high degree of value
addition in the country
Promote a globally competitive automotive industry
and emerge as a global source for auto
components
Establish an international hub for manufacturing
small, affordable passenger cars and a key center
for manufacturing Tractors and Two-wheelers in the
world
Ensure a balanced transition to open trade at a
minimal risk to the Indian economy and local
industry

 Conduce incessant modernization of the industry

and facilitate indigenous design, research and
development
Steer India's software industry into automotive
technology. Example: the company developed
CMA software for carrying out target costing.
Assist development of vehicles propelled by
alternate energy sources
Development of domestic safety and
environmental standards at par with
international standards

Keeping the Government policies in mind Maruti

Suzuki has adopted the following policies to run the
organisation:
Maruti Suzuki is one of the organisation which was
able to survive the global recession. Not only they
made a reasonable profit but also didnt give away
any pink slips
Maruti Suzuki is the leading automobile
manufacturer in the country. Now they are in the
process of re-entering the European market by
introducing A-Star
The company has now started using CNG Kits. They
have introduced this technology in Alto which fulfills
the CSR of going Green
The company has introduced KB-Series engine

Economic Environm

ECONOMIC ENVIRONMENT OF MARUTI

SUZUKI
The global meltdown has certainly hit the Indian
car industry hard.The industry posted a growth
rate of 11 per cent in the
year 2007 which has
fallen to 3 per cent this year.
Maruti now plans to tap the rural market, 60 per
cent of which runs on cash .
Maruti has appointed 2,000 sales executives to
target customers in the rural areas.

The company is offering discounts ranging from Rs 3,000 to

8,000 on various models in the rural market.

On May 8 2009 Maruti Suzuki India planned to ramp up its

production capacity by addition of 2 Lakh cars in the next two
fiscal years.
Currently, Maruti Suzuki manufactures 9 Lakh cars annually
to cater to the biggest segment - small cars in India.
It will be spending nearly Rs 1,800 Crore to develop the
capacity.

Maruti Suzuki sold 7.92 Lakh cars in the last 2008-09 fiscal
year which combines the domestic sales and those made
abroad.
It recorded the highest sales in April with a 15 percent jump
and sale of 71,748 units in one month.
Company has allocated Rs 9,000 Crore for a new engine plant
and new research and development centre, in japan.
In January 2009, Maruti exported 4774 units and accounts for
a total car sales of 71,779 units.

The recession affect on Automobile Prices

The pricing of the following cars have gone up by:
A-Star hatchback Rs 10,000
All variants of SX4 sedan Rs 9,000.
The price of Swift Petrol LXi
Rs 5,000.
For the higher variants of Swift-VXi and Zxi- Rs 6,000.
The new prices for Swift DZire
Rs. 7,000

ocial Environmen

Social environment
Welfare Camps
Medical support &
welfare
Education to
underprivileged
Road Safety
Maruti Driving Schools
Greening of Supply Chain
Adopting energy saving
technologies
Reducing water wastage
Green Growth

chnological Environm

 Launched CNG kit for Alto, its

highest selling small car.
The company as a proactive
move is all set to make its entire
fleet of cars adhere to end of
life vehicles (ELV) specifications
by 2010 by doing away with the
usage of hazardous substances
during production of cars and
their components.

 The company is involved with

the development of small and
fuel-efficient car engines.
In future, the company has high
plans to increase the engine
development work in India along
with other R&D operations.

 The company uses next generation KB

series Engine in its new Hatchback car Astar.
The company added Virtual Design
Review to its R&D activity to enable
virtual validation to reduce cycle time
and development cost.
In the field of alternate fuel technology,
the company developed LPG system for
MPI engine.

ological Environme

Practicing 3 R
3R- reduce, reuse, and recycle.
Continuous process of promoting 100%
recyclable and reusable car parts.
Targets reducing fresh water
consumption and implement rain water
harvesting.

 The newly launched Maruti Suzuki AStar is designed to meet the

European ELV (End-of-Life Vehicle)
norms.

Promoting Green
Procurement
Encourages its customers to act upon
environment friendly approach.
The company conducts regular training and
education programmes at the supplier end.
Sessions are also held at all possible places
comprising people from all arenas of the
car industry.

 Researches are done to learn

innovative ways of improving
ecological balance and reduce
automotive emissions.

Promoting Energy
Conservation
Education, and improvement initiatives
are taken on the shop floor.
The company has introduced three-coatone-bake painting system at its facility.
The company is moving towards making
its entire fleet of cars green with
advanced and efficient technologies.

Certification and Awards

1999- Certified for establishing and
maintaining EMS as per ISO
14001:1996 standards. The company
was again recertified for the same in
2002.
Certified for changing its EMS from
ISO 14001:1996 version to ISO
14001:2004 version.

 Golden Peacock award for

Environment Management in 2007
was honored by World Environment
Foundation.
First prize for excellence in
implementation of Energy
Conservation measures in industrial
sector was awarded by renewable
energy department of Haryana
Government.

egal Environment

Legal Environment
Follows highest standards of Corporate Governance
Customer can contact the Secretarial & Legal Department for
any questions/clarifications.
Legal compliance reporting
The board periodically reviews reports of compliance with
all laws applicable to the Company, as well as steps taken by
the Company to rectify instances of non-compliances.
The Company has developed comprehensive legal
compliance scheduling and management software by which
specific compliance tasks are assigned to each individual.
The software enables in planning and monitoring all
compliance activities across the Company.