PROJECT REPORT:MARUTI SUZUKI INDIA

SUBMITED TO:SATYENDRA PATNAIK

ABOUT MARUTI SUZUKI
TYPE : PUBLIC

FROM:-ANSHUL RAJPUT

TRADED AS : BSE;532500 NSE;MARUTI INDUSTRY : AUTOMOTIVE FOUNDED : 1981 (AS MARUTI UDYOG LIMITED) HEADQUARTER : NEW DELHI , INDIA KEY PEOPLE : MR. SHINZO NAKANISHI (MD ANDCEO) PRODUCTS : AUTOMOBILES REVENUE : RS. 37,522.4 CRORE (2010 2011) NET INCOME : RS. 2,288.6 CRORE (2010 - 2011) EMPLOYES : 6,903 PARENT : SUZUKI MOTOR CORPORATION

WEBSITE : MARUTISUZUKI.COM

HISTORY
MARUTI SUZUKI INDIA LIMITED ( MSIL ,FORMERLY KNOWN AS MARUTI UDYOG LIMITED ) IS A SUBSIDIARY OF SUZUKI MOTORCORPORATION , JAPAN. MSIL HAS BEEN THE LEADER OF THE INDIAN CAR MARKET FOR OVERTWO AND A HALF DECADES . THE COMPANY HASTWO MANUFACTURING FACILITIES LOCATED AT GURGAON AND MANESAR ,SOUTH OF NEW DELHI , INDIA . BOTH THE FACILITIES HAVE ACOMBINED CAPABILITY TO PRODUCE OVER A 1.2MILLION VEHICLES ANNUALLY.

PRODUCTS
MARUTI 800 , PEOPLE MOVERS , OMNI , EECO , ALTO , ALTO K10 , ASTAR , SWIFT , RITZ , ESTILO ,GYPSY , SUV GRAND VITARA , SX4 , SWIFT DZIRE AND KIZASHI. IN AN ENVIRONMENT FRIENDLY INITIATIVE ,IN AUGUST 2010 MARUTI SUZUKI INTRODUCED FACTORY FITTED CNG OPTION ON 5 MODELS ACROSS VEHICLE SEGMENTS.THESE INCLUDE EECO ,ALTO ,ESTILO ,WAGONR AND SX4. PRICES CARS PRICE(in Rs.) MARUTI 800 . . . . 1,98,532 MARUTI OMNI . .. . .. 2,13,615 ALTO . .. .. .. 2,33,172 EECO .. .. 2,95,194 ZEN ESTILO . 3,36,450 WAGON R 1.0 .. .. 3,44 ,110 A STAR .. .. .. 3,67,432 RITZ . .. .. .. .. 4,14,132 SWIFT . .. .. .. .. 4,41,308

SWIFT DZIRE . . 5,05.346 GYPSY . .. .. .. .. 5,39,715 SX4 . . .. .. . 7,18,531 KIZASHI . .. .. .. . 16,86,411 GRAND VITARA. .. .. 17,33,565

GURGAON MANUFACTURING UNIT

The Gurgaon manufacturing centre is spread over 300 acres. It has three fully integrated manufacturing plant. All the thre e plants havean installed capacity of 350000 vehiclesannually but productivity improvements haveenabled it to manufacture 700000 vehiclesannually. It also manufactures 240000 kseriesengines annually. The entire centre is equipped with more than 150 robots , out of which 71have been developed in house. This centremanufactures 800 , Alto , Wagon R , Estilo , Omni ,Gypsy , and Eeco.

MANESAR MANUFACTURING UNIT

Manesar manufacturing plant was inaugurationin feb 2007 and is spread over 600 acres.Initially it had a production capacity of 100000 vehicles annually but this was increased to300000 vehicles annually in october 2008. The production capacity was furth er increased by 2,50,000 vehicles taking total productioncapacity to 5,50,000 vehicles annually. TheManesar plant produces the A star , Swift , Sw ift dzire and Sx4

PEST ANALYSIS POLITICAL EFFECTS

Terming the labour problem at its Manesar plant as a political issue

With the stand-off between the management and workers at its Manesar plant continuing for the 11th day, car maker Maruti Suzuki India today termed the labour problem as a "political issue" and said it will not compromise on its established norms for industrial relations.

Production has been severely hit at the first plant in Manesar since August 29 when the management prevented workers from entering the unit without signing a good conduct bond after alleged sabotage and deliberate quality compromise on cars.

The workers, however, said the management was taking the steps in revenge for a 13-day strike in June demanding the recognition of a new union the Maruti Suzuki Employees Union (MSEU) at the plant located in Haryana. During the first two days of the stand-off, MSI dismissed five permanent workers. In addition, it suspended 26 permanent workers and discontinued the services of another 18 trainees on charges of sabotage and causing quality problems in cars.

The plant has a total of about 2,500 workers, of which 950 are regular employees.

On average, the firm produces about 1,200 units of its Swift, A-Star and SX4 cars every day from the plant, where the labour troubles are centred.

 Although limited production is going on, the loss suffered by MSI since the trouble surfaced is estimated at about 8,550 units, valued at about Rs 425 crore, as of September 7.

Earlier, in June, a 13-day strike demanding the recognition of the MSEU at the Manesar plant crippled output, with the company witnessing a production loss of 12,600 cars, valued at about Rs 630 crore In the absence of a clear roadmap on how diesel prices would be placed in future, MSI has been unable to decide on whether to invest on increasing production capacities for diesel or petrol engines. Maruti also started recruiting new workers for Manesar plant.

Manesar: Maruti Suzuki's plant at Manesar remained closed on Thursday after a huge riot in which a senior HR executive was killed by workers. About 85 people, including 9 policemen, are reportedly injured. The company says two of their employees are in serious condition. Shifting soon to Gujarat plant.

Economic Assessment:
High domestic demand High economic growth Reduction in taxes

 Tapping new markets Labour cost advantage Increase in disposable income

Social Assessment:
Employment Generation Attitude to Work Environmental Responsibility Social Image

Technological Assessment:

Threat from One lakh car. Impact of technology transfer: Alliances and joint ventures. Research and development. Four lakh engineerspass out every year. Credible localsuppliers of highquality components. India emerging as ahub for automanufacturing andresearch

Marketing Strategy analysis for Maruti Suzuki

Strengths (Internal Environment)

Maruti Suzuki Ltd. (MUL)

MARUTI is in a leadership position in the market. Major strength of MARUTI is having largest network of dealers and after sales service caters in the country. Complementary product range in small car segment o Maruti 800 o Omni o Alto o Zen o Wagon R Good promotional strategy is transform concepts to products Baleno: Missed the flight catch Baleno The most comfortable Car even in long drives Esteem: My Daddys Big Car Affordable mid size car Alto: Lets Go The fuel efficient and affordable car After Sales Service Kya yanha Maruti Service Station hai. Availability of service stations even in the remotest place in the country. Refurbished Cars: MARUTI has also entered into second hand car market with a brand name Maruti True Value. adopted by MARUTI to

 Loyal Customer Base is another big strength of MARUTI. In JD Power survey, MARUTI has been awarded consequently 5th year for best customer satisfaction. Strong Brand Value Availability of raw material

Weakness (Internal Environment)

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 cars. Labour Laws and Labour Unions are not conducive to growth Government intervention due to having share in MARUTI.

Opportunity (External Environment)

MARUTI 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. Though MARUTI launched Zen in diesel version but it was not successful.

 MARUTI has launched its LPG version of Wagon R and it was a good move simultaneously MARUTI can start R&D on 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 electric

Threat (External Environment)

Tata Motorss Nano with a price tag of Rs. 1 Lac and that could give a big impact on sales of MARUTI TATA MOTORS 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. Cheaper technology External changes (government, politics, taxes, etc) Lower cost competitors or imports

Price wars Product substitution Increase in fuel prices -EVER CHANGING CUSTOMER TASTE, PURCHASING POWER AND GLOBLE MANUFACTURES PRESENCE IN INDIA Inflation