Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a subsidiary of  

Suzuki Motor Corporation, Japan. MSIL has been the leader of the Indian car market for over
two and a half decades. The company has two manufacturing facilities located at Gurgaon and
Manesar, south of New Delhi, India. Both the facilities have a combined capability to produce
over a 1.2 million (1,200,000) passenger car units annually.
HESTO
RY
The company plans to expand its manufacturing capacity to 1.75 million by 2013. For this the
company will be investing around Rs. 60 Billion (Rs 6,000 Crores) over the period till 2013.

The company offers a wide range of cars across different segments. It offers 14 brands and
over 150 variants - Maruti 800, people movers, Omni and Eeco, international brands Alto, Alto-
K10, A-star, WagonR, Swift, Ritz and Estilo, off-roader Gypsy, SUV Grand Vitara, sedans SX4
and Swift DZire 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, Wagon R and Sx4.

In fiscal 2009-10 Maruti Suzuki became the only Indian company to manufacture and sell One
Million cars in a year.

Maruti Suzuki has employee strength over 7,600 (as at end March 2010),

In 2009-10, the company sold a record 10,18,365 vehicles including 1,47,575 units of exports.
With this, at the end of March 2010, Maruti Suzuki had a market share of 53.3 per cent of the
Indian passenger car market (including C segment).

Maruti Suzuki's revenue has grown consistently over the year.

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. 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,
based on the Suzuki Alto kei car which at the time was the only modern
car available in India, its only competitors- the Hindustan Ambassador
and Premier Padmini were both around 25 years out of date at that point.
Through 2004, Maruti Suzuki has produced over 5 Million vehicles.
Maruti Suzukis are sold in India and various several other countries,
depending upon export orders. Models similar to Maruti Suzukis (but not
manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation
and manufactured in Pakistan and other South Asian countries.

The company annually exports more than 50,000 cars and has an
extremely large domestic market in India selling over 730,000 cars
annually. Maruti 800, till 2004, was the India's largest selling compact
car ever since it was launched in 1983. More than a million units of this
car have been sold worldwide so far. Currently, Maruti Suzuki Alto tops
the sales charts and Maruti Suzuki Swift is the largest selling in A2
segment.

Due to the large number of Maruti 800s sold in the Indian market, the
term "Maruti" is commonly used to refer to this compact car model
("Maruti" is another name of the Hindu god, Hanuman).

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 of Delhi. Maruti Suzuki’s 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 and
National 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.

Maruti Suzuki offers 13 models, Maruti 800, Alto, WagonR, Estilo, A-

star, Ritz, Swift, Swift DZire, SX4, Omni, Eeco, Gypsy, Grand Vitara.
Swift, Swift DZire, A-star and SX4 are manufactured in Manesar, Grand
Vitara is imported from Japan as a completely built unit (CBU),
remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant.

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.

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.[3]

Further information: Timeline of Maruti Suzuki

[edit] Partner for the joint venture

Sanjay Gandhi owned the Maruti Technical Services Limited, which ran
into trouble and was liquidated. After the death of Sanjay Gandhi, the
Indira Gandhi government assigned a delegation of Indian technocrats to
hunt for a collaborator for the project. Initial rounds of discussion were
held with the giants of the automobile industry in Japan including Toyota,
Nissan and Honda. Suzuki Motor Corporation was at that time a small
player in the four wheeler automobile sector and had major share in the
two wheeler segment. Suzuki's bid was considered negligible.

While the major companies were personally represented in the initial

rounds of discussion, Osamu Suzuki, Chairman and CEO of the company
ensured that he was present in all the rounds of discussion. Osamu in an
article writes that it subtly massaged their (Indian delegation's) egos and
also convinced them about the sincerity of Suzuki's bid. Suzuki in return
received a lot of help from the government in such matters as import
clearances for manufacturing equipment (against the wishes of the Indian
machine tool industry then and its own socialistic ideology), land
purchase at government prices for setting up the factory Gurgaon and
reduced or removal of excise tariffs. This ensured that Suzuki
conscientiously nursed Maruti Suzuki through its infancy to become one
of its flagship ventures.[4]

Joint venture related issues

Maruti Suzuki's A-Star vehicle during its unveiling in Pragati Maidan,
Delhi. A-Star, Suzuki's fifth global car model, was designed and is made
only in India.[5] Besides being Suzuki's largest subsidiary in terms of car
sales, Maruti Suzuki is also Suzuki's leading research and development
arm outside Japan

Relationship between the Government of India, under the United Front

(India) coalition and Suzuki Motor Corporation over the joint
venture was a point of heated debate in the Indian media till Suzuki
Motor Corporation gained the controlling stake. This highly
profitable joint venture that had a near monopolistic trade in the
Indian automobile market and the nature of the partnership built up
till then was the underlying reason for most issues. The success of
the joint venture led Suzuki to increase its equity from 26% to 40%
in 1987, and further to 50% in 1992. In 1982 both the venture
partners had entered into an agreement to nominate their candidate
for the post of Managing Director and every Managing Director will
have a tenure of five years[6]

Initially R.C.Bhargava, was the managing director of the company since

the inception of the joint venture. Till today he is regarded as
instrumental for the success of Maruti Suzuki. Joining in 1982 he held
several key positions in the company before heading the company as
Managing Director. Currently he is on the Board of Directors. [7] After
completing his five year tenure, Mr. Bhargava later assumed the office of
Part-Time Chairman. The Government nominated Mr. S.S.L.N.
Bhaskarudu as the Managing Director on 27 August 1997. Mr.
Bhaskarudu had joined Maruti Suzuki in 1983 after spending 21 years in
the Public sector undertaking Bharat Heavy Electricals Limited as
General Manager. Later in 1987 he was promoted as Chief General
Manager, 1988 as Director, Productions and Projects, 1989 Director,
Materials and in 1993 as Joint Managing Director.

Suzuki Motor Corporation didn't attend the Annual General Meeting of

the Board with the reason of it being called on a short notice. [8] Later
Suzuki Motor Corporation went on record to state that Mr. Bhaskarudu
was "incompetent" and wanted someone else. However, the Ministry of
Industries, Government of India refuted the charges. Media stated from
the Maruti Suzuki sources that Bhaskarudu was interested to indigenise
most of components for the models including gear boxes especially for
Maruti 800. Suzuki also felt that Bhaskarudu was a proxy for the
Government and would not let it increase its stake in the venture. [9] If
Maruti Suzuki would have been able to indigenise gear boxes then Maruti
Suzuki would have been able to manufacture all the models without the
technical assistance from Suzuki. Till today the issue of localization of
gear boxes is highlighted in the press.[10]

The relation strained when Suzuki Motor Corporation moved to Delhi

High Court to bring a stay order against the appointment of Mr.
Bhaskarudu. The issue was resolved in an out-of-court settlement and
both the parties agreed that R S S L N Bhaskarudu would serve up to 31
December 1999, and from 1 January 2000, Jagdish Khattar, Executive
Director of Maruti Udyog Limited would assume charges as the
Managing Director.[11] Many politicians believed, and had stated in
parliament that the Suzuki Motor Corporation is unwilling to localize
manufacturing and reduce imports. This remains true, even today the gear
boxes are still imported from Japan and are assembled at the Gurgaon
facility

     
  (Rs. in Million)   
Year Net Sales Year Net Sales

  2004-05 1,09,108 2005-06 1,20,034  

2006-07 1,45,922 2007-08 1,78,603
2008-09 2,03,583 2009-10 3,01,198