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Submitted by:
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Manav Rachna International University
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Submitted By
SAURABH TYAGI
BBA(G) IB- V SEMESTER ROLL NO. FIP/BBA(G) IB/ 021
CONTENTS
Topics
Acknowledgement Auto Industry Company Background Mission, Vision, Portfolio Companys Performance Key Peoples Company Profile Detailed Information Maruti Brands Corporate Milestones
4 5 6-7 8-9 10 11 12 13 - 28 29 30 - 31
32 - 33 34 35 - 36 37 - 38 39
Bibliography
40
ACKNOWLEDGEMENT
I would like to thank Miss Kanupriya Shekhar H.O.D. (B.B.A.) of F.I.P. and teaching faculty of the F.I.P. for providing summer training which will certainly enhance my skills and knowledge and explore me to dynamic managerial world.
I would like to my heartiest thank to the staff of M/S Maruti Suzuki India Ltd. who give me permission for this project and give me need full guideline and support and co operation for conducting the summer training and preparing this report.
The training procedure session has contributed to develop my personality. I lean this fact in natural environment. This training session give me opportunity to enhance professional skills and give me a way for a success and achieving ambition in life.
I am sure that the reader will find this report useful to enhance their knowledge in Maruti Suzuki & help them in various ways.
SAURABH TYAGI
Although sales via GM increased through 1990, US efforts with the Suzuki nameplate flattered shortly after Suzuki formed its US subsidiary in Brea, California, in 1986. A 1988 consumer Reports claims that the companys Samurai SUV was prone to rolling over devasted US sales. The next year Suzukis top US executives quit, apparently questioning the companys commitment the US markets. Suzuki established Magyar Suzuki, a joint venture with Hungarian automaker Aotukonszern and international Finance Corporation in 1991 to begin producing the Swift sedan in Hungary. The company expanded a licensing agreement with the Chinese government partner in 1993, becoming the first Japanese company to take an equity stake in a Chinese car making venture. The ext year Suzuki introduced the Alto van cheapest car, at just over $5000, and the Wagon R mini Wagon, which quickly became one of Japans topselling vehicles. GM raised its 3% stake in Suzuki to 10% in 1998. The company6 teamed up with Gm and Fuji heavy industries in 2000 to develop compact cars for the European market. It was also announced that GM would spend about $600 million to double its stake in Suzuki to 20%. In 2001 Suzuki announced that it had agreed to cooperate with Kawasaki in the development of new motorcycle, scooters and ATVs. The following year Suzuki agreed to take control of Maruti Udyog Limited, the state-owned Indiabased car manufacturer, in an $80 million rights issue deal. Additional shares would be made available in the public offering.
COMPANYS PORTFOLIO:
Maruti Udyog Limited (MUL),INDIAs finest and Asias largest automobile industry was established in 1981 by an act of parliament.MUL, the first automobile company in the world to be honored with an ISO 9000:2000 certificate, is a subsidiary of Suzuki Motor Corp (holds a 54% equity stake). The Government of India remains a significant equity stakeholder (10%).With its early mover advantage in Indian market; Maruti retains a dominant Market share despite increasing competition.
BUSINESS PORTFOLIO:
The Group's principal activity is to manufacture, purchase and sale of Motor Vehicles and Spare parts. The other activities of the Group comprises of facilitation of PreOwned Car Sales, Fleet Management and Car Financing. The Group also provides services like framing of customized car policies, economical leasing of cars, maintenance management, registration and insurance management, emergency assistance and accident management. The product range includes ten basic models with more than 50 variants. The Group has operations in over 100 cities with more than 150 outlets and also exports cars to other countries.
VISION:
Visions of any company are those values on which company works. As the MUL is started by Governmental initiatives it tends to be more consumer oriented and hence cost effective, but on the other hand Suzukis participation ensures not only need of the profit, but of the need of maximum profit. The only way for this Noras dilemma of selecting principals for companys working vision ,was to maximize profit and reducing cost by maximizing output and sales Hence MUL declared its Vision asThe Leader in the Indian Automobile Industry, Creating Customer Delight1 and Shareholder's Wealth2; eventually become a pride of India
Customer Delight1 is making sure that performance, after sales service and customer support are best and beyond expectation. Shareholders wealth2 is the prime concern for running business smoothly.MUL knows this and understands customer is king, he can change the fortune of any company, hence goes companys brand line: COUNT ON US Change.
Mission:
Mission is the statement of an organizations purpose, what it want to accomplish in the larger environment and its goals which are specific, realistic and motivating. Missions are described over visions and visions demand certain objectives. The main objectives/Missions of MUL are: - Modernization of the Indian Automobile Industry. - Developing cars faster and selling them for less. - Production of fuel-efficient vehicles to conserve scarce resources. - Production of large number of motor vehicles which was necessary for economic growth. - Market Penetration, Market Development Similarly Product Development and Diversification. - Partner relationship management, Value chain, Value delivery network
COMPANY PERFORMANCE
MSIL is the largest manufacturer of cars in India with a production of over 3, 00,000 vehicles per year. The company is proposing a major expansion program to augment the capacity to over 5 lakes vehicles per year. The company has expanded its swings in the recent past. Maruti created history by going into production in a record 13 months. Volume targets were routinely exceeded, and in March 1994, MSIL became the first Indian company to produce over one million vehicles, a landmark yet to be achieved by any other car company in India. Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea, having produced over 3.5 million vehicles by December 2001.
Maruti is one of the most successful automobile joint ventures, and has made profits every year since inception till 2000-01. In 2000-01, although we generated operating profits on an income of Rs 92.5 billion, high depreciation on new model launches resulted in a book loss. We are on track for profits in 2001-02, with a profit of Rs 300 million in the first half. In this period, sales have increased by 5.3%, against an industry decline of 6.1%. Our total exports till July 2002 was over 253000 vehicles. Over 71% of these vehicles have been exported to Europe. The internationally popular Alto has carved a niche for itself in extremely competitive and technologically advanced European countries like Netherlands, UK, Finland, Sweden, Greece, Italy, Belgium, and in South America. For successfully carving out this niche in international marketing, the Government of India has awarded us the Golden Star Trading House status. Despite there being 11 companies now in the passenger car market, Maruti holds about 60% of the total market share. MUL is also the first and only car company in the world to lead its home market in terms of both market share and in the JD Power Customer Satisfaction study (JD Power Asia Pacific 2000 India Customer Satisfaction studies).
BOARD OF DIRECTORS
Mr.R.C.Bhargava
Mr. Manvinder
Singh Banga
Chairman
Director
Mr. D. S. Brar
Director
Director
Director
Director
Director
Director
COMPANY PROFILE
Type
Founded Headquarters Key people Industry Products Revenue Employees Parent Website
Public (BSE MARUTI, NSE MARUTI) 1981 Gurgaon , Haryana, India Mr. Shinzo Nakanishi, Managing Director and CEO Automotive Cars, City, Compact Cars ,Micro vans
Maruti Suzuki India Limited is a publicly listed automaker in India. It is a leading fourwheeler automobile manufacturer in South Asia. Suzuki Motor Corporation of Japan holds a majority stake in the company. It was the first company in India to massproduce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India and on 17 September 2007, Maruti Udyog was renamed Maruti Suzuki India Limited. The company headquarter is in Gurgaon , Haryana (near Delhi).
Maruti Suzuki is one of India's leading automobile manufacturers 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 Indian government held an initial public offering of 25% of the company in June 2003. 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. 14 Faculty Of International Programmes
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 key 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 has produced over 5 Million vehicles. Marutis are sold in India and various several other countries, depending upon export orders. Cars similar to Marutis (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 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 Alto tops the sales charts and Maruti 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. Till recently the term "Maruti", in popular Indian culture, was associated to the Maruti 800 model. Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, 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 New Delhi. Marutis 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 cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is owned by the public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange in India. 15 Faculty Of International Programmes
During 2007-08, Maruti Suzuki sold 764,842 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 13 models, Maruti 800, Omni, Alto, Versa, Ritz, 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, 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. Suzukis 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 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 Marutis mission to motorize India.
Suzuki Motors Company was chosen from seven prospective partners worldwide. This was done not only due to their undisputed leadership in small cars but also to their commitment to actively bring to MSIL, contemporary technology and Japanese management practices.
A license and a joint venture agreement were signed between government of India and Suzuki motor company in Oct 1982.
JAPANESE TECHNOLOGY
16 Faculty Of International Programmes
Japanese technology is renowned for its quality and reliability as against Korean technology. Where consumer durables are concerned, Korean products are regarded as cheap imitations of Japanese products.
RELEVANT TECHNOLOGY
(1). Maruti technology is customized to Indian road condition and requirements of Indian customers. (2). Suzuki is a leader in small car technology and Maruti has access to the very latest technology. To manufacture a compact aluminum (ACE) engine is something no car manufacturer in India besides Maruti has been able to do. (3). With over 25lakh vehicles on Indian roads, Marutis technology is proven in India.
SHAREHOLDING
MSIL was set up as deemed public company in 1981 by an act of parliament. MSIL was classified in the public sector as long as the equity of government if India remained over 51%. A license and joint venture was signed in 1982, with Suzuki motor corporation (SMC) acquiring 26% of the equity. SMC increased its equity to 40% in 1989. In 1992, Maruti ceased to be Government Company, as SMCs equity holding went up to 50%. In 2002, SMCs share went up to 54.2%, making MSIL a subsidiary of SMC. The government of India holds 46.6%, employees trust holds balance 0.2%.
Citie s
1314
JD P o w e r Custo m e r S a tisfa ctio n Inde x 900 800 700 600 500 400 300 200 100 0 813 823 848 838 820
Servicing customers 24X7... 365 days... The company takes great pride in sharing that customers have rated Maruti Suzuki first once again in Customer Satisfaction Survey conducted by independent body, J.D.Power Asia Pacific. It is 9th time in a row. The award mirrors the company's commitment towards "Customer Obsession".
Monthly Sales Maruti Suzuki sales in April 2009 New Delhi, May 01, 2009 Car market leader Maruti Suzuki India Limited sold a total of 71,748 vehicles in April 2009. This includes 6,891 units for export. This is the fourth consecutive month of sales crossing 70,000 units mark. The company had sold a total of 62,336 vehicles in April 2008. Maruti Suzuki's volume in the domestic A2 segment grew by 9 per cent while in the A3 segment the sales volume grew by 69 per cent during the month as compared to sales in April 2008. The sales figures for April 2009 are given below: April 2009 A1 C A2 A3 M800 Omni, Versa Alto, Wagon-R, Zen, Swift, A-star SX4, Dzire 2345 7724 46817 7066 63952 905 64857 6891 71748 2008 4458 7705 43121 4187 59471 68 59539 2797 62336 % Change -47% 0% 9% 69% 8% 1231% 9% 146% 15% 49383 77948 511396 75928 714655 7489 722144 70023 792167
Total Passenger Cars MUV Domestic Export Total Sales Gypsy, Vitara
ORGANIZATIONAL STRUCTURE
The organizational structure ensures better communication and speedy decision making process. It also creates an environment that builds trust, transparency and a sense of belonging amongst employees
Chairman
Managing Director(MD)
Director
Divisional Manager(DVM)
Department Manager(DPM)
Manager
Deputy Manager
Senior Executive/Asst.
Executive
Supervisor
Technician/Asst. Technician
Ethos of Maruti:
Employees are Marutis greatest strength and asset. The employee management relationship is therefore characterized by: Participative management Team work and Kaizen Communication and information sharing Open office culture for easy accessibility.
To implement this philosophy, they have taken several measures like Flat organizational structure. There are three levels of responsibilities ranging from the board of directors, division to head of departments. Other features are: an open office, common uniforms at all levels, and a common canteen to all.
System of Designation:
The following system of designation is being practiced without any exception within the company. The company has been divided into three layers of management: Division 25 Faculty Of International Programmes
Department Section
An official of the company, who will be designated as divisional manager, department manager, section manager respectively would head each of these responsibility centers. DIVISION AND DEPARTMENTS 1. 2. 3. 4. Corporate Service Division Legal & Secretarial Department Corporate Communication Cell Protocol Strategic Initiative Group Recruitment & Management Compensation Human Resource Division Employee Relations Department Establishment & Time Office Factory Administration Department Organizational Development Department Production Division Production-1 Production-2 Production Planning & Control Production Engineering
5. 6. 7. 8.
Production Engineering Division Production Services Division Tool Room, Die Shop Division Engineering Directorate QAIN Division Service Division Service-1 to 5 MSS (D) Parts Inspection Division Engineering Division Supply Chain Division Supply Chain - 1 to 3 Divisions Shipping & Transport Department Imports Department Consumable Department Information Technology Division Application Group 1 (AG1) Application Group 2 (AG2) Application Group 3 (AG3) System Management Department (SMD) Marketing & Sales Secretariat Marketing Strategy & Development Marketing 27
9. 10. 11.
Sales Exports Web IT, E Commerce Spare Parts Division Spare Parts Procurement Warehousing & Dispatch Spare Parts Sales Accessories Vigilance Division Security Wing Vigilance Wing Finance Division Budget, Cost & Accounts Department Income Accounting Department Excise Department Vendor Payments & Price Negotiations Department Corporate finance.
Maruti Brands:
Maruti 800: Launched - 1983 Maruti Omni: Launched - 1984 Maruti Gypsy: Launched - 1985 Maruti Alto: Launched - 2000 Maruti Wagon-R: Launched - 2002 Maruti Versa: Launched - 2003 Maruti Grand Vitara : Launched - 2004 Maruti Suzuki Swift: Launched - 2005 Maruti Suzuki SX4: Launched - 2007 Maruti Swift Dzire: Launched - 2008 Maruti Suzuki A-STAR: Launched - 2008 Maruti Suzuki Ritz: Launched - 2009 Maruti Suzuki Estilo: Launched 2009 Maruti Suzuki New Swift : Launched 2010 Maruti Suzuki Wagon LXI : Launched 2010 Maruti Suzuki Alto K10 : Launched 2010 Maruti Suzuki Kizashi : Launched -- 2010
CORPORATE MILESTONES
1980s 1983 1984 1985 1986 1987 Started production. Launched Maruti 800 Launched Omni Launched Gypsy Produced 100,000 vehicles since commencement of operations First lot of five hundred Maruti 800 cars exported to Hungary 1990s 1993 1994 1994 1995 1997 1999 2000s 2000 2000 2001 2001 2002 2003 Launched Alto Set up Institute of Driving Training and Research (IDTR) in Delhi to promote safe driving habits 1st auto company in the world to receive ISO 9001-2000 Certification for Quality Standards by AV Belgium Launched new businesses: Maruti True Value, Maruti Finance and Maruti Insurance Suzuki Motors Corporation takes management control of Maruti M800, Zen & Esteem in the top 10 automotive brands in 31 Faculty Of International Programmes Launched Zen Launched Esteem Produced 1 millionth vehicle since inception Plant 2 became operational at Gurgaon Produced 2 millionth vehicle since inception Plant 3 became operational at Gurgaon. Launched Baleno and Wagon R
the Most Trusted Brand Survey, 2003 2005 2006 2007 2007 Five millionth car rolls out. Launched Swift 2nd Institute of Driving Training and Research set up in Delhi. Zen Estilo launched Swift Diesel launched Manesar car assembly plant inaugurated. Diesel engine and transmission plant, Suzuki Power train India Limited Inaugurated SX4 Launched 2008 2009 2009 DZIRE Launched A-STAR Launched RITZ Launched
Maintain Leadership Position in India Grow International Business International Business Growth in Exports Distribution Network Increase Customer Touch Points Increase in the Number Of Maruti Service Station Maintained its materials cost despite change in product mix. Growing shipments of Alto. Has 55% of the market. Introduced both petrol and diesel variants of Swift. Maruti has cut the prices of models including Maruti 800, Omni, Zen, Wagon R, Swift Diesel and Alto. The amount of this price cut varies from Rs. 6,500 for Maruti 800 to Rs. 18,030 for Swift Diesel (in New Delhi). 33 Faculty Of International Programmes
Maruti Suzuki to invest 200 billion Yen on expansion in India. Sri Lanka currently is the largest export market for Maruti where it sells 8,0009,000 cars a year. Maruti Udyog to enter South African market. Invest more on marketing and research and development. They are working on identifying their dealership in the region in collaboration with the parent company Suzuki.
Customer obsession
RITZ Car of the year A-star bags Zigwheels car of the year award A-Star rated best small car of the year Autocar-UTVi Maruti won Car Manufacturer of the year TV-18 Autocar mid size car Award-SX4 CNBC TV-18 autocar Manufacturer Award Maruti Suzuki India Customer Satisfaction index award India automotive Performance, Execution & Layout study award J.D Power Survey award for the seventh year Number one in JD Power SSI for the second consecutive year. Number one in JD Power CSI for the sixth time in a row the only car to win it so many times. M800, WagonR and Swift topped their segments in the TNS Total Customer Satisfaction Study Leadership in the JD Power Initial Quality Study - Alto number one in its segment for the 2nd time in a row, Esteem number one in its segment for the 3rd year in a row, Swift number one in the premium compact segment.
2008
2007
2006 2005
WagonR and Esteem top their segments in the JD Power APEAL study. TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study (#1 in Auto sector)-Feb 05. Maruti bagged the "Manufacturer of the year" award from Autocar-CNBC (2nd time in a row)-Feb 05. First Indian car manufacturer to reach 5 million vehicles sales.
Business World ranks Maruti among top five most respected companies in India-Oct 04. 36
2004
Maruti Suzuki was No. 1 in Customer satisfaction, No. 1 in Sales Satisfaction No.1 in Product Quality (Esteem and Alto) and No. 1 in Product Appeal (Esteem and Wagon R).
No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto). Business World ranked us among the country's five most respected companies. Business World ranked us the country's most respected automobile company. Voted Manufacturer of the year by CNBC. Voted one of India's Greenest Companies by Business Today-AC Nielson ORG-MARG.
STRENGTHS:
Largest network of dealers and after sales service center in the country. Diverse product range in small car segment. Strong Indian association. 37 Faculty Of International Programmes
Entry into second hand car market with a brand name Maruti True Value. Diversified business model. Strong brand value. Loyal customer base: Awarded 5 consequent years for best customer satisfaction in JD Power survey.
WEAKNESS:
Lack of product range in higher end and luxury car segment. Inferior quality interiors inside the car.
OPPORTUNITIES:
Booming economy. Consumer spending on the rise with rise in the middle class. Large export market especially for its concept cars like A-star and splash. Opportunity to re-enter into the diesel segment of the cars. Although MSIL launched Zen in diesel version but it was unsuccessful. Large export markets especially for its concept cars. Liberal policies of government of India.
THREATS:
PLC of cars becoming shorter, so need to upgrade continuously. Entry of international players like GM & Toyota with better technology. Launch of 1 lakh car-Nano by Tata Motors and another by Bajaj- Renault Nissan can eat the Market share of Marutis entry level cars. Rising input prices of steel, aluminum and plastic present a big challenge to the company. 38 Faculty Of International Programmes
Increasing interest rates due to rising inflation can slow down the growth rate of the car market. Rise in fuel prices can slow the pace of car market growth.
CONCLUSION
It was a really good learning experience at MSIL. As management student MSIL gave me good insight into the corporate. I have studied various Human Resource Department and their functioning. Also I studied the cultural shift in the company. I observed that at MSIL the management has a transparent approach and flat organization structure is being adopted. There is more emphasis being given on communication among all levels. A number of meetings, journals and programs are being conducted to ensure continuous communication. Family connect is given high priority and various events like Parivar Milan, family day, Plant Visits, Sports, Vishwakarma Pooja, etc are being organized. Then welfare activities such as employee children counseling, scholarships, etc. are being organized.. Also the contractual labor is taken good care of and they are also offered good facilities like uniform, shoes, canteen, etc. A healthy working environment is encouraged in all the departments and is being practiced to ensure a state of continuous improvement in some part of the plant or the other.
BIBLIOGRAPHY
WWW.MARUTISUZUKI.COM
WWW.CARTRADEINDIA.COM
WWW.WIKIPEDIA.ORG
WWW.SCRIBD.COM