Organizational Study on

Maruti Suzuki LTD

BY

Mahesh Patgar
USN:4SN19MBA23

Submitted to

DEPARTMENT OF MBA
SRINIVAS INSTITUTE OF TECHONOLOGY
In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of
INTERNAL GUIDE
Prof. HARIPRAKASH U.P
Faculty , MBA Department
Srinivas institute of techonology
Manglore

DEPARTMENT OF MBA
SRINIVAS INSTITUTE OF TECHONOLOGY

Approved by AICTE , New Delhi and Govt of Karnataka and Affiliated to

Visvesvaraya Techonology university , Belagavi

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CHAPTER 1

INTRUDUCTION ABOUT THE ORGANIZATION AND INDUSTRY

Introduction about organization

HISTORY

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Maruti Suzuki India Ltd (formerly Maruti Udyog Ltd) is India's largest passenger car company
accounting for over 50 per cent of the domestic car market. The company offers full range of cars
from entry level Maruti Alto to stylish hatchback Ritz A-star Swift Wagon R Estillo and sedans
DZire SX4 and Sports Utility vehicle Grand Vitara. The company is a subsidiary of Suzuki Motor
Corporation of Japan. The Japanese car major held 56.21% stake in Maruti Suzuki as on 31
December 2017.The company is engaged in the business of manufacturing purchase and sale of
motor vehicles and spare parts (automobiles). The other activities of the company include
facilitation of pre-owned car sales fleet management and car financing. They have four plants three
located at Palam Gurgaon Road Gurgaon Haryana and one located at Manesar Industrial Town
Gurgaon Haryana. The company has nine subsidiary companies namely Maruti Insurance Business
Agency Ltd Maruti Insurance Distribution Services Ltd Maruti Insurance Agency Solutions Ltd
Maruti Insurance Agency Network Ltd Maruti Insurance Agency Services Ltd Maruti Insurance
Agency Logistics Ltd True Value Solutions Ltd Maruti Insurance Broker Ltd and J J Impex (Delhi)
Pvt Ltd. Maruti Suzuki India Ltd was incorporated on February 24 1981 with the name Maruti
Udyog Ltd. The company was formed as a government company with Suzuki as a minor partner to
make a people's car for middle class India. Over the years the company's product range has
widened ownership has changed hands and the customer has evolved. In October 2 1982 the
company signed the license and joint venture agreement with Suzuki Motor Corporation Japan. In
the year 1983 the company started their productions and launched Maruti 800. In the year 1984
they introduced Maruti Omni and during the next year they launched Maruti Gypsy in the market.
In the year 1987 the company forayed into the foreign market by exporting first lot of 500 cars to
Hungary. In the year 1990 the company launched India's first three-box car Sedan. In the year 1992
Suzuki Motor Corporation Japan increased their stake in the company to 50%. In the year 1993
they introduced the Maruti Zen and in the next year they launched Maruti Esteem in the market.In
the year 1995 the company commenced their second plant. In the year 1997 they started Maruti
Service Master as model workshop in India to look after sales services. In the year 1999 the third
plant with new press paint and assembly shops became operational. In the year 2000 the company
launched Maruti Alto in the market. In the year 2002 Suzuki Motor Corporation increased their
stake in the company to 54.2%. In January 2002 the company introduced 10 finance companies (8
+ 2JVs) in Mumbai. Also they found one new business segment Maruti True Value for sales
purchase and trade of pre-owned cars in India. In the year 2005 the company launched the first
world strategic model from Suzuki Motor Corporation 'the SWIFT' in India. In the year 2006 they
launched WaganR Duo with LPG and also the New Zen Estillo. During the year 2006-07 the
company commenced operations in the new car plant and the diesel engine facility at Manesar
Haryana. In November 2006 they inaugurated a new institute of Driving Training and Research
(IDTR) which was set up as a collaborative project with Delhi Government at Sarai Kale Khan in
South Delhi. During the year 2007-08 the company signed an agreement with the Adani group for
exporting 200000 units annually through the Mundra port in Gujarat. They launched Swift Diesel
and SX4- Luxury Sedan with Tag line 'MEN ARE BACK' during the year. In July 2007 the
company launched the new Grand Vitara a stylish muscular and 5-seater in the MUV segment. The
company changed its name from Maruti Udyog Ltd to Maruti Suzuki India Ltd with effect from
September 17 2007.During the year the company entered into a joint venture agreement with
Magneti Marelli Powertrain SpA and formed Magneti Marelli Powertrain India Pvt Ltd for
manufacturing Electric Control Units. Also they entered into another joint venture agreement with
Futaba Industrial Co Ltd and formed FMI Automotive Components Ltd for manufacturing Exhaust
Systems Components.During the year the company signed pact with Shriram City Union Finance
Ltd a part of Shriram Group Chennai to offer easy transparent and hassle-free car finance to its
customers particularly in semi urban and rural markets. The agreement is a joint initiative of the
two companies for providing competitive car finance to people in Tier-II and Tier-III cities across
the country. During the year 2008-09 the company launched a new A2 segment car branded the A-
star in India and in Europe as the new Alto. They raised their production capacity to a landmark 1
million cars. In June 2008 the company launched Maruti 800 Duo which is a dual fuel (LPG-cum-
petrol) model car.In April 2009 the company revealed new Ritz K12M engine at Gurgaon plant.
During the year 2009-10 the company raised the capacity of their next generation K-series engine
plant to more than 500000 units per annum. They started work on an additional plant of 250000
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cars per annum capacity at Manesar. The company launched their fifth world strategic model the
Ritz. They also came out with the spacious multi purpose van Eeco and the all new WagonR with a
K-series engine. During the year 2010-11 the company launched refreshed variants of WagonR and
Alto with the new K-series engines. SX4 was offered with a Super Turbo Diesel engine. The
Company launched the Suzuki Kizashi India's first sports luxury sedan. It sports a 2.4 litre engine
and is endowed with best-in-class features. The company developed in-house i-GPI (Integrated
Gas Port Injection) Technology and launched factory-fitted CNG variants for five of its models:
Alto WagonR Eeco Estilo and SX4.During the year 2011-12 the company started the work to
commission another diesel engine plant of 300000 annual capacity in Gurgaon. At the 2012 Delhi
Auto Expo the Company unveiled the Ertiga - Life Utility Vehicle. The global premiere of Ertiga
marks the entry of the company in the UV segment which will help further strengthen its
leadership position in the industry. The company also showcased the XA-Alpha a concept compact
SUV.During the year 2012-13 the company started the work on the Gujarat site. During this period
Suzuki Japan decided that India will now be responsible for the export markets of Africa the
Middle East and its neighbouring countries. The company has to ensure adequate sales and
marketing arrangements in these countries with the help of Japan. It also has to determine the
products to be manufactured for these markets and if necessary establish assembly plants overseas.
This decision will greatly help the growth of its exports.In 2014-15 Maruti launched a successful
sedan Ciaz model cars. The S-Cross creates a new market segment which combines the comfort
and luxury of a sedan with the power and styling of an SUV. Both these products have been
enriched with a number of premium features and enhanced performance levels. In January this year
the Hon'ble Chief Minister of Gujarat laid the foundation stone of the Gujarat plant. During the
year 2015-16 two new products introduced by the company namely the Baleno and the Brezza
exceeded its expectations of demand and both cars had a waiting period of 6-7 months. On 4
October 2016 Maruti Suzuki announced that its premium hatchback Baleno has crossed cumulative
domestic sale of one lakh units. On 18 May 2016 Maruti Suzuki announced the launch of an
updated version of its small car Alto 800 with more attractive front design fresh interiors vibrant
colours higher fuel efficiency and new features. On 27 May 2016 Maruti Suzuki announced that it
will proactively and voluntarily recall 75419 Baleno cars (petrol and diesel) manufactured between
3 August 2015 and 17 May 2016 to upgrade the airbag controller software. Of these 15995 Baleno
diesel cars manufactured between 3 August 2015 and 22 March 2016 will also be attended to for
inspection and replacement of a faulty fuel filter. The Baleno cars covered in the recall include
17231 units of exports. In addition 1961 DZire diesel cars (only AGS variant) will be attended to
for inspection and replacement of a faulty fuel filter.On 27 May 2016 Maruti Suzuki announced
that it had begun exports of its Light Commercial Vehicle Super Carry to South Africa and
Tanzania. At that time the company said that it also plans to export the vehicle to SAARC nations
in due course. On 6 July 2016 Maruti Suzuki announced that its popular premium mid-size sedan
Ciaz has crossed one lakh cumulative sales mark in the domestic market. The car was lunched in
October 2014. On 28 July 2016 Maruti Suzuki announced that its premium retail showroom under
the NEXA brand has completed one year of operations. At that time the company said that NEXA
is expected to contribute 15% of its sales by 2020. Maruti Suzuki announced increase in prices of
select models ranging from Rs 1500 to Rs 5000 (Ex-showroom Delhi) with effect from 1 August
2016. It also announced increase in price by up to Rs 20000 for Vitara Brezza and up to Rs 10000
for Baleno. The company attributed the price hike to factors like segment wise demand foreign
exchange movements and strategic objectives of the company. On 12 August 2016 Maruti Suzuki
announced that the cumulative enrollment at its various driving training facilities has touched a
record 3 million since it started driving training in the year 2000. On 30 August 2016 Maruti
Suzuki announced the launch of limited edition of its most popular hatchback Swift as Swift Deca.
On 1 September 2016 Maruti Suzuki announced the launch of its first light commercial vehicle
(LCV) Super Carry in the domestic market. The company has invested about Rs 300 crore towards
the development of the Super Carry. On 15 September 2016 Maruti Suzuki announced that it has
signed a Memorandum of Understanding (MoU) with Uber India to train over 30000
individuals/Uber partner-drivers in safe driving over a period of 3 years. On 23 September 2016
Maruti Suzuki announced that it has attained cumulative exports of 15 lakh vehicles. These
vehicles have been exported to over 100 countries including Europe Latin America and Africa.On
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15 November 2016 Maruti Suzuki announced that it will set up a first-of-its-kind Industrial
Training Institute in Mehsana Gujarat. On 25 November 2016 Maruti Suzuki announced the launch
of limited edition of its small car Wagon R as Wagon R Felicity with an array of new features. On
9 December 2016 Maruti Suzuki India signed a Memorandum of Understanding (MoU) with Ola
the online cab aggregator to train aspiring Ola driver-partners. The company said that its
partnership with Ola will create entrepreneurship opportunities for aspiring Ola drivers-partners.On
13 January 2017 Maruti Suzuki India announced the launch of IGNIS its premium urban compact
vehicle for the millennials. The company alongwith its suppliers has invested over Rs 950 crore
towards the development of IGNIS. IGNIS has 98.5% localization.On 27 January 2017 Maruti
Suzuki announced the launch of a new VXi+ variant of its small car WagonR with a wide array of
new features including Projector headlamps stylish front grill alloy wheels and side skirts Dual
Airbags Anti-Lock braking System with Electronic brake - force distribution system as optional.
Maruti Suzuki announced a price hike ranging from Rs 1500 to Rs 8014 (Ex-showroom Delhi)
across models with effect from 27 January 2017 due to increase in commodity transportation and
administrative costs. On 30 January 2017 Maruti Suzuki inaugurated its 200th premium retail
showroom NEXA in the country at Hyderabad. At that time the company said that NEXA is now
present in 121 cities and had already sold over 1.85 lakh vehicles since its inception. On 15
February 2017 Maruti Suzuki announced the launch of limited edition of its compact multi purpose
vehicle Ertiga. On 20 February 2017 Maruti Suzuki announced that its two Smart Hybrid vehicles
viz. Ciaz SHVS and Ertiga SHVS have crossed cumulative sales of 1 lakh units. Smart Hybrid
Vehicle by Suzuki (SHVS) is a technology which uses an integrated starter generator and an
advanced high capacity battery to supplement the engine's power. SHVS technology makes it more
efficient than the conventional set-up and saves energy while decelerating/braking.On 2 March
2017 Maruti Suzuki announced that its popular urban sports utility vehicle Vitara Brezza crossed
one lakh cumulative sales milestone in the domestic market. On 27 March 2017 Maruti Suzuki
announced that its popular urban sports utility vehicle Vitara Brezza has clocked sales of over 1.1
lakh units in the first year of its launch.On 31 March 2017 Maruti Suzuki announced that its
popular midsize sedan Ciaz will be sold exclusively through its premium retail outlets NEXA from
1 April 2017. On 16 May 2017 Maruti Suzuki announced the launch of updated version of its
sedan Dzire. On 25 May 2017 Maruti Suzuki announced that it has decided to set up automobile
skill enhancement centres across 15 government-run Industrial Training Institutes (ITIs) across 11
states over a period of three months. On 1 July 2017 Maruti Suzuki announced that it has passed on
the entire benefit of the goods and services tax (GST) rates on vehicles to its customers and as a
result the ex-showroom prices of Maruti Suzuki models were cut by upto 3% with effect from 1
July 2017. However owing to withdrawal of tax concessions on mild hybrid vehicles the price of
Smart Hybrid Ciaz Diesel model and Smart Hybrid Ertiga Diesel has increased. On 7 July 2017
Maruti Suzuki announced that the National Company Law Tribunal (NCLT) has approved the
scheme of amalgamation of Maruti Suzuki India Limited and seven of its wholly owned subsidiary
companies viz. Maruti Insurance Business Agency Limited Maruti Insurance Distribution Services
Limited Maruti Insurance Agency Network Limited Maruti Insurance Agency Solutions Limited
Maruti Insurance Agency Services Limited Maruti Insurance Agency Logistics Limited and Maruti
Insurance Broker Limited.On 3 August 2017 Maruti Suzuki announced the introduction of auto
gear shift option in its top-end Alpha variant of its premium urban compact vehicle IGNIS. On 10
August 2017 Maruti Suzuki announced a complete revamp of its True Value operations designed
to make pre-owned cars more attractive and transparent to customers.On 30 August 2017 Maruti
Suzuki announced transformation of its retail network across India. The new showrooms
christened Maruti Suzuki ARENA will sport modern looks and offer a warm friendly and
comfortable environment to the customers. On 29 September 2017 Maruti Suzuki announced the
launch of parent Suzuki Motor Corporation's global ECSTAR brand of lubricants coolants and car
care products in India. On 1 October 2017 Maruti Suzuki announced the launch of new version of
its premium urban offering S-Cross. Maruti further said at that time that it has sold over 53000
units of S-Cross in the domestic market and exported over 4600 units since its launch in August
2015. On 5 October 2017 Maruti Suzuki announced the launch of a refreshed version of its
compact car Celerio. Maruti further said at that time that Celerio has achieved the three-lakh sales
mark within a short span of less than four years. On 1 December 2017 Maruti Suzuki announced
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the launch of the bold sporty and trendy CelerioX compact car. The model is an extension of
Maruti's Celerio compact car. On 27 December 2017 Maruti Suzuki announced that it has entered
into an agreement with the Government of NCT of Delhi to set up state-of-the-art Automated
Driving Test Centres across 12 locations in the city. The company will invest approximately Rs 15
crore for setting up the driving test centres. While Maruti Suzuki will set up the centres and
maintain them for three years the Transport Department will conduct the tests and issue driving
licenses to eligible applicants.Maruti Suzuki announced price increase ranging from Rs 1700 to Rs
17000 (Ex-Showroom - Delhi) across models with effect from 10 January 2018 owing to increase
in commodity and other administrative and distribution costs.At the time of approval of Q3
December 2017 results on 25 January 2018 the Board of Directors of Maruti Suzuki discussed and
approved a revision in the method of calculating royalty payment to Japanese parent Suzuki Motor
Corporation that would result in lower royalty payments for Maruti Suzuki for new model
agreements starting the Ignis. This would be implemented after approval by the Board of Suzuki
Motor Corporation.On 7 February 2018 Maruti Suzuki showcased new compact car
ConceptFutureS at Delhi Auto Expo 2018 in New Delhi. On 8 February 2018 Maruti Suzuki
announced the launch of an updated version of its premium hatchback Swift at Auto Expo 2018 in
New Delhi. The all-new Swift comes offers the acclaimed auto gear shift technology for the
convenience of customers. Built on Suzuki's innovative 5th generation HEARTECT platform the
all-new Swift has a superior power to weight ratio with an improved acceleration performance.

Industry profile

Maruti Udyog Limited which is now known as Maruti Suzuki India Limited is

a 37-year-old conglomerate that has fulfilled the lives and needs of the Indian citizens in terms of
their automobiles. It is a 56.21% owned subsidiary of the Japanese automobile company Suzuki
Motor Corporation.
It is the largest car manufacturer company in India. The Company recorded
the highest ever market share of 58% as of July 2018 in the Indian automobile market making it
the most popular and revered brand in the country and around the world. Some of its popular cars
are Ciaz, Ertiga, Wagon R, Alto, Swift, Celerio, Swift Dzire, Baleno, Alto 800, etc.

THE INCEPTION OF MARUTI AND SUZUKI AND THE GROWTH:

Maruti Udyog initially started as Surya Ram Maruti Technical Services Private
Limited on 16 November 1970. MSTPL was initially into getting the technical know-how of the
perfect automobile since the demand in India was much too scarce.
In 1971, India’s first lady Prime Minister Indira Priyadarshini Gandhi’s Cabinet
proposed a plan for the manufacturing of a “common men’s car”: a car that most Indian families
could afford. In the same year, the Company MSTPL registered themselves as Maruti Limited
under the Indian Companies Act. His son Sanjay Gandhi became its First MD, and that was the
start of an impending revolution.
While Maruti had no previous experience, of design, manufacturing or links
with an established automobile company, but still he has received a contract to manufacture an
affordable car. Till 1975 company didn’t produce any car, and From 1975 to 1977 when Prime
Minister Indira Gandhi declared emergency across the country, Sanjay Gandhi started actively
taking parts in politics and the “people’s car” project went on a back burner.

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 In 1981, after the death of Sanjay Gandhi during the Aircraft accident on 23 June
1980, the Central government started searching for active collaboration. Maruti Udyog Ltd. was
come into existence in the same year by the efforts of industrialist V. Krishnamurthy.
In 1982, a Joint Venture Agreement was signed with the Japanese
automobile manufacturer named Suzuki Motor Corporation. Dr. Venkataraman Krishnamurthy
spearheaded this deal and was therefore roped in as the first Chairman and CEO of the newly
formed Maruti Suzuki.
Finally, after 1 year, the Maruti 800 was released which was a 796cc
hatchback and was India’s first affordable car, which broke a number of records. In December
1983 an iconic car Maruti 800 key was delivered to its first Customer Mr. Harpal Singh by Prime
Minister Mrs. Indira Gandhi. Local production started in December 1983 in the Gurgaon plant.
Maruti only imported cars at first. This automobile was in production from 1983 till it breathed its
last in 2013 and it was considered to be the most influential car ever.
In 1987, Maruti Suzuki started exporting to European country Hungary. In 1989,
the Company introduced Maruti 1000 which was India’s very first sedan and it ran in production
for about 2 years after the Indian economy was liberalized in 1991.
1993 and 1994 were the era of Zen and Esteem which became household names
in the country. Maruti produced its millionth vehicle in the same era, therefore, completing an
important milestone in their successful run as a company. They released their very first Customer
Care office for the consumers following which they released their newest model called Maruti
Alto. The Company then released three models which are,

1. Maruti Versa – 2001

2. Esteem Diesel – 2002
3. Suzuki Grand Vitara – XL 7 – 2003
And so many more.
Maruti and Suzuki then entered into a partnership with the State Bank of India after
the production of their four millionth vehicle in the country. They were also listed in the National
and the Bombay Stock Exchange after the public issue which had increased by ten times.
After nearly 20 years, Alto overtook Maruti 800 as the bestselling car in the Indian
market and by 2003-04, the Company had sold its 5 millionth vehicle and became the most
profitable Indian automobile brand. As of May 2007, the Government of India sold its all share of
Maruti Suzuki to the Indian financial institutions.

MANUFACTURING FACILITIES:
2006 marked the beginning of a separate automobiles division called “Maruti Suzuki
Automobiles India”. This venture laid the foundation for beginning two new manufacturing
plants. One plant was solely dedicated to the manufacturing of automobiles and the other one was
for engines.
The Company has three full-fledged automobile manufacturing facilities in
India. Maruti Suzuki has ensured that there would be no compromise in terms of technology and
also in terms of quality.
Gurugram has a manufacturing facility spread across a kilometer and a half and
they produce the Alto 800, Vitara Brezza, Ignis, Ertiga, and Eeco. The facility at Manesar is about
two and a half kilometers and has an overall production capacity of more than 100,000. This plant
produces Alto K10, Swift, Ciaz, Baleno and Celerio.
The Gujarat facility is a more recent one and the plant has a production
capacity of about 250,000 units every year but there are plans to double the production rate in the
coming years.
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 SERVICE PROVIDED:

Sales network: Maruti Suzuki has about 2000 outlets across the city that caters to every need
of the customers in their times of need.
NEXA: The Company launched NEXA for the premium Maruti customers. Maruti Suzuki S-
Cross was the first car to be released through NEXA and the company plans to introduce many more
models in the future. Currently, Maruti Suzuki sells Baleno, Baleno RS, S-Cross, Ciaz, Vitara
brezza, and Ignis through it.
Maruti Insurance and Finance: Maruti Suzuki provides vehicular insurance and
financial services through multiple companies that it has tied up with. Some of the clients include the
ABN AMRO Bank, HDFC, ICICI, Kotak Mahindra, Bajaj Allianz, New India Insurance and Royal
Sundaram, etc.
Maruti TrueValue: A one-stop shop for all Maruti and Suzuki vehicles. Customers
would be able to inquire, buy, sell and also exchange the company vehicles or other brands as well.
As of now, TrueValue has over 1200 outlets throughout multiple cities in the country.

Overview India Market

Maruti Suzuki India Limited (MSIL), formerly known as Maruti Udyog Limited, a
subsidiary of Suzuki Motor Corporation of Japan, is India's largest passenger car company,
accounting for over 50 per cent of the domestic car market. Maruti Udyog Limited was
incorporated in 1981 under the provisions of Indian Companies Act 1956 and the government of
India selected Suzuki Motor Corporation as the joint venture partner for the company. In 1982 a
JV was signed between Government of India and Suzuki Motor Corporation.
It was in 1983 that the India’s first affordable car, Maruti 800, a 796 cc hatch back was launched
as the company went into production in a record time of 13 month.
More than half the number of cars sold in India wear a Maruti Suzuki badge. They
are a subsidiary of Suzuki Motor Corporation Japan.  The company offer full range of cars– from
entry level Maruti 800 & Alto to stylish hatchback Ritz, A star, Swift, Wagon R, Estillo and
sedans DZire, SX4 and Sports Utility vehicle Grand Vitara.
Since inception, the company has produced and sold over 7.5 million
vehicleinIndiaandexported over 500,000 units to Europe and other countries.
They were born as a government company, with Suzuki as a minor partner, to make a
people's car for middle class India. Over the years, its product range has widened, ownership has
changed hands and the customer has evolved. What remains unchanged, then and now, is their
mission to motorise India. MSIL’s parent company, Suzuki Motor Corporation, has been 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.
The same characteristics make their cars extremely relevant to Indian customers and Indian
conditions. Product quality, safety and cost consciousness are embedded into their manufacturing
process, which they have inherited from their parent company.
Right from inception, Maruti brought to India, a very simple yet powerful Japanese
philosophy 'smaller, fewer, lighter, shorter and neater'
From the Japanese work culture they imbibed simple practices like an open office, a
common uniform and common canteen for everyone from the Managing Director to the workman,
daily morning exercise, and quality circle teams.
Maruti Suzuki exports entry–level models across the globe to over 100 countries and the
focus has been to identify new markets. Some important markets include Latin America, Africa
and South East Asia.Interestingly with a brand new offering A–star, Maruti Suzuki is ready to
take on European markets.Maruti Suzuki sold 53,024 units during 2007–08. This is the highest
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 ever export volume in a year for the company, and marked a growth of 35 per cent over the
previous year.Maruti Suzuki has exported over 552,000 units cumulatively with about 280,000
units to Europe and Israel .
Maruti Suzuki has two state–of–the–art manufacturing facilities in India. The first
facility is at Gurgaon spread over 300 acres and the other facility is at Manesar, spread over 600
acres in North India. The Gurgaon facility – Maruti Suzuki's facility in Gurgoan houses three fully
integrated plants. While the three plants have a total installed capacity of 350,000 cars per year,
several productivity improvements or shop floor Kaizens over the years have enabled the
company to manufacture nearly 700,000 cars/ annum at the Gurgaon facilities.
The Manesar facility – Its Manesar facility has been made to suit Suzuki Motor
Corporation (SMC) and Maruti Suzuki India Limited's (MSIL) global ambitions. The plant was
inaugurated in February 2007. At present the plant rolls out World Strategic Models Swift , A–star
& SX4 and DZire.The plant has several in–built systems and mechanisms.
Diesel Engine Plant– Suzuki Powertrain India Limited – Suzuki Powertrain
India Limited the diesel engine plant at Manesar is SMC's & Maruti's first and perhaps the only
plant designed to produce world class diesel engine and transmissions for cars. The plant is under
a joint venture company, called Suzuki Powertrain India Limited (SPIL) in which SMC holds 70
per cent equity the rest is held by MSIL. This facility has an initial capacity to manufacture
100,000 diesel engines a year. This will be scaled up to 300,000 engines/annum by 2010.
In 2012 Senior management members were injured as workers resort to violence
at Maruti Suzuki’s Manesar plant.

CHAPTER 2

ORGANIZATION PROFILE

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 Company Name Maruti Suzuki

Founded 1981

Industry Automotive

Founder Government of India

Headquarters New Delhi , India

Type Public

Area served India

BACKGROUND
Company Background Maruti Suzuki India Ltd (formerly Maruti Udyog Ltd) is
India'slargest passenger car company, accounting for over 50 per cent of the domestic car market.The
company offers full range of cars from entry level Maruti 800 & Alto to stylishhatchback Ritz, A-star,
Swift, Wagon R, Estillo and sedans DZire, SX4 and Sports Utilityvehicle Grand Vitara. The company
is a subsidiary of Suzuki Motor Corporation of Japan.The company is engaged in the business of
manufacturing, purchase and sale of motorvehicles and spare parts (automobiles). The other activities
of the company includefacilitation of pre-owned car sales, fleet management and car financing. They
have fourplants, three located at Palam Gurgaon Road, Gurgaon, Haryana and one located at
ManesarIndustrial Town, Gurgaon, HaryanaThe Gurgaon Manufacturing Facility has three fully
integrated manufacturing plants and isspread over 300 acres (1.2 km2). All three plants have an
installed capacity of 350,000vehicles annually but productivity improvements have enabled it to
manufacture 700,000vehicles annually. The Gurgaon facilities also manufacture 240,000 K-Series
enginesannually. The entire facility is equipped with more than 150 robots, out of which 71 havebeen
developed in-house. The Gurgaon Facilities manufactures the 800, Alto, WagonR,Estilo, Omni, Gypsy
and Eeco.The Manesar Manufacturing Plant was inaugurated in February 2007 and is spread over
600acres (2.4 km2). Initially it had a production capacity of 100,000 vehicles annually but thiswas
increased to 300,000 vehicles annually in October 2008. The production capacity wasfurther increased
by 250,000 vehicles taking total production capacity to 550,000 vehiclesannually. The Manesar Plant
produces the A-star, Swift, Swift DZire and SX4.Because ofcontention between Maruti laborers in
Manesar plant and the administration , Maruti causedcolossal misfortune to them. The strike
unfavourably influenced the segment providers ofMaruti Suzuki India Ltd., the majority of whom were
arranged in or around Gurgaon. Theyhad decreased their creation, as meagre request had been
produced from Maruti.55 Accordingto an industry assess, roughly 250 part providers of Maruti Suzuki
lost 15 to 20 for eachpenny of their income, which added up to Rs. 14 billion.56 Among the part
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providers were 14joint wander organizations set up solely for Maruti

Nature of Business
Maruti Suzuki India Limited (MSIL), a subsidiary of Suzuki Motor Corporation, Japan, is
India’s largest passenger car maker. Maruti Suzuki is credited with having ushered in the automobile
revolution in the country. The Company is engaged in the business of manufacturing and sale of
passenger vehicles in India. Making a small beginning with the iconic Maruti 800 car, Maruti Suzuki
today has a vast portfolio of 16 car models with over 150 variants. Maruti Suzuki’s product range
extends from entry level small cars like Alto 800, Alto K10 to the luxury sedan Ciaz. Other activities
include facilitation of pre-owned car sales fleet management, car financing. The Company has
manufacturing facilities in Gurgaon and Manesar in Haryana and a state of the art R&D centre in
Rohtak, Haryana.
The Company, formerly known as Maruti Udyog Limited, was incorporated as a joint
venture between the Government of India and Suzuki Motor Corporation, Japan in February, 1981.
Presently, Suzuki Motor Corporation owns equity of 56.2%. The Company’s shares are traded on the
National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

VISSION
The vision statement for MARUTI SUZUKI GOOD COMPANY OR GOOD
STOCK B is its strategic plan for the future – it defines what and where MARUTI SUZUKI GOOD
COMPANY OR GOOD STOCK B Company wants to be in the future. The vision statement for
MARUTI SUZUKI GOOD COMPANY OR GOOD STOCK B is a document identifying the goals
of MARUTI SUZUKI GOOD COMPANY OR GOOD STOCK B to facilitate its strategic,
managerial, as well as general decision making processes.

How to implement a vision statement

1. Gathering for a meeting and idea generation
2. Grouping similar ideas and developing drafts
3. Evaluating the vision statement
4. Communication of vision statement

MISSION
The mission statement for MARUTI SUZUKI GOOD COMPANY OR GOOD
STOCK B is a public document that details the values and strategic aims of MARUTI SUZUKI
GOOD COMPANY OR GOOD STOCK B. The mission statement of MARUTI SUZUKI GOOD
COMPANY OR GOOD STOCK B also identifies the purpose of the organization existence,
highlighting the services and the products it offers. Further, the mission statement also identifies the
organization’s operational goals for MARUTI SUZUKI GOOD COMPANY OR GOOD STOCK B,
the processes the company uses to achieve those, the target customer groups, and the region where
the company operates.

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 How to implement the mission statement
1. Communication
2. Training
3. Goal setting

QUALITY POLICY OF MARUTI SUZUKI

Quality has been of paramount importance to us. We deal with only genuine
components to ensure highest standards in quality and reliability. Our quality policy has been
designed in tune with customer requirements. Our quality strategy is to maintain the
reputation of the company by constantly meeting and exceeding customer expectations on
every occasion. We ensure that all quality specifications are agreed to and clarified by both
customers and suppliers before proceeding further with the procurement process and ensure
delivery of defect free quality products always on time.
We always commit ourselves for every order equally to ensure total product quality and
reduce variation. We strive hard to constantly improve our quality, cost, delivery and service
levels towards obtaining customer satisfaction.

WORKFLOW MODEL

PRODUCT / SERVICE PROFILE

Current models

Model Production Image Outlet

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Wagon
1999–present Arena
R

Alto 2000–present Arena

Swift 2005–present Arena

Ertiga 2012–present Arena

Celerio 2014–present Arena

Ciaz 2014–present NEXA

Baleno 2015–present NEXA

S-Cross 2015–present NEXA

Vitara
2016–present Arena
Brezza

Dzire 2017–present Arena

Ignis 2017–present NEXA

XL6 2019–present NEXA

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 S-Presso 2019–present Arena

Discontinued models

Discontinue
Model Released Image
d

800 1983 2014

Omni 1984 2019

Gypsy E 1985 2000

Gypsy
1985 2017
King

1000 1990 2000

Zen 1993 2003

Esteem 1994 2010

Baleno 1999 2007

Baleno
2000 2003
Altura

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 Alto 2000 2012

Versa 2001 2010

Grand
Vitara
XL7 2003 2007
(imported
)
Grand
Vitara
2007 2015
(imported
)

Zen Estilo 2007 2013

SX4 2007 2014

A-star 2008 2014

Swift
2008 2017
Dzire

Ritz 2008 2016

Alto K10 2010 2020

Kizashi
(imported 2011 2014
)

Sales and service network

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 Maruti Suzuki has 3,598 sales outlets across 1,861 cities in India. The company aims
to increase its sales network to 4,000 outlets by 2020.It has 3,792 service stations across 1,861
cities throughout India.Maruti's dealership network is larger than that of enough known companies
combined. Service is a major revenue generator of the company. Most of the service stations are
managed on franchise basis, where Maruti Suzuki trains the local staff. Also, The Express Service
stations exist, sending across their repair man to the vehicle if it is away from a normal service
center.

NEXA
In 2015, Maruti Suzuki launched NEXA, a new dealership network for its
premium cars.Maruti currently sells the Baleno, S-Cross, XL6, Ciaz and Ignis through NEXA
outlets. S-Cross was the first car to be sold through NEXA outlets. Several new models will be
added to both channels as part of the company's medium term goal of 2 million annual sales by
2020.

Maruti Insurance
Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers
with the help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal
Sundaram. The service was set up the company with the inception of two subsidiaries Maruti
Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. LimitedThis service
started as a benefit or value addition to customers and was able to ramp up easily. By December
2005 they were able to sell more than two million insurance policies since its inception.

Maruti Finance
To promote its bottom line growth, Maruti Suzuki launched
MarutiFinanceinJanuary 2002. Prior to the start of this service Maruti Suzuki had started two
joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide
respectively to assist its client in securing loan. Maruti Suzuki tied up with ABN Amro Bank,
HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank, and Sundaram to start
this venture including its strategic partners in car finance. Again the company entered into a
strategic partnership with SBI in March 2003 Since March 2003, Maruti has sold over 12,000
vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently available in 166 cities
across India.Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India
and Maruti Udyog Limited its primary business stated by the company is "hire-purchase
financing of Maruti Suzuki vehicles". Citi Finance India Limited is a wholly owned subsidiary
of Citibank Overseas Investment Corporation, Delaware, which in turn is a 100% wholly
owned subsidiary of Citibank N.A. Citi Finance India Limited holds 74% of the stake and
Maruti Suzuki holds the remaining 26%. GE Capital, HDFC and Maruti Suzuki came together
in 1995 to form Maruti Countrywide. Maruti claims that its finance program offers most
competitive interest rates to its customers, which are lower by 0.25% to 0.5% from the market
rates.

Maruti TrueValue
Maruti True service offered by Maruti Suzuki to its customers. It is a market place
for used Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti or non-Maruti
vehicles with the help of this service in India. As of 10 August 2017 there are 1,190 outlets across
936 cities.
N2N Fleet Management

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 N2N is the short form of End to End Fleet Management and provides lease and
fleet management to corporates. Clients who have signed up of this service include Gas Authority
of India Ltd, DuPont, Reckitt Benckiser, Doordarshan, Singer India, National Stock Exchange of
India and Transworld. This fleet management service include Leasing, Maintenance, Convenience
services and Remarketing.

Maruti Accessories
Many of the auto component companies except than Maruti Suzuki started to
offer compatible components and accessories. This caused a serious threat and loss of revenue to
Maruti Suzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine
Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps,
stereo systems, seat covers and other car care products. These products are sold through dealer
outlets and authorized service stations throughout India.

Maruti Driving School

As part of its corporate social responsibility Maruti Suzuki launched the Maruti
Driving School in Delhi. Later the services were extended to other cities of India as well. These
schools are modelled on international standards, where learners go through classroom and practical
sessions. Many international practices like road behaviour and attitudes are also taught in these
schools. Before driving actual vehicles participants are trained on simulators.At the launch ceremony
for the school Jagdish Khattar stated "We are very concerned about mounting deaths on Indian
roads. These can be brought down if government, industry and the voluntary sector work together in
an integrated manner. But we felt that Maruti should first do something in this regard and hence this
initiative of Maruti Driving Schools."

OWNERSHIP PATTERN

BOARD OF DIRECTORS

21
 CHAIRMAN

MANAGING DIRECTOR

DIRECTORS

MANAGING EXECUTIVE OFFICERS (MEO)

EXECUTIVE OFFICERS (EO)

DIVISIONAL MANAGERS (DYM)

DEPUTY DIVISIONAL MANAGERS (DDVM)

SENIOR FUNCTIONAL MANAGER (sfmgr)

DEPARTMENT MANAGER (DPM)

MANAGER

DEPUTY MANAGER

SENIOR EXECUTIVE

EXECUTIVE

SUPERVISOR

ASSSITANT SUPERVISOR

WORKE

AWARDS / ACHIVEMEN

The Brand Trust Report published by Trust Research Advisory, a brand analytics

company, has ranked Maruti Suzuki in the thirty seventh position in 2013and ninth position in
2019 among the most trusted brands of India.

FUTURE GROWTH and PROSPECTUS

Indian automobile sector is one of the fastest growing sectors across the world owing to the demand
from the growing population as well as due to the emergence of a new middle class in the country,
which otherwise was divided dichotomously as urban rich and rural poor. According to Research
Gate, the sector is one of the largest in the world in terms of the number of vehicles it produces
and today contributes to nearly 7% of GDP of the country. Given the growing demand for
automobiles each year, what lies ahead for the automotive sector is a bright future. However, these
opportunities are not void of challenges.

22
 

One of the biggest deficiencies of the Indian automobile sector is the lack of
innovation. While most of the companies across the world spent a sizable chunk of their profits
for innovating the technology, Indian companies often lag behind them by investing relatively
lesser resources in the research and development process. Even with the companies that are based
in India, most of their technology is either imported or borrowed from foreign entities. This has
brought the industry to a situation where it is not self-sufficient on technological advancements,
unlike its transnational counterparts.

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