A Project Report on Marketing Strategies and Financial

Statement Analysis
of MARUTI SUZUKI

Submitted in partial fulfillment of the requirements

for the award of the degree of

Bachelor of Business Administration (BBA)

To

Guru Gobind Singh Indraprastha University, Delhi

Guide: Submitted by:

(Guide Name) MANISH KUMAR
Roll No.: 01196901721

Sant Hari Dass College of Higher Education

Delhi-110043
Batch (2021-2024)

1
 Certificate
I, Mr. Manish Kumar, Roll No. 01196901721 certify that the Project Report (BBA-114)
entitled “A Project Report on Marketing Strategies and Financial Statement Analysis of
MARUTI SUZUKI” is done by me and it is an authentic work carried out by me at
Institution of Innovation Technology and Management. The matter embodied in this
project work has not been submitted earlier for the award of any degree or diploma to the
best of my knowledge and belief.

Signature of the Student

Date:

Certified that the Project Report (BBA-311) entitled “A Project Report On Marketing
Strategies And Financial Statement Analysis Of MARUTI SUZUKI”

done by Mr./Ms. Manish Kumar, Roll No.01196901721 is

completed under my guidance.

Signature of the Guide

Name of the Guide:
Designation:
Date:

Countersigned
(Director/Project Coordinator)

2
 FORMAT FOR CONTENTS & LIST OF TABLES/FIGURES/ SYMBOLS

CONTENTS

S No Topic Page No
1 Certificate (s) 2
2 Chapter-1: Company Profile 4-17
3 Chapter-2: Marketing Strategies of The Company 18-31
4 Chapter-3: Financial Ratios 32-36
5 Chapter-4: CSR initiatives and Unique Practices 37-44
6 Chapter-5: Conclusion and Suggestions 45
7 References 46

3
 CHAPTER-1
(Company Profile)

a) HISTORY OF AUTOMOBILE INDUSTRY

The first car on Indian roads ran in 1897. Until the 1930s, cars were imported directly, but in
very small numbers. An embryonic automotive industry emerged in India in the 1940s.
Hindustan was launched in 1942, long time competitor Premier in 1944. They built GM and
Fiat products respectively. Mahindra & Mahindra was established by two brothers in 1945,
and began assembly of Jeep CJ- 3A utility vehicles. Following the independence, in 1947, the
Government of India and the private sector launched efforts to create an automotive
component manufacturing industry to supply to the automobile industry. In 1953 an import
substitution programme was launched, and the import of fully built-up cars began to be
impeded. However, the growth was relatively slow in the 1950s and 1960s due to
nationalisation and the license raj which hampered the Indian private sector. Total restrictions
for import of vehicles were set and after 1970 the automotive industry started to grow, but the
growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a
major luxury item. In the 1970s price controls were finally lifted, inserting a competitive
element into the automobile market. By the 1980s, the automobile market was still dominated
by Hindustan and Premier, who sold superannuated products in fairly limited numbers.
During the eighties, a few competitors began to arrive on the scene. To promote the auto
industry the government started the Delhi Auto Expo which was had its debut showcasing in
1986. The Auto Expo of 1986 was a window for technology transfers showing how the
Indian Automotive Industry was absorbing new technologies and promoting indigenous
research and development for adapting these technologies for the rugged Indian conditions.
The nine day show was marked by then Prime Minister Rajiv Gandhi. LIBERALISATION:
Eventually multinational automakers, such as, though not limited to, Suzuki and Toyota of
Japan and Hyundai of South Korea, were allowed to invest in the Indian market ultimately
leading to the establishment of an automotive industry in India. Maruti Suzuki was the first,
and the most successful of these new entries, and in part the result of government policies to
promote the automotive industry beginning in the 1980s. As India began to liberalise their
automobile market in 1991, a number of foreign firms also initiated joint ventures with
existing Indian companies. The variety of options available to the consumer began to
multiply in the nineties, whereas before there had usually only been one option in each price
class. By 2000, there were 12 large automotive companies in the Indian market, most of them
offshoots of global companies. Exports were slow to grow. Sales of small numbers of
vehicles to tertiary markets and neighbouring countries began early, and in 1987 Maruti
Suzuki shipped 480 cars to Europe (Hungary). After some growth in the mid-nineties, exports
once again began to drop as the outmoded platforms handed down to Indian manufacturers by
multinationals were not competitive.
This was not to last. The de-licensing of the industry in 1993 opened the sluice gates a
flood of international auto-makers that rushed into what they saw as the last remaining
untapped market - the largest democratic market of the world. The next couple of years saw
an unprecedented growth in the industry with assembly lines working overtime to meet
demand. Dazzled by the potential of India's 100 million odd people, car companies planned
ambitious capacities. However, India was a much tougher markets than they had imagined.

4
They under estimated Maruti's strangle hold of the bottom end of the market and were unable
to compete with it on price and sheer value for money.

b)ABOUT THE COMPANY

Maruthi Suzuki India (MSI), previously famous vehicle production in India. It is a 56.21%
kept for the Japanese Car and Motorcycle production automobile business. Up to early
2019 it had nearly 53 percentage of market share for India Passenger car marker, no
matter for manufacturing, service, finance, human resource and IT. However, every
corporate group gets adequate cash for booming its events, achievement of the business
rest on how well the group able to be handle them. That is, it be subject to how fit a corporate
body, how effectively invest their capital, like debt and equity form and it will be result of
how generate their profit. Success of the business is purely by how the firm it finances to
their assets and make use of the resource to generate income, the company can be stand
healthy if its financial performance constantly getting profit. Sometime business is
measured to be incompetent, if the production level is frequently identified to be low,
even if it is making profit.

c)MAJOR MILESTONES

1981 – Maruti Udyog Ltd

5
India was regaining the glory after independence. People started to look out for ways to live
an elegant life. But yet, no one was spending a lot on cars. Brands like Premier and Hindustan
Motors were trying hard to gain customers to which they were a lot successful. But were they
ready for the storm that was about to come?

Government of India, especially, Sanjay Gandhi is to be credited with the establishment of

Maruti Udyog Limited in 1981.

1982 – Collaboration with Suzuki

In October 1982, Maruti Udyog limited merged with the Japenese automobile company,
Suzuki. The same year, the company also set up a manufacturing unit at Gurgaon, Haryana.
With the JV between Maruti and Suzuki, the company received the right to import 40,000
fully built Suzuki cars from Japan in the first two years, after which also the company was
planning to use about 33% of indigenous products only.

1983 – Maruti 800 Launched

This is the car which flagged off the company’s dawn was the Maruti 800. It was an 800cc
engine powered 5-door hatchback made by Maruti Suzuki which instantly became a hit in the
market. 800 was so popular that if in the mid-1980s, someone was talking about Maruti, he
surely was talking about the 800. It became the acronym for the company. But Maruti 800
was not the only car to be launched that year.

6
Every child’s fear, the kidnapping car of that era, Maruti Omni was also launched at that time
powered by the same engine as that of the 800.

1985 – The Offroading King Launched

There’s no doubt that even without the mention of the car, you would have guessed the name.
Maruti Suzuki Gypsy was launched in 1985. A 4WD offroading vehicle was launched and
instantly became a hit, especially in the offroading arena. It was based on the Suzuki Jimny
and was powered by a 1.0-litre engine.

1986 – Maruti Suzuki reaches a milestone

1,00,000th vehicle rolled out the factory of the company. Within 2 years, Maruti Suzuki was
dominating the market. The same year, the company also launched a new generation of 800,
which was the SS80 Alto hatchback known globally. In 1987, the company exported 500 cars
to Hungary thus commencing the sales outside India, via export.

7
1989 – India’s first sedan launched

Maruti 1000, launched in 1989, was India’s first sedan which was powered by a 1.0-litre
engine. It became a huge success due to its off-roading capabilities, though was not that
popular as a family car.

Then in the next few years, Maruti Suzuki launched many cars. Here is the list of cars with
the year they were launched in.

 Maruti Suzuki Zen – 1993

 Maruti Suzuki Esteem – 1994
 Wagon R and Baleno Sedan – 1999
 Alto – 2001

By the year 1994, Maruti Suzuki had sold 1 million cars in India. Maruti also opened a
second plant which increased the annual capacity of the company from 1,00,000 to 2,00,000
units.

1998 – Company’s first diesel car

Zen D or the Zen Diesel was Maruti’s first diesel offering in India. It was powered by a 1.5-
litre diesel engine.

2004 – Alto overtakes 800

Maruti Suzuki Alto became the highest selling car in India overtaking 800 after nearly two
decades of ruling the arena. Alto stayed at the top for a straight 15 years after that, only to be
dethroned by the Maruti Suzuki Dzire in 2019.

8
2007 – Maruti Suzuki SX4 launched

The premium looks and the stylish interiors made it an instant success story. SX4 had an
amazing ride quality. It was powered by a 1.6-litre VVT DOHC petrol engine which could
churn out 104hp of power and 145Nm of torque. But with the advent of diesel engines in the
segment, SX4 started losing the monopoly in the market. In 2011, Maruti Suzuki tried to
revive the SX4 by introducing a 1.3-litre DDis diesel engine which could produce 88hp of
power and a torque of 200Nm. But by the time SX4 got this oil burner, it was too late. The
sedan was discontinued in 2014. You might easily see one running on the roads at present.

Some Failures
Maruti Suzuki became an affordable car brand in India. People preferred Maruti cars over the
others mainly due to the lower initial as well as maintenance cost. But the company decided
to take a break and launch some luxury into the Indian market.

This is when the company decided to bring in the Suzuki Grand Vitara XL-7 via CBU route.
This made the SUV very pricey as compared to the Tata and Mahindra SUVs and the
company tasted failure at the hands of XL-7. It was silently taken off the markets.

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Another such failure was the Suzuki Kizashi, which also met the same fate. It was also
brought in through the same route. It was an ultra-luxury sedan which the customers were not
able to ingest as it was being offered by Maruti. The added costs due to the import duty acted
as the rains during a barbeque session and completely finished the era that could have been.
Kizashi was also silently removed from the market.

2015 – NEXA

New Exclusive Automotive Experience or the NEXA platform was introduced by the
company to launch premium cars in India. The first car to be sold through this channel was
the S-Cross. Maruti Suzuki sells Baleno, XL-6, Ciaz and Ignis currently through this channel.
S-Cross petrol is to be launched soon. Introducing a brand for premium cars was a wise
choice as the company failed to attract customers through the normal channel. Would the
premium luxury cars been sold as the normal ones, the company would have met the same
fate as that of the Kizashi and other premium cars.

2016 – Company’s first compact SUV

Maruti Suzuki’s first-ever compact SUV was unveiled at the Auto Expo 2016. The car
carried forward the name from the Grand Vitara and added a light wind to it, thus Vitara
Brezza.

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How the Maruti Vitara Brezza Changed the Compact SUV Category in India
Initially, it was offered 1.3-Litre D13A four-cylinder turbodiesel engine which was capable
of producing 89hp of power and a peak torque of 200Nm. The mill is mated to a 5-speed
manual gearbox. With the ARAI certified range of 24.3kmpl, Vitara Brezza became the best-
in-segment car for the mileage. And, this was enough for the buyers to select it over the
rivals. The starting price of ₹6.99lakhs just acted as the fuel for skyrocketing sales of the
SUV.

The SUV became a hit as there was no direct competition in the arena. It recently was given a
new facelift in 2020.

2020 -20 Million family

Passenger vehicle maker Maruti Suzuki India has announced that it has reached a key
milestone of whopping 20 million passenger vehicle cumulative sales in the Indian market.
"This achievement makes Maruti Suzuki the only company in India to cross the landmark
figure.

d)Organisational structure

11
Design
Maruti has a functional organizational structure with horizontal linkages. The activities are
divided based on the following functions finance, marketing, engineering and sales, spares,
production, material, parts inspection, quality assurance, human resource development,
information technology, new business and administration, The centralization is very low in
Maruti as the decision-making authority is quiet decentralized and disturbed across all levels.
it is a very big organization and further divided into smaller divisions. There are 29 divisions
in Maruti and are headed by one divisional head which is a functional post. These divisions
are divided into 132 departments and which are headed by one departmental head which is
again a functional post. In Maruti the formalization is very high all the methods, procedures,
standards are written down formally. All the departments have department procedures which
describe the role of work of the department as well as their responsibilities and work flow.
The procedures are approved by divisional head and are also available for the concerned
departments. In production shops the standard operating procedures are displayed on the
workstations and are known as Maruti Operations standards.

The structure of Maruti is flat .Generally the employees are divided into six functional heads
namely workers and technicians, supervisors, executives, section manager, department
manager and division manager.

Changes in structure

In view of increasing competition the automotive sector Maruti has tried to use a project
based structure to handle the problems effectively. Around two year back in meeting of
senior and middle level executives to form teams which would focus on specific goals.
Around 30 teams of about 8-10 members are formed. These teams have specific mandates in
terms of cost reduction and new product development and were given resources and authority
in order to implement the project.

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Organization structure at Maruti

The organization structure of Maruti is somewhat inclined towards a mechanistic structure

but it cannot be called absolutely because of presence of high degree of decentralization. It
has a functional structure with horizontal linkages. The functional divisions finance,
marketing, sales focus on their respective functions. These divisions are further divided into
29 divisions. The hierarchy consists of a divisional head and then a departmental head.

Mechanistic structure is suitable for those organizations which do not require frequent
changes in their processes and the environment is stable.

Features Of Organization Structure at Maruti

The division of employees at six functional levels and their further hierarchical divisions in
different divisions mean that the company wants to achieve perfection at each functional
level.

Their production is car and production occurs on a large scale , it includes assembly line in
which parts are added to a product in a sequential manner using optimally planned logistics to
create a finished product.

The environment in the automobile sector is almost stable and hence the flexibility in the
structure is not required.

Each functional department tends to get perfection at its level. At horizontal level it involves
cross functional teams and sometimes direct contact in the form of a coordinator from each
department who can communicate the progress in their respective department.

Each function is separate at functional level and communication and co-operation among
functions are responsibility of someone at the top hierarchy.

Communication is mostly vertical from department to division and then directors.

Main decisions are taken by directors in respective functional divisions.

All these feature are in line with the mechanistic structures which are economies to scale, and
are designed to induce people to behave in accountable ways.

Structural elements

Specialization
As the Maruti have functional structure and division of labour so there is high degree of
specialization.

13
Centralization
Power is distributed within the hierarchy because there are various persons who play a very
crucial role in the organization.

Formalization
The instructions, procedures are written down formally in the organization and on the other
hand departments have their own formal procedures of doing work in an organization so that
they can achieve their objectives on time.

Complexity
Complexity arises because of structural complexity as there is goal incompatibility between
different departments.

Span of control
The span of control is generally at the top level is 3-6, 4-8 at the middle level management
and 0-8 at the lower level management. In production level at lower level the span of control
is at40-50.

e)Top Management

MR. R. C. BHARGAVA
[CHAIRMAN]

ABOUT
 2007 till date: Chairman, Maruti Suzuki India Limited (MSIL), (Formerly
Maruti Udyog Limited)
 2003 : Director, Maruti Udyog Limited
 1998 : President and CEO of RCB Consulting Private Limited, a management
and human resource consultancy outfit with various domestic and international
clients
 1990-92: Chairman & Managing Director, Maruti Udyog Limited
 1985-90, 92-97 Managing Director, Maruti Udyog Limited
 1984-85 : Joint Managing Director Maruti Udyog Limited
 1981-83 : Director (Marketing), Maruti Udyog Limited

MR. KENICHI AYUKAWA

[EXECUTIVE VICE CHAIRMAN]

ABOUT

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  Born in 1955, Mr. Ayukawa has handled several key assignments at Suzuki Motor
Corporation, Japan and in the Group's overseas operations.
 Mr. Ayukawa served as Managing Director of Pak Suzuki Motor Company from May
2004 to June 2008.
 He served as Director on the Board of Maruti Suzuki India Limited from July 2008 to
March 2013.
 Before taking charge as the Managing Director at Maruti Suzuki India Limited he
served as Managing Executive Officer and Executive General Manager, Global
Marketing at Suzuki Motor Corporation, Japan

MR. HISASHI TAKEUCHI

[Managing Director & CEO]

ABOUT
 1986: Joined Suzuki Motor Corporation (SMC)
 2009: Appointed Managing Director of Magyar Suzuki Corporation
 2016: Appointed as Division General Manager of SMC Global Business
Administration & Planning Division
 2019 till date: Managing Officer & Deputy Executive General Manager of Global
Automobile Marketing
 He brings with him a vast experience of over 33 years Global Automobile Marketing

MR. SHIGETOSHI TORII

[Joint Managing Director (Production and Supply Chain)]

ABOUT

 2019: He was promoted as Managing Officer, Executive General Manager of

Purchase Division
 2017: He was transferred back to Japan and appointed as Deputy Director of
Manufacturing Division
 2014: He was appointed as Director (Production) of MSIL.
 2012: He joined Maruti Suzuki India Limited as General Manager, Manesar Plant
 2011: He was transferred to Sagara plant
 2008: He was assigned Production Engineering Department in SMC and also
appointed as Department General Manager
 2002: He was transferred to Hamamatsu Pipe Co. Ltd., one of the subsidiaries of
SMC
 1984: Joined Suzuki Motor Corporation, Production Engineering Department

MS. LIRA GOSWAMI

[Independent Director]
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 ABOUT
 Ms. Lira Goswami is one of the founding partners of Associated Law Advisers (ALA)
and heads the corporate and regulatory team at ALA. ALA has a diverse range of
domestic and international clients which include household names like Boeing,
Hindustan Coca-Cola, Mitsubishi Ekectric, GE, Maruti Suzuki, Whirlpool, Rockwell,
Mattel, Saudi Telecom and Smith Group etc.
 Additionally, she has provided legal support to entities controlled by the Government
of Ras-AI-Khaimah in internal investigations conducted in different parts of India.
She has also conducted anti- corruption training for employees of multinational
corporations for purposes of compliance with FCPA and UK Bribery Act.
 Ms. Goswami is a regular speaker on foreign investment, defence procurement, trade,
regulatory and compliance issues and has spoken in several anti-corruption
conferences in India and C5’s Defence Procurement seminars in Washington and
Paris.
 Ms. Goswami has also authored articles on diverse subjects including Disinvestment,
Related Party Transactions, Foreign Exchange Regulations, Insurance as a tool of
Wealth Management, Law and Morality, Legal Obligation and Civil Disobedience
etc.
 Ms. Lira’s pro bono activities include legal assistance for charitable organizations
including Save the Children and Youth Making a Difference.

f) PRODUCT AND SERVICES

Top sales product in 2021 in India

1) Maruti Suzuki Swift - 97,312 Units

Maruti Suzuki had recently given the Swift a slight makeover along with an efficient Dual-jet
K12 engine. Expectedly, the Swift climbed up to the number one spot in H1 sales and the
figure stands at 97,312 units. Maruti Suzuki Swift gets the new Dual-jet engine that produces
90PS and 113 Nm of torque, mated to a 5-speed manual and AMT gearbox. The Swift range
starts from Rs 5.73 lakh and goes to Rs 8.40 lakh ex-showroom

2) Maruti Suzuki Wagon-R - 94, 839 Units

16
The second car on the list is the Wagon-R and has been bringing consistent sales. In H1 of
2021, Maruti Suzuki sold 94,839 units of the Wagon-R. Maruti Suzuki Wagon-R comes with
1.0-litre and 1.2-litre petrol engines and both the engines can be equipped with an AMT
gearbox as well. The pricing of the Maruti Suzuki Wagon-R starts from Rs 4.80 lakh and
goes to Rs 6.33 lakh ex-showroom

3) Maruti Suzuki Baleno - 93,823 Units

Maruti Suzuki Baleno is the best-selling premium hatchback in India and secures the third
spot in H1 sales. Maruti Suzuki sold over 93,823 units of the Baleno, despite not offering a
diesel engine option. Its rivals like the Tata Altroz and Hyundai i20 do offer diesel engine
options but the Baleno continues to lead the segment. Powering the Baleno is the same engine
we get in the Swift, but it also offers an option of a CVT automatic. The pricing of the Baleno
starts from Rs 5.98 lakh and goes to Rs 9.30 lakh ex-showroom.

4)Maruti Suzuki Alto - 85,616 Units

Maruti Suzuki Alto has been the best selling car in the Indian market since its inception.
Despite not receiving any major updates, Maruti Suzuki has managed to sell 85,616 units of

17
the Alto 800 in H1 of 2021. Maruti Suzuki Alto comes powered with a 0.8-litre petrol engine
along with a CNG option as well. The pricing of the Alto 800 starts from Rs 2.99 lakh and
goes to Rs 4.60 lakh ex-showroom

6) Maruti Suzuki Vitara Brezza - 65,077 Units

The sixth car on the list is the Maruti Suzuki Vitara Brezza. Maruti sold 65,077 units of the
Vitara Brezza and like every other Maruti, it too doesn't offer a diesel engine. Powering the
Vitara Brezza is a 1.5-litre petrol engine that comes mated to a 5-speed manual and 4-speed
AT gearbox. The pricing of the Vitara Brezza starts from Rs 7.51 lakh and goes to Rs 11.41
lakh ex-showroom

Services

The Company widened its service network in India to 4,044 service workshops across 2,014
cities and catered to over 17 million customers in FY 2020-21. The Company exported
96,139 vehicles registering in FY 2019-20.

The Company-pioneered Auto Gear Shift (AGS) technology is equipped with an intelligent
electric-hydraulic shift-control actuator that automatically performs clutch and shift
operations and allows users to experience the futuristic two-pedal technology.

Additionally, features such as start assist and creep system help in stop-go traffic and parking
manoeuvres, while kick down function helps meet sudden acceleration demands. AGS
provides the same convenience as that of automatic transmission with 50% lesser cost, 30%
lighter weight and improved fuel economy

18
 Chapter-2

Marketing Strategies of the Company

a) Market Share of Maruti Suzuki

May 6, 2022 03:27:00

Live BSE Quotes PM

Open
Price (Rs)7,272.00 (Rs)7,378.00 High (Rs)7,378.00 Low (Rs)7,161.15

52-Week
Value H/L9,022.00 /
% Change-1.80 Volume13,244 (Rs)96,310,368 6,481.70

May 6, 2022 3:29:59

Live NSE Quotes PM

Price Open
(Rs)7,277.00 (Rs)7,314.00 High (Rs)7,359.90 Low (Rs)7,156.65

52-Week
Value H/L9,050.00 /
% Change-1.76 Volume650,454 (Rs)4,734,986,398 6,483.00

Change

1 Day 1 Month 3 Months 5 Years 10 Years

- - - 1 Year (CAGR)* (CAGR)*
1.80% 6.10% 14.55% 9.09% 1.86% 18.65%
* Compound Annual Growth Rate

Valuation

Dividend
EPS P/E Ratio Market Cap (Rs Yield
(Rs)*102.00 (x)71.30 m)2,196,726.49 P/BV (x)4.18 (%)0.62

19
 Maruti Suzuki shares year report

Date Price Open High Low Volume Chg%

May
7,279.25 7,650.30 7,750.00 7,160.00 0 -5.68%
2022

Apr
7,717.80 7,566.50 8,056.40 7,355.25 570.52K 2.07%
2022

Mar
7,561.30 8,197.70 8,199.00 6,536.55 25.95M -9.06%
2022

Feb
8,314.15 8,693.00 9,050.00 8,114.10 14.80M -3.29%
2022

Jan
8,597.30 7,420.00 8,971.65 7,420.00 17.43M 15.77%
2022

Dec
7,426.45 7,191.00 7,640.00 7,021.00 13.52M 5.07%
2021

20
Date Price Open High Low Volume Chg%

Nov
7,067.80 7,401.00 8,368.00 6,990.70 18.12M -5.54%
2021

Oct
7,482.40 7,220.00 7,814.80 7,090.00 14.70M 1.97%
2021

Sep
7,338.05 6,799.95 7,521.55 6,702.35 18.75M 7.19%
2021

Aug
6,846.10 7,100.00 7,248.60 6,591.00 13.09M -1.89%
2021

Jul
6,977.70 7,500.00 7,690.00 6,936.00 10.63M -7.16%
2021

Jun
7,515.90 7,107.55 7,698.00 6,821.00 14.79M 6.06%
2021

May
7,086.30 6,430.00 7,100.00 6,400.00 12.66M 9.77%
2021

Apr
6,455.65 6,950.00 6,991.50 6,415.00 16.71M -5.88%
2021

MARUTI SUZUKI Share Price Today:

MARUTI SUZUKI last traded price was down 1.8% to Rs 7,272.0 on the BSE. On the NSE,
MARUTI SUZUKI last traded price was down 1.8% to Rs 7,277.0. The total volume of
shares traded was 0.7 m.

Overall, the broader S&P BSE AUTO Index was down by 1.6%. And the benchmark S&P
BSE SENSEX was at 54,891.6 (down 1.5%).
Over the last 30 days, the MARUTI SUZUKI share price is down 6.5%. And over the last
one year, MARUTI SUZUKI share price is up 11.7%.

The current market capitalisation of MARUTI SUZUKI stands at Rs 2,196,726.49 m.]

21
b)Market share vis a vis major competitors

Maruti Suzuki vs Tata Motors Ltd

Maruti Suzuki India Ltd.

7,279.75 -125.70 -1.70%

06 May, 15:29:54
Volume 13,396

Prev Close 7,405.45

Day's H/L (Rs) 7,378.00 - 7,161.15

52wk H/L (Rs) 9,022.00 - 6,481.70

Mkt Cap (Rs Cr) 219,921.25

.
Report card
Attribute Value Date

PE ratio 59.38 05/05/22

EPS (Rs) 124.71 Mar, 22

Sales (Rs crore) 26,740.00 Mar, 22

Face Value (Rs) 5

Net profit margin (%) 4.26 Mar, 22

Last bonus

Last dividend (%) 1200 29/04/22

Return on average equity 6.96 Mar, 22

Tata Motors Ltd.

408.70 -17.60 -4.13%

06 May, 15:54:47

22
 Volume 1,882,332

Prev Close 426.30

Day's H/L (Rs) 420.20 - 407.00

52wk H/L (Rs) 536.50 - 268.50

Mkt Cap (Rs Cr) 135,725.19

Report card
Attribute Value Date

PE ratio -68.14 05/05/22

EPS (Rs) -6.26 Mar, 21

Sales (Rs crore) 12,352.78 Dec, 21

Face Value (Rs) 2

Net profit margin (%) -5.09 Mar, 21

Last bonus 3:5 28/09/95

Last dividend (%) 10 30/05/16

Return on average equity -12.57 Mar, 21

Maruti Suzuki vs Mahindra & Mahindra

Mahindra & Mahindra Ltd.

896.70 -1.70 -0.19%
06 May, 15:29:46
Volume 102,764

Prev Close 898.40

Day's H/L (Rs) 914.30 - 888.60

52wk H/L (Rs) 978.90 - 671.00

Mkt Cap (Rs Cr) 111,477.75

23
Report card
Attribute Value Date

PE ratio 432.02 05/05/22

EPS (Rs) 2.08 Mar, 21

Sales (Rs crore) 15,238.82 Dec, 21

Face Value (Rs) 5

Net profit margin (%) 0.59 Mar, 21

Last bonus 1:1 10/11/17

Last dividend (%) 175 28/05/21

Return on average equity 0.78 Mar, 21

Maruti Suzuki India Ltd.

7,279.75 -125.70 -1.70%
06 May, 15:29:54
Volume 13,396

Prev Close 7,405.45

Day's H/L (Rs) 7,378.00 - 7,161.15

52wk H/L (Rs) 9,022.00 - 6,481.70

Mkt Cap (Rs Cr) 219,921.25

Report card
Attribute Value Date

PE ratio 58.35 06/05/22

EPS (Rs) 124.71 Mar, 22

24
 Attribute Value Date

Sales (Rs crore) 26,740.00 Mar, 22

Face Value (Rs) 5

Net profit margin (%) 4.26 Mar, 22

Last bonus

Last dividend (%) 1200 29/04/22

Return on average equity 6.96 Mar, 22

Maruti Suzuki vs Bajaj Auto

Bajaj Auto Ltd.

3,496.00 -28.95 -0.82%
06 May, 15:29:52
Volume 13,949

Prev Close 3,524.95

Day's H/L (Rs) 3,553.00 - 3,461.30

52wk H/L (Rs) 4,347.95 - 3,028.35

Mkt Cap (Rs Cr) 101,174.25

* Computed on last 15 days' trading figures.

Report card
Attribute Value Date

PE ratio 20.32 05/05/22

EPS (Rs) 173.44 Mar, 22

Sales (Rs crore) 7,974.84 Mar, 22

Face Value (Rs) 10

Net profit margin (%) 15.14 Mar, 22

Last bonus 1:1 22/07/10

Last dividend (%) 1400 27/04/22

Return on average equity 18.81 Mar, 22

Maruti Suzuki India Ltd.

25
7,279.75 -125.70 -1.70%
06 May, 15:29:54
Volume 13,396

Prev Close 7,405.45

Day's H/L (Rs) 7,378.00 - 7,161.15

52wk H/L (Rs) 9,022.00 - 6,481.70

Mkt Cap (Rs Cr) 219,921.25

Report card
Attribute Value Date

PE ratio 58.35 06/05/22

EPS (Rs) 124.71 Mar, 22

Sales (Rs crore) 26,740.00 Mar, 22

Face Value (Rs) 5

Net profit margin (%) 4.26 Mar, 22

Last bonus

Last dividend (%) 1200 29/04/22

Return on average equity 6.96 Mar, 22

Maruti Suzuki vs Hindustan Motors

Hindustan Motors Ltd.

10.99 -0.17 -1.52%

06 May, 15:25:16
Volume 26,311

Prev Close 11.16

Day's H/L (Rs) 11.20 - 10.73

26
 52wk H/L (Rs) 18.20 - 6.50

Mkt Cap (Rs Cr) 229.37

*
Report card
Attribute Value Date

PE ratio 62.15 05/05/22

EPS (Rs) 0.18 Mar, 21

Sales (Rs crore)

Face Value (Rs) 5

Net profit margin (%) 321.39 Mar, 21

Last bonus 1:1 21/09/86

Last dividend (%)

Maruti Suzuki India Ltd.

7,279.75 -125.70 -1.70%

06 May, 15:29:54
Volume 13,396

Prev Close 7,405.45

Day's H/L (Rs) 7,378.00 - 7,161.15

52wk H/L (Rs) 9,022.00 - 6,481.70

Mkt Cap (Rs Cr) 219,921.25

27
 Report card
Attribute Value Date

PE ratio 58.35 06/05/22

EPS (Rs) 124.71 Mar, 22

Sales (Rs crore) 26,740.00 Mar, 22

Face Value (Rs) 5

Net profit margin (%) 4.26 Mar, 22

Last bonus

Last dividend (%) 1200 29/04/22

Return on average equity 6.96 Mar, 22

2)Maruti Suzuki SWOT Analysis

Below are the Strengths in the SWOT Analysis of Maruti Suzuki:

1. Maruti Suzuki is the largest passenger car company in India, accounting
for around 45% market share
2. Over 12,000 people are employed with Maruti
3. Good advertising, product portfolio, self-competing brands
4. Largest distribution network of dealers and after sales service centres
5. Strong brand value and strong presence in the second hand car market
6. Having different revenue streams like Maruti finance, Maruti Insurance
and Maruti driving schools
Maruti Suzuki
7. Over 700,000 units sold in India annually including 50,000 exports
Strengths 8. Maruti Suzuki launched NEXA showrooms to cater to its premium cars
market
9. The company has been recognized by several awards in the automobile
segment in India

28
 Here are the weaknesses in the Maruti Suzuki SWOT Analysis:
Maruti Suzuki 1. Inability to penetrate into the international market
Weaknesses 2. Employee management, strikes, worker wage problems have
affected Maruti's brand image in the past

Following are the Opportunities in Maruti Suzuki SWOT Analysis:

1. Developing hybrid cars and fuel efficient cars for the future can be an
Maruti Suzuki opportunity for Maruti Suzuki
Opportunities 2. Maruti can target tapping emerging markets across the world and
building a global brand
3. Fast growing automobile market and increased purchasing power

The threats in the SWOT Analysis of Maruti Suzuki are as mentioned:

1. Government policies for the automobile sector across the world
Maruti Suzuki 2. Ever increasing fuel prices
Threats 3. Intense competition from global automobile brands and cheaper brands
can hurt Maruti Suzuki's business
4. Substitute modes of public transport like buses, metro trains etc

Marketing Strategies over past 5 years

Maruti Suzuki has been an exemplary in the marketing management in India. Others car
manufacturers have been learning from them to know the pulse of the Indian consumers so
well. They keep a close eye on the evolving social status of the people and also the political
and environmental requirements and tailor made the products and matching pricing strategy
accordingly. Exchanging of cars to service station to servicing cost to providing customer
services, they understand very well and have been ruling the Indian roads.
Maruti Suzuki has been an exemplary in the marketing management in India. Others car
manufacturers have been learning from them to know the pulse of the Indian consumers so
well. They keep a close eye on the evolving social status of the people and also the political
and environmental requirements and tailor made the products and matching pricing strategy
accordingly. Exchanging of cars to service station to servicing cost to providing customer
services, they understand very well and have been ruling the Indian roads.

Marketing process and strategy for Maruti Suzuki analyses the brand/company which covers
7Ps (Product, Price, Place, Promotion, Process, people and physical evidence) which
thoroughly explains depth of the Maruti Suzuki marketing strategy. Marketing Mix: (91,
2016)

29
Product:

Maruti Suzuki India has a very expanded product portfolio have cars and is present in always
each categories of cars whether in hatchback, small or mini hatch back, MUV ( Multi utility
vehicle), Mini SUV, Sedan and passenger van and commercial van. The entire product
portfolio of automobiles are a part of the products in the marketing mix of Maruti Suzuki. Its
products are Maruti Alto, Celerio, Wagon R, Maruti Swift, Baleno, Brezza, Eeco, Maruti
Ciaz, Ertiga, Dzire, S Cross, and Ignis. In most categories its cars are segment leaders and
priced competitively. Marketing Mix: (91, 2016)
Maruti Suzuki manufactures 1.7 million cars each year with 18 car models and a total of 155
variants. In January 2018, Maruti Suzuki India had a total market share of 53% in passenger
cars segment
To meet the holistic needs of the consumers Maruti also has services products as Maruti
finance, Maruti Insurance, Maruti True Value (used cars), Maruti Accessories and Maruti
Driving School to promote the growth of its products and brand equity.

Price:

Value for Money (VFM) strategy is key factor for its success even after 40 years of its entry
into India. Years of experience in engineering and R&D in India has been helping Although
they are not known like German cars which means very safe and solid but they are able to cut
down on the costs and price its cars very effectively to meet the competition. The very cost of
ownership, cheaper spares, long service intervals are the driving factors in the pricing
strategy. This edge over others makes Maruti a very famous and popular passenger car
company. The pricing strategy which is dependent upon the competitors, market dynamics
and the segment catered to is very well implemented here in Maruti Suzuki. They have a
model and its variants in every 25000 Indian rupee increments. You can see the below figure
explaining the same which means customers won’t opt for any other car suiting to his pocket.
They also created NEXA and ARENA products to distribute the cars though own network.
Both these products are fully owned by Maruti Suzuki. The cars which are developed in
japan are sold through Nexa and Arena whereas cars developed in India are sold though other
distributors

Place:

Maruti ‘s showrooms and its service station network is across length and breadth of India and
is spread across 1800+ cities manufactured at Three factories in India. Maruti has set up
another plant in Gujarat for which it has acquired 700 acres of land for its electric car
manufacturing. Maruti has around 1800+ sales outlets in all the cities combined and has a
dealership which is many time more than its nearest competitors - Hyundai, Tata and
Mahindra. The highest point in India also has a Maruti service station.
Servicing station generate a huge income for the company which also a exemplary pricing
strategy for the company. Marketing Mix: (91, 2016)

30
Promotion:

Brand equity of Maruti Suzuki is built through its excellent marketing perception. The brand
equity is helping the company to cut down on the promotion cost which increases the margin
to reduce further the cost of the cars. They use Bollywood endorsers to endorse the cars and
have decent promotion budget using all means of media mix. They have been very trendy in
using the digital space very well in launching Brezza, Ignis and S Scross even before the
TVC was released in Tv channels. They spend the max on TV followed by newspapers ads
and outdoor hoardings which we call them billboards. The point of sales in their showrooms
and other relevant places are also attractively designed. In India we have some auspicious
days or months when people buy lost of stuff for the households. Buying cars is also very big
during those days and all the car companies run special discounting promotions during those
days. During lean period Maruti also runs scheme as one gold coin per car is also to attract
people to buy so that to maintain a good average per month of selling cars.

Process:

MUL being owned by Suzuki Motors follows robust process systems across departments
The cars are marketed with a structured process about welcoming guests, Lounges for wait at
showroom as well as in the service station, updating you about the loan approvals
Updating you at every stage of car servicing so that to be aware of the committed deadlines to
deliver the car whether new or after servicing – Quality & Hygiene are the integrated factors
here. The robust online portal also gives all the information about the engine, virtual driving
simulation and efficiency, DOs and DONTs while driving and much more. This makes them
to have thought leadership plank which is very important and hygiene for any leader across
any stream and industry.

The captured data while buying car keep guiding you about the due servicing and other free
servicing such as before summer to get the coolant level checked, before rain the wiper
checked and before winter the filter and heating checked. These all processes are an asset to
the company for their growth

People:

 Training for Sales people, Marketing people, Servicing and technical people is the
• Training for Sales people, Marketing people, Servicing and technical
people is the
key to keep the customers happy
 Regular training programs are mandate as engines are getting evolved regularly to
• Regular training programs are mandate as engines are getting evolved
regularly to
deliver more power and efficiency
 Cars are getting software driven the trained people at MUL become the marketing
• Cars are getting software driven the trained people at MUL become the
marketing
agents irrespective whether they are in sales or marketing or technical side
 A uniform for every one – from CEO to the lower rank employee gives an equality

31
 amongst them. It motivates the teams and gives a sense of equal ownership to
everyone.
 Regular rotation from sales to marketing and regular promotion basis the target
 Regular rotation from sales to marketing and regular promotion basis the target
achievements are also very important here for the company

Physical Evidence:
 Interior and exterior decoration: It will be same across all showroom
 The uniform of the staff: The same uniform with a name tag and above all a
o Interior and exterior decoration: It will be same across all showroom
o The uniform of the staff: The same uniform with a name tag and above all a
welcoming smile
 The signage of the brand name is one of the most common physical evidence of the
o The signage of the brand name is one of the most common physical evidence
of the
company.
 The oldest modern card company’s the WING logo which is M actually is visible and
o The oldest modern card company’s the WING logo which is M actually is
visible and
known to everyone.

32
 Chapter III: Financial Ratios

A financial ratio or accounting ratio is a relative magnitude of two selected numerical values

taken from an enterprise's financial statements. Often used in accounting, there are many

standard ratios used to try to evaluate the overall financial condition of a corporation or other

organization.

Financial ratios may be used by managers within a firm, by current and potential shareholders

(owners) of a firm, and by a firm's creditors. Financial analysts use financial ratios to

compare the strengths and weaknesses in various companies. If shares in a company are

traded in a financial market, the market price of the shares is used in certain financial ratios.

Values used in calculating financial ratios are taken from the balance sheet, income

statement, statement of cash flows or (sometimes) the statement of changes in equity. These

comprise the firm's "accounting statements" or financial statements. The statements' data is

based on the accounting method and accounting standards used by the organisation.

1) Current Ratio Of Maruti Suzuki –

The current ratio is a liquidity ratio that measures a company’s ability to pay short-term

obligations or those due within one year. It tells investors and analysts how a company can

maximize the current assets on its balance sheet to satisfy its current debt and other payables.

33
FORMULA-

Current ratio = Current assets / Current liabilities

Current Ratio = 16,781.20 cr / 17,013.70 cr => 0.9477266 cr

The Current assets of Maruti Suzuki are less than their current liabilities, it tells that they are

in the indesirable position to pay off their liabilities.

2) Debt To Equity Ratio of Maruti Suzuki -

The debt-to-equity (D/E) ratio is used to evaluate a company's financial leverage and is

calculated by dividing a company’s total liabilities by its shareholder equity. The D/E ratio is

an important metric used in corporate finance.

It is a measure of the degree to which a company is financing its operations through debt

versus wholly owned funds. More specifically, it reflects the ability of shareholder equity to

cover all outstanding debts in the event of a business downturn.The information needed for

the D/E ratio is on a company's balance sheet. The balance sheet requires total shareholder

equity to equal assets minus liabilities, which is a rearranged version of the balance sheet

equation.

FORMULA-

34
Debt to Equity Ratio = Total liabilities / Shareholder’s equity

Total liabilities = 73,394.30CR

Shareholder’s equity = 54,086.00 cr

Debt to Equity Ratio = 1.35

As we can see that the Debt To Equity Ratio is above 1, so the company is having higher

leverage and little bit higher risk of bankruptcy and it is not so good for investment

3) Gross Profit Margin Ratio of Maruti Suzuki -

The gross profit margin tells you what your business made after paying for the direct cost of

doing business, which can include labour, materials and other direct production costs.

It’s one of three major profitability ratios, the others being operating profit margin and net

profit margin. Arguably, it’s the most important of the three profitability measures because

without a high enough gross profit margin, you won’t have a viable business—at least, not

for long. On the face of it, a gross profit margin ratio of 50 to 70% would be considered

healthy, and it would be for many types of businesses, like retailers, restaurants,

manufacturers and other producers of goods.

In contrast to that of service sector firms, the gross profit margin ratio in clothing retailing

can range anywhere from three to 13%

FORMULA-

35
Gross margin ratio = Gross profit / Net sales x 100

= Gross margin ratio = 8190.90cr / 70332.50cr x 100 = 11.64%

As Maruti Suzuki is a automobile sector company so the gross profit margin like 11.64% is

little hard for them, it tells that the company can be make a reasonable profit on sales, as long

as it keeps overhead costs in control.

4) Operating margin ratio of Maruti Suzuki-

The operating margin measures how much profit a company makes on a dollar of sales after

paying for variable costs of production, such as wages and raw materials, but before paying

interest or tax. It is calculated by dividing a company’s operating income by its net sales.

A higher operating margin indicates that the company is earning enough money from

business operations to pay for all of the associated costs involved in maintaining that

business. For most businesses, an operating margin higher than 15% is considered good

FORMULA-

Operating margin ratio = Operating income / Net sales x 100

Operating margin ratio = 8271.70 cr / 70332.50cr x 100

=11.76%

As it is considered that operating margin lower than 15% is bad and Maruti Suzuki being it

11.76 % so it defines that the company is having not so good profitability.

36
 4) Asset Turnover Ratio Of Wipro –

The asset turnover ratio measures the efficiency of a company's assets in generating revenue

or sales. It compares the dollar amount of sales (revenues) to its total assets as an annualized

percentage. Thus, to calculate the asset turnover ratio, divide net sales or revenue by the

average total assets.

Generally, a higher ratio is favored because it implies that the company is efficient in

generating sales or revenues from its asset base. A lower ratio indicates that a company is not

using its assets efficiently and may have internal problems.

Asset turnover ratios vary across different industry sectors, so only the ratios of companies

that are in the same sector should be compared. For example, retail or service sector

companies have relatively small asset bases combined with high sales volume. This leads to a

high average asset turnover ratio.

FORMULA-

Asset turnover ratio = Net sales / Average total assets x 100

Asset turnover ratio = 70332.50cr / 73394.30 cr x 100

=95.82%

As Maruti Suzuki is having a Higher Asset Turnover Ratio of 95.82%, so it tells that the

company is efficient in generating sales or revenues from its asset base.

37
 Chapter-IV: CSR Initiatives and Unique Practices

CSR Initiatives :

Corporate social responsibility (CSR) is when a business takes into account its overall impact

socially, economically, and environmentally, and launches initiatives to ensure its positive

impact.

According to the amendment in the Companies Act 2013, companies that have a net worth of

INR 500 crores and more, or net profit of INR 5 crores and more, or an annual turnover of

INR 1000 crore and more HAVE to spend 2% of the 3-year average profit on CSR activities.

Businesses should strategize CSR practices that align with the organization’s overall mission

and help support those goals. Companies and individuals alike can hold themselves

responsible in their conduct to better the world around them.

Very broadly, CSR involves individuals within a business or organization concluding that a

problem or issue exists and then devising a solution to help tackle it. Any CSR initiative will

start there. However, there are about as many directions to take with a CSR initiative as there

are organizations that engage in such initiatives.

CSR Initiatives Of Maruti Suzuki -

38
Beyond healthcare and education, automobile companies tend to prioritise road safety and

vocational skilling in their social welfare pool. CSR of Maruti Suzuki has contributed to the

sustainable development of India in the same vein.

The organisation undertakes road safety consciousness and is working with State

governments to make a bigger impact. Skill training is top priority, with a number of students

coming out of the Maruti Suzuki CSR programmes job-ready and employable. CSR projects

are undertaken through the Maruti Suzuki Foundation in close collaboration with various

implementation agencies.

Not only has the CSR spend been increasing year-on-year, it is almost always higher than the
amount prescribed. For example, in 2020-21, the company spent its full budget of Rs. 140.90
Crcrores on social initiatives.

39
1. Values driving CSR of Maruti Suzuki

What makes this brand’s value system unique is the amalgamation of a Japanese approach
and an Indian soul. Japanese culture is as ancient as it is high-tech. The people of Japan
arguably have the best work ethic in the world; their social etiquette is carefully calibrated
and their punctuality is legendary.

CSR of Maruti Suzuki is mapped out on the same value system that drives the company’s
business operations. Fundamental to the way of being here is the principle of ‘optimum
resource utilisation’. Not only does this enhance the efficiency of operations it also ties in
with the corporate social responsibility of Maruti Suzuki. Optimum resource utilisation leads
to more energy and resource conservation, thus fulfilling the manufacturer’s contribution to
the circular economy.

Using sustainable products and raw materials means a lower carbon footprint. Less is more,
and using less does more good in this regard. Sustainability is not always about adding
elements and increasing complexity; more often than not, it’s about consuming less. Maruti
Suzuki corporate social responsibility makes visual impact by making such timeless wisdom
part of the way it approaches corporate citizenship.

2. CSR Spend

40
A graph of the CSR spend for the last 5 years shows that the budget has been increasing

every financial year. With profits increasing, the amount allocated for corporate citizenship as

per the norms stipulated in the Companies Act has also been going up.

Moreover, CSR of Maruti Suzuki is commendable for honouring its monetary commitment
and utilising more than the prescribed sum every year. The Board has been strictly ensuring
that the company spends at least 2% of the average net profit for the previous three years on
corporate responsibility. Any surplus arising from the CSR projects is not considered part of
business profits.

3. CSR Policy

The CSR policy aims to make lasting and meaningful impact in the nearby communities.
Maruti Suzuki CSR projects are to be implemented with the famous Japanese precision for
timeliness and a clear set of objectives and strategic plan. The cornerstones are stakeholder
engagement and shared value creation.

Maruti Suzuki corporate social responsibility primarily focuses on village development, road
safety and skill development. The targets are set in line with the national human development
and UN Sustainable Development Goals (SDG).

41
Rather than spreading itself too thin, the company tries to make a visible impact and succeeds
by taking on fewer programmes than other largescale multinational corporations that align
with its core values. The CSR department and the implementing partners consequently get the
time and resources to make lasting impact since they aren’t overwhelmed by too many
initiatives in far-out locations.

3.1. Focus Areas

Although the company has set up several driving schools in partnership with dealers, Maruti
Suzuki CSR puts road safety at the top of the list of activities since there isn’t much
awareness about it in the consciousness of the average Indian. Pedestrians and drivers are
known to flout traffic rules in every small town and large metro. Hence the concern with
scaling up the tally of driving schools in India.

As a top brand in car manufacturing, it’s no surprise that quality driving training is another
concern. Getting state governments and the local administration involved in road safety
awareness, reducing the number of road accidents and law enforcement.

Refresher training for autorickshaw, truck and bus drivers aims to improve their knowledge
of traffic regulation and ensure their own health and safety. Maruti Suzuki CSR projects
include road safety awareness campaigns for school children, women and youngsters across
various media and social modes.

Skilling is another big one in the CSR policy of Maruti Suzuki India, which is expanding the
pool of a skilled workforce for the 4IR (Fourth Industrial Revolution). Various skill
development projects make good use of Japanese manufacturing practices and international
expertise in training for giving industry exposure to young people in India.

Courses at the Industrial Training Institutes (ITIs) make underprivileged youth employable
and also impart soft skills such as Kaizen (the timeless Japanese philosophy of continuous
improvement). Other skilling initiatives foster entrepreneurship so that impoverished young
people can thrive and help others make a livelihood in the process. It’s a win-win model for
welfare.

Water stewardship and sanitation programmes include safe drinking water provisions, solid
and liquid waste management, minimising ODC (Open Defecation) by constructing toilets in
people’s homes.

As an automobile manufacturer, Maruti Suzuki corporate social responsibility softens the

blow for families affected by road accidents. Scholarships to support the education and

42
training of children who have lost a parent in an accident-related death are part of the CSR
policy.

Other education initiatives involve tie-ups with the Ministry of Education for infrastructural
improvements in government schools, scholarships for deserving students for higher
education and technical training.

3.2. Maruti Suzuki CSR Project Locations

While road safety initiatives span various States, community development by CSR of Maruti
Suzuki is active in 26 villages around the plants in Haryana and Gujarat. Health care,
education, rural infrastructure, access to water and sanitation are the chief segments of
engagement.

3.3. Implementation of CSR Policy

Maruti Suzuki CSR projects are designed with the CSR Policy in mind which builds on best
practices of successful and impactful programmes. For implementation of all these social
initiatives, the company has dedicated teams that work closely with the Indian Government,
communities in the vicinity and other agencies.

Maruti Suzuki Foundation implements the programmes either directly or through another
trust or foundation and NGO partners, business partners or registered societies. An expert
agency or consultancy firm does baseline surveys before the CSR of Maruti Suzuki takes on a
project. A Need Assessment Survey is done to discern where exactly the community needs
support. The results of these surveys form the basis of community development programmes.

4. CSR Committee

The CSR Committee at this firm comprises Chairman R. C. Bhargava, MD and CEO K.
Ayukawa and independent director R. P. Singh. The CSR Committee is entrusted with
formulating the CSR Policy and recommending it to the Board. It will monitor the policy at
regular intervals and suggest any changes required in keeping with the times.

This team also decides on the projects that will eventually be taken up, as per Schedule VII of
the Companies Act. It also decides on the amount to be spent on the various CSR projects.

4.1. CSR Coordinating Team

The CSR and Sustainability Department under Corporate Planning Division is essentially the
CSR Coordinating Team at this organisation. This team does everything from coordinating
with all the implementing departments concerned to reporting on the status of projects to the
CSR committee. This team is in charge of documentation and reporting of all the Maruti
Suzuki CSR activities in compliance with corporate law and the Companies Act.

43
5. Road Safety CSR of Maruti Suzuki

Road accidents have taken many a life, most often because of the mistakes of the driver of the
two or four wheeler involved. Maruti Suzuki corporate social responsibility strives to make
roads safer by bettering people’s driving skills and spreading awareness.

5.1. Institutes of Driving Training and Research

There are five states where the company has established a total of 7 Institutes of Driving
Training and Research (IDTR) and 19 Road Safety Knowledge Centres (RSKC). Equipped
with test tracks and driving simulators and various courses for drivers of all manner of
vehicles, including three-wheelers and forklifts, IDTRs set up by CSR at Maruti Suzuki are
cutting edge. Collectively, these centres and institutes have trained 3.4 million drivers in the
last two decades.

5.2. Automated Driving Test Centres

CSR at Maruti Suzuki runs 12 Automated Driving Test Centres (ADTC) in Delhi and one in
Dehradun in association with the state transport departments. ADTCs have tracks designed
for driving tests, and cutting edge technology like high res cameras for recording the tests,
biometrics and analytics tools. These centres have tested 1 lakh candidates till date.

5.3. Traffic Safety Management System

The Traffic Safety Management System (TSMS) was set up in 13 high traffic locations in
association with the Delhi police. TSMS uses 3D radars and high-res cameras to catch drivers
flouting traffic rules. They capture speeding, red-light violation and even those driving on the
wrong side of the road, something seen regularly on Indian streets.

The digital system has made the work of the Delhi police more convenient since the control
room gets the information on violations immediately and can SMS an electronic penalty slip
without having to chase the violator down. Thanks to TSMS, Delhi police issued 2.4 million
e-penalty slips in FY 2019-20.

44
5.4 Road Safety Education

‘Catch Them Young’ is a CSR project for school children started in December 2019. The
Maruti Suzuki corporate social responsibility programme forms Road Safety Clubs that
includes teachers and students. They engage in mock road scene investigations and
competitions.

5.5. #PehniKya

Did you know that wearing a seat belt that decrease the risk of accident-related death by 45-
60% according to the World Health Organisation. When a habit so simple can save your life
in an emergency, buckling up becomes a relevant topic to tell passengers and drivers about.

With airbags becoming more common, the importance of seat belts cannot be driven home
enough. If you aren’t wearing a seat belt in a car crash, the airbag could cause more damage.
Despite the importance of buckling up, a pan India survey of cities by MSIL found that only a
quarter of car users remember to wear their seat belt.

Pehni Kya is a 360-degree Maruti Suzuki CSR campaign that is persuading families to buckle
up at all times. It spans various media including radio, television and print, and of course,
social media.

6. Education

Lack of toilets, benches and basic necessities has left many a rural student unfit to study.
Government schools in most rural areas are in an abysmal state which is hardly conducive for
learning. MSIL CSR tries to remove these roadblocks to quality education by building
working toilets in schools, providing clean and safe drinking water, ensuring hygiene,
constructing boundary walls and pavements, and repairing lights and fans.

Education interventions include scholarships for promising students from impoverished

families. Not only does the scholarship boost the confidence levels of students to study well,
it has also shown a marked improvement in the academic results of the schools themselves.
The automobile major is supporting 58 government schools in 23 villages of Haryana and
Gujarat. It is also building a school in Sitapur (Gujarat), with Podar Education Network that
will open the doors in 2021.

45
7. Health Care

Maruti Suzuki CSR activities in health are directed at community health care. The company
donated four EECO Ambulances to the Civil Hospital in Gurgaon, and is setting up a multi-
specialty hospital in Gujarat, and upgrading the PHC infrastructure in villages of Gujarat and
Haryana so that rural communities have access to better health facilities. Another programme
targetting anaemia reached out to 11,000 girls and women of four villages in Haryana.

7.1. COVID-19 relief measures

The company has been working in solidarity in the fight against COVID-19. Since the start of
the pandemic, the company has been partnering with the Haryana government, Gurugram
administration and the Union government to donate face masks, mobilise production of
ventilators and PPE kits, distribute food and dry rations to those in need, open up access of
water ATMs to villagers and open its kitchens to feed the hungry.

8. Rural Infrastructure

Maruti Suzuki CSR activities for rural infrastructure are specially prominent in the villages
surrounding the company’s Manesar plant. Interventions include upgrades of parks and
recreation grounds, community halls and playgrounds.

46
 Chapter-V: Conclusions and Suggestions

Automobile market today is very dynamic & competitive with a range of players and

products. There are many reasons for the impressive growth of the Indian passenger car

Industry. Some of these are easy availability of vehicle finance, attractive rate of interest and

convenient installments. In today‘s cutthroat competition it is very difficult to survive. Stiff

competition has forced manufacturers to be innovative and responsive to customer demands

and needs. Maruti Suzuki India Limited is a leading company in Indian Automobile sector

which occupies prominent place due to its innovative strategic marketing, promotional, Brand

positioning, advertising strategies. In today‘s scenario the success of company lies in

structuring and restructuring the marketing strategies and continuous innovation of product

and services. The Maruti Suzuki has a huge market and has left no stone unturned to satisfy

the customers. It has models in every segment of the automobile market. Maruti Suzuki

stands for value as much as it stands for performance. In spite of rising input costs, the

company tries their best to keep prices down. Their running costs and resale values are

unbeatable too. Competitive strategy of this company facilitated healthy profit and customer

satisfaction and its recognition as a company which stands for environmental concerns.

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 References/Bibliography

1. Marketing Strategy of Maruti Suzuki Ltd. - International Journal of Application or Innovation in

Engineering & Management.

2. Annual Report of Maruti Suzuki Ltd.

3. www.marutisuzuki.com

4. www.carwale.com

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