Report On Swaraj Mazda Limited: Submitted by

REPORT ON
SWARAJ MAZDA
LIMITED
SUBMITTED BYAMARDEEP SINGH
KAMALJIT KAUR
MANAVJEET SINGH
GURVIKRAM SINGH
GAURAV SOHARU
INTRODUCTION
SML ISUZU LIMITED was incorporated in July 1983 as Swaraj Vehicles
Limited to manufacture Light Commercial Vehicles (LCV) in the state of

Punjab. It was the result of Government of India initiatives for installing the
LCV unit in order to save the fuel consumption in the economy. Punjab
State Industrial Development Corporation (PSIDC) obtained the letter of
intent in 1981 and subsequently transferred the same in favor of the
Company in 1983.
The project in its concept, aims at breaking new ground not only in terms of
product and production technology, but also in building a new culture and
value system in the organization, which enables it to move forward with
confidence into the era of competitive markets. This guiding philosophy is
dictating every facet of project implementation both in physical facilities
and the human side.
MAJOR MILESTONES
1983-The Company was incorporated in July 1983 in the name of Swaraj

Vehicles Limited.
1984-joint Venture and Technical Assistance concluded between Punjab
Tractor
Ltd.,
Mazda
Motor Corporation, Japan & Sumitomo Corporation, Japan. SVL renamed
Swaraj Mazda Ltd
1985-Project set up with a capacity of 5000 LCVs at capital outlay of
Rs.20.0 crores.
1990-In-house developed Second Truck Model (Swaraj Mazda Super)
launched
1998-Complete wipe off of accumulated losses
2001-Cumulative sales crossed 50,000 vehicles.
PRODUCTS
PERFORMANCE REVEIEW
in crores
2013
2014
Sales Volume (Nos.)
9760
12045
Net Revenue
885.99
1011.06
Material Cost & Other Expenses
849.58
931.78
Operating Profit
36.41
79.28
Profit Before Tax
17.71
48.49
Profit After Tax
17.40
36.43
Balance of Profit from Prior Years
92.70
73.45
Surplus available
110.10
109.88
Transfer to General Reserve
1.74
3.64
Proposed Dividend (inc. taxes)
5.08
13.54
Amount carried to Balance Sheet
103.28
92.70
SWARAJ IN MARKET
With more than 2 lac tractors and harvesters combine in Indian farms,
swaraj is now a well established company in country. Swaraj is

internationally recognized name in the developing world.
The products of swaraj are not only restricted to Indian market, but they
have entered international market. Swaraj tractors find an important place in
developing countries like Ghana, Tanzania, Zambia, Indonesia, Malaysia,
etc.
SML has major technical alliance with Isuzu Motors. The company has
also entered major alliances with Peugeot and Renault of France,
Volkswagen and Man of West Germany, Leyland of U.K., TAM of
Yugoslavia and Isuzu Daihatsu and Mazda of Japan for technological
collaborations. While evaluating the relevant technologies of these
countries, the major criteria was to select a vehicle powered by a four
cylinder diesel engine, capable of providing maximum pay-load capacity
best suited for local conditions and fuel efficient thus ensuring best value
for money to the Indian consume.
SWOT ANALYSIS
SWOT Analysis is a framework used extensively for an assessment of the
internal as well as external business environment as part of the strategic or

corporate planning process. The framework generates a snapshot of the
firms strengths & weaknesses as part of internal environment assessment
and opportunities & threats as part of the external environment assessment
that aids strategic decision making.
This comparative SWOT analysis will be extremely useful for:
--Strategic Planning & Decision-Making Process at all levels
--Comparative assessment of strategic orientation, focus & outlook
--Assessment & evaluation of degree of responsiveness to the environment.
--Identification of opportunities which could be capitalized upon
--Identification of potential threats in the business environment
--Identifying areas for strategic changes, adjustments & realignment
--Strategic assessment of key market players from the perspective of
forming JV, strategic alliances or M&A activity
SWOT ANALYSIS OF SML

STRENGTHS
A very strong in house R & D centre.

Full technology transfer from Isuzu Ltd. Japan.
Large number of developed vendors connected online with the
company.
In house development of IT software like SAP.
Internal brainstorming of employees.
WEAKNESSES
Bus body manufacturing is outsourced.

Some costly parts and components are imported from other countries.
Steep rise in the steel price.
No model up gradation of products like Sartaj, Samrat and Super etc. for the
past many years.
OPPORTUNITIES
Easy availability of loans.
Rising demand of mini buses with encouragement to tourism, education and healthcare by Government.
Rising demand of vehicles with alternate fuels like CNG, LPG
THREATS
Govt . policies like excise rate.

Reducing profit margins.
Rising market share of new entrants and small scale manufacturers of agricultural
equipment.
Rising price of diesel and potential threat of decontrol of diesel prices.
Reducing profit margins.
Performance of Railways and movement in freight rates are also key factors that have a
bearing on demand for cargo carriers.
GROWING COMPETITION
In order to maintain profit, competitive advantage and market share in the
era of tough competition, organizations must be flexible and quick enough

to respond to changing market conditions
The case of SML shows that the company is facing tough competition from
local level competitors like
Sonalika, Standard Combines, and Preet
Tractors etc. apart from global level competitors like TATA, Ashok Leyland
and HMT. An organization may face high degree of competition from
competitors, having better ability to respond to market changes and
equipped with better capabilities.
THANK YOU

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REPORT ON

Limited to manufacture Light Commercial Vehicles (LCV) in the state of

1983-The Company was incorporated in July 1983 in the name of Swaraj

Sales Volume (Nos.)

Material Cost & Other Expenses

Profit Before Tax

Profit After Tax

Balance of Profit from Prior Years

Transfer to General Reserve

Proposed Dividend (inc. taxes)

Amount carried to Balance Sheet

swaraj is now a well established company in country. Swaraj is

internal as well as external business environment as part of the strategic or

SWOT ANALYSIS OF SML

A very strong in house R & D centre.

Bus body manufacturing is outsourced.

Govt . policies like excise rate.

era of tough competition, organizations must be flexible and quick enough

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