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Lovely Professional University Lovely Professional university M.B.A Term Paper 2009-2010 MGT-514 Submitted by Guided by Chandan Kumar Singh Mr.Krishan Gopal Section-RT-1902(B) Roll number ʹA-27 INDEX Introduction of the Maruti Udyog. Objective of the Maruti Udyog. SWOT analysis of Maruti Udyog. Strategy of the Maruti Udyog. Limitations of the Maruti Udyog. Product life cycle stage of Maruti Udyog. Conclusion. Bibliography. Maruti Suzuki India Limited Maruti Suzuki India Limited is a publicly listed automaker in India. It is a leading four- wheeler automobile manufacturer in South Asia. Suzuki Motor Corporation of Japan holds a majority stake in the company. It was the first company in India to mass- produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India and on 17 September 2007, Maruti Udyog was renamed Maruti Suzuki India Limited. The company headquarter is in Gurgaon, Haryana (near Delhi). Profile The old logo of Maruti Suzuki India Limited. Later the logo of Suzuki Motor Corp. was also added to it. Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The Indian government held an initial public offering of 25% of the company in June 2003. As of 10 May 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog. Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India, its' only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti has produced over 5 Million vehicles. Marutis are sold in India and various several other countries, depending upon export orders. Models similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki and manufactured in Pakistan and other South Asian countries. The company annually exports more than 50,000 cars and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Alto tops the sales charts and Maruti Swift is the largest selling in A2 segment. Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used to refer to this compact car model. Till recently the term "Maruti", in popular Indian culture, was associated to the Maruti 800 model. Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for over two decades. Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of New Delhi. Maruti·s Gurgaon facility has an installed capacity of 350,000 units per annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined capability to produce over 700,000 units annually. More than half the cars sold in India are Maruti cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is owned by the public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange in India. During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six million Maruti cars are on Indian roads since the first car was rolled out on 14 December 1983. Maruti Suzuki offers 15 models, Maruti 800, Omni,Esteem, Baleno, Alto, Versa, Ritz, Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and Grand Vitara. Swift, Swift dzire, A star and SX4 are maufactured in Manesar, Grand Vitara is imported from Japan as a completely built unit (CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant. Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for three decades. Suzuki·s technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel efficient. Maruti is clearly an ´employer of choiceµ for automotive engineers and young managers from across the country. Nearly 75,000 people are employed directly by Maruti and its partners. The company vouches for customer satisfaction. For its sincere efforts it has been rated (by customers)first in customer satisfaction among all car makers in India for ten years in a row in annual survey by J D Power Asia Pacific. Maruti Suzuki was born as a government company, with Suzuki as a minor partner to make a people's car for middle class India. Over the years, the product range has widened, ownership has changed hands and the customer has evolved. What remains unchanged, then and now, is Maruti·s mission to motorise India. 'To Munsiyari on a Maruti 800', Uttarakhand Himalayas Maruti Suzuki plant in Gurgaon Partner for the joint venture Suzuki Swift Pressure started mounting on Indira and Sanjay Gandhi to share the details of the progress on the Maruti Project. Since country's resources were made available by mother to her son's pet project. A delegation of Indian technocrats was assigned to hunt a collaborator for the project. Initial rounds of discussion were held with the giants of the automobile industry in Japan including Toyota, Nissan and Honda. Suzuki Motor Corporation was at that time a small player in the four wheeler automobile sector and had major share in the two wheeler segment. Suzuki's bid was considered negligible. In the initial rounds of discussion the giants had their bosses present and in the later rounds related to the technical discussions executives of these automobile giants were present. Osamu Suzuki, Chairman and CEO of the company ensured that he was present in all the rounds of discussion. Osamu in an article writes that it subtly massaged their (Indian delegation) egos and also convinced them about the sincerity of Suzuki's bid. In the initial days Suzuki took all steps to ensure the government about its sincerity on the project. Suzuki in return received a lot of help from the government in such matters as import clearances for manufacturing equipment (against the wishes of the Indian machine tool industry then and its own socialistic ideology), land purchase at government prices for setting up the factory Gurgaon and reduced or removal of excise tariffs. This helped Suzuki conscientiously nurse Maruti through its infancy to become one of its flagship ventures. Product Offers 14 models of car such as , Maruti 800, Omni, Zen Alto, Wagon R, Gypsy, Esteem, Baleno, Versa, Swift, SX4, etc. Services offered Current sales of automobiles (1) Maruti Estilo (2) Maruti 800: Launched - 1983 (3) Maruti Omni: Launched - 1984 (4) Maruti Gypsy: Launched - 1985 (5) Maruti Alto: Launched - 2000 (6) Maruti Wagon-R: Launched - 2002 (7) Maruti Versa: Launched - 2003 (8) Maruti Grand Vitara Launched - 2004 (9) Maruti Suzuki Swift: Launched - 2005 (10) Maruti Suzuki SX4: Launched - 2007 (11) Maruti Swift Dzire: Launched - 2008 (12) Maruti Suzuki A-STAR: Launched - 2008 (13) Maruti Suzuki Ritz: Launched - 2009 (14) Maruti Suzuki Estilo: Launched - 2009 Promotional Offers Maturi focused its promotions strategy on targeting two-wheelers owners, by enter in new domains and reaching out potential customers through its ¶True value·. In 2003, to attract customer Maruti launched novel offers like ´Change your lifeµ campaign and also offered vehicle insurance for just Rupee one only. Television Campaign In 2003, came out with a toy car advertisement that became popular for its simplicity. ´Kya Karron Papa Petrol khatam hi hani Hota.µ The sales figure for the year 2003 reached up to 196,820, vehicles. The company Mission; To provide awide range of modern,high quality fuel efficient vehicles in order to meet the need of different customer, both in domestic and export markets. The company vision. We must be an internationally competitive company in terms of our product and services. We must retatin our leadership in India and should also alpire to be among the global players. The focus is on: y Building a continuously inproving organization adaptable to quick changes y Providing value and satisfaction to the customer y Aligning and fully involving all our employees, suppliers and dealers to face competition y Maximising Shareholder·s value y Being a responsible corporate citizen. At Maruti, they have a clear perspective on manpower. They see it as a unique resource, in the sense that optimal productivity of other resources depends largely on the way human resources are utilized. The basic philosophy of management that underlies the Maruti culture is that all employees of the company should be moulded into a team which then strives as one, to achieve commonly shared company goals and ojectives. To make this philosophy tenable, the company takes several initiative. Inputs are sought from employees at all levels. They believe that everyone should contribute to the formulation of company policis, goals and objective .
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