Annual Integrated Report 2020-21 Leading with Responsibility. Delivering Excellence. Approach to Reporting Inside this Year’s Report Maruti Suzuki India Limited (hereafter referred to as ‘MSIL’ are excluded. There was no significant change in scope and or ‘the Company’) is pleased to present its 40th Annual boundary of the non-financial disclosures from the previous Company Overview Sustainability Performance Report for the financial year 2020-21. This Report intends reporting period. The calculation methodologies conform to 4 Company Profile 70 Governance Mechanism to serve as a concise communication about the Company’s globally accepted standards, while assumptions, exclusions 8 Product Portfolio 76 Product Stewardship and Innovation thoughts on business, governance, performance (financial and restatements are clearly stated wherever applicable. and non-financial) and prospects in the context of its external 16 Performance highlights 2020-21 86 Customer Engagement and Support environment. Approach to Stakeholder Engagement 18 Awards and Accolades 90 Sustainable Supply Chain We engage with our stakeholders regularly and responding to 20 Message from the Chairman 94 People Practices Reporting Framework their concerns is important for us. Their concerns are captured 24 Message from the Managing Director & CEO 104 Operational Eco-Efficiency The Report is based on the Integrated Reporting Framework through our materiality assessment process and various other 28 Board of Directors 110 Corporate Social Responsibility (referred to as the <IR> framework) developed by the channels. We present information on these topics of interest for International Integrated Reporting Council (IIRC). our stakeholders through this report. 30 Executive Management Team 116 GRI Content Index 118 Alignment with UNGC Principles The financial information presented in this Report complies Independent Assurance Value Creation Approach 119 Independent Assurance Statement with financial and statutory data requirements of the The financial information in this report has undergone Companies Act, 2013 (including the rules made thereunder), 34 Value Creation Process independent assurance by Deloitte Haskins & Sells LLP. Some Statutory Reports Indian Accounting Standards, the Securities and Exchange of the key non-financial disclosures have been independently 36 Triple Bottom Line Performance Board of India (Listing Obligations and Disclosure 126 Board’s Report verified by DNV. 46 Digitalisation and Innovation Requirements) Regulations, 2015, and the Secretarial 154 Corporate Governance Report Standards. 48 External Environment Disclaimer 174 Management Discussion & Analysis 52 Stakeholder Engagement 190 Business Responsibility Report The non-financial information presented in this Report is based The Report may contain ‘forward-looking’ statements that 55 Material Topics on the Global Reporting Initiative (GRI) standards. Additionally, capture expectations or projections about the Company’s 60 Risk Management the Report aligns with the ‘Ten Principles of the United future. These have to be understood in conjunction with the Financial Statements 62 Way Forward Nations Global Compact (UNGC)’ and the National Voluntary uncertainty and the risk that the Company faces. Actual 198 Standalone Financial Statements Guidelines on Social, Environmental and Economic (NVG-SEE) results, performance or achievements may thus differ 64 Contribution to Sustainable Responsibilities of Businesses in India issued by the Ministry of substantially or materially from those expressed or implied. The Development Goals 266 Consolidated Financial Statements Corporate Affairs, Government of India. Company assumes no responsibility to publicly amend, modify or revise any such statement, on the basis of subsequent Scope and Boundary developments, information or events, except as may be required by law. The ‘reporting period’ is from 1st April 2020 to 31st March 2021. The Report covers the manufacturing facilities at Gurugram and Manesar, Research & Development (R&D) facilities at Gurugram and Rohtak, Head Office at New Delhi, regional, zonal and area offices across India, sales and distribution facilities and stockyards. Joint ventures and subsidiaries Introducing Key Icons Contribution to UN SDGs Financial Capital In this Report, you will find icons of the United Nations Manufactured Capital Sustainable Development Contact Us Goals (SDGs). For each Intellectual Capital chapter, we have determined 1800 102 1800 the SDGs where MSIL Human Capital contributes with its activities. [email protected] Social and Relationship Capital @Maruti_Corp Natural Capital Company Overview Company Profile 4 Product Portfolio 8 Performance Highlights 2020-21 16 Awards and Accolades 18 Message from the Chairman 20 Message from the Managing Director & CEO 24 Board of Directors 28 Executive Management Team 30 Maruti Suzuki India Limited Corporate Overview Sustainability Annual Integrated Report 2020-21 Value Creation Approach Performance Statutory Reports Financial Statements Company Profile Product Portfolio Performance Highlights 2020-21 Awards and Accolades Message from the Chairman Message from the Managing Director & CEO Board of Directors Executive Management Team Company Profile Maruti Suzuki India Limited was established in 1981. A joint venture agreement was signed between the Government of India and Total Cumulative Production Unit sales (Domestic and Export)* Suzuki Motor Corporation (SMC), Japan in 1982. The Company became a subsidiary of SMC in 2002. In terms of production volume (in Millions) and sales, the Company is now SMC’s largest subsidiary. SMC currently holds 56.37% of its equity stake. It is a public limited company and its shares are traded at the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). 24 1,457,861 1,862,449 24 1,779,574 20 1,568,603 1,563,297 Facilities in India 1,457,861 10 05 Manufacturing Research & Head Office Sales & distribution Stockyards Sites Development Centre Facilities April March July March FY’17 FY’18 FY’19 FY’20 FY’21 2005 2011 2018 2021 *Figure includes vehicles produced by SMG and supplied to the Company as per contract manufacturing agreement. Gurugram (Haryana) Rohtak (Haryana) New Delhi Gurugram (Haryana) Siliguri (West Bengal) Manesar (Haryana) Gurugram (Haryana) Manesar (Haryana) Bengaluru (Karnataka) Hansalpur (Gujarat) Nagpur (Maharashtra) 6 6 16 19 9 19 Zonal Offices Regional Offices Area Offices Production Capacity The Company has two state-of-the-art manufacturing facilities increasing market demand for the Company’s products located in Gurugram and Manesar in Haryana, capable of and has been operational since 2017. In April 2021, the 3rd producing ~1.5 million units per annum. Highly efficient and manufacturing plant, with an annual production capacity lean manufacturing processes, together with a skilled and of 0.25 million units was made operational. With this new motivated workforce, enable manufacturing of reliable and capacity addition, the annual production capacity at SMG quality products. reached to 0.75 million units The Company is responsible for the sales and distribution of units produced at the SMG Suzuki Motor Gujarat Private Limited (SMG), a subsidiary facility in Gujarat. of SMC, was set up in Hansalpur, Gujarat to cater to the 4 5 Maruti Suzuki India Limited Corporate Overview Sustainability Annual Integrated Report 2020-21 Value Creation Approach Performance Statutory Reports Financial Statements Company Profile Product Portfolio Performance Highlights 2020-21 Awards and Accolades Message from the Chairman Message from the Managing Director & CEO Board of Directors Executive Management Team Exports to 90+ countries India Market leader 1,323,396 in passenger vehicle segment in India 3 3 4 4 Philippines Top 5 Egypt 5,632 Countries for Exports 1 2 3 4 5 6,819 1 1 Chile 2 5 13,944 5 South Africa 2 23,840 Uruguay 4,427 6 7 Maruti Suzuki India Limited Corporate Overview Sustainability Annual Integrated Report 2020-21 Value Creation Approach Performance Statutory Reports Financial Statements Company Profile Product Portfolio Performance Highlights 2020-21 Awards and Accolades Message from the Chairman Message from the Managing Director & CEO Board of Directors Executive Management Team Product Portfolio Channel Baleno XL6 The popular hatchback and one of the best-selling cars in The Multipurpose Utility Vehicle is known for its India. Baleno has more than 9 lakh happy customers, and is style and comfort and one of the most-liked cars in the fastest-selling car in India to reach this coveted milestone. its segment. XL6 by using Smart Hybrid technology It has also consistently featured in the top 5 best selling cars is committed in providing sustainable mobility in India for the last 4 years. solutions. Fuel Type Fuel Type Petrol Smart Hybrid Petrol Petrol Smart Hybrid Ignis The hatchback with Urban design and SUV like styling, designed for the tough Urban Roads with an imposing design and superior driving capabilities. S-Cross Fuel Type The vehicle that heralded the entry of Maruti Suzuki in the Mid-SUV segment. Aptly positioned as the ‘Refined SUV’, Petrol S-Cross not only enthuses customers with its sophistication and power but also is committed in providing sustainable mobility solutions using Smart Hybrid technology. Fuel Type CIAZ Petrol Smart Hybrid The sedan admired for its elegance was the fastest to reach the landmark sales figure of 100,000 in its segment. Ciaz, by using Smart Hybrid technology, is committed