Governance StructureOf

Maruti Suzuki Ltd.

Presentation By

Badal RaiAmit Kumar SahuJyoti Ranajan Rath

Maruti Suzuki India Limited a subsidiary of Suzuki Motor Corporation of Japan, is India's largest passenger car company, accounting for over 45% of the domestic car market. 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 Limited was renamed Maruti Suzuki India Limited. The company's headquarters are located in Delhi.

Introduction

Maruti Suzuki India Limited

Type Public (BSE MARUTI, NSEMARUTI)

Industry Automotive

Founded 1981 (as Maruti Udyog Limited)

Headquarters Delhi, India

Key people R. C. Bhargava,(Chairman)Mr. Shinzo Nakanishi, Managing Director and CEO

Products Automobiles, Motorcycles

Revenue US$4.8 billion (2009)

Employees 6,903 

Parent Suzuki Motor Corporation

Website MarutiSuzuki.com

CURRENT AUTOMOBILES

800 (Launched 1983)

Omni (Launched 1984)

Gypsy (Launched 1985)

WagonR (Launched 2002)

Alto (Launched 2000)

Swift DZire (Launched 2008)

A-star (Launched 2008)

Ritz (Launched 2009)

Eeco (Launched 2010)

Maruti New Wagon R (Launched 2010)

Maruti Altok10 (Launched 2010)

DISCONTINUED CAR MODELS

• 1000 (1990–1994)

• Zen (1993–2006)

• Esteem (1994–2008)

• Baleno (1999–2007)

• Zen Estilo (2006–2009)

• Versa (2001–2010)

• Grand Vitara XL7 (2003–2007)

Vision

The leader in the automobile industry, creating customer delight, & shareholders wealth a pride of India.

Core Values

Maruti Suzuki had initiated good 'Corporate Governance' practices even before Clause 49 became applicable and these practices form an integral part of the company’s governance culture. 

The Company strives to foster a corporate culture in which high standards of ethical behavior, individual accountability and transparent disclosure are ingrained in all its business dealings and shared by its Board of Directors, Management and Employees.

The Company has established systems & procedures to ensure that its Board of Directors is well-informed and well-equipped to fulfill its overall responsibilities and to provide the management strategic direction it needs to create long-term shareholder value.

Corporate Governance

On its Board, the Company has four non-Executive- Independent Directors of high stature from varied backgrounds, who bring with them rich experience and high ethical standards.

In recent years, the Company has evolved a Control Self Assessment mechanism to evaluate the effectiveness of internal controls over financial reporting.

Key internal controls over financial reporting were identified and put to self assessment by control owners in the form of Self Assessment Questionnaires through a web based online tool called "Control Managers" .

With the successful implementation of the online Controls Self Assessment framework, the Company has become one of the few companies in India to have a transparent framework for evaluating the effectiveness of internal controls over financial reporting. The initiative further reinforces the commitment of the Company to adopt best corporate governance practices

Shareholder

Board of directors

Audit Committee

Committee Directors

Managing Director

Audit Team

ERMC Production Marketing

&

Sales

Administration

EngineeringSupply chain

•Internal Auditor•External Auditor•Cost Auditor Corporate

ServicesCorporate GovernanceTeam

Economic , Environmental & Sustainability

SIGC

Corporate Governance Structure

BOARD OF DIRECTORS

MANAGING DIRECTORS

CS & CHIEF LEGAL OFFICER

COROPORATE SERVICES & CHIEF RISK OFFICER

ITI PROJECT

CSR

CORPORATE COMMUNICATION

CORPORATE PLANNING

FINANCERESEARCH DEVELOPMENT

COMPONENT SOURCING

MANUFACTURING SALES DOMESTIC & EXPORTS

INFORMATION TECHNOLOGY

QUALITY ASSURANCE

VENDOR DEVELOPMENT

FACILITY PLANNING PRE OWNED CARS

HUMAN RESOURCESERVICECONSUMABLESPRODUCTION SERVICES

SPARES

ADMINISTRATIONENGINEERINGSUPPLY CHAINPRODUCTION MARKETING & SALES

SUPPLIER QUALITY ASSURANCE

MARKET STRATEGY DEVELOPMENT

MARKETING

ROAD SAFETY

Organizational Structure

On February, 24, 2010, Maruti Suzuki India, announced recalling of 100,000 A-Star hatchbacks to fix a fuel leakage problem. The company will replace the gaskets for all 100,000 A-Star cars.

Practicing 3R (Reduce, Reuse and Recycle)

The company has been promoting 3R since its inception. As a result the company has not only been able to recycle 100% of treated waste water but also reduced fresh water consumption. The company has implemented rain water harvesting to recharge the aquifers. Also, recyclable packing for bought out components is being actively promoted.

Greening of Supply Chain

The company has been facilitating implementation of Environment Management System (EMS) at its suppliers' end. Regular training programs are conducted for all the suppliers on EMS. Surveys are conducted to assess the vendors who need more guidance. The systems and the environmental performance of suppliers are audited.

Adopting energy saving technologies

oWhile the company continuous to improve energy saving initiatives through numerous Kaizens (continuous improvements) on the shop floor, thrust on adopting energy saving technologies has increased phenomenally.

oThree-coat-one-bake painting system: The company introduced the three-coat one-bake system at its Manesar facilities.

oIn this state of the art painting system, three wet-on-wet coats are applied and baked together. Conventional painting systems use two baking steps before the final finish. This helps is lower energy consumption and yet improving the productivity levels. oThe green co-efficient of this system is much better than the conventional system.

Road Safety The company has been playing a leading role for many years now in promoting road safety and safe driving in the country. The company believes that in addition to fund support, one of the best ways for corporates to fulfil their social responsibility is by offering their managerial skills to society.

In line with this, the company manages two Institutes of Driving Training & Research (IDTR) in Delhi and Maruti Driving Schools across country. Through these facilities, the company has brought international standards in driving training and state of the art training infrastructure in the country.

Maruti Driving Schools

The company has also involved its dealers across the country in promoting road safety and safe driving. In collaboration with them, the company has set up 43 Maruti Driving Schools in 38 different locations across the country. These schools are equipped with world class, state of the art driving simulators offer training courses for beginners as well as refresher programs. Over 41,500 people have trained so far.

Setting up GUJARATI

In a landmark move the company signed an MoU with the Government of Gujarat, to set up, manage and run The Gujarat Regional Automobile Training Institute ( to be referred as GUJRATI) at Gajadara village of Waghodia taluka in Vadodara district. It is the first of its kind initiative in the country. The institute will not only provide driving training to tribal youth, it will also offer automobile technical training to them and help their employability.

 

Several other state governments, such as Haryana, Bihar, Uttarakhand, Chattisgarh and West Bengal have also approached the company to set up driving training institutes in their states. The company has already signed an MoU with the Government of Haryana for setting up two driving training institutes at Rohtak and Bahadurgarh.

Community Initiatives

The Company works closely with local communities around its manufacturing facilities to improve their quality of life. The Company has adopted four villages surrounding its Manesar plant - Kasan, Dhana, Alihar and Baas Kusla and launched sustainable livelihood programmes for underprivileged communities. The initiatives are focused on four key areas:

Health

Education

Employment Generation through Vocational Trainings

Basic Infrastructure Development.

Awards & Achievement

World environment foundation has awarded Maruti as winner of Golden Peacock award for Environment Management 2007.

Renewable energy department, Haryana Government has awarded first prize for excellence in implementation of Energy Conservation measures in industrial sector.

Ranked 4th globally in passenger car sector among the world’s 200 most reputed companies in the world’s most reputed company survey 2008.

 

Conclusion As a responsible corporate, Maruti Suzuki India Limited has always believed in following highest standards of Corporate Governance. Being a listed Company, every act of the Company, its Board Members and its employees is the focus of public attention and accordingly, there is a need to reinforce Maruti's commitment towards maintaining highest standards of Corporate Governance.

This Code of Business Conduct and Ethics helps ensure compliance with their standards of business conduct & ethics and also with regulatory requirements