presentation 32 monidipa

8/7/2019 Presentation 32 monidipa

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MARUTI UDYOG LIMITED

Submitted in partial fulfillment of the requirement of graduate diploma

in international business GDIB

ASANSOL ENGINEERING COLLEGE,ASANSOL

Faculty Supervisor SUBMITTED BY:

Mrs. Moumita Roy MonidipaHazra


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ASANSOL ENGINEERING COLLEGE,

ASANSOL

FACULTY GUIDE CERTIFICATE

This is to certify that Monidipa Hazra student of BBA final year has completed

this project report under my supervision.

The work done by him is original and satisfactory.

GROUP MEMBER FACULTY INCHARGE

Monidipa Hazra Mrs.Moumita Roy


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ACKNOWLEDGEMENT

The goal was fixed, moves were calculated and I moved with full

enthusiasm, vigor and keen interest.

There was a time when it proved to be on up hill task, the goal seeming

beyond my reach. But as worked progressed my determination and willpower grew stronger and completion of this work further confined my

belief that, where there is a will there is a way.

Its a sheer pleasure for us to state with candidly that this entire projectis a heartily attempt to reach maximum accuracy. I highly express my

sincere thanks to Mrs. Moumita Roy who helped who throughout the

project.


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EXECUTIVE SUMMARY Maruti was incorporated in 1981 as a Government company. They started production in

December 1983 with collaboration from Suzuki of Japan. Initially Suzuki had 26% equitywhich has since increased to 40%.

The original model was replaced in the 2nd year itself with a new streamlined model withmore leg room and better fuel efficiency. A van (now called Omni) in two types of roof and aJeep type vehicle Gypsy, were also introduced in quick succession.

The various cars proved extremely popular and production has already crossed 100,000 nos.which is 60% of the total production of passenger car. The company has an up to date

manufacturing facility and absorbed the technology successfully. The foreign equity andpresence of a number of Japanese experts has helped in the stabilisationof production.

In the initial stages Maruti set up a limited R&D department for absorbing the technologythat was being imported. Even at this stage Maruti made certain modifications in theimported technology on market considerations e.g. Application engineering to develop special

bodies for school van,taxi, delivery van, executive van, ambulance. Improved suspension and seating for OMNI, which was used more as a car than acommercial vehicle. Modifications in Gypsy and Maruti 800 to meet export requirements

of various countries.


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CHAPTER: 1-Introduction

Automobile industry

Company Profile

S.W.O.T. Analysis

Competitors Information

CONTENTS


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CHAPTER:-1

INTRODUCTION

Indian automobile industry has grown leaps and bounds since 1898, atime when a car had touched the Indian streets for the first time.

At present it holds a promising tenth position in the entire world withbeing # 2 in two wheelers and # 4 in commercial vehicles.

Withstanding a growth rate of 18% per annum and an annualproduction of more than 2 million units, it may not be an exaggeration

to say that this industry in the coming years will soon touch a figure of10 million units per year.


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CARS BY PRICE RANGE

UNDER 3LAKHS

MARUTI 800,ALTO.

Rs.3-5 LAKHS

MARUTI Zen,Wagon R,Esteem

Esteem,Gypsy,Estilo,Maruti

suzuki zen estilo

Rs.5-10 LAKHS

Maruti Suzuki Swift Dezire,

SX4,Maruti Bulero


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The following links will give you the complete

picture of Indian Maruti Udyog Company:

Industry Growth

The passenger car and motorcycle segment in Indian auto market isgrowing by 8-9 per cent. The two-wheeler segment will clock 11.5%

rise by 2007. Commercial vehicle to grow by 5.2 per cent.

Vehicle Production

India is the 11th largest Passenger Cars producing countries in the

world and 4th largest in Heavy Trucks. Maruti Udyog Ltd. is theleading 4-wheelers manufacturer. Hero Honda is the leading 2-wheelers manufacturer.


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COMPANY PROFILE

Maruti Udyog Ltd. (MUL) is the first automobile

company in the world to be honoured with an ISO

9000:2000 certificate. The company has a joint

venture withSuzuki Motor Corporationof Japan. It

is said that the company takes only 14 hours to make

a car. Few of the popular models of MUL are Alto,

BaleRo, Swift, Wagon-R and Zen.


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Current sales of automobiles

Maruti Estilo Maruti 800: Launched - 1983

Maruti Omni: Launched - 1984

Maruti Gypsy: Launched - 1985

Maruti Alto: Launched - 2000 Maruti Wagon-R: Launched - 2002

Maruti Versa: Launched - 2003 Maruti Grand VitaraLaunched - 2004

Maruti Suzuki Swift: Launched - 2005

Maruti Suzuki SX4: Launched - 2007

Maruti Swift Dzire: Launched - 2008 Maruti Suzuki A-STAR: Launched - 2008

Maruti Suzuki Ritz: Launched - 2009 Maruti Suzuki Estilo: Launched 2009


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Company overview

Maruti Udyog Limited (MUL), established in 1981, had a prime objective to meet thegrowing demand of a personal mode oftransport, which is caused due to lack ofefficient public transport system. The incorporation of the company was through anAct of Parliament.

Suzuki Motor Company of Japan was chosen from seven other prospective partnersworldwide. Suzuki was due not only to its undisputed leadership in small cars butalso to commitments to actively bring to MUL contemporary technology and Japanesemanagement practices (that had catapulted Japan over USA to the status of the topauto manufacturing country in the world). at Maruti Udyog Ltd.

A license and a Joint Venture agreement were signed between Government of India

and Suzuki Motor Company (nowSuzuki Motor Corporationof Japan) in Oct 1982.

The objectives of MUL, then are as cited below: Modernization of the Indian Automobile Industry.


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=> MARUTI TRUE VALUE

Maruti True service offered by Maruti

Udyog to its customers. It is a market

place for used Maruti Vehicles. One canbuy, sell or exchange used Maruti vehicles

with the help of this service in India


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B) CURRENT STRATEGIES

FOLLOWED BY MUL

I. PRICING STRATEGY - CATERING TO ALL SEGMENTS

II. OFFERING ONE STOP SHOP TO CUSTOMERS ORCREATING DIFFERENT REVENUE STREAMS

Maruti Finance

Maruti Insurance

True Value Initiative to capture used car market

N2N : Take care of the A-Z of Automobiles Problems Maruti Driving School (MDS)

III. MARUTI PLANS FOR A NEW ENGINE ANDTRANSMISSION PLANT


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III. REPOSITIONING OF MARUTI

PRODUTS

Whenever a brand has grown old or its sales start dipping Marutimakes some facelifts in the models. Other changes have been made fromtime to time based on market responses

OMNI

VERSA

ESTEEM

BULERO

WAGON R ZEN

MARUTI 800


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FUTURE CHALLENGES

Maruti has always been identified as a traditional carmaker producingvalue-for-money cars and right now the biggest hurdle Maruti is facingis to shed this image. Maruti wants to change it for a more aggressiveimage. Maruti Balero has failed due to one of the major reasons being

that customers could not id

1.perception change.

2.growing competition in compact cars.

3.Rise in petrol prices and growing popularity of other substitute fuels:like CNG will be another threat to maruti

4.Emission norms

5.Models will face extinction


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S.W.O.T. ANALYSIS OF THE

COMPANY

Companys Portfolio:Maruti Udyog Limited ,INDIAs finest and Asias largest automobile industry was established in1981 by an act of parliament.

1.MUL, the first automobile company in the world to be honored with an ISO 9000:2000 certificate, is asubsidiary of Suzuki Motor Corp .

2.The Government of India remains a significant equity stakeholder .With its early mover advantage inIndian market.

Business Portfolio:The Group's principal activity is to manufacture, purchase and sale of Motor Vehicles and Spareparts.

Vision:Visions of any company are those values on which company works.

Mission:

- Modernization of the Indian Automobile Industry.- Developing cars faster and selling them for less.- Production of fuel-efficient vehicles to conserve scarce resources.

- Production of large number of motor vehicles which was necessary for economic growth.


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COMPANY

SWOT ANALYSIS: Consists of analysis of internal environment(Strength and weakness) and external environments(Opportunity and Threat).

STRENGTH: Contemporary technology. Japanese Management

practices (that had captured Japan over USA to the status of topAuto manufacturing country in the world) Early mover advantages.Recruitment is done in very tedious mannerensuring talent and best professionals, Working culture, after saleservices , distribution, diversification,

Sell directly to consumers

Keep costs below competitors costs

WEAKNESS: Still depends upon SUZUKI COPORATION, Japan For

tech. support, 10% components are manufactured outsideIndia. ThoughMUL has launched luxury cars as well its still considered as poor mansbrand. Bureaucracy, Technological disadvantages,


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COMPANY

OPPURTUNITY: first company to roll out suitably designed cars before2008 as per Govt.s Proposal of new ethanol (renewable)mixed fuel. Other companies lacks economy of scale, so market is stillopen. Importing new technology is controlled by Govt. so there is plentyof untapped market and with increase in Income scale, Demand is

rising. Consumer desire for one-stop shopping

Consumers know what they want to buy

Internet could be a powerful marketing tool

THREAT: Numbers of new Technology driven players and

manufactures are in market. Govt .reducing support and cutting downthe Gas supply quota.

Competitors have stronger brand names

Competitors have strong relationships with computer retailers.


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BALANCE SHEETMar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Sources of funds

Owner's fund

Equity share capital 144.50 144.50 144.50 144.50 144.50

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 11,690.60 9,200.40 8,270.90 6,709.40 5,308.10

Loan funds

Secured loans 26.50 0.10 0.10 63.50 71.70

Unsecured loans 794.90 698.80 900.10 567.30 -Total 12,656.50 10,043.80 9,315.60 7,484.70 5,524.30

Uses of funds

Fixed assets

Gross block 10,406.70 8,720.60 7,285.30 6,146.80 4,954.60

Less : revaluation reserve - - - - -

Less : accumulated depreciation 5,382.00 4,649.80 3,988.80 3 ,487.10 3,259.40

Net block 5,024.70 4,070.80 3,296.50 2,659.70 1,695.20

Capital work-in-progress 387.60 861.30 736.30 238.90 92.00Investments 7,176.60 3,173.30 5,180.70 3,409.20 2,051.20

Net current assets

Current assets, loans & advances 3,856.00 5,570.00 3,190.50 3,956.00 3,870.70

Less : current liabilities & provisions 3,788.40 3,631.60 3,088.40 2,779.10 2,184.80

Total net current assets 67.60 1,938.40 102.10 1,176.90 1,685.90

Miscellaneous expenses not written - - - - -

Total 12,656.50 10,043.80 9,315.60 7,484.70 5,524.30

Notes:

Book value of unquoted investments 11.10 3,162.20 5,169.60 3,398.10 2,040.10


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PROFIT &LOSS A/C

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Income

Operating income 29,317.70 20,729.40 18,066.80 14,806.40 12,197.90

Expenses

Material consumed 22,435.40 16,339.80 13,622.00 11,063.70 9,223.70

Manufacturing

expenses1,278.20 909.70 670.60 489.80 359.60

Personnel expenses 545.60 471.10 356.20 288.40 228.70

Selling expenses 916.00 738.20 560.20 499.90 356.00

Adminstrative

expenses 404.60 389.20 326.30 274.50 170.60

Expenses capitalised - -22.30 -19.80 -14.30 -6.70

Cost of sales 25,579.80 18,825.70 15,515.50 12,602.00 10,331.90

Operating profit 3,737.90 1,903.70 2,551.30 2,204.40 1,866.00

Other recurring

income617.70 547.60 456.10 361.10 268.10

Adjusted PBDIT 4,355.60 2,451.30 3,007.40 2,565.50 2,134.10

Financial expenses 33.50 51.00 59.60 37.60 20.40

Depreciation 825.00 706.50 568.20 271.40 285.40

Other write offs - - - - -

Adjusted PBT 3,497.10 1,693.80 2,379.60 2,256.50 1,828.30

Tax charges 1,094.90 457.10 763.30 705.30 560.90

Adjusted PAT 2,402.20 1,236.70 1,616.30 1,551.20 1,267.40

Non recurring items 44.30 -55.90 37.90 -23.00 -83.70

Other non cash

adjustments51.10 37.90 76.60 33.40 5.40

Reported net profit 2,497.60 1,218.70 1,730.80 1,561.60 1,189.10

Earnigs before


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Ritz - Live The Moment

Experience the aerodynamic shade designed to reduce the drag while liberating space Classy AC Louvers Retro Touchpad Ergonomicallyplaced Gearshift Lever Ultra Modern and Sporty Dashboard Dual Tone Coordinated Interiors Plush Fabric Seats Digital Odometer,Fuelmeter, Clear-to-read Speedometer

FEATURES

SPECIFICATIONS

EQUIPMENTS

COLORS

SCHEMES

Alto

Car Models

FEATURE

SPECIFICATION

EQUIPMENT

PRICE

COLOR

SCHEME

Let's Go for Trust and Reliability with the Sachcha Humsafar.

With 17.6 KMPL, the Alto gives you the best mileage. With extremely low cost of maintenence and spares. It is the most economical car to run. The Alto is India'slargest selling car and has been so for three years in a row. It is the first car brand to cross the 2 lakh sale figure in a single year and has crossed the i millionproduction mark. Further, Alto is backed by India's widest service network (2624 authorized service centres across 1245 cities and towns). With Alto you get the

best value for your used car, backed by 300 True Value Outlets across the country. So next time, you get the urge to go the extra mile, just say "Let's Go".

Best In Class Fuel Efficiency

India's most Fuel Efficient Car Mileage as high as 17.6 KMPL.

32 bit on board computer for dynamic computerized fuel injection.

4 valves per cylinder burn fuel efficiently.

Low cost of maintenance and spares.

Optimum Performance

47 ps engine for optimum power.

62 Nm torque at low rpm for good pickup.

5 speed gearbox for smooth gear shifting & better fuel efficiency.

Safety

Booster assisted brakes for shorter braking distance.

Collapsible steering column for avoiding injury to driver.

iCATS Security System - Factory fitted, making your vehicle 100% safe & secure. Starts only with original key.

Style

Am r d m t r ill min ti n.


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SX4 - Man Amongst Cars

Welcome to a man's ride. A perfect blend of performance, style and comfort. The all-new Maruti Suzuki SX4.

Armed with a completely new M Series engine, its dynamic exterior styling reflects the power and performance

that lurks under its hood. Combined with sophistication and pure luxury on the inside, it makes the road ahead a

pleasure waiting to unfold. So, bring out the man in you. Experience the SX4 today.

y FEATURES

y SPECIFICATIONS

y EQUIPMENTS

y COLORS

y SCHEMES

y

ABOUT US :: PRODUCTS :: SERVICES :: REVIEWS :: NEWS :: CONTACT

US

ALL RIGHTS RESERVED - KRISH AUTOMOTORS

DES IGNED BY: WEBSOLVANT.COM :: DEVELOPED BY: 4TO40.COM

104649SX4S u b m i t


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Ritz - Live The Moment

Experience the aerodynamic shade designed to reduce the drag while liberating space Classy AC Louvers Retro Touchpad Ergonomicallyplaced Gearshift Lever Ultra Modern and Sporty Dashboard Dual Tone Coordinated Interiors Plush Fabric Seats Digital Odometer,Fuelmeter, Clear-to-read Speedometer

FEATURES

SPECIFICATIONS

EQUIPMENTS

COLORS

SCHEMES

News

Car Models

Alto becomes first car in India to cross 2 lakh domestic sales in a fiscal [Alto]

5/1/2007WWW.MARUTIUDHYOG.COM -

Maruti Alto News Online [Hits:406]

New Delhi, March 6, 2007. In its journey to win millions of hearts, Alto, the countrys highest selling car has achieved spectacular sales of two lakh units (200,000units) in the last 11 months.

This makes Alto the first car in India to cross 2 lakh domestic sales in a fiscal. Of this, one lakh sales have come in just five months (150 days).

Alto has emerged as Indias most loved car as it combines unmatched fuel ef ficiency, contemporary design and looks, and conveniences like Electronic PowerSteering and air-conditioning.

In October last year, Alto sold a whopping 22,294 units. That was the highest ever domestic sales achieved by any car in India in a month.

Since its launch in India in September 2000, over 6.25 lakh Alto cars have been sold in the domestic market. Additionally, over 1.25 lakh Alto cars have beenexported.

Supported by some of the finest advertising campaigns like `Lets Go and `Boondon Mein, Alto has been a bestseller almost from the day it was launched. InOctober 2006, Altos Boondon Mein TV commercial was accorded the Silver medal at the prestigious EFFIE Award 2006.

Besides, over the years, Maruti has introduced several variants of Alto to cater to the demands of entry leve l buyers. A limited edition Alto in April 2003, a face-liftin July 2005 and a special edition Alto X-fun edition to coincide with 5 lakh sales in November 2006, kept up the excitement in the brand.

Awards and accolades

Along with being the customers most loved car, the Alto has also been a favourite of experts.

In its launch year, it received several accolades, such as Car o f the Year and Most Exciting New Car of the Year from reputed auto magazines.

Alto again shot into the limelight when it became the first Indian car to undergo a 24-hour endurance test and set 13 national records for speed and performance.

Sales of Alto have grown at an accelerated pace since it was launched.

It achieved


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Maruti Udyog Ltd.

MARUTI UDYOG LIMITED

Distribution of Shareholding as on quarter ended 31st December, 2004

(pursuant to Clause 35 of the Listing Agreement) Category

No. of Shares held

(Face Value of Rs. 5 each)

Percentage of Shareholding

Promoters holding

Promoters

- Indian Promoters

- Foreign Promoters

5,28,24,020 15,66,18,440

18.28

54.21

Persons acting in concert

-

-

Sub-Total (A)

20,94,42,460

72.49

Non-Promoters Holding

Institutional Investors

-

-

Mutual Funds and UTI 56,94,788

1.97

Banks, Financial Institutions, Insurance Companies (Central / State Govt. Institutions / Non-government Institutions)

1,18,95,877

4.12

FIIs

4,59,97,976

15.92

Sub-Total (B)

6,35,88,641

22.01

Others

-

-

Private Corporate Bodies

24,10,817


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Cash flow (Rs crore)

Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

Mar ' 06

Profit before tax

3,592.50

1,675.80

2,503.00

2,279.80 1,750.00

Net cashflow-operating activity

2,887.40

1,193.30

1,830.40

2,028.00

1,222.60

Net cash used in investing activity

-4,783.30

951.40

-3,061.50

-2,436.80

-530.70

Netcashused in fin. activity 55.10

-536.20

132.30

430.00

-319.70

Net inc/dec in cash and equivlnt

-1,840.80

1,608.50

-1,098.80

21.20

372.20

Cash and equivalnt begin of year

1,939.00

330.50

1,422.80

1,401.60


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Top of Form 1

Bottom of Form 1

Maruti Suzuki India Ltd. - Research Center

Capital structure (Rs crore)

From Year

To Year

Class Of Share

Authorized Capital

Issued Capital

Paid Up Shares (Nos)

Paid Up Face Value Paid Up Capital

2009

2010

Equity Share

372.00

144.46

288910060

5

144.46

2008

2009

Equity Share

372.00

144.46 288910060

5

144.46

2007

2008

Equity Share

372.00

144.46

288910060

5

144.46

2006

2007

Equity Share

372.00

144.46


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Dividend

Year Month

Dividend (%)

2010 Apr

120 2009

Apr 70

2008 Apr

100 2007

Apr 90

2006 Jul

70 2005

May 40

2004 May

30


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Real-Time Quote

Enter Company or MF

Top of Form 1

Bottom of Form 1


Bottom of Form 3

Share holding

Share holding pattern as on :

31/12/2010

30/09/2010

30/06/2010

Face value

5.00

5.00

5.00

No. Of Shares

% Holding

No. Of Shares % Holding

No. Of Shares

% Holding

Promoter's holding

Foreign Promoters

156618440

54.21

156618440

54.21

156618440


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Top of Form 1

Bottom of Form 1


Ratios (Rs crore)

Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

Mar ' 06 Per share ratios

Adjusted EPS (Rs)

83.15

42.81

55.94

53.69

43.87

Adjusted cash EPS (Rs)

111.70 67.26

75.61

63.09

53.75

Reported EPS (Rs)

86.45

42.18

59.91

54.07

41.16

Reported cash EPS (Rs)

115.00

66.64

79.57

63.46

51.04


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Maruti Udyog Limited, an Indian car major, makes some o f the most popular cars in India. Maruti Udyog Limited (MUL) was set up in Feb 1981 through an Act ofParliament. Later, the company entered into collaboration with Suzuki Motor Corporation of Japan to manufacture cars. The objective behind formation of MarutiUdyog Limited was to produce comfortable and affordable private means of transport.

About the CompanyMaruti Udyog Limited (MUL) has been one of the few successful government enterprises. For bringing latest technology to India, Suzuki Motor Company of Japanwas chosen from seven other prospective partners worldwide. Suzuki was picked not only to its undisputed leadership in small cars but also for bringing to MULcontemporary technology and Japanese management practices that had catapulted it to be major auto manufacturing country.

In 2001, MUL was awarded an ISO 9000 :2000 certif icate. The production/ R&D of Maruti is spread across 297 acres with 3 fully-integrated production facilities.The company has already rolled out 4.3 million vehicles. With range of 11 models in 50 variants, Maruti Suzuki has a vehicle for every consumer.

The three declared objectives of MUL are modernization of the Indian Automobile Industry, Production of fuel-efficient vehicles to conserve scarce resources, andProduction of large number of motor vehicles.

Maruti 800Maruti 800 is a small car with a light engine, ideal to drive in crowded cities of India. Launched way back in 1984, it created records for car sales in India.However, Maruti Udyog Limited, its maker, has now decided to phase it out. For they feel its demand would see rapid downward trend after arrival of Tata Nano,

Maruti AltoMaruti Alto, best selling car in India, is a nice car both in terms of price and quality. A city car, it offers the combination of good fuel economy, better mileage andgood performance. Specially made for Indian cities, it is easy to drive on crowded roads. For the starters, it is a good choice.

Maruti BalenoMaruti Baleno is a mid-sized elegant car, appreciated for its impressive performance. The car was an effort of Maruti to gain foothold in the luxury car portfolio.The car has increased fuel efficiency and power performance. Unique Multi Point Fuel Injection ensures even fuel distribution. It is the pack of style, comfort andperformance.

Maruti EsteemMaruti Esteem occupies a prominent place in the portfolio of sedan cars in India. power Appreciated for its packed performance and safety features, Maruti Esteemserved as the car of the affluent for a long time. The cars strengths include low running costs and smooth and powerful engine. A pretty reliable car, MarutiEsteem has been around for several years.

Maruti Grand Vitara XL-7Maruti Suzuki Grand Vitara, a SUV vehic le, presents the attributes of of f-road ability and on-road comfort. It has body structure that blends car and truck chassisdesigns. The vehicle can be used for typical daily urban purposes in addition to occasional recreational jaunts off the road. Past Grand Vitara models were not verysuccessful.

Maruti GypsyMaruti Gypsy King is a rough and tough vehicle, having the capacity to go nearly everywhere and in any weather. It is excellently tough, designed to move throughany terrain. If you want to call the wild, you must choose Maruti Gypsy. The low-cost SUV is widely used by the police and defense forces in the country.

Maruti OmniMaruti Omni is one of the most successful utility vehicles on Indian roads. Sporty in looks and trendy in design, Maruti Omni is a perfect family car suitable forpicnics and other family outings. Plenty of space inside means that you can pack all your luggage without thinking twice. With lot of legroom and headroom,

Maruti SwiftMaruti Suzuki Swift, which was launched in May 2005, has been a huge hit in India. This compact car was an effort by Maruti to incorporate fresh design andconcepts into their models. A car with eye-catching features, it is a delight to watch. Placed in the category of B-segment cars, Swift is appreciated for quality of

power,Maruti Suzuki SX4Maruti Suzuki SX4 is the second international model of Maruti Udyog Ltd to be launched in India. A sedan car of A3 segment, it has perfect combination of style,


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