edp- case study 2003

8/6/2019 Edp- Case Study 2003

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CHAPTER 1

INTRODUCTION

1.1 General

Maruti Suzuki India Limited, a partial subsidiary ofSuzuki Motor Corporation of Japan, is

India's largest passenger car company, accounting for over 45% of the domestic car market.

The company offers a complete range of cars from entry level Maruti 800 and Alto, to

hatchbackRitz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4 and Sports Utility

vehicle Grand Vitara.

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 inNew Delhi.

Maruti Suzuki at a glance:-

Type Public

Traded asBSE: 532500

NSE:MARUTI

Industry Automotive

Founded 1981 (as Maruti Udyog Limited)

Headquarters New Delhi, India

Key peopleMr. Shinzo Nakanishi, Managing

Directorand CEO

Products Automobiles

Revenue US$4.8 billion (2009)

Employees 6,903

Parent Suzuki Motor Corporation

Website MarutiSuzuki.com

1.2 Company profile

Maruti Suzuki is India and Nepal's number one leading automobile manufacturer and the

market leader in the car segment, both in terms of volume of vehicles sold and revenue earned.
http://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_Ritzhttp://en.wikipedia.org/wiki/Maruti_Ritzhttp://en.wikipedia.org/w/index.php?title=Maruti_A_star&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Maruti_A_star&action=edit&redlink=1http://en.wikipedia.org/wiki/Maruti_Swifthttp://en.wikipedia.org/wiki/Maruti_Swifthttp://en.wikipedia.org/wiki/Maruti_Wagon-Rhttp://en.wikipedia.org/w/index.php?title=Maruti_Estillo&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Maruti_DZire&action=edit&redlink=1http://en.wikipedia.org/wiki/Maruti_SX4http://en.wikipedia.org/wiki/Maruti_Grand_Vitarahttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=532500http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=MARUTI&section=7http://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=MARUTI&section=7http://en.wikipedia.org/wiki/Automotivehttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/CEOhttp://en.wikipedia.org/wiki/Automobileshttp://en.wikipedia.org/wiki/US$http://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Suzuki_Motor_Corporationhttp://www.marutisuzuki.com/http://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_Ritzhttp://en.wikipedia.org/w/index.php?title=Maruti_A_star&action=edit&redlink=1http://en.wikipedia.org/wiki/Maruti_Swifthttp://en.wikipedia.org/wiki/Maruti_Wagon-Rhttp://en.wikipedia.org/w/index.php?title=Maruti_Estillo&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Maruti_DZire&action=edit&redlink=1http://en.wikipedia.org/wiki/Maruti_SX4http://en.wikipedia.org/wiki/Maruti_Grand_Vitarahttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=532500http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=MARUTI&section=7http://en.wikipedia.org/wiki/Automotivehttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/CEOhttp://en.wikipedia.org/wiki/Automobileshttp://en.wikipedia.org/wiki/US$http://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Suzuki_Motor_Corporationhttp://www.marutisuzuki.com/http://en.wikipedia.org/wiki/Suzuki


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Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by

Suzuki of Japan. The BJP-led 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. Through 2004, Maruti Suzuki has produced over 5

Million vehicles. 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 Suzuki Altotops the sales

charts and Maruti Suzuki Swift is the largest selling in A2 segment.

Maruti Suzuki 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 ofDelhi.

Maruti Suzukis 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 Suzuki cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which

owns 54.2 per cent of Maruti Suzuki. The rest is owned by public and financial institutions. It

is listed on the Bombay Stock Exchange andNational 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 Suzuki cars are on Indian roads since the first car was rolled out on 14 December 1983.

Nearly 75,000 people are employed directly by Maruti Suzuki and its partners. It has been

rated first in customer satisfaction among all car makers in India from 1999 to 2009 by J D

Power Asia Pacific.

1.3 Products

Maruti New Swift

Maruti RIII Concept
http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/National_Stock_Exchangehttp://en.wikipedia.org/wiki/National_Stock_Exchangehttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/National_Stock_Exchange


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Maruti Suzuki Kizashi

Maruti Eeco

Maruti Suzuki XL7

Maruti Suzuki Grand Vitara 2.4

Omni

Maruti Alto

Maruti Zen Estilo

Wagon R

Versa

Maruti Esteem

Baleno

Swift

Swift DZire

Maruti Gypsy

Maruti SX4

Maruti A-Star

Maruti Suzuki Ritz

Maruti Suzuki Concept R3

Maruti 800

1.4 Plant locations


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Maruti Suzuki has two facilities in Gurgaon and Manesar, Haryana, India with a combined

manufacturing capacity close to one million cars per annum. In term of number of cars

produced and sold worldwide, the company is the largest subsidiary of SMC, Japan.

Gurgaon Manufacturing Facility

The Gurgaon Manufacturing Facility has three fully integrated manufacturing plants and is

spread over 300 acres (1.2 km2). All three plants have an installed capacity of 350,000 vehicles

annually but productivity improvements have enabled it to manufacture 700,000 vehicles

annually. The Gurgaon facilities also manufacture 240,000 K-Series engines annually. The

entire facility is equipped with more than 150 robots, out of which 71 have been developed in-

house. The Gurgaon Facilities manufactures the 800, Alto, WagonR, Estilo, Omni, Gypsyand

Eeco.

Manesar Manufacturing Facility

The Manesar Manufacturing Plant was inaugurated in February 2007 and is spread over

600 acres (2.4 km2). Initially it had a production capacity of 100,000 vehicles annually but this

was increased to 300,000 vehicles annually in October 2008. The production capacity was

further increased by 250,000 vehicles taking total production capacity to 550,000 vehicles

annually. The Manesar Plant produces the A-star, Swift, Swift DZire and SX4.

1.5 Mission

To provide maximum value for money to their customers through continuous improvement of

products and services.

1.6 Vision

The leader in the India automobile industry, creating customer delight and shareholders

wealth; A pride of India.
http://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_WagonRhttp://en.wikipedia.org/wiki/Suzuki_MR_Wagonhttp://en.wikipedia.org/wiki/Maruti_Omnihttp://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Maruti_Suzuki_A-STARhttp://en.wikipedia.org/wiki/Maruti_Suzuki_Swifthttp://en.wikipedia.org/wiki/Maruti_Suzuki_Swift_DZirehttp://en.wikipedia.org/wiki/Suzuki_SX4http://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_WagonRhttp://en.wikipedia.org/wiki/Suzuki_MR_Wagonhttp://en.wikipedia.org/wiki/Maruti_Omnihttp://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Maruti_Suzuki_A-STARhttp://en.wikipedia.org/wiki/Maruti_Suzuki_Swifthttp://en.wikipedia.org/wiki/Maruti_Suzuki_Swift_DZirehttp://en.wikipedia.org/wiki/Suzuki_SX4


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1.7 Organisational structure

CHAPTER 2

MARKET SURVEY

2.1 Market Potential

2.2 Competitors

Main competitors of Maruti Suzuki are:-


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CHAPTER 3

FINANCIAL DETAILS

3.1 Risks involved in Business

3.2 Profitability

Useful information about the trend of profitability is from profitability ratio. On the basis of

this ratio, investors get an idea about overall efficiency of managers and bank as well as other

creditors draw useful conclusion about repaying capacity of the borrowers.

Profitability ratio expresses relationship between Gross Profit earned to Net Sales. It is

significant indicator of the profitability of business. It expresses in percent. The ratio shows

whether the mark up obtained on cost of production is sufficient or not. If this ratio is low, it


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indicates that the cost of sales is high or that the purchasing is inefficient. Alternatively, it may

also mean that due to depression, the selling price is reduced but there are may be no

corresponding reduction in cost of sales.

Formula:-

3.3 Return

Balance Sheets(Last five years):- (In RS CRORES)

Particulars Mar'10 Mar'09 Mar'08 Mar'07 Mar'06Liabilities 12 Months 12 Months 12 Months 12 Months 12 Months

Share Capital 144.50 144.50 144.50 144.50 144.50

Reserves &

Surplus11,690.60 9,200.40 8,270.90 6,709.40 5,308.10

Net Worth 11,835.10 9,344.90 8,415.40 6,853.90 5,452.60

Secured Loans 26.50 0.10 0.10 63.50 71.70

Unsecured Loans 794.90 698.80 900.10 567.30 0.00

TOTAL

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

Assets

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

(-) Acc.

Depreciation5,382.00 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 92.00

Investments. 7,176.60 3,173.30 5,180.70 3,409.20 2,051.20

Inventories 1,208.80 902.30 1,038.00 713.20 881.20Sundry Debtors 809.90 918.90 655.50 747.40 654.80

Cash And Bank 98.20 1,939.00 324.00 1,422.80 1,401.60

Loans And

Advances1,739.10 1,809.80 1,173.00 1,072.60 933.10

Total Current

Assets3,856.00 5,570.00 3,190.50 3,956.00 3,870.70

Gross Profit / Sales X 100


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Current Liabilities 3,160.00 3,250.90 2,718.90 2,288.60 1,704.80

Provisions 628.40 380.70 369.50 490.50 480.00

Total Current

Liabilities3,788.40 3,631.60 3,088.40 2,779.10 2,184.80

NET CURRENT

ASSETS67.60 1,938.40 102.10 1,176.90 1,685.90

Misc. Expenses 0.00 0.00 0.00 0.00 0.00

TOTAL ASSETS 12,656.50 10,043.80 9,315.60 7,484.70 5,524.30

CHAPTER 4

SWOT ANALYSIS

Strengths

Largest network of dealers and after

sales service caters in the country.

Self competing product range in small

car segment (Maruti 800,Omni,Alto,Zen

and Wagon R)

Good promotional strategy is adopted by

MUL to transform its thoughts to thepeople about its products.

Entered into second hand car market

with a brand name Maruti True Value.

Loyal Customer Base. Awarded

consequently 5th year for best customer

satisfaction.

Strong Brand Value

Availability of raw material

Weaknesses

Lack of having products in mid size car

segment could result in shifting of loyal

customers who has a desire to upgrade

their cars.

Low interior quality in side the cars.

Labour Laws and Labour Unions are notin a good form in India.


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Threats

Tata Motors has launched a car with a

price tag of Rs.1 Lac (Nano) and it has a

considerable impact on sales of Maruti.

HMIL is a challenger and trying hard to

achieve number one position in the

market.

China may give a good competition as

they are also planning to enter into car

segment.

Opportunities

MUL may encash the opportunity to

enter again into the diesel segment of the

cars to compete its nearest competitor

TATA in diesel segment of small cars.

Launched its LPG version of Wagon R.

Can start R&D on electric cars for a

much better substitute of the fuel.

Economic growth of the country is

sound and promising in future.

Liberal policies of GOI.

Big Market: Domestic and Abroad

CHAPTER 5

SUGGESTIONS AND RECOMMENDATIONS

REFERENCES

edp- case study 2003

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