Description
It covers Maruti as of March 2009. It covers Market share, segments, ranks, sales by volume, revenues, trends, future plans, financial position, Finance
MARUTI SUZUKI INDIA LIMITED
March, 2009
1
Safe Harbour
This presentation might contain forward looking statements which involve a number of risks, uncertainties and other factors that could cause the actual results to differ materially from those in the forward looking statements. Maruti Suzuki undertakes no obligation to update these to reflect the events or circumstances thereof. This presentation also contains reference to the findings of various reports available in the public domain. Maruti Suzuki takes no responsibility as to their accuracy or that the company subscribes to those findings.
2
Agenda
About Maruti Suzuki The year so far… Way forward Maruti Suzuki
3
About Maruti Suzuki
4
Company at a glance
Equity Structure Turnover Net Profit Sales Market Share Manpower Models 54.21% Suzuki, 45.79% with FIs, Public Rs. 188.2 bn Rs. 17.3 bn 764,842 cars
FY 08 FY 08 FY 08
54% (Passenger Cars including Van type vehicles) Over 7720 employees in 4 plants 12 brands with over 100 variants
5
Our Facilities
Gurgaon Facility: 300 acres, capacity 700,000 cars/ annum
Assembly plants 1,2,3 & Engine plants F, G and new K series
Manesar Facility: 600 acres, capacity 300,000 cars/ annum
Assembly plant 4
Diesel Engine plant, SPIL: JV SMC & MSIL, 200,000 units/ annum Supplier’s Park: 100 acres Total Capacity: One Million
6
7
Product Portfolio
A1< 3400mm (also in LPG) 796cc
A2 (3401-4000mm) 796 cc
A2 (3401-4000 mm) 1061cc
A2 (3401-4000 mm) 1061cc, in LPG also
A2 (3401-4000 mm) 1298 cc in Petrol 1248cc in Diesel
A2 (3401-4000 mm) 998cc
A3 (4001-4500mm)-1290cc in Petrol & 1248cc in Diesel
A3 (4001-4500 mm)1598cc
SUV segment 4 Wheel: 2 litr
SUV segment 4 Wheel: 1300cc
C-segment- Van Type 800 cc
8 C-segment- Van Type 1300 cc
Share of Segments in the Industry
90%
78%
80% 70% 60% 50% 40% 30%
76%
77%
79%
78%
17%
20% 1 0% 0%
19%
20%
17%
18%
3%
2003-04
4%
2004-05
3%
2005-06
4%
2006-07
4%
2007-08
A1+A2+C
A3
A4-A6
9
Market Share over the years
2008-09 10M 2007-08 2006-07 2005-06 2004-05 2003-04 4 4.3 5.1 4.3 4.1 2.7
(In%)
12.1 12.9 15.9
19
54.9 54.7 54.6 55.1
15.4
16.8
15.9 16.6 16.4 16 14.29 17.08
54.5 55.06
Maruti
Hyundai
Tata
Honda
10
More than half the market for the past 20 years since 1986-87
Sales Network
700
Dealer Sales Force
3659 5150 6903 8805
14666 11770 600
14454 627
20000
600
10000
491 500
0
Dealer Sales Outlets: Urban and Rural Formats
375 325 312 393
413
-10000
400
-20000
300
280 243 182 197 227
Cities Covered
-30000
200
161
-40000
100 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 ( Jan)
-50000
11
Service Network
2900 1900 2700
Service Outets
2628
2673
2500
1700
2300
1500
2100
Cities Covered
1920 1220 1264
1300
1900
1100 1700
1001
900
1500
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09 (Jan)
12
Customer Satisfaction
JD Power Assessment
For 9 years Maruti Suzuki has been the only player above industry average
13
Pre-owned car business
Helps in exchange sales Enhances residual value thereby reducing cost of ownership Network : 304 True Value Dealers in 179 cities 83,107 units new cars sold through exchange in 10 months FY09.
14
Technology at Maruti Suzuki
15
Eight new models in 40 months
16
Next Generation: KB Engine Technology
1 litre All Aluminium engine 67ps / 90nm Euro-5 compliant A-star & Splash Fuel Efficiency- 19.59km/l on Astar Improved NVH (Noise, Vibration & Harshness)
17
Diesel technology
Swift & DZire, Splash shortly 1.3L - 75 bhp - 190 Nm torque 5 Step Multi Injection Common Rail Good NVH, not usually associated with diesel cars. 21 km/l in Swift & DZire
18
Maruti Suzuki R&D evolution
Phase 1 – Localisation Phase 2 – Facelift capability Phase 3 – Collaborative design Phase 4 – Full Body Design
19
Financial Performance
20000 18000 1 7 ,3 0 8 16000 14000 145,922 1 5 ,6 2 0 120,034 109,108 1 1 ,8 9 1 90,812 72,535 8 ,5 4 0 PAT Net Sales 178,603 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 -0 4 -0 5 -0 6 -0 7 04 05 06 07 03 -0 8
R s M illio n s
12000 10000 8000 70,677 6000 4000 1 ,0 5 0 2000 0
01
-0 2
02
-0 3
1 ,4 6 0
5 ,4 2 0
20
20
20
20
20
20
20
20
R s M illio n s
Financial Performance
16.6% 17.1% 17.7% 17.5%
EBITDA
15.2%
10.1% 8.2% 6.0% 7.8%
9.9%
10.7% 9.7%
PAT
1.5%
2.1%
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
21
The year so far…
Challenges faced this year How are things changing What can we say about the next year
22
Industry Growth-Passenger Cars
Quarterly Industry Growth08-09
15.0% 10.0% 5.0%
growth
11.6%
0.0% -5.0% -10.0% -15.0% Quarter1 Quarter 2
Quarter
-1.2% -12.7%
Quarter 3
-24.3%
23
Challenges faced this year
24
Inflation
Rising Inflation
14.00 12.00 10.00 Rate 8.00 6.00 4.00 2.00 0.00 Aug- Sep- Oct07 07 07 Nov- Dec- Jan07 07 08 Feb08 Period Mar08 Apr08 May08 Jun08 Jul08 Aug08
25
Interest Rate
Interest Rate & CRR
16.00% 14.00% 12.00% Rate 10.00% 8.00% 6.00% 4.00%
06 -0 7 FY H 1 06 -0 7 FY H 2 07 -0 8 FY H 1 07 -0 8 FY H 2 08 -0 9 Q 1 Ju l'0 8 Au g' 08 Se pt '0 8
Cust Interest Rate CRR
FY
Period
26
Equity Markets
Swinging Sensex
20,000 18,000 16,000 14,000
Index
12,000 10,000 8,000 6,000 4,000 2,000 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09
Period
27
Crude
Crude at its Peak 140 130 120 110 100 90 80 70 60 50 July07 Aug Sept- Oct-07 Novust-07 07 07 Dec- Jan-08 Feb- March- April07 08 08 08
Period
Price/Barell
Oil Price/barell
May08
June08
July08
Aug ust-08
28
Cascading effect
News from the west -Lehman Brothers -Bear Stearns -AIG Sub prime crisis snowballs. Job cuts in US Melt down became talk of the town
29
Consumer Sentiment
Depressed market sentiment “ not the best time to buy” “ lets wait & watch”
30
Finance Availability
Banking system confidence Money Supply
31
Finance Penetration
70% 60% 50% 40% 30% 20% 10% Apr-08 May- Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 08 PSU Banks Pvt Banks Total
32
…The final blow
Quarter 3 November- Industry Shrinks -21.2% November -26/11- Mumbai Terror attack It seems everything that could go wrong went wrong this year
33
The positives ….
Proactive Government Industry responds through discounts and price cuts Inflation recedes Government opens money supply On Govt. push, PSU banks start lending freely ( Pvt banks still averse) Interest rates soften 200-300 bps Consumer sentiment improves ( starting with bargain hunters in Dec.)
34
Calibrated view of Indian Economy
12 10 8 6 4 2 0 -2 USA Euro Zone France Germany Italy Spain UK Japan China India
2006
2007
2008
2009
India is set to grow by about 7% next year estimates 5.5 -6 %
35
Financial Highlights 9M- Apr-Dec
Parameters Net Sales (Rs Mn) EBITDA (Rs Mn) Depreciation (Rs Mn) Profit Before Tax (Rs Mn) Profit After Tax (Rs Mn) 9M FY09 9M FY08 140,499 130, 974 18,787 *5094 13,272 9755 23,682 2507 20,677 14331 -35.8 % -31.9 % Change 7.3 % -20.7 %
* Pursuant to revision in useful life of assets in Q4’ Fy08
36
Financial Highlights 9M (08-09)
As % of Net Sales
Parameter Material Cost Employee Cost Selling & Distribution expenses Manufacturing Expenses Royalty Power & Fuel EBITDA Depreciation PBT PAT
9M’Fy09 79.4% 2.4% 3.8% 2.7% 3.3% 1.1% 13.4% 3.6%* 9.4% 6.9%
9M’ Fy08 76.4% 2.% 2.8% 2.2% 2.6% 0.8% 18.1% 2% 15.8% 10.9%
Change 3.1% 0.4% 1% 0.05% 0.7% 0.30% (4.8)% (1.6)% (6.3)% (4)%
37
* Pursuant to revision in useful life of assets in Q4’ Fy08
Cost drivers
Commodities Forex Sales discounts
38
Commodities
70 60 50 Rs./Kg 40 30 20 10 0
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
46
48
52
54
56
59
56
500
51 45 47 41 46
Rs./Kg
400 300 200 100 0
346
386 393 393 401 366 356 274
34
37
38
39
41
42
43
44
43
39
177 186 141 147 144 128 130 133 129 132 115 109 99
212
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Steel CRC EDD
Steel CR-IH
Aluminium
Copper
16000 14000 12000
1 045 2 1 829 1
1 368 3 1 21 2 7
1 1 0 3 0
8695
10000 R ./G s m 8000 6000
3 76 1 6440
4000 2000 0
Mar Apr May J un J ul Aug Sep Oc t
221 1 61 8 9 1 5 78
Nov
Dec
J an
Rhodium
39
Forex Exposure Direct : Import of components, Steel , Royalty payments ~ 12 % of Net Sales Indirect : vendor imports ~ 10 % of Net Sales
40
Way forward for Maruti Suzuki
41
Industry Outlook
No guidance intended Best perception about domestic market growth in FY10 at 5 %
42
Way forward Maruti Suzuki
Products Exports Domestic market opportunities Commodity R&D Forex Commitment to Road Safety in India
43
Way forward Maruti Suzuki
Products
Full year volumes of A-star
(powered by next generation light weight KB engine, mileage 19.6 km/l, ELV compliant and lowest emissions in its category)
Suzuki World Strategic ModelSplash
(KB engine, Petrol & Diesel variant )
Increased availability of diesel engines
44
Way forward Maruti Suzuki
Exports New product- new markets (A- star) World class port infrastructure, more efficient logistics
45
Our first shipment of A-star to Europe at our new terminal at Mundra
46
Way forward Maruti Suzuki
Domestic market opportunities Potential consumer segments
Rural Sector (~8% of our sales) Government Employees (~15% of our sales)
Enhanced Customer Interface - Brand Centers & Stockyards
47
Way forward Maruti Suzuki
On Cost side Commodities softening Extensive work on Tier-II vendor upgradation
48
Way forward Maruti Suzuki
On R&D
Investment in R&D capability full stream Over 80 engineers trained in Japan Full body change capability in 2010 Transforming models for new engines Speed, relevance and excitement in market place R&D centre at par with Japan Complete Test Course facility
1000
687
430 238 269
2005-06
2006-07
2007-08
2008-09 (Jan)
2010-11e
Design Engineers’ Strength at Maruti Suzuki
49
Way forward Maruti Suzuki
On Forex Forex almost neutral, but with cross-currency Vendor localization
50
Way Forward - Capital Expenditure
•Vehicle Production Capacity of 1 million achieved •Manesar Plant Capex done •Going forward Capex major areas oKB Engine Expansion, oGurgaon plant modernization oR&D oMarketing – Brand Centres & StockYards oNew Model development •Total Plan oFY10 Rs 24 billion oFY11 Rs 13 billion oFY12 Rs 4 billion •Cash Position Rs 32 billion (31st Dec-08)
51
Our commitment to Road Safety in India
India is World’s No.1 in road accident fatalities 78% accidents due to driver fault Train 500,000 in next 3 years towards ‘Safe Driving’ 100,000 – sponsored by MSIL from weaker sections Partnership with State governments & Dealerships.
52
Road Safety Infrastructure
Two Institutes of Driving Training and Research (IDTR)
Train 500,000 in next 3 years towards `Safe Driving’
In partnership with State Governments. Pilot in March 2000 Second IDTR in 2006 Four more in the pipeline – Gujarat, Haryana(2), Uttarakhand Over 550,000 commercial drivers trained in Delhi & NCR
53
Thank You
54
doc_700474146.pdf
It covers Maruti as of March 2009. It covers Market share, segments, ranks, sales by volume, revenues, trends, future plans, financial position, Finance
MARUTI SUZUKI INDIA LIMITED
March, 2009
1
Safe Harbour
This presentation might contain forward looking statements which involve a number of risks, uncertainties and other factors that could cause the actual results to differ materially from those in the forward looking statements. Maruti Suzuki undertakes no obligation to update these to reflect the events or circumstances thereof. This presentation also contains reference to the findings of various reports available in the public domain. Maruti Suzuki takes no responsibility as to their accuracy or that the company subscribes to those findings.
2
Agenda
About Maruti Suzuki The year so far… Way forward Maruti Suzuki
3
About Maruti Suzuki
4
Company at a glance
Equity Structure Turnover Net Profit Sales Market Share Manpower Models 54.21% Suzuki, 45.79% with FIs, Public Rs. 188.2 bn Rs. 17.3 bn 764,842 cars
FY 08 FY 08 FY 08
54% (Passenger Cars including Van type vehicles) Over 7720 employees in 4 plants 12 brands with over 100 variants
5
Our Facilities
Gurgaon Facility: 300 acres, capacity 700,000 cars/ annum
Assembly plants 1,2,3 & Engine plants F, G and new K series
Manesar Facility: 600 acres, capacity 300,000 cars/ annum
Assembly plant 4
Diesel Engine plant, SPIL: JV SMC & MSIL, 200,000 units/ annum Supplier’s Park: 100 acres Total Capacity: One Million
6
7
Product Portfolio
A1< 3400mm (also in LPG) 796cc
A2 (3401-4000mm) 796 cc
A2 (3401-4000 mm) 1061cc
A2 (3401-4000 mm) 1061cc, in LPG also
A2 (3401-4000 mm) 1298 cc in Petrol 1248cc in Diesel
A2 (3401-4000 mm) 998cc
A3 (4001-4500mm)-1290cc in Petrol & 1248cc in Diesel
A3 (4001-4500 mm)1598cc
SUV segment 4 Wheel: 2 litr
SUV segment 4 Wheel: 1300cc
C-segment- Van Type 800 cc
8 C-segment- Van Type 1300 cc
Share of Segments in the Industry
90%
78%
80% 70% 60% 50% 40% 30%
76%
77%
79%
78%
17%
20% 1 0% 0%
19%
20%
17%
18%
3%
2003-04
4%
2004-05
3%
2005-06
4%
2006-07
4%
2007-08
A1+A2+C
A3
A4-A6
9
Market Share over the years
2008-09 10M 2007-08 2006-07 2005-06 2004-05 2003-04 4 4.3 5.1 4.3 4.1 2.7
(In%)
12.1 12.9 15.9
19
54.9 54.7 54.6 55.1
15.4
16.8
15.9 16.6 16.4 16 14.29 17.08
54.5 55.06
Maruti
Hyundai
Tata
Honda
10
More than half the market for the past 20 years since 1986-87
Sales Network
700
Dealer Sales Force
3659 5150 6903 8805
14666 11770 600
14454 627
20000
600
10000
491 500
0
Dealer Sales Outlets: Urban and Rural Formats
375 325 312 393
413
-10000
400
-20000
300
280 243 182 197 227
Cities Covered
-30000
200
161
-40000
100 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 ( Jan)
-50000
11
Service Network
2900 1900 2700
Service Outets
2628
2673
2500
1700
2300
1500
2100
Cities Covered
1920 1220 1264
1300
1900
1100 1700
1001
900
1500
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09 (Jan)
12
Customer Satisfaction
JD Power Assessment
For 9 years Maruti Suzuki has been the only player above industry average
13
Pre-owned car business
Helps in exchange sales Enhances residual value thereby reducing cost of ownership Network : 304 True Value Dealers in 179 cities 83,107 units new cars sold through exchange in 10 months FY09.
14
Technology at Maruti Suzuki
15
Eight new models in 40 months
16
Next Generation: KB Engine Technology
1 litre All Aluminium engine 67ps / 90nm Euro-5 compliant A-star & Splash Fuel Efficiency- 19.59km/l on Astar Improved NVH (Noise, Vibration & Harshness)
17
Diesel technology
Swift & DZire, Splash shortly 1.3L - 75 bhp - 190 Nm torque 5 Step Multi Injection Common Rail Good NVH, not usually associated with diesel cars. 21 km/l in Swift & DZire
18
Maruti Suzuki R&D evolution
Phase 1 – Localisation Phase 2 – Facelift capability Phase 3 – Collaborative design Phase 4 – Full Body Design
19
Financial Performance
20000 18000 1 7 ,3 0 8 16000 14000 145,922 1 5 ,6 2 0 120,034 109,108 1 1 ,8 9 1 90,812 72,535 8 ,5 4 0 PAT Net Sales 178,603 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 -0 4 -0 5 -0 6 -0 7 04 05 06 07 03 -0 8
R s M illio n s
12000 10000 8000 70,677 6000 4000 1 ,0 5 0 2000 0
01
-0 2
02
-0 3
1 ,4 6 0
5 ,4 2 0
20
20
20
20
20
20
20
20
R s M illio n s
Financial Performance
16.6% 17.1% 17.7% 17.5%
EBITDA
15.2%
10.1% 8.2% 6.0% 7.8%
9.9%
10.7% 9.7%
PAT
1.5%
2.1%
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
21
The year so far…
Challenges faced this year How are things changing What can we say about the next year
22
Industry Growth-Passenger Cars
Quarterly Industry Growth08-09
15.0% 10.0% 5.0%
growth
11.6%
0.0% -5.0% -10.0% -15.0% Quarter1 Quarter 2
Quarter
-1.2% -12.7%
Quarter 3
-24.3%
23
Challenges faced this year
24
Inflation
Rising Inflation
14.00 12.00 10.00 Rate 8.00 6.00 4.00 2.00 0.00 Aug- Sep- Oct07 07 07 Nov- Dec- Jan07 07 08 Feb08 Period Mar08 Apr08 May08 Jun08 Jul08 Aug08
25
Interest Rate
Interest Rate & CRR
16.00% 14.00% 12.00% Rate 10.00% 8.00% 6.00% 4.00%
06 -0 7 FY H 1 06 -0 7 FY H 2 07 -0 8 FY H 1 07 -0 8 FY H 2 08 -0 9 Q 1 Ju l'0 8 Au g' 08 Se pt '0 8
Cust Interest Rate CRR
FY
Period
26
Equity Markets
Swinging Sensex
20,000 18,000 16,000 14,000
Index
12,000 10,000 8,000 6,000 4,000 2,000 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09
Period
27
Crude
Crude at its Peak 140 130 120 110 100 90 80 70 60 50 July07 Aug Sept- Oct-07 Novust-07 07 07 Dec- Jan-08 Feb- March- April07 08 08 08
Period
Price/Barell
Oil Price/barell
May08
June08
July08
Aug ust-08
28
Cascading effect
News from the west -Lehman Brothers -Bear Stearns -AIG Sub prime crisis snowballs. Job cuts in US Melt down became talk of the town
29
Consumer Sentiment
Depressed market sentiment “ not the best time to buy” “ lets wait & watch”
30
Finance Availability
Banking system confidence Money Supply
31
Finance Penetration
70% 60% 50% 40% 30% 20% 10% Apr-08 May- Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 08 PSU Banks Pvt Banks Total
32
…The final blow
Quarter 3 November- Industry Shrinks -21.2% November -26/11- Mumbai Terror attack It seems everything that could go wrong went wrong this year
33
The positives ….
Proactive Government Industry responds through discounts and price cuts Inflation recedes Government opens money supply On Govt. push, PSU banks start lending freely ( Pvt banks still averse) Interest rates soften 200-300 bps Consumer sentiment improves ( starting with bargain hunters in Dec.)
34
Calibrated view of Indian Economy
12 10 8 6 4 2 0 -2 USA Euro Zone France Germany Italy Spain UK Japan China India
2006
2007
2008
2009
India is set to grow by about 7% next year estimates 5.5 -6 %
35
Financial Highlights 9M- Apr-Dec
Parameters Net Sales (Rs Mn) EBITDA (Rs Mn) Depreciation (Rs Mn) Profit Before Tax (Rs Mn) Profit After Tax (Rs Mn) 9M FY09 9M FY08 140,499 130, 974 18,787 *5094 13,272 9755 23,682 2507 20,677 14331 -35.8 % -31.9 % Change 7.3 % -20.7 %
* Pursuant to revision in useful life of assets in Q4’ Fy08
36
Financial Highlights 9M (08-09)
As % of Net Sales
Parameter Material Cost Employee Cost Selling & Distribution expenses Manufacturing Expenses Royalty Power & Fuel EBITDA Depreciation PBT PAT
9M’Fy09 79.4% 2.4% 3.8% 2.7% 3.3% 1.1% 13.4% 3.6%* 9.4% 6.9%
9M’ Fy08 76.4% 2.% 2.8% 2.2% 2.6% 0.8% 18.1% 2% 15.8% 10.9%
Change 3.1% 0.4% 1% 0.05% 0.7% 0.30% (4.8)% (1.6)% (6.3)% (4)%
37
* Pursuant to revision in useful life of assets in Q4’ Fy08
Cost drivers
Commodities Forex Sales discounts
38
Commodities
70 60 50 Rs./Kg 40 30 20 10 0
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
46
48
52
54
56
59
56
500
51 45 47 41 46
Rs./Kg
400 300 200 100 0
346
386 393 393 401 366 356 274
34
37
38
39
41
42
43
44
43
39
177 186 141 147 144 128 130 133 129 132 115 109 99
212
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Steel CRC EDD
Steel CR-IH
Aluminium
Copper
16000 14000 12000
1 045 2 1 829 1
1 368 3 1 21 2 7
1 1 0 3 0
8695
10000 R ./G s m 8000 6000
3 76 1 6440
4000 2000 0
Mar Apr May J un J ul Aug Sep Oc t
221 1 61 8 9 1 5 78
Nov
Dec
J an
Rhodium
39
Forex Exposure Direct : Import of components, Steel , Royalty payments ~ 12 % of Net Sales Indirect : vendor imports ~ 10 % of Net Sales
40
Way forward for Maruti Suzuki
41
Industry Outlook
No guidance intended Best perception about domestic market growth in FY10 at 5 %
42
Way forward Maruti Suzuki
Products Exports Domestic market opportunities Commodity R&D Forex Commitment to Road Safety in India
43
Way forward Maruti Suzuki
Products
Full year volumes of A-star
(powered by next generation light weight KB engine, mileage 19.6 km/l, ELV compliant and lowest emissions in its category)
Suzuki World Strategic ModelSplash
(KB engine, Petrol & Diesel variant )
Increased availability of diesel engines
44
Way forward Maruti Suzuki
Exports New product- new markets (A- star) World class port infrastructure, more efficient logistics
45
Our first shipment of A-star to Europe at our new terminal at Mundra
46
Way forward Maruti Suzuki
Domestic market opportunities Potential consumer segments
Rural Sector (~8% of our sales) Government Employees (~15% of our sales)
Enhanced Customer Interface - Brand Centers & Stockyards
47
Way forward Maruti Suzuki
On Cost side Commodities softening Extensive work on Tier-II vendor upgradation
48
Way forward Maruti Suzuki
On R&D
Investment in R&D capability full stream Over 80 engineers trained in Japan Full body change capability in 2010 Transforming models for new engines Speed, relevance and excitement in market place R&D centre at par with Japan Complete Test Course facility
1000
687
430 238 269
2005-06
2006-07
2007-08
2008-09 (Jan)
2010-11e
Design Engineers’ Strength at Maruti Suzuki
49
Way forward Maruti Suzuki
On Forex Forex almost neutral, but with cross-currency Vendor localization
50
Way Forward - Capital Expenditure
•Vehicle Production Capacity of 1 million achieved •Manesar Plant Capex done •Going forward Capex major areas oKB Engine Expansion, oGurgaon plant modernization oR&D oMarketing – Brand Centres & StockYards oNew Model development •Total Plan oFY10 Rs 24 billion oFY11 Rs 13 billion oFY12 Rs 4 billion •Cash Position Rs 32 billion (31st Dec-08)
51
Our commitment to Road Safety in India
India is World’s No.1 in road accident fatalities 78% accidents due to driver fault Train 500,000 in next 3 years towards ‘Safe Driving’ 100,000 – sponsored by MSIL from weaker sections Partnership with State governments & Dealerships.
52
Road Safety Infrastructure
Two Institutes of Driving Training and Research (IDTR)
Train 500,000 in next 3 years towards `Safe Driving’
In partnership with State Governments. Pilot in March 2000 Second IDTR in 2006 Four more in the pipeline – Gujarat, Haryana(2), Uttarakhand Over 550,000 commercial drivers trained in Delhi & NCR
53
Thank You
54
doc_700474146.pdf