Maruti Suzuki - Research

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The ppt is explaining on Maruti Suzuki.

M ARUTI S UZUKI
Research Report

E STABLISHMENT OF M ARUTI U DYOG LTD
?Established in 1981 as Maruti Udyog Ltd by

Sanjay Gandhi
?Actual production started in 1983 ?First car manufactured- Maruti 800 ?Competitors- Hindustan Ambassador

Premier Padmini

J OINT VENTURE WITH S UZUKI
?Increasing pressure on Sanjay Gandhi
?Hunt for collaborator for the project ?Initial discussions with giants of the

automobile industry
?Government help to Suzuki ?Joint venture leading to Maruti Suzuki

E FFECTS OF THE J OINT VENTURE
?Highly profitable
?Nearly monopolistic trade in the automobile

market Increase in equity of Maruti Suzuki

26%

1987

40%

1990

50%

T HROUGH
?Post Liberalization:

THE YEARS ..

?Nurturing auto component companies ?Became the foundation for global car

companies
?Accomplished auto component

industry
?Encouraged FDI’s into India

ATTEMPT TO ELIMINATE
DEPENDENCY
?R.C.Bhargava was the MD at the inception
?Bhaskarudu was later appointed by the

government
?Attempt to indiginise gear boxes

manufacture
?Thwarted by Suzuki
?Gear boxes manufactured in Japan till date

R ECENT
?Leading automobile manufacturers
?Market leader in the car segment

STATUS

?Until recently, 18.28% was owned by the Indian

government, and 54.2% by Suzuki
?Indian government held an initial public offering of

25% of the company in June 2003
?Govt. of India no longer has stake in Maruti Udyog.

NET SALES
250000

203583
200000

178603

150000

145922
109108 120084

100000

90812 70677 72535

50000

0 2001 2002 2003 2004 2005 2006 2007 2008 2009

PAT
PAT

18000 16000 14000

17308 15620 11891 12187

12000 10000 8000 6000 4000 2000 0 2002 2003 2004 2005 2006 2007 2008 2009

8536 5422

1045

1464

C OMPANY AND ITS MARKET
SHARE

2009-2010

I NDIAN V EHICLE M ARKET

C OMPARISON

A UTOMOBILE (B UDGET 2009)
?

Excise duty on small cars reduced to 14 percent
Excise cut on two and three wheelers to 12 percent Excise duty on buses and chassis cut from 16 percent to 12 percent

?

?

?

Excise duty on hybrid cars cut from 24 percent to 14percent
Custom duty on steel removed

?

M ARUTI
?

SUZUKI

Currently 13 models- M-800, Alto, WagonR, Estilo, A-star, Ritz, Swift compacts, Omni van, sedans SX4 and DZire, SUVs Gypsy, Grand Vitara, Eeco Largest selling car- Alto Fastest growth rate- SX4- growth rate-173.79% 2009-2010 exports- 44,870 at growth rate of 18% excluding Europe Largest exported car- A-star Total 966,399 units manufactured as compared to 908,302 by Suzuki.

? ? ?

? ?

BCG
? ?

MATRIX

Star- Swift, Swift Dezire, Zen estilo Question mark- Maruti SX4, Grand Vitara, Astar Cash Cow- Maruti 800, Alto, WagonR Dog- Baleno, Omini, Versa

? ?

P RODUCTION
?

FACILITY

Gurgaon Manufacturing Facility and Manesar Manufacturing facility Total capacity 1,000,000 75000 people employed by Maruti Suzuki and its partners

? ?

?

Recently- Rs. 1000 crores for Maruti Suzuki’s 700-acre Rohtak R&D unit

G URGAON P RODUCTION FACILITY
? ?

Spread over 300 acres Has three integrated manufacturing plants Can produce 700,000 vehicles annually More than 150 robots

? ?

?

Manufactures 800, Alto, WagonR, Estilo, Omni, Gypsy

M ANESAR M ANUFACTURING
FACILITY

? ?

Spread over 600 acres Can produce 300,000 vehicles annually Invested Rs.1700 Crores to further ramp up capacity by 250,000

?

?

Produces- A-star, Swift, Swift Dzire and SX4

S ALES AND SERVICE NETWORK

? ?

Service is a major revenue generator 681 dealerships across 454 cities

?
?

779 dealer workshops
1945 Maruti authorized service stations 30 Express Service Stations on 30 National Highways across 1314 cities

?

F INANCIALS

S HAREHOLDING PATTERN ( IN % AGE )

4.7 2

Promoters

Institutions

39.1

54.2
Non promoter Corp hold
Public and Others

P ERFORMANCE

RELATED TO

S ENSEX
Maruti 400 350 300 250 200 150 100

50
0 Ashok Leyland -50 M&M 1m 3m 1yr

TATA Motors

R ESULTS Q3 FY10



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