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EXECUTIVE SUMMARY
The automobile sector is booming with the great speed . Maruti Suzuki India Limited (MSIL) , the front runner in this sector in India . Maruti Suzuki is a one of Indias largest fast growing organization . Still Maruti Suzuki have the immense scope for growth in the future .

SO , the main objective of my study is to show the company profile , the complete analysis of the Mission and Vision statements , and complete company analysis .

This project would be covering the SWOT analysis of the company which will make us understand the positives and negatives points of the company . Though I have mentioned more strengths and less weaknesses but still weakness is a weakness .

I have also highlighted the business strategies undertaken for growth and expansion , increase in product line , pricing and marketing .

The main objective being the analysis of Mission and vision statement followed by SWOT analysis and business strategies. My second main objective was to study the Corporate Restructuring undertaken for change in process, IT up-gradation and change in management . I have consider this as my second main objective because no company can survive today unless they keep changing the process of production IT systems and management . Thus, explaining what Maruti Suzuki is and how it keeps on changing the strategies timeto-time to face competition to survive is the purpose of my project

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INDIA COMES HOME IN MARUTI

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1.COMPANY PROFILE
1.1COMPANY HISTORY
Marutl Suzuki India Limited (MSIL) formerly known as Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. It was established with the objectives of - modernizing the Indian automobile industry, producing fuel efficient vehicles to conserve scarce resources and producing indigenous utility cars for the growing needs of the Indian population. A license and a Joint Venture agreement were signed with the Suzuki Motor Company of Japan in Oct 1983, by which Suzuki acquired 26% of the equity and agreed to provide the latest technology as well as Japanese management practices. Suzuki was preferred for the joint venture because of its track record in manufacturing and selling small cars all over the world. There was an option in the agreement to raise Suzukis equity to 40%, which it exercised in 1987. Five years later, in 1992, Suzuki further increased its equity to 50% turning Maruti into a non-government organization managed on the lines of Japanese management practices. Maruti created history by going into production in a record 13 months. Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea, having produced over 5 million vehicles by May 2005. Maruti is one of the most successful automobile joint ventures, and has made profits every year since inception till 200001. In 2000-01, although Maruti generated operating profits on an income of Rs 92.5 billion, high depreciation on new model launches resulted in a book loss. The Evolution Marutis history of evolution can be examined in four phases: two phases during preliberalization period (1983-86, 1986-1992) and two phases during post-liberalization period (199297, 1997-2002), followed by the full privatization of Maruti in June 2003 with the launch of an initial public offering (IPO).The first phase started when Maruti rolled out its first car in December 1983. During the initial years Maruti had 883 employees, a capital of Rs. 607 mn and profit of Rs. 17 mn without any tax obligation. From such a modest start the company in just about a decade (beginning of second phase in 1992) had turned itself into an automobile giant capturing about 80% of the market share in India. Employees grew to 2000 (end of first phase 1986), 3900 (end of second phase 1992) and 5700 in 1999. The profit after tax increased from Rs 18.67 mn in 1984 to Rs. 6854.54 mn in 1998 but started declining during 1997-2001. During the pre-liberalization period (1983-1992) a major source of Marutis strength was the wholehearted willingness of the Government of India to subscribe to Suzukis technology and the principles and practices of Japanese management. Large number of Indian managers, supervisors and workers were regularly sent to the Suzuki plants in Japan for training. Batches of Japanese personnel came over to Maruti to train, supervise and manage. Marutis style of management was essentially to follow Japanese management practices. Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India, its only competitors - the Hindustan Ambassador and Premier Padmini - were both around 25 years out of date at that point. Through 2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India and 3

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various several other countries, depending upon export orders. Models similar to those made by Maruti in India, albeit not assembled or fully manufactured in India or Japan are sold by Pak Suzuki Motors in Pakistan. The company exports more than 50,000 cars annually and has domestic sales of 730,000 cars annually. Its manufacturing facilities are located at two facilities Gurgaon and Manesar in Haryana, south of Delhi. Maruti Suzukis Gurgaon facility has an installed capacity of 900,000 units per annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 550,000 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 14,50,000 units annually. About 35% of all cars sold in India are made by Maruti. The company is 54.2% owned by the Japanese multinational Suzuki Motor Corporation per cent of Maruti Suzuki. The rest is owned by public and financial institutions. It is listed on the Bombay Stock Exchangeand National Stock Exchange of India. During 2007 and 2008, 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. Maruti Suzuki offers 15 models, Maruti 800, Alto, Maruti Alto 800, WagonR, Estilo, A-star, Ritz, Swift, SwiftDZire, SX4, Omni, Eeco, Gypsy, Grand Vitara, Kizashi and the newly launched Ertiga. Swift, Swift DZire, A-star and SX4 are manufactured in Manesar, Grand Vitara and Kizashi are imported from Japan as completely built units(CBU), all remaining models are manufactured in Maruti Suzuki's Gurgaon Plant. The company is believed to be moving towards the introduction of a new version of Maruti 800 by November 2012, which will be more fuel efficient, though slightly costlier than Alto and existing Maruti 800.[12] The Suzuki Motor Corporation, Maruti's main stakeholder, has been a global leader in mini and compact cars for three decades. Suzukis strategy is to utilize light-weight, compact engines with stronger power, fuel-efficiency and performance capabilities. 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 Maruti Suzuki will be introducing new 800 cc model by Diwali in 2012.The model is supposed to be fuel efficient, and therefore more expensive. With increasing market competition in the small car segment, a new model along with the upcoming WagonR Stingray will be the key fresh products for Maruti Suzuki India (MSI) to defend its market share amid the ever increasing competition.

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1.2CHRONOLGY
BEGINNING
Maruti's history begins in 1970, when a private limited company named 'Maruti technical services private limited' (MTSPL) is launched on November 16, 1970. The stated purpose of this company was to provide technical know-how for the design, manufacture and assembly of "a wholly indigenous motor car". In June 1971, a company called 'Maruti limited' was incorporated under the Companies Act and Sanjay Gandhi became its first managing director. After a series of scandals, "Maruti Limited" goes into liquidation in 1977. This is followed by a commission of inquiry headed by Justice A. C. Gupta, which submits its report in 1978. On 23 June 1980 Sanjay Gandhi dies when a private test plane he was flying crashes. A year after his death, and at the behest of Indira Gandhi, the Indian Central government salvages Maruti Limited and starts looking for an active collaborator for a new company: Maruti Udyog Ltd being incorporated in the same year.

SUZUKI ENTERS.
In 1982, a license and Joint Venture Agreement (JVA) is signed between Maruti Udyog Ltd. and Suzuki of Japan. At first, Maruti Suzuki was mainly an importer of cars. In India's closed market, Maruti received the right to import 40,000 fully built-up Suzukis in the first two years, and even after that the early goal was to use only 33% indigenous parts. This upset the local manufacturers considerably. There were also some concerns that the Indian market was too small to absorb the comparatively large production planned by Maruti Suzuki, with the government even considering adjusting the petrol tax and lowering the excise duty in order to boost sales. Finally, in 1983, the Maruti 800 is released. This 796 cc hatchback is based on the SS80 Suzuki Alto and is Indias first affordable car. Initial product plan is 40% saloons, and 60% Maruti Van. Local production commences in December 1983. In 1984 the Maruti Van, with the same three-cylinder engine as the 800, is released. Installed capacity of the plant in Gurgaon, reaches 40,000 units. In 1985 the Suzuki SJ410-based Gypsy, a 970 cc 4WD off-road vehicle, is launched. In 1986 the original 800 is replaced by an all-new model of the 796 cc hatchback Suzuki Alto/Fronte. This is also when the 100,000th vehicle is produced by the company. In 1987 follows the company's first export to the West, when a lot of 500 cars were sent to Hungary. Maruti products had been exported to certain neighboring countries already. By 1988, the capacity of the Gurgaon plant is increased to 100,000 units per annum.

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MARKET LIBERILAZATION
In 1989 the Maruti 1000 is presented after having been shown earlier. This 970 cc, threebox is Indias first contemporary sedan. By 1991 , 65 percent of the components, for all vehicles produced, are indigenized. Meanwhile, the liberalization of the economy opens new opportunities but also brings more competition to the segments in which Maruti operates. In 1992 Suzuki increases its stake in Maruti to 50 percent, making the company a 50-50 JV with the Government of India the other stake holder. A flow of new models begin in the early nineties. In 1993 the Zen, a modern 993 cc, hatchback which is later exported globally as the Suzuki Alto. In 1994 the 1298 cc Esteem appears, a more luxurious redesigned Maruti 1000. This and other Marutis begin appearing in a plethora of different equipment levels, to better suit India's increasingly discerning consumers. A Zen Automatic arrives in 1996, as does the Gypsy King, a 1.3 liter version of the compact off-roader, and a minibus version of the Omni (the Omni E). In 1994 Maruti Suzuki produces its 1 millionth vehicle since the commencement of production, being the first company in India to do so. This is still not enough in a booming market and the next year Maruti's second plant is opened, with annual capacity reaching 200,000 units. Maruti also launches a 24-hour emergency on-road vehicle service, the first of its kind in the country. In 1996 the United Front government is formed, with Murasoli Maran new Industries Minister. On 27 August the following year the government nominates Mr. S.S.L.N. Bhaskarudu as the Managing Director, as the then current Managing director R.C. Bhargava, was completing his tenure. This creates a conflict with Suzuki, discussed closer in the Joint venture related issues section. In 1998 the new Maruti 800 is released, the first change in design since 1986. This is simply a facelift of the existing model, to ensure steady sales. Also, the two millionth vehicle is produced. Other news includes the Zen D, a 1527 cc diesel hatchback and Maruti's first diesel vehicle. The Omni van and microbus is also redesigned. The next year the Omni bus arrives in a high roof version, the Omni XL. The 1.6 liter Maruti Baleno three-box saloon, advertised as the 'Maruti Suzuki Baleno', also appears. This is Maruti's biggest car yet. Finally, in what is a very busy year, the Wagon R is launched. In 2000 Maruti becomes the first car company in India to launch a Call Center for internal and customer services. The new Alto model is also released, somewhat larger and more modern than the 800. The estate Baleno Alturas is also shown, while IDTR (Institute of Driving Training and Research) is launched jointly with the Delhi government to promote safe driving habits. In 2001 Maruti True Value, selling and buying used Maruti Suzukis, is launched in Bangalore and Delhi, later in Mumbai and elsewhere. In October of the same year the Maruti Versa sees the day, a bigger engine and more luxurious microbus than the Omni. It never catches on in the market and is discontinued by late 2009. Customer information centers are also launched in Hyderabad, Bangalore and Chennai. In 2002 the Esteem Diesel appears, as does Maruti Insurance. Two new subsidiaries

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are also started: Maruti Insurance Distributor Services and Maruti Insurance Brokers Limited. Suzuki Motor Corporation increases its stake in Maruti to 54.2 percent. In 2003 the new Suzuki Grand Vitara XL-7 appears, while the Zen and the Wagon R are upgraded and redesigned. The four millionth Maruti vehicle is built and they enter into a partnership with the State Bank of India. Maruti Udyog Ltd is listed on BSE and NSE after a public issue, which is oversubscribed tenfold. In 2004 the Alto becomes India's new bestselling car, overtaking the Maruti 800 which had been number one for nearly two decades. The five-seater Versa 5-seater, a new variant, is created while the Esteem undergoes cosmetic changes and is re-launched with a price cut. Maruti Udyog closed the financial year 2003-04 with an annual sale of 472,122 units, the highest ever since the company began operations 20 years earlier, and the fiftieth lakh (5 millionth) car rolls out in April, 2005, with overall sales growing by 15.8%. The 1.3 L Suzuki Swift five-door hatchback also appears. 2004-05 marked another record year (487,402 domestic sales) and exports reached 48,899 cars to about fifty different countries. The United Kingdom took the lion's share, with 10,623 deliveries. In 2006 Suzuki and Maruti set up another joint venture, "Maruti Suzuki Automobiles India", to build two new manufacturing plants, one for vehicles and one for engines Cleaner cars were also introduced, with several new models meeting the new "Bharat Stage III" standards In February 2012, Maruti Suzuki sold its ten millionth vehicle in India.

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1.3 PRODUCT LINE CARS MANUFACTURED IN INDIA

1. Omni (Launched 1984) 2. Gypsy (launched 1985) 3. WagonR (Launched 1999) 4. Alto (Launched 2000) 5. Swift (Launched 2005) 6. Estilo (Launched 2006) 7. SX4 (Launched 2007) 8. Swift DZire (Launched 2008) 9. A-star (Launched 2008) 10. Ritz (Launched 2009) 11. Eeco (Launched 2010) 12. Alto K10 (Launched 2010) 13. Maruti Ertiga(Launched 2012), seven seater MPV R3 designed and developed in India, will compete with Toyota Innova, Mahindra Xylo, and Tata Sumo Grande. In early 2012, Suzuki Ertiga will be exported first to Indonesia in Completely Knock Down car. 14. Maruti XA Alpha based compact SUV to compete with the Ford EcoSport & Renault Duster will be launched in the year 2014 15. Maruti Alto 800(Launched 2012), Maruti Alto 800 is finally out with a price tag of Rs.2.44 lakh (ex-showroom New Delhi). Maruti has rolled out four Petrol variants-Alto 800 STD, Alto 800 LX, Alto 800 LXI and Alto 800 VXI and three CNG variants -Alto 800 CNG STD,Alto 800 CNG LX and Alto 800 CNG LXi. The 0.8 liter of petrol engine is very fuel efficient and pushes the car to produce high class mileage of 17 to 22 km per liter. The 48 ps @ 6000 rpm (Petrol) and 41 ps @ 6000 rpm (CNG)of peak power produced by the engine is also successful on road by delivering top-notch performance.

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IMPORTED CARS .
1. Grand Vitara (Launched 2007) 2. Kizashi (Launched 2011)

DISCONTINUED CARS
1. 2. 3. 4. 5. 6. 7. 8. 1000 (19902000) Zen (19932006) Esteem (19942008) Baleno (19992007) Versa (20012010) Grand Vitara XL7 (20032007) 800 (1983-2012) Alto (2000-2012)

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2.MISSION AND VISION STATEMENT

2.1 MISSION STATEMENT
Mission is the statement of an organizations purpose, what it want to accomplish in the larger environment and its goals which are specific, realistic and motivating. Missions are described over visions and visions demand certain objectives The main mission/objective of Maruti Suzuki India Limited (MSIL) : 1. Modernization of the Indian Automobile Industry. 2. Developing cars faster and selling them for less. 3. Production of fuel-efficient vehicles to conserve scarce resources. 4. Production of large number of motor vehicles which was necessary for economic growth. 5. Market Penetration, Market Development Similarly Product Development and Diversification. 6. Partner Relationship Management , Value Chain , Value Delivery Network

ANALYSIS OF MISSION STATEMENT

1.Modernization of the Indian Automobile Industry : When we talk about modernization of Indian Automobile Industry the first name come into our mind is Maruti Suzuki . This is because it's the one of the mission of Maruti . They were first in the country to come up with modern ways of manufacturing the car . Even the first car launched by the company had the modern technology in those days. Maruti 800 was a revolution in Indian automobile Industry , since , then they have been raising the standard of technology and modernizing the Industry .

2.Developing cars faster and selling them for less : From the statement itself we can understand their mission .Maruti is known for upgrading its cars quickly to face the competition . Some company are only good in bringing up upgraded models but cannot sell it at nominal price . But Maruti has been determined on upgrading it's and even selling it for nominal price .

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3. Production of fuel-efficient vehicles to conserve scarce resources : The biggest issue ahead of all the countries in the world is to protect its scarce resources . Scarcity of this resources leads to increase in fuel charges . Even this has been the problem for automobile industry round the globe . They had to come up with fuel efficient cars . Maruti has been front runner in the race of manufacturing fuel efficient engines of the cars . To complete their mission they were first in the industry to launch car with factory fitted CNG cars in India . CNG cars helps up to large extent in conversing scarce resources .

4. Production of large number of motor vehicles which was necessary for economic growth. : Prior to Introduction of Maruti 800 by Maruti Udyog Ltd . In India cars where manufactured in limited quantity. The main reason for low production was huge cost of production resulting in high selling price . Due to high selling price the demand in market was less . Due to which automobile sector had very less share in GDP. Maruti lead the way for low budget cars. This increased production of cars leading in increase in share of automobile industry in GDP

5. Market Penetration, Market Development Similarly Product Development and Diversification.:

Maruti had always aimed at developing their products as well as market . The best example of product development was discontinuing Versa and introducing Eeco by making certain changes in its discontinued model Versa . Now Eeco is now one of the successful product of Maruti . In the same way Maruti has also developed its market in current years . Maruti has successfully

contributed in share of luxury car markets with introduction of SX4 , Swift Dzire , XA Alpha , Grand Vitara and Kizashi. Maruti has also entered the market of 6-7 seater car segment . Maruti has also diversified by Starting Maruti finance , Maruti Motor Training schools etc .

6.. Partner Relationship Management , Value Chain , Value Delivery Network: One of the most imported mission of Maruti has been maintaining healthy relationship with its partner . They had also aimed at maintaining relationship with their distributors . 11

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2.2 VISION STATEMENT

Visions of any company are those values on which company works
As the MUL is started by Governmental initiatives it tends to be more consumer oriented and hence cost effective, but on the other hand Suzukis participation ensures not only need of the profit, but of the need of maximum profit. The only way for this Noras dilemma of selecting principals for companys working vision ,was to maximize profit and reducing cost by maximizing output and sales Hence MUL declared its Vision as-

The Leader in the Indian Automobile Industry, Creating Customer Delight and Shareholder's Wealth ; eventually become a pride of India

ANALYSIS OF VISION STATEMENT

From the vision statement we can understand the clear cut vision of MSIL . The company had been working in full force to complete their vision . The company has been no doubt an leader in Indian Auto-mobile industry since, many years, before the entry of some other companies into India automobile industry. The company has also created a special place in mind of customers by giving them complete customer satisfaction . Second part of the statement is " Creating shareholders wealth " company has always performed as per the expectation of their shareholders . Company's Earnings per share has always incremented shareholders wealth . And last part of the statement "becoming a pride of India" . this part do not require any explanation .Company has been continuingly working for becoming the pride of India by manufacturing and exporting world class cars to U.S.A and Europe

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]3.SWOT ANALYSIS OF MARUTI SUZUKI INDIA LIMITED

SWOT analysis means complete analysis of Company's STRENGTHS , WEAKNESSES , OPPORTUNITIES and THREATS.

3.1 STRENGTHS
1. Brand Name: Maruti Suzuki India Limited (MSIL) has emerged as a strong brand name in recent times. Backed with the parent company Maruti Suzuki this is recognized as a strong player in worldwide automotive market, Swift has definitely a value associated with it any individual will like associated with. Talking about brand name Indians are rigid towards selecting or changing their brand .And Maruti is a one company who has created special space in minds of Indian customer . There is one saying in Hindi "Sirf Na Hi Kafi Hai" Maruti as a brand is a best example of it 2. Large Distribution Network: With a strong dealer network of around 3000 dealers al around the country, Maruti Suzuki has made its presence felt in each and every corner of India. Fort Point beings its one of the most important distributor of MSIL . They provide special credit facility to their distributor

3. Wide Product offerings at different price points: Maruti Suzuki has launched various

models in various segments and hence has a very good product mix of offerings as different price points. Right from Maruti 800, this was low cost model to Maruti Kizashi which is a luxurious sedan . From Wagon R to Ertiga . There's wide range which cannot be mentioned in such a small paragraph .

4. Cheapest cars in respective segments: Maruti Suzuki has always followed an aggressive pricing policy. As a result it has its cars priced at lowest possible rates in respective segments. From Maruti 800 to Wagon R to Ertiga the common thing is they are cheapest cars in their segment . The main reason for this strength has been the cost factor . The input cost for Maruti cars is far less than other cars .

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5. Encouraging Exports: Backed by a strong production and a global setup at Gurgaon, Maruti Suzuki is exporting a lot. MSIL had exported 92000 cars to Non-European Countries in 2012-2013 which was 8000 more than 2011-2012 . In European countries export was of 28000 cars .

6. Awarded Many Awards: Maruti Suzuki has been awarded with many awards and recognitions like The Star Company amongst unlisted companies by Business Standard this year. Its various models like Swift has achieved many awards, thereby increasing the brand value of the company . In the FY 2012-2013 company was awarded with 16 different awards in different categories around the globe

7. Economy with technology: Maruti Suzukis cars have always seen as a company producing cars blending economy with technology. Swifts initiative of putting a 16-bit microprocessor on board has proved as one of the major reasons for its success and that too for the lowest price in its segment. They also introduced cheap cars with built-in audio system and Bluetooth systems

8. One Stop Shop: At Maruti Suzuki, customers will find all car related needs met under one roof. Whether it is easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set to provide a single-window solution for all car related needs. 9. Best after - sales services : Maruti Suzuki has the best after - sales services in the industry . The main reason for this is they have their own after sales service centre and they had also outsourced it to many MSE's . Maruti also has mobile service centre to provide technical help to people on highways and expressways

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3.2 WEAKNESSES
1.Lack of in house R & D: Maruti Suzuki do not have a comprehensive R & D department . The reason for lack of R&D house was that company prior to 2000 was controlled largely by government of India. Even the company during 90's did not had enough funds to finance to R&D .

2. New model introduction to only cosmetic changes: There is no major design changes incorporated in Maruti Suzuki products. Only some cosmetic changes have been made. The best example is Alto 800 , which is currently introduced . It is mixture of Maruti 800 and Maruti alto . But it seems that people haven't accepted such cosmetic changes . 3. Dominance mainly at lower level: Maruti Suzuki dominance in Indian market is only at its lower level segments like Swift in B-Segment and Maruti alto 800 in C-Segment. It has to focus on its upper segment models to strengthen its position in Indian car industry. Maruti had tried out certain cars to enter the upper level of industry but it had failed tremendously . This cars where Maruti Boleno and Maruti Grand Vitara XL 7 .

4. Lack of Premium 8-10 seaters passenger cars :Maruti Suzuki lacks premium or luxurious 810 seaters passenger cars. Toyoto Innova , Mahindra Scorpio Mahindra Xylo . are the cars which shares highest share in this segment . Though they have came up with Ertiga but does not matches up the standards of the above mentioned cars

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3.3 OPPORTUNITIES
1. Indian Market- A Great Long Term Potential : In the current situation the Indian Market is not so strong due to many socio-political factors . But things may change in the coming years with proper government policies and under leadership of better leaders . Maruti Suzuki will have the good opportunity to capitalize on the situation in future , if they give more emphasis on R&D and long term decision making .

2. Rise of Indian middle class and small cities: As a phenomenon growth is seen in recent times in Indian middle class and the purchasing power of working class individuals. Also a rise in small cities across the country has given a great opportunity to Maruti Suzuki for achieving a higher growth rate in coming times. |The purchasing power of middle class people have increased due low rate of interest on loans .

3. Lack of Economy of scale of other companies : No automobile company in India has higher economy of scale as Maruti Suzuki has. They need to take this opportunity to increase their share in the Indian as well as global market . This can be done only good and aggressive marketing strategy

4. New Plant in Gujarat : Maruti Suzuki is on the verge of opening one more plant in India . This time they are going to open plant in Gujarat . This decision will not only help them in increasing their production but will also help them in cutting down the cost to export their cars. This is because Gujarat has many major ports which are near to the place of plant . 5. New Fuel options : As we all know that our scientist had developed new fuel options like CNG (Compressed Natural Gas) and LPG (Liquidified Petroleum Gas). This fuels are quit cheaper than petrol and diesel. They are even more environment friendly as compared to diesel and petrol . MSIL have though introduced two or three models in the CNG and LPG variant but they still require some changes .If they can make this changes they have a good opportunity to capture the market .

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3.4 THREATS
1. Increase in fuel charges : In last one year petrol priced has increased by more than Rs12 to Rs 15/liter . The diesel prices have increased by Rs 7 to Rs 8/ liter. This may hit the sales of low fuel efficient cars . This rise in fuel prices is not the main concern or threat of maruti but of all the companies in the industry . Company still need to come up with more powerful and fuel efficient engines . Company also needs to introduce more variants of cars in CNG version and LPG version as both the gases are cheap and eco friendly 2. Introduction and changes in Tata Nano : Tata motors came up with Tata Nano in the year 2009 . It was named as "Lakhtakia Car " by the media and experts . Nano is a basic car costing something between Rs1.25 lakhs to Rs1.30 lakhs . Today Nano is a successful model and Tata Motors is really working well and are comming up with many changes . If Maruti Suzuki takes the launch of Tata Nano lightly than it may lose the customers of the low segment cars . 3. Current Instances of Rift between Management and Workers : The instance of violence in Manesar plant is not too old . The General manager of HR department of the company lost his life and around 100 people were injured in this violence . Since , then there has been a rift between management and workers . This rift is costing at least 10% to 12% production . This is the serious threat for MSIL . 4. Emergence Of New Players : Hyundai , Honda , Volkswogan , Skoda , Nissan, Tata Motors all these companies with their in- house R&D , new technologies , better production techniques are coming up with new models in hatchback segments and lower level segment . Now -a- days the big threats for Maruti Suzuki cars are Hyundai i10 , Nissan Micra , Volkswogan Polo , Tata Indica , Tata Nano. 5.Ageing Models : Models like Omini , Swift , Gypsy appears to be bit outdated as compared to models like Tata Bolero , VolkWogan polo , Nissan Micra etc. Maruti Suzuki must come up with major changes in their cars otherwise they may loss the major share in market share . decrease in company's

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4. BUSINESS STRATEGIES
4.1 BUSINESS STRATEGIES UNDERTAKEN FOR GROWTH /EXPANSION
This is an abstract from the Annual Report for the financial year 2012-2013 . This abstract may give us bit information regarding their company's strategy for the growth in the near future " The company will continue to introduce new product to meet growing customers' expectation . The existing products will be refreshed at regular intervals to suit the upcoming trends . The company will pro-actively work on increasing the fuel efficiency of all its models to offer economically affordable and environment friendly vehicles to the customers . One of the significant steps will be to introduce alternate fuel options like LPG (Liquefied Petroleum Gas) and CNG (Compressed Natural Gas) in the company's vehicles. The company will continue to focus on developing more products with alternate fuel options . In the long term , the company will focus on enhancing the capability in the field of EV-HEV (Electric Vehicle - Hybrid Electric Vehicle) and other environment friendly initiatives. Another step towards making vehicle more affordable will be by maintaining the cost of development of vehicle through VA/VE and weight reduction activities . The company will continuously work on alternate materials and newer technology to reduce the vehicle cost and weight ."

ANALYSIS OF THE ABOVE ABSTRACT :

Maruti Suzuki is planning to introduce new products in the market in the market . This show their clear cut intension to increase their market share which has decreased in recent past . The new products would definitely increase their turn-over resulting in marginal increase in profit due to high cost factor as chairman has mentioned in his letter to shareholders . The company also want to make changes in its existing models at regular intervals to match up with running trends in the industry . The new area in which company is expecting the growth in future is by entering in the market of hybrid cars i.e., cars running on electric batteries . The reason behind entering this sector is increase fuel prices , scarcity of resources and increase in pollution. The company is also looking it as a long term growth decision by entering this sector of the industry . It is expected that by the end of 2014 the market of hybrid will grow significantly . Maruti would definitely like to take the advantage and grow its customers , sales and net worth . The company is also planning out to introduce cars with CNG and LPG fuel option in their existing models . Overall the above abstract may not give complete idea of

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MSIL growth strategy but it gives us at least the intentional growth strategies of the company which are long term in nature as well profit and wealth generating one

The above mentioned abstract which indicated is not enough to ascertain completely the strategy for growth or expansion . There one article which I had picked up from the livemint.com which is the site of MINT , it's a business newspaper . This article was printed in their edition of 4TH August 2013 , Sunday :

Updated: Sun, Aug 04 2013. 07 25 PM IST Maruti to expand dealer network in remote parts of north-east Alto 800, Alto K-10, Omni, WagonR and Swift are driving Maruti Suzukis growth in the region Guwahati: The countrys largest car maker Maruti Suzuki India Ltd.(MSIL) on Sunday said it will expand its presence in rural and remote parts of north-east as it expects rapid growth in this region over the next 3-4 years. The company, which first opened its outlet in north-east 30 years ago at a time of rolling out its first car in the country, currently sells an average of 3,000 vehicles every month in the region. North-east market has always been very important for Maruti Suzuki. We believe that there is huge opportunity in rural areas of north-east states, besides the major cities, MSIL chief operating officer (marketing and sales) Mayank Pareek told PTI. Currently, this region contributes around 4% to the total domestic volume of MSIL and it is significant considering the socio-geographical nature of the region, he added. Asked about growth expectations from the region, Pareek said: We are very confident that this share will only rise in coming years as north-east offers vast potential. The region is expected to grow rapidly over the next 3-4 years. However, putting a number to that will not be prudent. The company had sold a total of 10.5 lakh vehicles in the domestic market in 2012-13. Out of that, around 40,000 units were contributed by the north-eastern states, translating to a sales revenue of approximately Rs1,200 crore. Among all the north-eastern states, Assam contributes the highest in terms volume with a share of almost 60% in the total sales of MSIL from the region.However, as road and other infrastructure develops, going forward we expect the share of other states to increase. The awareness about advantages of a dependable personal vehicle will surely bring more opportunity for us, Pareek said. To increase sales, the company is expanding its dealership and service network across the region that is geographically challenging.We are planning to expand all across north east region. However, our primary focus would be to expand our reach in rural areas of the region. We want to be present to customers in far flung areas of the entire north-east. North-east region has always found special focus in company strategy for reach, volumes and customer service. Maruti Suzuki products have always found deep trust among customers in north-east. Based on the potential, we have progressively increased our sales and service network in the region, Pareek 19

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said. At present, MSIL network has 39 dealer showrooms and 52 workshops in the region. The first showroom came up in the region 30 years back in 1983, when the then Maruti Udyog Ltd. had begun making and selling cars in India. Talking about the models that are driving the companys growth in the region, he said petrol-driven compact cars like Alto 800, Alto K10, Omni, WagonR and Swift remain the highest in demand, mainly because of the terrain and lowcost of ownership. Asked about MSILs plans regarding manpower in the region, Pareek said: At present, we have around 3,000 people working in our sales and service network. As we expand our network, this is likely to increase to around 4,000 over the next three years. On setting up of a warehouse in the north-east, he declined to comment saying we would not like to elaborate on this at this stage.

ANALYSIS OF THE ABOVE ARTICLE:

The article given above is type of a interview cum information providing article . The correspondence who has written this article has talked to Mayank Pareek , The CEO (Marketing and Sales) of MSIL . The company wants to definitely grow its market in the north - eastern states i.e., Sikkim , Assam, Nagaland , Meghalaya, Manipur . The reason why company is looking for market expansion in this part of India is because this states are developing states of India . People in this states can afford their cars due to low cost of ownership and low - cost of maintenance . Company is only going to sell Alto 800, Alto K10, Omni, WagonR and Swift . This cars would be sold in all the variances. The company already sells 4% of total cars in north eastern states which is generating the revenue of Rs.1200 crores annually . The company also wants to expand their market in to the rural areas of this states and this their primary focus for the expansion of network in this area For the purpose of expansion and growth company has already developed 39 dealers and 52 workshops in the region . This completely proves that company wants expand its market and does not want to leave anything due to which they cannot increase their sell volume in North - Eastern part . The company already has 3000 employees and want to increase it to around 4000 , to provide better services to customers . Expansion or growth can been seen easily seen on the cards but whats going to happen in the future no one knows . The company can also grow or expand by entering into new product market i.e., by launching products of different segment. We all know that MSIL is the leader in passenger vehicles especially cars. Maruti wants to expand its market reach by entering in to market of commercial vehicles . The article which was printed in Business Today magazine will give us more information regarding it .

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Maruti to enter LCV segment, launch in 2 years time

PTI New Delhi Last Updated: July 27, 2013 | 17:23 IST

Amid a slowdown in car sales, Maruti Suzuki India on Saturday said that it will foray into the light commercial vehicles segment, 30 years after an initial plan was shelved when the company started operations. The country's largest car maker said it will take about two years to launch the LCV, which will take on Tata Motor's Ace, the leader in the segment .The vehicle will be developed on the platform of parent Suzuki Motor Corp (SMC)'s Carry, an LCV that is sold in markets such as China, Indonesia and Pakistan."It was planned in our original agreement (with SMC) in 1982 that the Carry LCV would be launched in India but at that time, due to poor response from the market, it was shelved .Now the situation has changed and the board has given approval to go ahead for launching the LCV in India," Maruti Suzuki India (MSI) Chairman R C Bhargava told reporters here. He said: "In the last two years, we have seen a demand for such LCVs growing in India and we think we can offer a superior product in the segment as Suzuki has been doing for years globally." Bhargava said MSI has not decided on the name of the LCV, which will available in both CNG and diesel variants."Our engineers are working on adapting the diesel engine that we have licensed from Fiat to be used in the LCV. This will be a pure goods carrier," he said.MSI Managing Director and CEO Kenichi Ayukawa said the diesel engine for the LCV will be produced in India, although the company hasn't decided which plant will produce the vehicle. MSI is currently setting up its third plant in the country in Gujarat, which is expected to go on stream by 2015-16.Asked if the LCV would be sold separately or in the same showrooms as its cars, MSI Chief Operating Officer (Marketing & Sales) Mayank Pareek said: "We have not yet decided the strategy for it but in markets like China, Indonesia and Pakistan, Suzuki has both mixed and exclusive showrooms for the Carry."Bhargava said plans to enter the LCV segment were a part of diversifying its portfolio based on the company's strengths and also in a way "de-risking business" considering the slowdown witnessed in the car market.In 1983, when the then Maruti Udyog Ltd entered the market, it had opened countrywide bookings for its M800 model and the Carry LCV."While the M800 received 1.21 lakh bookings, the Carry had only about 2,000. Then we had decided to drop the plans for launching the LCV," he said. .

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ANALYSIS OF THE ABOVE ARTICLE :

As we all know that MSIL is going to set up its plant in Gujarat . MSIL is planning to enter into the sector of Light Commercial Vehicle (LCV). LCV is a sector which is growing in India with the great speed . Tata motors LCV ACE has the highest share in LCV market segment . With the launch LCV MSIL will enter for the second time in the market of commercial vehicle . For the first time when they launched LCV in 1983 , there model failed miserably they had only received 2000 bookings for it . MSIL is planning to start the production of LCV by end of 2014 . The company hasn't made any further decision or announcement regarding the model . But its sure that MSIL want to expand their market and grow their product portfolio . .

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4.2 BUSINESS STRATEGIES UNDERTAKEN TO INCREASE PRODUCT LINE

Whenever we talk about highest numbers of product in a segment of the industry Maruti Suzuki automatically comes into our mind . Since the year 2000 MSIL has been introducing two to three new products in an year . And it has been the history that few products has received negative response from the people . In last 5 to 6 years company has already launched 10 to 12 cars . This were totally new products which do not include existing models introduced with different fuel options . So, now talking about their new product line in coming years and some existing product with different fuel option I would like to give some example with help of few articles from various websites

"Maruti Suzuki Alto 800 Diesel expected to be launched in 2014

August 16, 2013, 10:41 IST by CarTrade Editorial Team Subscribe to Newsletter

India's leading passenger car maker, Maruti Suzuki, has announced its plans of increasing its market share and cement its stronghold further. Officials from the company have already spoken about the firm speeding up the production in the Sports Utility Vehicle (SUV) segment. Now, reports have surfaced that the firm is working aggressively on the production of the diesel variant of Alto 800 hatchback. Sources close to the matter have said that the Alto 800 Diesel might make its way to showrooms in India by 2014. The Maruti Suzuki Alto 800 is, currently, one of the most successful hatchbacks in the Indian market. Industry experts feel that the diesel variant of the Alto 800 will create a tremendous buzz among buyers in India. Alto 800 has totally captured the imagination of buyers in the Indian car market. In its entirety, the Alto 800 encompasses what a middle class consumer would want from a car. It is compact, decent looking, fuel efficient, affordable and most of all, carries the name of the country's most reliable brand. The Alto 800 is powered by a 796 cc 3-cylinder engine that generates an output of around 46 bhp at 6000 rpm, along with peak torque of 69 Nm. Its engine, controlled by a 32-bit computer, is mated to a 5-speed manual gearbox. It is being said that the turbo diesel engine is going to be developed by Maruti Suzuki itself. This automatically means that the firm will not be required to pay any royalty to another firm for getting the diesel engine. Also, Maruti Suzuki will be able to further control the pricing strategy of the Alto 800 Diesel, making it much more affordable.Reports have claimed that the Maruti Suzuki Alto 800 Diesel is going to be the least priced oil burning car in the country. Analysts feel that the launch of this car is a smart move by 23

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India's largest passenger car maker. Interestingly, diesel is the most used car fuel in the world and a number of diesel powered vehicles have enjoyed a great stint in the Indian market. South Korean auto maker Hyundai, Maruti Suzuki's biggest rival, has pretty detailed plans for the future, wherein it hopes to launch a number of new models. To begin with, Hyundai is expected to introduce the Grand i10 in a month's time. Apart from the Grand i10, Hyundai is also working on launching the next generation i20 hatchback and the Eon 1. The rivalry between these two brands is clearly a positive sign for the Indian auto industry, which is currently enduring a torrid time. The rising price of petrol has further strengthened the case for the demand of diesel cars.The launch of Maruti Suzuki Alto 800 Diesel might also set a trend in the market, wherein other brands also develop diesel variants of small cars. Recently, in an interview, an analyst was quoted as saying, Everybody seems to be working on diesel platforms and from a fundamental standpoint it makes sense. The acquisition cost and running cost are very important for entry-level car buyers. We have seen people are willing to shell out Rs. 30,000-40,000 more and get CNG and LPG kits fitted on their petrol cars to get higher fuel efficiency. So, if the acquisition cost of diesel is not dramatically higher, people will shift."

ANALYSIS :
As we all know that fuel charges are raising rapidly especially petrol prices . Government has also decided to decrease marginal subsidy to petroleum companies , due to which we may see further raise in the petroleum prices. MSIL is using here a strategy due to which they will attract those people who are hesitating from buying cars due to high fuel charges . And as we all know that diesel cars are mostly available in sedan cars whose basic models cost minimum of Rs.5 lakhs . This cars are out of reach for middle class and upper middle class . MSIL also have their cars with diesel engines but they are priced high . With the help of Alto 800 diesel Maruti Suzuki may repeat the history of creating a benchmark in the Indian automobile industry. Not only MSIL but people are expecting a lot out of Alto 800 diesel . Alto800 diesel will help MSIL to attract those customers which had shifted to Tata Nano. As we know that MSIL is known for making changes in its cars from time to time in order to meet the needs of customers . I would like to give one example which might give us brief idea regarding how MSIL comes up with changes in the same product . This article was printed in Business Today magazine

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Maruti launches limited edition of Swift

BT Online Bureau New Delhi Last Updated: July 5, 2013 | 10:21 IST In a move that would shore up its sales, Maruti Suzuki India (MSI) on Tuesday introduced a limited edition variant of premium compact Swift - 'Swift RS' . The 'Swift RS' will be Rs 24,500 costlier than the existing model. It will come with new styling and graphics and will be available only in the VXi and VDi variants. The existing Swift VXi model is priced at Rs 4.99 lakh, and VDi at Rs 5.99 (ex-showroom Delhi). The launch of the new limited edition comes at a time when the company has seen decline in sales in a car market which has been on a prolonged slump. "The Swift RS is in continuation of Maruti Suzuki's celebrations planned around Swift model as it moves towards the one million cumulative sales mark," MSI Vice President (Marketing) Manohar Bhat said.The company has sold over 9.6 lakh Swift cars since its launch in May 2005, he added.MSI had posted 7.8 per cent decline in domestic sales in June at 77,002 units as compared to over 83,531 units in the same month last year. The company's sales in the compact segment (comprising the Estilo, Swift and Ritz models) fell 7.2 per cent at 20,996 units in June this year as against 22,624 units in the same month a year ago."We are confident that limited edition Swift RS will be ideal for customers who look to further enhance the sporty character and style of the Swift," Bhat said .The Swift RS will be available at Maruti Suzuki dealers from early July 2013 for a limited period, the company said. (SOURCE : Business Today magazine)

ANALYSIS :
With the announcement of SWIFT RS MSIL is planning to launch a premium hatchback cars ,this will help them to enter the market of premium hatchback cars . The car will be launched in VXI VDI model that means it might lack some of the features which are their in ZXI or ZDI . The price is at higher site it is will be excited to see what will be the response of people on New Swift Rs

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4.3 BUSINESS STRATEGIES UNDERTAKEN FOR DIVERSIFFICATION

Maruti Suzuki is not known for diversifying its business widely but they have performed fairly . Diversifications of business has never been the priority for MSIL but still they different businesses . This businesses are as follows : 1. MARUTI INSURANCE 2. MARUTI FINANCE 3. MARUTI TRUE VALUE 4. N2N FLEET MANAGEMENT 5. MARUTI GENUINE ACCESSORIES 6. MARUTI DRIVING SCHOOL

1. MARUTI INSAURANCE : Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The service was set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited. This service started as a benefit or value addition to customers and was able to ramp up easily. By December 2005 they were able to sell more than two million insurance policies since its inception. "Maruti Insurance " for all the Insurance needs of your Maruti Suzuki Cars. This is made available through "Maruti Insurance Broking ". The unique motor insurance products and best in class services offered by Maruti Insurance are unparalleled and aimed at enhancing your vehicle ownership experience.You get near cash-less post-accident repairs at the vast service network of Maruti Suzuki across the country. Maruti Suzuki workshops equipped with State of art facilities and infrastructure ensures quality repairs with Maruti Genuine Parts and trained technicians. Maruti Insurance also ensures excellent customer service with utmost fairness and transparency available to you across the country. No wonder why more than 90% customers buying our cars prefer to buy a Maruti Insurance Policy for their car

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2. MARUTI FINANCE : To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002. Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan. Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic partners in car finance. Again the company entered into a strategic partnership with SBI in March 2003. Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently available in 166 cities across India. Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India and Maruti Udyog Limited its primary business stated by the company is "hire-purchase financing of Maruti Suzuki vehicles". Citi Finance India Limited is a wholly owned subsidiary of Citibank Overseas Investment Corporation, Delaware, which in turn is a 100% wholly owned subsidiary of Citibank N.A. Citi Finance India Limited holds 74% of the stake and Maruti Suzuki holds the remaining 26%. GE Capital, HDFC and Maruti Suzuki came together in 1995 to form Maruti Countrywide. Maruti claims that its finance program offers most competitive interest rates to its customers, which are lower by 0.25% to 0.5% from the market rates. One stop shop for customers needs: Maruti Finance offers customer the convenience of one stop shop for all his vehicle finance related needs customer can complete the finance related formalities at the dealership i.e buying car, availing finance are all under the same roof. Wide Choice of financier: Maruti Finance has a tie-up with 34 finance partners which have a Pan-India presence. This provides a wide variety of choice to the customers who can avail finance from any of the tie-up finance partners according to their needs and profiles. Special offers and benefits: Maruti Finance negotiates with its finance partners to launch special sales promotion schemes like low down payment schemes, low interest rates and other promotional offers which are not available otherwise. Creating customer delight: Maruti Finance through the finance partners endeavours to create customer delight by providing the best deals, financier for every profile & geography, better Interest rate and Processing time etc.

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3. MARUTI TRUE VALUE : Maruti True service offered by Maruti Suzuki to its customers. It is a market place for used Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with the help of this service in India. As of 31 March 2010 there are 341 outlets. 4.N2N FLEET MANAGEMENT : N2N is the short form of End to End Fleet Management and provides lease and fleet management solution to corporates. Clients who have signed up of this service include Gas Authority of India Ltd, DuPont, Reckitt Benckiser, Sona

Steering, Doordarshan, Singer India, National Stock Exchange and Transworld. This fleet management service include end-to-end solutions across the vehicle's life, which includes Leasing, Maintenance, Convenience services and Remarketing. 5. MARUTI GENUINE ACCESSORIES : Many of the auto component companies other than Maruti Suzuki started to offer components and accessories that were compatible. This caused a serious threat and loss of revenue to Maruti Suzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps, stereo systems, seat covers and other car care products. These products are sold through dealer outlets and authorized service stations throughout India .

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As part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving School in Delhi. Later the services were extended to other cities of India as well. These schools are modelled on international standards, where learners go through classroom and practical sessions. Many international practices like road behaviour and attitudes are also taught in these schools. Before driving actual vehicles participants are trained on simulators. A the launch ceremony for the school Jagdish Khattar stated "We are very concerned about mounting deaths on Indian roads. These can be brought down if government, industry and the voluntary sector work together in an integrated manner. But we felt that Maruti should first do something in this regard and hence this initiative of Maruti Driving Schools

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4.4 BUSINESS STRATEGIES UNDERTAKEN FOR PRICING

Maruti caters to all segment and has a product offering at all price points. It has a car priced at Rs.1,87,000.00 which is the lowest offer on road. Maruti gets 70% business from repeat buyers who earlier had owned a Maruti car. Their pricing strategy is to provide an option to every customer looking for up gradation in his car. Their sole motive of having so many product offering is to be in the consideration set of every passenger car customer in India. Here is how every price point is covered. Maruti Suzuki prices its cars on the basis of the variants . The different variants of the Maruti Suzuki cars are as follows :

1. STD - Standard model with petrol engine . 2. LX - Standard model with color matching bumpers with petrol engine . 3. LXI - LX model with power steering and air conditions with petrol engine 4. VXI - LXI model with power windows for front door windows , central locking system , Fog lights with petrol engine 5. ZXI - VXI model with power windows for all the four doors , Infrared parking system , Automatic Bracking System (ABS) , Keys for adjusting side mirrors, factory fitted music system with petrol engine. 6. LDI - Standard model with color matching bumpers , power steering , and air condition with diesel engine 7. VDI - LDI model with power windows for front doors windows , central locking system fog ligths with diesel engine 8. ZDI - VDI model with power windows for all the four doors , Infrared parking system , Automatic Bracking System (ABS) , keys for adjusting side mirrors , factory fitted music system with diesel engine .

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PRICE LIST OF MARUTI CARS FOR ITS DIFFERENT VARIANTS :

MODEL ALTO 800

VARIANTS STD LX LXI VXI

PRICE (Rs.) 3,09,576 3,50,726 3,95,100 4,19,026 4,67,996 5,04,559 5,57,334

A-STAR

LXI VXI ZXI

RITZ

LXI VXI VXI(AUTOMATIC) ZXI LDI VDI ZDI

5,29,436 5,95,427 7,44,516 6,38,992 6,61,997 7,22,368 7,77,580 5,46,575 5,97,592 6,97,468 6,88,016 7,44,885 8,39,530 4,37,643 4,76,449 5.43.542 5,22,651

SWIFT

LXI VXI ZXI LDI VDI ZDI

WAGON R

LX LXI VXI GREEN

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SX4

VXI ZXI VDI ZDI GREEN

8,96,719 10,90,565 10,16,202 11,94,751 9,36,863 5,97,708 6,68,818 7,66,655 7,44,134 9,05,750 3,15,613 3,17,824 4,21,088 4,47,119 7,26,249 8,19,545 9,01,633 9,13,769 9,91,882 10,67,012 4,13,724 4,41,724 4,70,724

SWIFT DZIRE

LXI VXI ZXI LDI VDI

OMINI

5-SEATERS 8-SEATERS

EECO

5-SEATERS 7-SEATERS

ERTIGA

LXI VXI ZXI LDI VDI ZDI

STINGRAY

LXI VXI ZXI

NOTE : THE ABOVE MENTIONED PRICE ARE ON ROAD MUMBAI (SOURCE':

WWW.ZIGWHEEL.COM)

ANALYSIS OF PRICING STRATEGY :

The pricing strategy is not so complicated when we compare it to other cars of the different companies . Hyundai do not such simple pricing strategy and its same in the case of Tata Motors , Volkswogan , Honda . But when we look at prices of the MSIL cars there is huge

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difference between two different variants . But there is also one advantage that price of highest variant of the car of a lower segment is almost same to the lower variant of a superior model .

4.4 BUSINESS STRATEGIES UNDERTAKEN FOR MARKETING

The marketing strategy of the Maruti Suzuki Pvt. Ltd. can be measured from the following story:

Just three months after it launched Swift, Maruti Udyog Limited has already sold over 8,000 units of the car and added another 5,000 next month. There's a four-month waiting period for the 1,298-cc hatchback -- the company claims more than 9,000 bookings before the car was launched. And that's even while competitors -- Corsa Sail, Hyundai Getz and Fiat Palio -- are available off the shelf. Not surprisingly, MUL now has a lot riding on the car: there's over Rs 440 crore (Rs 4.40 billion) invested in the project (Rs 250 crore-odd is MUL's share). Not only is the company hoping that the Swift will help expand the market for the B-plus segment (premium hatchbacks), it's also counting on Swift to make a style statement -- that Suzuki can deliver good-looking cars on Indian roads. For a company that has been known more for its value-for-money proposition -- from the 800 to the Esteem -- that's important. "It's not as if our cars weren't style statements. It's just that with Swift, we have made a break from the past," reveals a company official. The buzz around Swift began in December 2004 -- five months before its launch. All new Wagon Rs and Maruti Omnis came with stickers and sunshields that proclaimed "My next car is a Swift." Unlike most car launches, where the look of the vehicle is kept under wraps until the last possible moment, photos and specs were made available at showrooms several months earlier. Models of the car were placed on high platforms at busy intersections in Delhi; while cars were on display in malls. "It works well for those who don't have the inclination to really go to a dealer and check out the car," says a company official. The launch was staggered over three to four days in 15 cities across the country, coinciding with the worldwide launch of the car. MUL also made good use of its Rs 20 crore (Rs 200 million) marketing budget. For the first time, it opted for an in-film placement -- Swift appeared in the Bollywood hit Bunty Aur Babli, which was released on the same day as the car launch, May 27. And it trained 1,000 salespeople -- called "energisers" -- to exclusively sell the Swift. Perhaps the Swift's biggest plus is its price. Introduced at Rs 387,000 for the base model, it was close to about Rs 50,000 less than its competitors. Even the top-end version was Rs 70,000 cheaper than the Hyundai Getz GLS. MUL does not want to give this pricing advantage away. Although it hiked prices by Rs 10,000 in early June, advance bookings were honoured at the introductory price. And since the car is priced at just 33

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under Rs 400,000, Delhi residents pay only 2 per cent road tax, compared to 4 per cent for a car that costs more than Rs 400,000. (ORIGINAL SOURCE : BUSINESS STANDARD JULY 2004) (ADOPTED FROM www.slideshare.com)

I would also like to give some more example regarding marketing strategies : As we have read in newspapers and heard in news channel that maruti suzuki is going to hike the price of the cars by Rs.10000 . But the most interesting thing about MSIL is that how they converted this hike in car prices in to the way of forming the strategy for marketing . They have been issuing advertising in the news paper saying people can save their Rs.10000 by booking Maruti Suzuki cars before 30 TH September , 2013 . They are also offering festival season offers to the customers . This offers are as follows : 1. SAVE RS.10000 by booking the car before 30th September , 2013 . 2. Exchange Bonus of Rs.35000. 3. Special offers for Government Employee . 4. Assured Gifts of Rs.5100. 5. Signature kit worth Rs.11000. free 6. Total Saving of Rs.75100 7. On the delivery assured gift scratch cards . Under this cards there are chances of winning following things I. II. III. IV. V. Rs.1 crore LED television Branded Tablets Branded Mobile Phones Maruti Suzuki Genuine accessories vouchers

It would be really interesting to see that will this strategy of marketing will work out for Maruti Suzuki .

(sources :advertisement printed in DNA newspaper from 23rd September to 27th September 2013)

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5.CORPORATE RESTRUCTURING
5.1 CORPORATE RESTRUCTURING FOR PROCESS CHANGE
Today one of the challenge for the companies at the global level is the increasing pollution . They have to take utmost care to avoid maximum emission of gases which can pollute the air and even certain factory emits waste which affects the water body When we talk about automobile industry for them the challenge is double one their production units and second their cars . MSIL has done restructuring of both their cars and their production units too . This I will be explaining with the help of following article which was updated on one of the NGO which works for providing information to industries on the ways for environment friendly production techniques .

As environmental concerns grow, carmakers are trying to reduce emissions from every possible area. Manufacturing is one such area, which has undergone several improvements and changes in order to extract more efficiency. Maruti Suzuki India Limited (MSIL) started working on this parameter a long time back and has made significant progress in the last few years. In this report, we take a look at some of the key developments and their effect on the companys carbon footprint. 35

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In order to improve efficiency and usage of natural resources, Maruti Suzuki India has identified five key areas to work on. These include: :: Material Use & Weight Reduction Car manufacturing is a resource intensive activity and any reduction in the consumption of various materials can vastly benefit the environment. Maruti Suzuki India through its One Gram One Component programme has been able to considerably reduce the weight of vehicles. The process of raw material consumption was intensively looked at and numerous measures were taken to optimise the process. The scrap generated in press and casting operations is now sent to suppliers, who in turn use it for manufacturing child parts or other sub-systems. Another key focus was to improve yield in order to optimise the use of important resources. The related measures were spread across sheet metal, plastics, electrical and casting operations. In 2011-12 alone, 287 yield improvement measures became effective, resulting in material savings of more than 2,000 tonne. :: Energy Conservation Reduction in energy consumption plays a critical role in reducing emissions and manufacturing costs. Maruti Suzuki India has made good progress in this area at both its plants in Gurgaon and Manesar. A company spokesperson told us that energy consumption per car has reduced by 30 % at the Gurgaon plant in the last 10 years, while the newer plant in Manesar achieved the same level of improvement in just about five years.

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Adding further to the energy credentials is the fact that both plants are powered by captive power units, which use natural gas. This significantly reduces the emissions in comparison with power derived from coal. Total energy consumed by the two plants in the year 2011-12 was 5,916,312 GJ (gigajoules), while the indirect energy used amounted to 8,458 GJ.

The Manesar plant derives 100 % of its artificial lighting from LEDs, making it the first plant in India to do so. The savings in power are of such magnitude that despite the higher initial cost, LEDs prove cost-effective in the long run. Also, numerous new smaller measures in the production process have brought down the energy consumption for various actions. One such measure is the use of gravity conveyors in the weld shop. This eliminates the need for electric motors to move the conveyor belt and hence results in significant energy savings. In the paint shop too, new processes have reduced the number of coats, thereby lowering the power requirement. :: Water Conservation Water is one of the most widely used natural resources in manufacturing and optimal usage of it is critical for the future of our planet. Maruti Suzukis plants are presently 37

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certified for zero waste water discharge. The company is focused on improving recycling capabilities and in 2011-12, was able to fulfil 41 % of its water requirement through recycled water.

Owing to waste minimisation and process improvement, the company has been able to lower water consumption per car by 61 % at the Gurgaon plant in the decade preceding 2011-12. The Manesar facility achieved an improvement of about 56 % in the same area but in a shorter span of just five years. Water sources for the plants include canal, tube well and rain. :: Air Emission Reduction The power plants account for more than 90 % of the companys overall greenhouse gas emissions. The emission levels of these units are claimed to be lower than the prescribed limits by the Pollution Control Board. A recent measure taken to reduce these emissions includes improvement in the operational efficiency of gas turbines. In addition, a special fluidised bed type incinerator was installed for cleaning of paint booth gratings instead of a direct burning type incinerator. :: Waste Management An environmentally friendly manufacturing policy is never complete until the waste management process is well defined and made efficient. At Maruti Suzuki, the list of hazardous waste materials comprises of paint, phosphate and Effluent Treatment Plant (ETP) sludge, incinerator ash and used oil. 38

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Used oil is sold to authorised recyclers while the paint, phosphate and ETP sludge is sent to the cement industry for co-processing. This process has eliminated the need for incineration and land-filling, leading to further reduction in emissions. All solid waste materials such as metal scrap and glass waste are also sold to authorised recyclers. WAY FORWARD Going forward, Maruti Suzuki India also plans to increase the efficiency of all operations along with introduction of new technologies. A key focus for the future is solar energy, which will progressively be scaled up to support the companys manufacturing and operational power requirements. In line with this plan, a one MW solar plant has been set-up at the companys Manesar plant. One MW may not account for a significant part of the companys requirement but is a good beginning. Maruti Suzuki India started early in the area of green manufacturing, and the impressive results in a short span of time prove that the progress has been swift. Having learnt of the upcoming measures and policies, we can safely say that Maruti Suzuki India will continue to be at par with the industry and competition standards in terms of green manufacturing. Text :Arpit Mahendra Photo: Maruti Suzuki India Limited

ANALYSIS:
From the above article we can understand that MSIL has done their best to make the necessary changes in their production process for controlling the air and water pollution . We can also see that they divided their change in process for the 5 different purposes . As I mentioned earlier that , automobile industry has two challenges ahead of them one is emissions from the production units and second of cars their cars emitting the gases. In this case even MSIL had made certain change in their productions and products these can be understand from a article written in the annual report of the company for the year 2011-2012

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"With the help of GHG management system in place and emission reduction plans, Maruti Suzuki has significantly brought down CO2 emission per vehicle in car manufacturing. At the Gurgaon Plant, CO2 per vehicle in 2010-11 came down by 15% compared to the previous year while in Manesar facility, CO2 emission reduced by 13% during the same year. Maruti Suzuki sensitizes its suppliers about environmental issues and encourages them to take proactive measures to minimize their environmental impact. Periodic demonstrations and training programmes are organized for them on topics such as EMS, GHG management and environmental laws and regulations. In 2010-11, the Company encouraged its suppliers to supply material during the night shift. Currently, 26% of suppliers deliver material during the night shift. This has helped in reducing traffic congestion and pollution in and around Gurgaon city. Maruti Suzuki encourages suppliers to shift their production facilities near its manufacturing facilities to reduce the GHG emissions caused due to transportation. Both the Gurgaon and Manesar facilities have a dedicated Suppliers Park. Of the 19 joint venture companies, 11 are located in the Suppliers Park adjacent to the Maruti Suzuki Gurgaon and Manesar plants." The only reason for change in production process is not only controlling pollution but also increasing production . An article was printed in Livemint newspaper dated back in 21st may 2009 . " Updated: Thu, May 21 2009. 11 52 PM IST Pune: Faced with capacity constraints at its plant in Manesar, Haryana, as demand for its A-Star and Alto compact car models surges from buyers in Europe, Maruti Suzuki India Ltd is considering ways to increase car output from the plant by improvements in the production process. A decision to invest in expanding the 300,000 vehicles a year plant will be made only after demand exceeds the incremental output from such productivity enhancements, a company executive said.

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Such a decision will also hinge on demand for the cars continuing in European markets after September, when government incentives for buying smaller, environment-friendly cars expire, Marutis managing executive officer,

production, M.M. Singh, said here late on Wednesday, on the sidelines of the launch of its Ritz compact car. We are not sure if the demand will continue after the governments withdraw incentive schemes and dont want to take decision s on expensive investment, based on two-three months of demand, Singh said. Demand for the Euro V, left hand drive Alto model that meets the Euro V emission standards has spiked across the UK, France, Germany and other countries where governments are offering coupons of 1,500 to buyers as an incentive to replace old cars, partly in an effort to prod a slowing economy. Productivity-enhancing measures at the Manesar plant include flexible assembly operations. Demand for models from the plant keep changing and introducing flexible body shops, flexible assembly lines that helps us to switch effortlessly to producing vehicles for which demand is increasing, is one way of working around a capacity constraint, Singh said. Last year the company introduced a flex ible body shop (used to create body shells of cars) at Manesar that allows it to seamlessly manufacture vehicles of different dimensions. With the use of software and sophisticated electronics, it is now possible to (produce vehicles of different dimensions), Singh said, adding that his company plans to increase automation. The number of hours taken to produce a car has halved in the last five years at Maruti, he said, without giving details. Maruti commenced exporting the A-Star that sells for 7,500-8,000 in various markets, in January this year, selling 20,000 units up to 31 March. It plans to export 100,000 units of the car in fiscal 2010. Some 30,000 of these will be sold to Nissan Motor Co. that will sell it as the Pixo brand overseas.

ANALYSIS:
The company decided to start exporting its cars due to increase in demand in the European . For this purpose they made the changes in their production techniques . They are also making certain changes in the production techniques to match up with the emission norms of UK , Germany , France and other European companies . 41

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5.2 CORPORATE RESTRUCTURING FOR

IT UPGRADATION
IT is the need of today's business world . MSIL has been using different system for their operations like E-Nagare system which in maintaining healthy dealer management . It also helps for fast transaction processing and better control and complete records of the millions of customers . In the year 2012-2013 company adopted the Integrated Maruti R&D and manufacturing system . This system will help in product development with the help of integration with the parent company Suzuki Motor Corporation , Japan . The company also moved its entire customer facing application to 'cloud' . The company also adopted NX software and Teamcentre software . This softwares help in designing validating and commissioning the dies . This software was developed by the SIEMENS India specially for the MSIL . I had found out a case study which was done by SIEMENS itself . This case study will give us complete information regarding the functioning of this software's. "The company was experiencing increasing pressure to introduce new models in a shorter time frame. There was also growing pressure to improve quality and reduce costs. To complicate matters, customer needs and perceptions were no longer gradually evolving, but now rapidly changing. More specifically, certain product development domains represented the greatest opportunity to address these key challenges. These included reducing new tooling development time, reducing die design time, reducing costs by substantially decreasing the need for rework, and improving quality. Our die design process clearly represented and still represents one of the most important opportunities for reducing overall die development time and thereby accelerating car-to-market time, says Mayank Varma, assistant general manager, Tool and Die Shop, Maruti Suzuki. Stamping domain represents significant opportunity Maruti Suzuki Die Shop uses a number of traditional and advanced processes in the design, validation, manufacturing and commissioning of its dies, including NX software andTeamcenter software from Siemens PLM Software. 42

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NX Die Structure Design applications play key role in die design standardization Data is received from the Product Design Group of Maruti Suzuki in NX format. Then the die face, which includes addendum, binder, draw bead, etc., is designed using NX tools. The data is transferred to external computer-aided engineering (CAE) software to do the validation of forming simulation, e.g., addressing wrinkles in the sheet metal folds, thinning, bend and trim line issues, etc. This is quite timeconsuming; however, we have plans for improvements here, notes Vidur Kaushik, manager Die Design, Die Shop, Maruti Suzuki. Once the simulation is done, the part is tipped to the die position based on CAE feedback and a layout is prepared via NX 2D drafting by taking sections on the parts. The die structures are then built. Finally, its 2D and 3D machining, die assembly and tryout, and off to production. The entire process is similar to that used by other original equipment manufacturers (OEMs), except Maruti Suzuki Die Shop has made significant process advancements in a number of areas, especially relative to its die structures preparation and building. Templates yield 90 hours saved for draw die structure components Using NX die design tools, Maruti Suzuki Die Shop has built many templates for its die design stage. Heres how it works. The designer is presented with the template, which shows the parameters of the parts. The designer simply enters the new product specifications to update the template to the current design. The mating of the standard parts is captured, so that any change to a part reflects the position of the standard parts as well. This substantially accelerates the speed with which die structures are designed. Maruti Suzuki Die Shop accomplished this important time reduction through what it describes as its cloning concept in which the repeated structures in a design are identified and treated as standard structure parts, creating the primitive or basic template design. Mating points are defined, mounting bodies created, map files identified for positioning, etc., using the template structure. It used to take approximately 180 hours to build the components of the draw die structure, says Hardeep Singh, deputy manager Die Design, Die Shop, Maruti Suzuki.

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Using Siemens product lifecycle management (PLM) tools, now it takes about 90 hours a 50 percent improvement. Standardization delivers 10 hours saved per die involving cam units Similarly, Maruti Suzuki Die shop has brought design standardization to its cam unit creation. Instead of modeling each cam one by one, the company has created standard parts to automatically build the cam unit. The company has achieved a time saving of 10 hours per die involving cam units, which translates to potentially exponential savings depending on the project. Teamcenter manages family of parts repository, resulting in another 10 hours saved per die for standard parts To date, Maruti Suzuki Die Shop has 75-80 family members in its standard parts library, enabling the quick creation of thousands of standard parts. The family of parts library is managed by Siemens Teamcenter, which connects people throughout the lifecycle with a single source of product and process knowledge. Maruti Suzuki Die Shops leveraging of a family of parts repository has resulted in additional important die development process efficiencies 10 hours saved per die for standard parts. Using the die design tools of NX and collaboration capabilities of Teamcenter through cloning, cam standardization and family of parts knowledge re-use weve realized significant time savings in the development cycle, says Santosh Kumar, deputy manager Die Design, Die Shop, Maruti Suzuki. Rework is dramatically down. Quality is up. Costs per die have decreased. Considering the number of brands we market, including 80 plus variants, we are quite excited about our opportunities for exceptional results from a continuously improving stamping operation. We are definitely headed in a very good direction. A vision for continuous die process improvement We plan to slash at least 50 percent off the draw die design cycle in the first year, then 60 percent within the next two to three years, says Vidur. We have a vision and we feel Siemens technology has much to offer to make it happen.

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For example, Maruti Suzuki Die Shop plans to move from the visual editing tools of NX to its powerful Knowledge Fusion capabilities, such as Product Template Studio, which a number of OEMs are already using. Maruti Suzuki Die Shops goal is to do the entire validation in a wholly integrated environment that includes forming simulation, dynamic kinematics simulation, etc. This would essentially eliminate the sometimes awkward and time-draining steps involved in transferring data through the initial graphics exchange specification (IGES), standard for the exchange of product model data (STEP) or other formats. As part of this new approach, the company is also evaluating the dynamic collision checking tools of Siemens to identify and eliminate any interference that may occur during die operations. The bill of materials (BOM) represents another item that Maruti Suzuki Die Shop wants to leverage for time and cost savings. Currently the designers manually enter each material item, including associated data, onto a spreadsheet a very time-consuming process. The plan is to generate the BOM automatically from the 3D models, says Vikram Kathula, deputy manager Die Design, Die Shop, Maruti Suzuki. While this will require some process change on our part, its part of our overarching plan. We have a vision for continuous improvement across our entire die design and related processes one that results in constant quality, time and cost improvements for our customers, partners and shareholders. "

ANALYSIS :
From the case study we can understand that MSIL has successfully upgraded with the best possible software . NX and Teamcentre are really the best software which the company can have for the production .The company first had ENagare which was a type of database then integrated system for production with parent company and now this two software's for the production process .

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5.3 CORPORATE RESTRUCTURING FOR CHANGE IN MANAGEMENT

MSIL made a big change this year in the management . This change is in management . The company is appointing new CEO and Managing Director . Kenichi Ayukawa as the new Managing Director and CEO of the company in place of Shinzo Nakanishi who is retiring this month. Mr Ayukawa takes over at a time when auto sales are declining amid rising cost and economic slowdown and Maruti faces tough competition. He will take over from April 1. Born in 1955, Mr Ayukawa, a law graduate from Osaka University, has handled several key assignments at Suzuki Motor Corporation, Japan and in the Group's overseas operations. He joined Suzuki Motor Corporation in 1980. Mr Ayukawa is currently Managing Executive Officer and Executive General Manager, Global Marketing at Suzuki Motor Corporation, Japan. The board of directors of the company at a meeting held today appointed Mr Ayukawa as the new Managing Director and Chief Executive Officer in place of Mr Nakanishi, the company said in a statement. He served as Managing Director of Pak Suzuki Motor Company from May 2004 to June 2008. Besides, he has been a Non-Executive Director on the Board of Maruti Suzuki India Ltd since July 2008. Mr Nakanishi had joined the Japanese auto giant Suzuki Motor Corporation's Indian subsidiary in 2007 and was re-appointed its Managing Director and CEO for three years in September 2010. The company will be paying the basic salary of Rs.1,06,00,000. In addition to Special salary of Rs.13,20,000. The company is expecting the best out of the new MD and CEO .

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6. CONCLUSION
To conclude with my project I would like to highlight the some points which I think that Maruti's strategy in all the areas is fantastic . They have well diversified business . They have good strategy for expansion , changes in product line , pricing , marketing.

When we look at their corporate restructuring policy for the change in process of production , Information technology up-gradation , change in management . They are functioning in full stream to avoid as much as pollution they can by making their products and production system eco friendly . They have also adopted a good IT system with the help of Siemens India . This software helps them in designing and commissioning the dyes on the cars . The company is also using ENagare which is a database which helps in maintaining data regarding dealers , supply chain , and customers ,

Lastly , one thing I have learnt from MSIL that you do not need a premium products to become a market leader you can only become if you have a products which attracts the common man . MSIL have been fantastic in doing this . Right from Maruti 800 to their new car Maruti Suzuki Stingray their concept to manufacture a car which is affordable , stylish and fuel efficient is maintained very well

Their share prices in the BSE is always higher than other companies in the auto sector . The shares of MSIL are always known for giving the highest return on investment .

This all is only possible because good and better strategic management and corporate restructuring policies .

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7.BIBLIOGRAPHY
Online sources
1. .WWW.MARUTISUZUKI.COM 2. WWW.WIKIPEDIA.COM/MARUTISUZUKI 3. WWW.BUSINESSTODAY.INDIATODAY.IN (official website of BUSINESS TODAY magazine) 4. WWW.BUSINESS-STANDARD.COM. (official website of BUSINESS STANDARD magazine) 5. WWW.CARWALE.COM 6. WWW.LIVEMINT.COM (official website of LIVEMINT newspaper) 7. WWW.CARTRADE.COM 8. WWW.SIEMENS.COM/CASESTUDIES 9. WWW.ZIGWHEEL.COM

Reference
1. ANNUAL REPORT OF MARUTI SUZUKI 2012-2013 2. ANNUAL REPORT OF MARUTI SUZUKI 2011-2012

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