A Study on Maruti Suzuki India Limited BY GOPI KRISHNAN K KRUTHIKA M PRADEEP B RAKESH SOLANKI C ROHINI M
Jan 19, 2015
A Study on Maruti Suzuki India Limited
BYGOPI KRISHNAN K
KRUTHIKA MPRADEEP B
RAKESH SOLANKI CROHINI M
MARUTISUZUKI
INDIA LIMITED
COUNT ON US
AUTOMOBILE INDUSTRY
• Small• Other industries• Capital intensive• Production shift- Non-OECD regions
AUTOMOBILE INDUSTRY IN INDIA
• 11 million vehicles/year• 1.5 million- export• Two wheelers (75%)• Passenger Cars- 16%• Commercial vehicles (9%)• US $35 billion
MARUTI SUZUKI INDIA LIMITED
• February 1981• SMC Subsidy• 40% share• Mass production• 10 million cars-2012
SUBSIDIARY COMPANIES
• Maruti Insurance Business Agency Limited• Maruti Insurance Distribution Services
Limited• Maruti Insurance Agency Solutions Limited• Maruti Insurance Agency Network Limited• Maruti Insurance Agency Services Limited • Maruti Insurance Agency Logistics Limited Total income of` 457.7 million
FINANCE
• `1 43 412 Crore worth• Sales down 25%• 44.9% to 40%
•http://current-trends-now.com/2012/02/maruti-suzuki-sales-decline/•http://www.businessworld.in/businessworld/businessworld/content/Labour-Unrest-Costs- Maruti-Suzuki-Market-Share.html-0
PROFIT & LOSS RATIOS % TO NET SALES
P&L Ratios
0 10 20 30 40 50 60 70 80 90
PAT
Effective Tax rate (Tax/PBT)
PBT
Depriciation
Interest
EBDITA
Other Income
Selling & Distribution expenses
Manufacturing, Admin-istration & other ex-pensesRoyalty
Employee Cost
Material Cost
http://www.marutisuzuki.com/company-at-a-glance-newroom.aspx
NET SALES & PAT
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-2011
0
50000
100000
150000
200000
250000
300000
350000
400000
Net SalesPAT
http://www.marutisuzuki.com/company-at-a-glance-newroom.aspx
SALES TREND: IMPORT & EXPORT
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
0
200000
400000
600000
800000
1000000
1200000
Export VolumeDomestic Volume
http://www.marutisuzuki.com/company-at-a-glance-newroom.aspx
EXPORTS AND IMPORTS
EXPORTS
• Poland• Finland• Iceland• Malta• Switzerland• The Netherlands• Algeria• Italy
>Continued…• Over 120 countries• Entry Level models• "Top Exporter for the Year 2008-09"
IMPORTS
Two models• Kizashi• Grand Vitara (SUV)
MSIL New Model Development Trend
India Specific & Re-designed
India Manufactured & designed
Globally Manufactured & designed
Manufacturing India India Global
Market India Global Global
Design Suzuki existing model, modified to suit India
New design, new/existing platform
New design, new/existing platform
Automotive Mission Plan 2006-16- Conference, 2006
RAW MATERIALS USED
Composition
SteelPlasticAuminiumGlassElastomersFluidsCast IronOthers
Automotive Mission Plan 2006-16- Conference, 2006
TECHNOLOGICAL TRENDS
• Fuel efficiency • Light weight• CO2emissions• Performance• Safety• NVH isolation• Upholstery• Environment regulation compliant• Alternate fuels• Diesel
RESEARCH & DEVELOPMENT• Parallel to the vision• Product design• Engineering capability development• Cost management• Technology development
• Full body changes ingeniously• Full vehicle in-house• Training of engineers (overseas/in-house)• Test facilities up-gradation• Prototype build capability• Experimental projects
CURRENT MODELS OF MSIL
SMALL CAR SEGMENT• 800 (1983- present)• Omni (1984- present)• Zen (1993-2006)
Zen Estilo (2006-2010)• Wagon R (1999- present)• Alto (2000- present)
Alto K10 (2010- present)• Swift (2005- present)• A- Star (2008- present)• Ritz (2009- present)
SEDANS• 1000 (1990-94)• Esteem (1994- 2008)• Baleno (1999- 2007)• SX4 (2007- present)• Swift DZire (2008- present)• Kizashi (2011- present)
MULTI UTILITY VEHICLES (MUV)Versa (2001-10)Eeco (2010- present)Ertiga (Expected to be launched in mid 2012)
SPORTS UTILITY VEHICLES (SUV)Gypsy (1985- Now available on demand)Grand Vitara (2003- present)XA Alpha (To be launched in 2014)
CURRENT ISSUES
1.Response to globalized auto industry
2.Improved performance
3.Environmental impact
4. Labor unrest
http://business.techwhack.com/4654-maruti-elv/https://www.araiindia.com/facilities_NVH.asp
SWOT ANALYSIS STRENGTH
•STRONG NETWORK•PRESENCE•BRAND IMAGE•KNOWLEDGE OF THE MARKET•STRONG PARTNERSHIP
WEAKNESS
•RELATIVELY NEW IN THE DIESEL CAR SEGMENT•IMAGE STUCK ON SMALL CARS•HEAVY IMPORT TARIFFS ON IMPORTED MODELS
OPPURTUNITIES
•GROWING SMALL CAR MARKET•GOVERNMENT SUBSIDIES•INCREASE IN PURCHASING POWER OF INDIAN CUSTOMERS
THREAT
•GLOBAL PLAYERS•WORKER’S STRIKES•HIGH COMPETITION
BCG MATRIXSTAR
SWIFTSWIFT DZIRESX4
QUESTION MARK
KIZASHINEW GRAND VITARAEECO
CASH COW
ALTORITZWAGON R
DOG
800OMNIVERSAZEN ESTILO
DEALER NETWORK DETAILS
DEMAND FOR SMALL CAR
• Demand increasing
• Lower tax rates
• Encouraged to venture into small car segment
• Demand estimated 35%
Automotive Mission Plan 2006-16- Conference, 2006
THANK YOU