Equity Structure 54.21% Suzuki, 45.79% with FIs, Public
Turnover (07-08) Rs. 17,860 crore
Net Profit (07-08) Rs. 1,731 crore
Sales volume (07-08) 764,842 cars
Domestic car sales (07-08) 711,818 units
Car exports (07-08) 53,024 units
Market Share (07-08) 54.8% (Passenger Cars)
Cars produced and sold Over 70,00,000 (Seventy lakh)
(since inception)
Cars exported Over 5 lakh units, first car company in India to cross
(since inception) this milestone
Sales Outlets (07-08) 600 sales outlets in 393 towns and cities
Service Network (07-08) 2,628 workshops covering 1220 cities
Employees (07-08) 7,100
Models 12 models with over 100 variants
All plants capacity 1 million by 2010
(Capacity levels already achieved, much ahead of target date). Recently, Maruti Suzuki in India overtook parent Suzuki Motor Corporation by selling more units than what Suzuki sold in Japan.
The iconic Maruti 800: Sold 27,36,046 units since 14th Dec 1983 till Nov’08
Domestic 25,43,132 units,
Exports 1,92,914 units).
COPORATE MILESTONES
1981
February 24
- Maruti Udyog Ltd incorporated under the provisions of the Indian Companies ACT, 1956
1982
October 2
- License and Joint Venture agreement signed between Maruti Udyog Ltd. and Suzuki Motor Corporation (SMC) Japan
- Production under the JV flagged off
- Maruti sets up a network of dealers and workshops across the country before the launch to reassure customers about service support
- Maruti 800, a 796 cc hatchback, is India’s first affordable car
1983
December 14
- Maruti-800 launched (the Indian car industry was stagnating at a volume of 40,000 cars a year then. First car produced in record 13 months following JV)
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Excerpts from Mrs Indira Gandhi’s speech while inaugurating the Maruti factory in Gurgaon on Dec 14, 1983
. . . it is obvious that this factory’s presence here, will benefit tremendously to the people who live here, the state and the country. . . . .
. . .And it is my desire, that this motorcar will serve the ordinary people of India and they will have no complaint about this car.
I hope it will contribute in every aspect of the nation building and will serve the Indian people.
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1984
November
- Omni Launched
- Installed capacity reached 40,000 units
1985
December
- With the launch of Maruti Gypsy (970cc, 4WD off-road vehicle) Maruti lays the foundation of India’s globally competitive auto component industrial base
- Japanese concepts adopted companywide across functions
1986
September
- Reaches one-lakh vehicle production land-mark
1987
September
- First lot of 500 cars exported to Hungary
1988
March
- Installed capacity increased to 1 lakh units
1990
- Launches Maruti 1000, India’s first sedan (the three box car)
1991
March
- Reaches cumulative indigenization of 65 percent for all vehicles produced
1992
- SMC increases its stake in Maruti to 50 per cent
1993
October
- Zen (993 cc engine) is launched
1994
November
- Esteem (1298 cc engine) launched.
1995
March
- Installed capacity touches 2 lakh units
1996
April
- Reaches 1.5 million vehicle production land-mark
May
- Launch of 24-hour MOS emergency on-road vehicle service.
1997
- Produced the 2 millionth vehicle since the commencement of production
1999
July
- Launch of Maruti – Suzuki innovative traffic beat in Delhi and Chennai as part of social initiatives
December
- Plant 3 inaugurated; increases installed capacity to 350,000 vehicles
- Baleno and Wagon R launched
2000
March
- IDTR (Institute of Driving Training and Research) launched jointly with the Delhi government to promote safe driving habits
June
- IGNOU and Maruti sign MoU as partners in satellite based distance learning
August
- Altura, a luxury estate car is launched
September
- Alto is launched
October
- First car company in India to launch a Call Center
- Sales & Service Network spans 648 cities
2001
September- October
- Offers VRS to 1050 employees
October
- Versa launched
- Maruti True Value (for second-hand cars) launched
2002
February
- Children’s park inaugurated in Delhi (CSR Initiative)
May
- Suzuki Motor Corporation (SMC) acquires majority stake in MUL (increases to 54.2 %), pays Government of India a ‘control premium’ of Rs 1,000 crore
July
- Esteem Diesel launched
2003
March
- Highest ever sales of M800, over 20,000 units
April
- Maruti launches Grand Vitara
- Cumulative Production crosses 4 million mark
June
- IPO (June 12-19 – Issue oversubscribed 11.2 times)
July
- Maruti gets listed on BSE and NSE – (July 9)
October
- Offers second-round VRS to 1250 employees
2004
March
- Maruti clocks highest ever domestic monthly sales (44418)
- Maruti clocks highest ever monthly export sales (8282)
- Highest ever annual domestic and export sales (420947, 51175)
2005
April
- The fiftieth lakh car rolls out
2006
April
- WagonR Lx LPG launched
- Maruti rolls out first-of-its-kind ‘Loyalty cum Rewards Programme’ for its existing and new customers
July
- Maruti launched ‘Dil Se’ – a special programme for NRIs to facilitate gifting Maruti cars online to friends and relatives back home
November
- Maruti inaugurated a new Institute of Driving Training and Research (IDTR) set up as a collaborative project with Delhi Government at Sarai Kale Khan in South Delhi.
- New Zen Estilo launched
2007
January
- Swift Diesel launched on Jan 24, buys diesel technology from Adam Opel and Fiat
- Omni achieves one million sales landmark.
February
- Fourth assembly line and diesel engine plant launched at Mansear on Feb 6; investment of Rs 2,500 crore
March
- Alto becomes first car in India to cross 2 lakh domestic sales in a fiscal, achieves one lakh sales in five months flat
April
- Rural Scheme for Gram Panchayat launched under the title ‘Ghar Ghar Mein Maruti; Mera Sana Meri Maruti’
May
- SX4, luxury sedan, launched
July
- Maruti Udyog Limited becomes Maruti Suzuki India Limited
2008
March
- Launches Swift DZire
June
- Launches Maruti 800 Duo (LPG)
October
- Inaugurates new KB series engine plant
- Total capacity reaches one million units
November
- Launches A-star on Nov 19
Maruti nurturing Indian auto component industry
oMaruti Udyog Limited had set up a network of auto component makers, dealers and workshops across the country before the iconic Maruti 800 was launched.
oWhen the economy was liberalized and foreign investment allowed into India, the auto component companies set up and nurtured by MUL became the foundation for global car companies as well. The MNCs found an accomplished and experienced auto component industry, which encouraged FDI into India.
Maruti’s founders identified promising young entrepreneurs, supported them, guided them, secured collaborations with Japanese component makers and helped set up scores of units from scratch to manufacture car components.
Some of these component makers have become suppliers to other global auto giants today. Big names include Asahi Glass, Amtek Auto, Sona Steering, Subros, Jay Bharat Maruti.
Presently Maruti Suzuki enjoys a strong base of around 225 vendors and many of them are listed on stock exchanges.
The good relationship of Maruti Suzuki with its associates provides the company an edge over its competition. It gives the company the flexibility to cater to changes in market demand in minimum time.
Maruti and the Indian economy
From two car models – Fiat and Ambassador, 25 years ago, there are over 50 models produced by 12 manufacturers in India today.
The overall turnover of the Indian automobile industry is over Rs 1,50,000 crore.
Of the total employment in the country, the automobile industry constitutes 5.5% or over 5 lakh direct and 1 crore indirect employment.
Every new car that rolls out of a factory in India generates 5.3 jobs across the economy, says an ICRA study. The Indian auto Industry contributes 6% to the total industrial output of India and 17 % of total indirect taxes to the state exchequer.
Over the past 25 years, Maruti Suzuki alone has contributed around Rs 50,000 crore to the central exchequer.
India – A hub of small car
The economic growth brought by the Indian Auto Industry over the years led to the government’s vision to make India the hub of small car industry. The reduction in excise duty on small car is the first step towards the same.
All over the world, Suzuki is known for its know-how in producing small cars and this differential duty structure offers a major opportunity for Maruti Suzuki.
This initiative by the government has also attracted many global car manufacturers attention to India. Today, almost every big car major is present in the country, or is close to setting up shop in India.
Maruti in recent years
In February 2007, Maruti Suzuki inaugurated its two manufacturing facilities in Manesar– Maruti Suzuki’s fourth car assembly plant and Maruti Suzuki’s diesel engine plant,
With an investment of Rs. 2500 crores, the fourth car assembly plant is rated among the best Suzuki plants worldwide. The plant is future ready and is designed to produce world class vehicles.
It has started with a capacity of 100,000 cars per year, which would be scaled up to 300,000 cars by 2010. Maruti Suzuki also expects to begin export of about 200,000 cars per year and the new Manasar assembly plant will contribute majorly to this number.
Today, Maruti has changed the profile of the Indian market. Its transition from a follower to a leader – instead of car models reaching India after a launch abroad – India is now a platform for global model launches – Swift, SX4 and A-star are recent examples.
Maruti Suzuki: Spearheading an industrial revolution
Maruti Udyog Limited introduced new corporate practices, which came as a breath of fresh air for corporate India. Introduction of a common uniform across the management and the shop floor, setting up the common canteen or open offices were first-time examples of such a kind in the Indian context. It absolutely contradicted the stifling hierarchy of government companies and Indian-owned units.
Hundreds of employees, including villagers from Haryana who were working on the shop floor, were sent to Japan for first-hand training under Maruti’s policy of transfer of technology through people.
