Report Maruti

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Maruti Suzuki India Limited is a publicly listed automaker in India. It is the largest automobile
manufacturer in South Asia. Suzuki Motor Corporation of Japan holds a majority stake in the
company. It was the first company in India to mass-produce and sell more than a million cars. It
is largely credited for having brought in an automobile revolution to India. It is the market leader
in India and on 17 September 2007, Maruti Udyog Limited was renamed Maruti Suzuki India
Limited. The company's headquarters are located in Delhi.

Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by
Suzuki of Japan. The Indian government held an initial public offering of 25% of the company in
June 2003. As of 10 May 2007, Govt. of India sold its complete share to Indian financial
institutions. With this, Govt. of India no longer has stake in Maruti Udyog.

The company annually exports more than 50,000 cars and has an extremely large domestic
market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest
selling compact car ever since it was launched in 1983. More than a million units of this car have
been sold worldwide so far. Currently, Maruti Suzuki Alto tops the sales charts and Maruti
Suzuki Swift is the largest selling in A2 segment.

Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of Delhi.
Maruti Suzuki¶s Gurgaon facility has an installed capacity of 350,000 units per annum. The
Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity
of 100,000 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
700,000 units annually.

More than half the cars sold in India are Maruti Suzuki cars. The company is a subsidiary of
Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti Suzuki. The rest is owned
by the public and financial institutions. It is listed on the Bombay Stock Exchange and National
Stock Exchange in India.

During 2007-08, 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, WagonR, Estilo, A-star, Ritz, Swift, Swift
DZire, SX4, Omni, Eeco, Gypsy, Grand Vitara. Swift, Swift DZire, A-star and SX4 are
manufactured in Manesar, Grand Vitara is imported from Japan as a completely built unit
(CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant.

Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for
three decades. Suzuki¶s technical superiority lies in its ability to pack power and performance
into a compact, lightweight engine that is clean and fuel efficient.

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.


"# $%

The Leader in the Indian Automobile Industry, Creating Customer Delight and Shareholder¶s
Wealth ; A pride of India.We believe our core values drive us in our every endeavour.

i‘ CUSTOMER OBSESSION
i‘ FAST , FLEXIBLE AND FIRST MOVER
i‘ INNOVATION AND CREATIVITY
i‘ NETWORKING AND PARTNERSHIP
i‘ OPENNESS AND LEARNING

"# $ & '

Maruti Suzuki's OVER 7 MILLION CARS


in India produced & sold cumulatively
SILVER JUBILEE YEAR

ABOVE 50% MARKET SHARE OVER 500,000 CARS


in passenger cars and van type exported cumulatively
vehicles for all 25 years

Rs. 12,187 MILLION 722, 144 DOMESTIC SALES


recorded profit after tax in 2008-09 in 2008-09, a growth of 1.5%

70,023 EXPORTS SALES Rs. 214,538 MILLION


in 2008-09, a growth of 32.1% total income in 2008-09,
a growth of 14.28%
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1). ): Making of blanks from steel coils. Steel coils are supplied by Bhushan
steel, Tata steel and SR steel. This account for 60% of the total requirement the rest 40% is
imported from Korea and Japan.

2). * Making of panels from blanks by presses. The dies which are required for
giving shape to the panels are imported from Japan.

3). +, -: Making of body parts chassis doors, roof from panels by spot welding.
There are more than 600 robots and automatic machines for welding. The completely welded
body is called white body.

4). #:

Cathode electro deposition: It is the first coat of paint on white body. The same
coat is applied on all types of cars.

Intermediate and top coat: This is the second and third coat on the white body
and can paint cars of all the colors simultaneously.

Heating zone: The body goes to an oven. Oven is of the length of approximately
3kms.s

Final inspection is done in the touch up line.

5). ,. : Assembling of different parts are done in 3 steps:

Trim line: Fitting of the higher components like wiring, ac, headlamp etc. it starts
with the removal of the doors to prevent scratches and increases productivity.

Chassis line: Fitting of the heavier components like engine, axle, break, fuel tanks
etc.

Final line: Fitting of seats, ac gas fillings and final adjustment.

6). ,: Various test like first appearance test, drum test, emission check, shower
test and final appearance test are carried out.

7). Hand over the car to sale and dispatch.


'$&' 

i‘ Coordination: the process was highly streamline and the good coordination among
various jobs results in a car being produced in every 16 secs.

i‘ Motivation: the lower level employees are given monthly incentives on the basis of
attendance. Various improvement charts are put up in the shop area so as to motivate
employees for further improvement.

i‘ Social activities: various steps are taken by maruti udyog ltd for the welfare of the society
like
NRSM: National road safety mission
IDTR: (international driving and training research) 60 driving schools have already being
established and by the end of the year they are targeting that the number be increased to
100.

i‘ Training: rigorous training of 2 years is given to the employers so that they can match the
company¶s expectations.

i‘ Perfection: The shop level employees have to work continually as the cars are continually
moving on the conveyer belt and workers have just a small span of time to complete a
particular task. The slight delay or error in one¶s task can lead to the problem in the whole
line of cars.

i‘ Innovation: they believe in the theory of continuous improvement and to do that they
come up with different innovative ideas.

i‘ Challenges: The company gives challenge 50 and challenge 20 kind of targets where the
concentration is on reducing the production cost to 50%.

i‘ Production strategy: Company makes sales projections quarterly and accordingly number
of units to be produced are automation system fortnightly.

i‘ Continous Improvement: They believe in Kaizen¶s theory which aims at continous


improvement in the process to reduce the production time.
!'

i‘ They should use more automated processes to reduce the man-labour time and also
increase the production level which would help meet the increasing demand of the
country.
i‘ The manufacturing areas should have proper sound-proof lunch rooms for the workers to
provide better working conditions.

&!
The industrial visit gave us a good exposure of the working conditions and processes involved in
manufacturing units. It was a great learning experience.

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