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Maruti Suzuki India Ltd (532500-BY)Stock (Investing in India Industry)
[edit] ProfileMaruti Udyog (MARUTI), incorporated in 1983, is India`s largest automobile company. The company is a subsidiary of Suzuki Motor Corporation. The other activities of the company comprise facilitation of pre-owned car sales, fleet management and car financing. It is the market leader in the passenger car segment with a share of 60%. MARUTI has three fully-integrated production facilities in Gurgaon, Haryana with a combined capability of 500,000 units per annum. On an average, the company rolls out two vehicles from its factory every minute. The product range includes ten basic models with 50 variants. It has operations in over 100 cities with more than 150 outlets and also exports around 30,000 vehicles per annum to 50 countries. MARUTI has subsidiaries, namely, Maruti Insurance Brokers, Maruti Insurance Distribution Services, True Value Solutions, Maruti Insurance Agency Solutions, and Maruti Insurance Agency Network. During 2005, the company established a new company Maruti Suzuki Automobiles India in collaboration with Suzuki Motor Corporation for setting up a plant with a total investment of Rs 15,242 million. MARUTI has plans to manufacture diesel engines, petrol engines and transmission assemblies for four-wheelers in collaboration with Suzuki Powertrain India at an investment of Rs 17.5 billion. It is also planning to increase its purchase of steel from domestic companies to prune production cost and compensate for increase in steel pri Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. 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 May 10, 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog. 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 keicar 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car available in India, its' only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point.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 has produced over 5 Million vehicles. Marutis are sold in India and various several other countries, depending upon export orders. Cars similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki in Pakistan and other South Asian countries. The company annually exports more than 30,000 cars and has an extremely large domestic market in India selling over 500,000 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 Alto tops the sales charts. Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used to refer to this compact car model. Till recently the term "Maruti", in popular Indian culture, was associated to the Maruti 800 model. Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for over two decades. It’s manufacturing facilities are located at two facilities Gurgaon and Manesar south of New Delhi. Maruti’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 cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. 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 cars are on Indian roads since the first car was rolled out on December 14, 1983. Maruti Suzuki offers 10 models, ranging from the people’s car, Maruti 800, for less than Rs 200,000 ($ 5000) ex-showroom to the premium sedan SX 4 and luxury SUV, Grand Vitara. 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. Maruti is clearly an “employer of choice” for automotive engineers and young managers from across the country. Nearly 75,000 people are employed directly by Maruti and its partners. The company vouches for customer satisfaction. For its sincere efforts it has been rated (by customers)first in customer satisfaction among all car makers in India for seven years in a row in annual survey by J D Power Asia Pacific. Maruti Suzuki was born as a government company, with Suzuki as a minor partner, to make a people’s car for middle class India. Over the years, the product range has widened, ownership has changed hands and the customer has evolved. What remains unchanged, then and now, is Maruti’s mission to motorise India. |
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