joint venture on maruti suzuki

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JOINT VENTURE When Two organization may be private, government owned or a foreign company join together by a agreement on short term project or long term project is known as joint venture. Example = MARUTI SUZUKI HERO HONDA



Maruti Suzuki:

Maruti Suzuki Maruti Udyog Limited (MUL) : established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on Suzuki alto kei .   Maruti Udyog Limited was renamed as  Maruti Suzuki India Limited. (17 Sept. 2007,) The company's headquarters are located at “Plot no.1 Nelson Mandela Road, Vasant Kunj , New Delhi-110070. It has two plants for Manufacturing facility:- Gurgaon Manufacturing facility Manesar Manufacturing facility

Gurgaon Plant:

Gurgaon Plant Three fully integrated manufacturing plants Area: 900 Acres Manufacturing Capacity: 12,50,000 Vehicle annually (each 4 plant) Cars manufacturing : 800, Alto, Wagoner, Estilo, Omni, Gypsy and Eeco A-star, Swift, Swift Dzire, Ritz andSX4.



Maruti Suzuki India Ltd.:

Maruti Suzuki India Ltd. Maruti Suzuki is India and Nepal’s leading automobile manufacturing company. 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 BJP led 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. The 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 .

Joint venture:

Joint venture Relationship between the Government of India under the United Front (India) coalition and Suzuki Motor Corporation over the joint venture was a point of heated debate in the Indian media till Suzuki Motor Corporation gained the controlling stake. The success of the joint venture led Suzuki to increase its equity from 26% to 40% in 1987, and further to 50% in 1992. In 1982 both the venture partners had entered into an agreement to nominate their candidate for the post of Managing Director and every Managing Director will have a tenure of five years.


Cars Manufactured locally 800 (Launched 1983), Omni (Launched 1984), Gypsy (launched 1985), WagonR (Launched 2000), Alto (Launched 2000), Swift (Launched 2005) Estilo  (Launched 2009), SX4 (Launched 2007) Swift DZire  (Launched 2008), A-star (Launched 2008) Ritz (Launched 2009), Eeco  (Launched 2010) Alto K10(Launched 2010)


Contd.. Imported Suzuki Grand Vitara , Grand Vitara  (Launched 2007), Kizashi  (Launched 2011) Discontinued car models 1000 (1990–1994), Zen (1993–2006) Esteem (1994–2008), Baleno (1999–2007) Zen Estilo  (2006–2009), Versa (2001–2010) Grand Vitara XL7 (2003–2007)


Board of directors:

Board of directors Mr. Shinzo Nakanishi Managing Director and the CEO Mr. R.C. Bhargava Chairman, Board of Director Mr. OSAMU SUZUKI Director Mr. KENICHI AYUKAWA Director Mr. Amal Ganguli Director Mr. TSUNEO OHASHI Director & Managing Executive Ms. Pallavi Shroff Mr. MANVINDER SINGH BANGA Director Mr. DAVINDER SINGH BRAR Director Mr. SHUJI OISHI Director & Managing Executive Officer (Marketing & Sales)




PROMOTION Main promotion of car is done by the Advertising. The advertising is mainly done in the form of different T.V. channels, different newspaper, holdings etc. Now days the main promotion is done by the brand ambassadors such as film stars, celebrities, sportsmen, etc. And in this case they decide his actual or required sales forces for selling its car. And they maintain customer relationship. And they do direct marketing.


STRENGTH Contemporary technology Japanese Management practices After sale services Distribution Diversification & R&D WEAKNESS Still depends upon SUZUKI COPORATION 10% components are manufactured outside India Still considered as poor man’s brand Unaccustomed to international standards or keen competition.


first company to roll out suitably Designed cars before 2008 as per Govt.’s Proposal of new ethanol (renewable) Other companies lacks economy of scale Rising demand Untapped rural market THREAT Numbers of new Technology driven players and manufactures are in market Reduction in subsidies by government on petroleum products Changing environmental and emission norms Higher local taxes OPPURTUNITY

Sales & Services:

Sales & Services As of 31 st March 2011 Maruti Suzuki has 933 dealerships across 666 towns and cities in all states and union territories of India. It has 2,946 service stations (inclusive of dealer workshops and  Maruti Authorized Service Stations) in 1,395 towns and cities throughout India. It has 30 Express Service Stations on 30 National Highways across 1,314 cities in India.



Financials and Market Share:

Financials and Market Share Sales Turnover- 36299.74 (in crore) Net Profit- 2288.64 (in crore) Earning pr share - 79.21 Market Share- 50% (2010) Till March, 2011 Maruti Suzuki had 44.9% of Market share.



Market Share:

Market Share


Contd.. Name Revenue in Rs Crore Net Profit Margin Operating Margin Maruti Suzuki 37,522.4 8.34% 12.74% Tata Motors 28,738 6.96% 10.44% Hyundai 33,46,021 2.81% 4.09% Toyota 14,31,096 5.80% 8.64% Mahindra & Mahindra Ltd 30,150 10.34% 11.45% Honda 6,55,892 4.24% 7.94%

Competitors Analysis:

Competitors Analysis Year 2011 Unit Sales in Compact Segment Sales of Mid Size Sedans Maruti Suzuki 21185 Hyundai Verna 4357 Hyundai Motor Ind. 18908 Volks wagen Vento 2403 Tata Motors 8748 Maruti Suzuki sx4 2702 Ford 5608 Honda City 1828 Volks wagen 3486 Fiat Linea 845 General motors 2270 Skoda 1556 Nissan 1303



Maruti Insurance:

Maruti Insurance Launched in 2002 the two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited provides vehicle insurance to its customers with the help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram . Maruti created a land-mark in CRM by launching a website for the customers in the year 1998 Maruti is investing a lot of money and effort in building customer loyalty programmes .

Maruti Finance:

Maruti Finance 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 City 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, Sundaram and SBI to start this venture including its strategic partners in car finance. 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.

Maruti True Value:

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 Maruti True Value outlets.


Accessories 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 .

Maruti Driving School:

Maruti Driving School 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. Availability of easy finance On Road Service


SOCIAL RELATIONSHIP In 1999 Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai as social initiatives. Maruti Driving School-Available in all major cities. Lady trainer for lady customer. Institute of Driving Training and Research.


Exports Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Nepal, Srilanka , Uganda, Chile, Guatemala, Costa Rica and El Salvador are some of the markets served by Maruti Exports Ltd.



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