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Company Snapshot : Maruti Suzuki

  • Jun 5th, 2017

About the company:

  • Maruti suzuki started out in 1982 in Gurgaon, Haryana. Maruti Suzuki 800 was the first car model of the company, the same have also given a hit in the market
  • Today, Maruti Suzuki alone makes 1.5 million Maruti Suzuki family cars every year. That’s one car every 12 seconds. Maruti Suzuki makes cars that deliver great performance, efficiency and environment friendliness with low cost of ownership.  That’s what they call true value for money.
  • The drive is backed up by a nationwide service network spanning over 1500 cities and towns and a sales network that spreads across 1471 cities, 2 state of art factories, which together turn out 15 lakh cars annually.
  • The Company holds 46.8% market share in the Indian passenger vehicles market. The Company is listed on the BSE and NSE of India. SMC owns 56.21% equity stake in the Company.

Operations:

Operations

Leadership Team:

  • Chairman:  R. C. Bhargava
  • CEO: K. Ayukawa

Products: 15 car models with over 150 variants

Alto 800 Alto K10 Wagon R Celerio Swift
  DZire Ertiga Omni Eeco Gypsy
Grand Vitara Ciaz Vitara Brezza    

Services by Maruti:

Maruti Genuine Accesories Maruti Genuine Parts Maruti True Value
Maruti Auto Card Maruti Driving School Institutional Customers
N2n Leasing Maruti Insurance Maruti Finance

History:

  • 1909; Michio Suzuki founded the Suzuki Loom Works in Hamamatsu, Japan.
  • 1937; Suzuki had completed several compact prototype cars. These first Suzuki motor vehicles were powered by a then-innovative, liquid-cooled, four-stroke, four-cylinder engine. It had a cast aluminum crankcase and gearbox and generated 13 horsepower (9.7 kW) from a displacement of less than 800cc.
  • 1955; Suzuki created suzulight, which was sold with front-wheel drive, four-wheel independent suspension and rack-and-pinion steering, which were not common on cars until three decades later.
  • 1970; a private limited company named Surya Ram Maruti technical services private limited (MTSPL) formed in the aim  to provide technical know-how for the design, manufacture and assembly of "a wholly indigenous motor car".
  • 1971; Maruti ltd. company was formed under the companies act.
  • 1977; Maruti Limited went into liquidation.Maruti Udyog Ltd was incorporated through the efforts of Mr. V. Krishnamurthy, Chairman and MD, Maruti
  • 1981; Maruti & Suzuki came in a joint venture where Government of India and Suzuki Motor Corporation (SMC), Japan holds the ownership. 74% share hold by Government of India and rest 26% by Suzuki Ltd.
  • 2007; Government of India sold its complete share to Indian financial institutions and no longer has any stake in Maruti Udyog.And the name changed to Maruti Suzuki Limited from Maruti Udyog Limited.

Employee Base: 13,200

Revenue: Rs. 5,82,082  Million

5-year Performance Summary (` Mn):

 

FY12

FY13

FY14

FY15

FY16

FY16/15 
(% Change)

Net Sales

347,059

426,126

426,448

486,055

563,504

16

EBITDA

26,221

42,768

51,871

67,129

89,785

34

PBT

21,462

29,910

36,585

48,682

65,350

34

PAT

16,352

23,921

27,830

37,112

45,714

23

EPS (`)

57

79

92

123

151

23

Net Worth

151,874

185,789

209,780

237,042

270,071

14

Current Liabilities

65,466

68,280

81,381

88,213

112,900

28

Total Liabilities

71,148

81,091

96,217

98,451

121,885

24

Fixed Assets

84,626

117,414

134,118

141,421

137,747

-3

Current Assets

110,790

109,248

141,914

81,962

71,495

-13

Total Assets

223,022

266,880

305,997

335,493

391,956

17

Operating Cash Flow

25,599

43,011

49,036

63,207

84,331

33

Free Cash Flow

-4,031

5,693

14,109

31,720

58,519

84

Competitors:

Mahindra & Mahindra: Mahindra & Mahindra is an Indian automotive Company headquartered in Mumbai, India. M&M is a part of Mahindra Group which operates in over 100 countries world wide and have an employee base of 2,00,000 people. The group holds 20 industries under it conglomerate. M&M is one of India’s largest tractor Company as well as India’s largest Utility Vehicle manufacturer. M&M have the market capital of Rs.75,196 Crore as of March, 2016

M&M have recorded total sales of 4,94,096 vehicles (4,37,911 four-wheelers and 56,185 three-wheelers).  On domestic sales the Company sold a total of 4,58,065 vehicles  whereas in the Passenger Vehicle segment, the Company sold 2,36,307 vehicles [including 2,22,324 Utility Vehicles (UVs), 10,588 Vans and 3,395 Cars].

Hyundai: Hyundai Motor India Ltd is a wholly owned subsidiary of the Hyundai Motor Company in India. It is the second largest automobile manufacturer in India. In 2016, it recorded sales of 6,62,054 out of which 1,61,517 vehicles were exported and rest of 5,00,537 vehicles were sold domestically throughout the country. It is the second largest automobile seller after Maruti Suzuki.

Hyundai Motor Company is a South Korean multinational automotive manufacturer headquartered in Seoul, South Korea. It is one of the largest manufacturers of car.

Toyota: Toyota is one of the largest competitors of Maruti Suzuki. Here, Toyota is termed as Toyota Kirloskar Motor Pvt. Ltd. Both the company (Toyota Motors & Kirloskar Group) came in a joint venture on the year 1997, where Toyota holds a share of 89% and the rest 11% by Kirloskars’. The company has an employee strength of 7000+.

Toyota Kirloskar have recorded a revenue of Rs.14,030 crore in the year 2016 and a sale of 1,28,500 cars in the same year.

Toyota Motor Corporation is a Japanese multinational automotive manufacturer headquartered in Aichi, Japan. According to the reports of Forbes in 2016, Toyota is the world’s second largest automakers having 10,213, 486 units produced and 10,175,000 units being sold.

Market Share:

Market Share

Awards(in the FY 2015-16):

  •  R.C. Bhargava, Chairman was conferred the ‘Padma Bhushan’, the third highest civilian award for his contribution in the field of Public Affairs and ‘Lifetime Achievement Award’ at the prestigious Forbes India Leadership Awards 2015.
  • ‘Golden Peacock’ in automobile sector, ‘Excellent Sanitation and Toilet Project’, ‘Driving Safety’ and ‘Greentech Award’ in Corporate Social Responsibility.
  • ‘Manufacturer of the year’ by CNBC TV18 Overdrive, NDTV Car & Bike and Auto Car.

News:


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