INDUSTRIAL VISIT TO MARUTI SUZUKI INDIA LIMITED

Submitted By:

Sachin Singal
MBA I yr
Introduction

I Sachin Singal of Bharati Vidyapeeth Institute of Management & Research visited to

Maruti Suzuki India Limited, gurgaon plant on 3rd july 2010.
I
Company profile

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 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.

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 kei car
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Hindustan Ambassador and Premier Padmini were both around 25 years out of date at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 Suzuki has produced over 5 Million vehicles. Maruti
Suzukis are sold in India and various several other countries, depending upon export
orders. Models similar to Maruti Suzukis (but not manufactured by Maruti Udyog) are
sold by Suzuki Motor Corporation and manufactured in Pakistan and other South Asian
countries.

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.

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, in India Hindu's lord Hanuman is known as "maruti", was
associated to the Maruti 800 model.

Maruti Suzuki has been the leader of the Indian car market for over two decades.

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

Objective of the Visit

The main objective of industrial visit is to know about the management being practiced in
the MSIL, how the people at MSIL manage their operations and how the resources are
managed. To know about the Supply system and the how the demand is met. To know
about whether the concepts, which are being taught in various business schools, are
applied in the real sense or not.

Interface of Academics and Industry

Interface of Academics and Industry refers to that point where the concepts that are
taught in management are applied in the Real business scenario. At MSIL, all the
management functions are being practised i.e. Planning, Organizing, Directing,
Staffing and Controlling. Without any of these it would not have been possible to achieve
quality and excellence in the working of MSIL.

Maruti Suzuki India Limited, practices various approaches i.e

KAIZEN: Zero Defect

(MSIL employees follow Kaizen approach repeat their processes or techniques till they
get the zero defect in the product)
TMS: Total management system
(The manpower of MSIL works as a team, the process of one member will affect the
work of other member)

Hence, We got to see whole lot of Management Concepts being practised in practical
functioning of the Organization.

Information

Process

BLANKING- This is the first step in the process of making cars. In this step plain sheets
of steel are cutted down with the help of machines. There are two cutters with a capacity
of 400 tons each.

STAMPING- After cuuting down the steel sheets they give various shapes to those
sheets according to different size and shapes of the cars.

WELDING- In this step, the shape of the car is defined by welding different components
formed in the previous stage. The various robotic machines are used to weld these
components.

PAINTING- In this step, firstly the car runs through the cathode electro deposition
which protects it from the rust. Then the actual painting is being done by the machines.
According to the commands given to them.

ASSEMBLING- The assembling portion is divided into three parts

1. TRIM LINE- In this line various small components are being attached manually
or with the help of machines. EG- components in the gates of a car, interior of a
car.

2. CHASIS LINE- In this line the large components of a car are being attached
manually or with the help of machines. EG- engine of a car

3. INSPECTION LINE- In this line inspection of a car is being done by experts with
the help of various equipments.EG- brakes of a car& pickup of a car is inspected.

After assembling the car is tested in the shower (15.82/cm2 pressure)

FINAL INSPECTION- This is the final step of the process of making a car. In this step,
an expert inspects a car thoroughly and gives the approval to a car.
The gurgaon plant is scattered in 297 acres of land. It employees 5000 workers. It has
three plants named 1,2,3 . We visited to plant 2 in which Alto, Estilo& Swift has been
manufactured. MSIL also runs various driving schools and it has a plan of opening
another 100 such schools which will teach more than 500,000 people to drive a car.

The sales of figures of previous years are given below:

SalesFigures

800000
700000
600000
500000
Sales 400000 777017 774738
667048
300000 540415 572097
470908
200000
100000
0
2003- 2004- 2005- 2006- 2007- 2008-
04 05 06 07 08 09
Financial Year

Observation

MSIL has its value system properly established and due to this it is able to maintain its
image in the mind of people. People working at MSIL are very dedicated towards their
work and they feel MSIL as their home and organizational goals as personal ones. The
people at MSIL are adequately remunerated, besides all this MSIL provides whole lot of
recreational and other facilities to its people, and hence they are very happy working
there.

Conclusions and Suggestions

Visit to MSIL was an amazing visit where the management functions were being
practised and it was a great experience going there. We can conclude that since MSIL has
a good image attached to it, thus it should try and maintain its image, because in today’s
time the people are more brand conscious and look for value for their money and hence
with such a great brand name established for them, it is a real advantage to them and with
this they can reach to new heights.