MARUTI SUZUKI INDIA LTD.
 
  

 
 

 

SHARETIPSINFO >>Research Reports >> Maruti Research report (10-10-2008)

 

LISTING
BSE
CMP
Rs687.85
52 WEEK HIGH/LOW
Rs1248/Rs520.05
AVG VOL
919871

LATEST NEWS ON MARUTI:

Domestic sales stood at 64,682 units compared with 63,086 units in the same month a year ago, up 2.53%. Exports also grew 44.84% at 6,318 units, against 4,362 units in the corresponding month last year.
Sale of Model M800 dipped 33.6% at 3,467 units, against 5,221 units last year. The A2 segment (comprising Alto, Zen Estilo, Swift and Wagon R) sales stood at 45,621 units, against 46,216 units, registering a decline of 1 .29%.
The company managed to post a good growth of 51.75% in the A3 segment (consisting of SX4, Swift DZiRE and Esteem) at 7,413 units, against 4,885 units last year. MSI`s total passenger-car sales soared 1.99% to 63,917 units, against 62,672 units last year.

          
COMPANY OVERVEIW

Company was established in 80`s as a joint venture between Govt of India and Suzuki corporation as joint venture to manufacture cars in India. For decades Maruti ruled the Indian market. It became household name.
Post liberalization there is change in the perception of Government and GOI decided to divest its stake in the company.
GOI on May 14, 2002 set into motion big-ticket disinvestment in 2002-03 by announcing a two-stage process to exit from Maruti Udyog Ltd, a joint venture with Suzuki Motor Company.
Announcing the decision, Disinvestment Minister Arun Shourie said a Rs 400 crore rights issue to be completely picked up by Suzuki at Rs 3,280 per share will be accompanied by the Japanese auto major paying a control premium of Rs 1,000 crore for gaining a majority stake.
Hence Maruti Udyog ltd became the subsidiary of Suzuki Motors corporation, Japan. It was rechristened as Maruti Suzuki India Ltd.
GoI further diluted its stake in Maruti Suzuki India Ltd through IPO in 2003.The IPO was priced at Rs 125 by the Govt.


PRODUCT:


CARS

Maruti 800

  • Maruti 800 STD BS III
  • Maruti 800 AC BS III

Omni

  • 5 seater Maruti Omni
  • 8 seater Maruti Omni
  • LPG Maruti Omni

Maruti Alto

  • Alto
  • Alto Lx
  • Alto Lxi

Maruti Zen Estilo

  • Maruti Zen Estilo Lx
  • Maruti Zen Estilo Lxi
  • Maruti Zen Estilo Vxi

Wagon R

  • Wagon R Lx
  • Wagon R Lxi
  • Wagon R Vxi
  • Wagon R Ax
  • Wagon R Duo

Versa

  • 5 seater
  • 8 seater ( DX & DX2)

Maruti Esteem

  • Maruti Esteem Lx
  • Maruti Esteem Lxi
  • Maruti Esteem Vxi

Baleno

  • Baleno Sedan Vxi
  • Baleno Sedan Lxi

Swift

  • Swift Lxi
  • Swift Vxi
  • Swift Zxi

Maruti Gypsy

  • Hard top
  • Soft top

Maruti SX4

  • Maruti SX4 Vxi
  • Maruti SX4 Zxi

Maruti Zen Classic

Grand Vitara

  • Dzire 

MANUFACTURING FACILITY:

Company has two state of art manufacturing facility one in Gurgaon and other is in Manesar.
Gurgaon facility:

Gurgaon facility houses three fully integrated plants. While the three plants have a total installed capacity of 350000 cars per year. Several productivity improvements have enabled the company to manufacture nearly 700000 per year at the Gurgaon facility.
The entire facility is equipped with 150 robots out of which 71 have been developed in-house.
Manesar facility:

Manesar facility has been made to suit Suzuki Motor Corporation and Maruti Suzuki India Ltd global ambitions.
The plant was inaugurated in February 2007.The World class car derived from A –Star would be manufactured here.
At present the plant roll out Swift and DZire from this facility.
The Manesar plant is fourth car assembly plant and started with the initial capacity of 100000 cars per year, this will be scaled up to 300000 car per year by October 2008.
BRIEF HISTORY OF SUZUKI MOTOR CORPORATION:

Company started business in 1909 as Suzuki Loom Works, the firm was incorporated in 1920.During the World war two motorized bike ‘Power free’ which earned a good reputation was followed by 125 cc motorcycle ‘Colleda’, and later by the pioneering ‘Suzulight’ lightweight car that helped Japan’s automotive revolution.
Today, Suzuki name is seen on a full range of motorcycles, automobiles, outboard motors and related products such as generator and motorized wheelchairs.
INDUSTRY OUTLOOK:
Despite the rising interest and increase in the price of the commodity auto industry has performed pretty well. The reason for the outperformance of auto industry can be attributed to the following:
First most of the auto major launched several new product in the past few month while withdrawing old ones, which has spurred the replacement cycle.
Second the auto industry which declined sharply in 2007-08 showing recovery.


              Industry growth rate:

2007-08

2008-09(April-August)

-4.7%

9.7%

Quarterly sales performance


COMPANY STRATEGY TO BOOST SALES:


Maruti Suzuki India Ltd. (MSIL) is doing several innovative things to prop up sales and manage the downturn in the industry.

  • MSIL is undertaking a ‘one gram, one component’ strategy to bring down the weight as well as material cost on its vehicles.
  • Plans to stretch its capital expenditure over a longer period.
  • The company is taking new route for marketing its product like use of internet, using social network and video sharing services .This way is cost effective as compared to the conventional way of marketing.
  • MSIL is organizing car melas to ride on expected strong rural demand.
  • There is renewed thrust on export. Depreciation of rupee against dollar has made the product competitive in the world market.
  • In order to generate the consumer interest ,MSIL has launched DZire few months back ,which is selling like hotcake; later this year, the company will roll out the A-Star and Splash, two new cars in the small –car segment.

MARUTI SUZUKI SALES SEGMENT WISE

 

 

Maruti Report // Page 2

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