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    MARUTI SUZUKI INDIA LIMITED

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    Introduction

    Maruti Udyog Limited (MUL) was established in February

    1981.

    First car rolled-off the assembly line on 14th December 1983. In september 2007 Maruti Udyog Limited was renamed Maruti

    Suzuki India Limited.

    Manufacturing facilities located at Gurgaon and Manesar.

    Current market share of around 45% Maruti Suzuki offers 12 models with over 100 variants.

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    Company at a glance

    Equity structure-54.21% Suzuki,45.79% with Fis, Public.

    Turnover-. Rs 301,198 million.

    Net Profit-Rs 24,976 million

    Domestic-highest ever sales: 870,970. Export-Highest ever sales: 147,575

    NO. 1 in customer satisfaction: for 10 consecutive years in JD

    power CSI survey

    NO. 1 in sales satisfaction: In JD power SSI survey Network- Sales outlet :802,cities :555

    R&D Centre: Procured 700 acres of land for the upcoming

    facility in rohtak

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    Maruti Suzuki facilities

    Gurgaon Facility: 300 acres, capacity 700,000 cars/annum

    Manesar Facility: 600 acres ,capacity 300,000 cars/annum

    Company is announced to expand its capacity by 250,000

    by 2011-2012.

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    Product portfolio

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    Market share

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    Sales Volumes

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    OFMARUTI SUZUKI

    DISTRIBUTION AND LOGISTICS

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    Distribution system

    Network- Sales outlet :802,cities :555

    Maruti Suzuki planning to increase sales outlet to

    1500 by 2015

    Suppliers-252

    Over 76% of the company's suppliers are located

    within 100 kms of radius.

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    From booking till dispatch

    Booking

    Company

    Dealer

    Consumer

    After sales

    service

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    Booking

    Online Booking at Maruti

    Suzuki showroom .

    Initial payment has to be

    made. Booking is made through

    DMS.

    Margins-approx. 5000 for

    small cars and around 8000

    for sedans.

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    Company

    Company comes to know about the booking through DMS

    which works on oracle platform.

    Based upon the demand and availability of the particularmodel of the car company gives the delivery date.

    Maruti crank out 4,600 cars on daily basis.

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    Supply chain

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    Suppliers

    Maruti has adopted Just In Time (JIT) approach to achieve

    higher operational efficiencies and reduce inventory carrying

    cost.

    Maruti strategically located the suppliers of bulky components

    such as instrument panels, fuel tanks, bumpers, seats, etc.adjacent to the company's manufacturing facilities in the

    Suppliers' Park.

    Maruti Suzuki has adopted the e-Nagare system of electronic

    flow This electronic flow is actually the sequence of production

    plans from the vendor to Maruti's shop floor.

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    Suppliers cont

    The company strictly receives their supplies ordered the

    previous night in a two hour slot the next day as compare to 30

    days earlier

    Maruti have a separate organization called Maruti Centre forExcellence (MACE) to give vendor advice.

    Maruti pays its supplier with in 7 days of receipt of materials.

    Suppliers:

    Subros supplies- AC component

    Denso Subros Starters, Wipers

    Asahi-Glass

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    Strategies Employed for the Suppliers

    Campaigns

    Incentives

    Quality improvement programs

    Quality audits

    Material management Education

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    Transporting

    Transportation cost is bear by both company and dealer on

    certain ratio basis.

    About 90% of the transportation is done by trucks

    Most efficient way of transportation is through Rail. One train with specially designed containers carry 240

    vehicles in two levels.

    From Manesar or Gurgaon plant to company yard in Mundra

    Port. From there, they are sent by sea to Kerala, Cochin orGoa.

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    Transportation conti

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    Transportation conti.

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    Warehousing

    Maruti has parking space for newly constructed cars its

    Manesar plant.

    Maruti is planning zonal stock yards to reduce transportation

    cost and waiting period for both cars and spare parts. Maruti (MSIL) to construct a huge stockyard at Butibori

    Industrial Estate, about 30 kms away from Nagpur.

    Bangalore has been earmarked in the South with an area of

    25 acres of land for a stockyard.

    Maruti Suzuki is scouting for a 25-acre plot near Kolkata to

    set up a stockyard that will serve the eastern region.

    Ahmedabad in west

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    Stock yard

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    Dealer

    When car reaches the showroom dealer notifies the consumer

    for taking the delivery.

    A person with business experience, financial depth and

    infrastructure/land (approx 4000sq. mtr.) Dealer should have the sufficient space for car display.

    Dealer needs to follow certain guidelines given by the

    company in terms of Recruitment of sales team and top

    executives.

    No. of sales team is decided by the Maruti Suzuki.

    Salary of the staff is paid by the dealer itself.

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    Selection and Training

    Sales persons and people working at lower level are selected

    by dealer it self.

    Top executives are first selected by dealer and later

    interviewed byMa

    ruti Suzuki people. Salary of top executives at dealer end are bear by both

    company and dealer.

    Dealer-Initial induction at dealer end and rest of the training is

    provided by the company.

    Training is provided by the inhouse team as well as from the

    people 0utside the company.

    Training is a continuous process atMaruti Suzuki.

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    After Sales service

    After sales service is provided by the dealer only.

    Spare parts are supplied by the company.

    Training to the mechanics is also provided by the company.

    Accessories that are put into the car are also supplied by thecompany.

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    Rural market

    Company has a separate channel for rural market.

    Company displays there product in the melas held in the rural

    market.

    Maruti Suzuki has appointed rural sales executives to targetremote areas that currently have no dealerships.

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    Thank you