Long Term Buy Call For Maruti Suzuki

Long Term Buy Call For Maruti SuzukiCompany overview— Maruti Suzuki India was established to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system according to the company act – 1956, in 1981. Suzuki Motor Company was chosen by the government of India, from seven prospective partners worldwide to form a joint venture. This was due not only to their undisputed leadership in small cars but also to their commitment to actively bring the modern technology and Japanese management practices.

A license and a Joint Venture agreement were signed between Govt. of India and Suzuki Motor Corporation of Japan in Oct 1982. Main objective to form the company were the Modernization of the Indian Automobile Industry, Production of fuel-efficient vehicles to conserve scarce resources and production of large number of motor vehicles that was necessary for economic growth of India. In 2001, company became one of the first automobile companies in the world to get an ISO 9000:2000 certification.

AV Belgium, global auditors for International Organization for Standardizations (ISO), certified Maruti after a detailed study on parameters like Customer Focused organization, Leadership, Involvement of people, Process approach, System approach to Management, Continual improvement. Company also has the world class certification of TS16949: 2002 standard for its Quality Management System of its Press Shop & associated functions.

In aug 2009, company got possession of 700 acres of land at Rohtak, allotted to it by the Haryana government for a major research and development hub at the Industrial Model Township, 70 km from Delhi. The centre is slated to become Suzuki’s largest R&D centre outside Japan. Of the allotted area, 100 acres will house the company’s auto parts suppliers, while the rest will house the R&D units and the test tracks. The first phase of the R&D centre will be completed in 2012 and the second phase in 2015. Maruti paid around Rs 5 billion to purchase the land.

Products & services— Company is the undisputed leader in the passenger vehicles market with over 54% market share. Company has a wide range, design and specification in its products to cater different class of customers. Company has the range of following models - 800, Alto, Gypsy, Omni, Swift, Versa, Wagon R, Estilo, A-star, Ritz, SX4, Dzire and Grand vitara. Maruti Suzuki has two state-of-the-art manufacturing facilities in India.

The first facility is at Gurgaon spread over 300 acres and the other facility is at Manesar, spread over 600 acres in North India. Maruti Suzuki's facility in Gurgoan houses three fully integrated plants. Several productivity improvements over the years have enabled the company to manufacture nearly 700,000 cars/ annum at the Gurgaon facilities.

The entire facility is equipped with more than 150 robots, out of which 71 have been developed in-house. Gurgaon facility also produces next generation “K” series engines with an installed annual capacity of 240,000 engines and was commissioned in 2008. Spread over an area of 20,300 Square meter, the ‘K' family engine facility is part of the Rs 9,000 crore investment plan drawn by Maruti Suzuki and Suzuki Motor Corporation. The next generation “K” engine is highly fuel efficient, while offering the best in refinement and performance.

Manesar facility has been made to suit Suzuki Motor Corporation (SMC) and Maruti Suzuki India Limited's (MSIL) global ambitions. The plant was inaugurated in February 2007. At present the plant rolls out World Strategic Models Swift, A-star & SX4 and DZire. The plant has several in-built systems and mechanisms. There is a high degree of automation and robotic control in the press shop, weld shop and paint shop to carry on manufacturing work with acute precision and high quality. Diesel Engine Plant- Suzuki Powertrain India Limited:

Suzuki Powertrain India Limited the diesel engine plant at Manesar is SMC's & Maruti's first plant designed to produce world class diesel engine and transmissions for cars. The plant is under a joint venture company, called Suzuki Powertrain India Limited (SPIL) in which SMC holds 70 per cent equity the rest is held by MSIL. This facility has a capacity to manufacture 300,000 diesel engines a year.