DLM Maruti
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Transcript of DLM Maruti
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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