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MARUTI SUZUKI INDIA LIMITED, formerly known as MARUTI UDYOG LIMITED, is an automobile manufacturer in India
India
. It is a 56.21%-owned subsidiary of Japanese automobile and motorcycle manufacturer Suzuki Motor Corporation . As of January 2017 , it had a market share of 51% of the Indian passenger car market. Maruti Suzuki
Suzuki
manufactures and sells popular cars such as the Ciaz , Ertiga , Wagon R , Alto , Swift , Celerio , Swift Dzire , Omni , Baleno and Baleno RS , Ignis . The company is headquartered at New Delhi
New Delhi
. In February 2012, the company sold its ten millionth vehicle in India.

CONTENTS

* 1 History

* 1.1 Chronology

* 2 Joint venture related issues * 3 Manufacturing facilities

* 4 Industrial relations

* 4.1 Manesar violence

* 5 Products and services

* 5.1 Current models * 5.2 Discontinued models * 5.3 Sales and service network * 5.4 NEXA * 5.5 Maruti Insurance * 5.6 Maruti Finance * 5.7 Maruti TrueValue * 5.8 N2N Fleet Management * 5.9 Maruti Accessories * 5.10 Maruti Driving School

* 6 Awards and recognition * 7 See also * 8 References and notes * 9 External links

HISTORY

Logo of Maruti Udyog

Maruti was established in February 1981 by Sanjay Gandhi on Background of Government of India
India
though the actual production commenced only in 1983. It started with the Maruti 800, based on the Suzuki
Suzuki
Alto kei car . As of May 2007 , the Government of India, through Ministry of Disinvestment, sold its complete share to Indian financial institutions and no longer has any stake in Maruti Udyog.

CHRONOLOGY

Under the Maruti name

In 1970, a private limited company named Surya Ram Maruti technical services private limited (MTSPL) was launched on November 16, 1970. The stated purpose of this company was to provide technical know-how for the design, manufacture and assembly of "a wholly indigenous motor car". In June 1971, a company called Maruti limited was incorporated under the Companies Act. Maruti Limited went into liquidation in 1977. Maruti Udyog Ltd was incorporated through the efforts of Dr V. Krishnamurthy. Affiliation with Suzuki
Suzuki

In 1982, a license "> In 1987, the company started exporting to the West, when a lot of 500 cars were sent to Hungary. By 1988, the capacity of the Gurgaon plant was increased to 100,000 units per annum. Market liberalisation

In 1989, the Maruti 1000 was introduced and the 970 cc, three-box was India’s first contemporary sedan . By 1991, 65 percent of the components, for all vehicles produced, were indigenized. After liberalization of the Indian economy in 1991, Suzuki
Suzuki
increased its stake in Maruti to 50 percent, making the company a 50-50 JV with the Government of India
India
the other stake holder.

In 1993, the Zen , a 993 cc, hatchback was launched and in 1994 the 1298 cc Esteem was introduced. Maruti produced its 1 millionth vehicle since the commencement of production in 1994. Maruti's second plant was opened with annual capacity reaching 200,000 units. Maruti launched a 24-hour emergency on-road vehicle service. In 1998, the new Maruti 800 was released, the first change in design since 1986. Zen D , a 1527 cc diesel hatchback and Maruti's first diesel vehicle and a redesigned Omni were introduced. In 1999, the 1.6 litre Maruti Baleno three-box saloon and Wagon R were also launched.

In 2000, Maruti became the first car company in India
India
to launch a Call Center for internal and customer services. The new Alto model was released. In 2001, Maruti True Value , selling and buying used cars was launched. In October of the same year the Maruti Versa
Maruti Versa
was launched. In 2002, Esteem Diesel was introduced. Two new subsidiaries were also started: Maruti Insurance Distributor Services and Maruti Insurance Brokers Limited. Suzuki
Suzuki
Motor Corporation increased its stake in Maruti to 54.2 percent.

In 2003, the new Suzuki
Suzuki
Grand Vitara XL-7 was introduced while the Zen and the Wagon R were upgraded and redesigned. The four millionth Maruti vehicle was built and they entered into a partnership with the State Bank of India
India
. Maruti Udyog Ltd was Listed on BSE and NSE after a public issue, which was oversubscribed tenfold. In 2004, the Alto became India's best selling car overtaking the Maruti 800 after nearly two decades. The five-seater Versa 5-seater, a new variant, was created while the Esteem was re-launched. Maruti Udyog closed the financial year 2003-04 with an annual sale of 472,122 units, the highest ever since the company began operations and the fiftieth lakh (5 millionth) car rolled out in April 2005. The 1.3 L Suzuki
Suzuki
Swift five-door hatchback was introduced in 2005.

In 2006 Suzuki
Suzuki
and Maruti set up another joint venture, "Maruti Suzuki
Suzuki
Automobiles India", to build two new manufacturing plants, one for vehicles and one for engines. Cleaner cars were also introduced, with several new models meeting the new "Bharat Stage III " standards. In February 2012, Maruti Suzuki
Suzuki
sold its ten millionth vehicle in India. For the Month of July 2014, it had a Market share of >45 %.

JOINT VENTURE RELATED ISSUES

Relationship between the Government of India, under the United Front (India) coalition and Suzuki
Suzuki
Motor Corporation over the joint venture was a point of heated debate in the Indian media until Suzuki
Suzuki
Motor Corporation gained the controlling stake. This highly profitable joint venture that had a near monopolistic trade in the Indian automobile market and the nature of the partnership built up till then was the underlying reason for most issues. The success of the joint venture led Suzuki
Suzuki
to increase its equity from 26% to 40% in 1987, and to 50% in 1992, and further to 56.21% as of 2013. In 1982, both the venture partners entered into an agreement to nominate their candidate for the post of Managing Director and every Managing Director would have a tenure of five years

MANUFACTURING FACILITIES

Maruti Suzuki
Suzuki
has three manufacturing facilities in India. All manufacturing facilities have a combined production capacity of 1,700,000 vehicles annually. The Gurugram
Gurugram
manufacturing facility has three fully integrated manufacturing plants and is spread over 300 acres (1.2 km2). The Gurgaon facilities also manufacture 240,000 K-Series engines annually. The Gurgaon Facilities manufactures the Alto 800 , WagonR , Omni , Gypsy King , Ertiga , S-Cross , Vitara Brezza , Ignis and Eeco .

The Manesar manufacturing plant was inaugurated in February 2007 and is spread over 600 acres (2.4 km2). Initially it had a production capacity of 100,000 vehicles annually but this was increased to 300,000 vehicles annually in October 2008. The production capacity was further increased by 250,000 vehicles taking total production capacity to 800,000 vehicles annually. The Manesar Plant produces the Alto 800 , Alto K10 , Swift , Swift DZire , Ciaz , Baleno , Baleno RS and Celerio . On 25 June 2012, Haryana State Industries and Infrastructure Development Corporation demanded Maruti Suzuki
Suzuki
to pay an additional Rs 235 crore for enhanced land acquisition for its Haryana plant expansion. The agency reminded Maruti that failure to pay the amount would lead to further proceedings and vacating the enhanced land acquisition. The launch of the Desire was happened in the month of May 2017 and the variant is said to have good milage

The Gujarat
Gujarat
manufacturing plant became operational in February 2017. The plant current capacity is about 250,000 units per year. But with new investments Maruti Suzuki
Suzuki
has plan to take it to 450,000 units per year.

In 2012, the company decided to merge Suzuki
Suzuki
Powertrain India
India
Limited (SPIL) with itself. SPIL was started as a JV by Suzuki
Suzuki
Motor Corp. along with Maruti Suzuki. It has the facilities available for manufacturing diesel engines and transmissions. The demand for transmissions for all Maruti Suzuki
Suzuki
cars is met by the production from SPIL.

INDUSTRIAL RELATIONS

Since its founding in 1983, Maruti Udyog Limited has experienced problems with its labour force. The Indian labour it hired readily accepted Japanese work culture and the modern manufacturing process. In 1997, there was a change in ownership, and Maruti became predominantly government controlled. Shortly thereafter, conflict between the United Front Government and Suzuki
Suzuki
started. In 2000, a major industrial relations issue began and employees of Maruti went on an indefinite strike, demanding among other things, major revisions to their wages, incentives and pensions.

Employees used slowdown in October 2000, to press a revision to their incentive-linked pay. In parallel, after elections and a new central government led by NDA alliance , India
India
pursued a disinvestment policy. Along with many other government owned companies, the new administration proposed to sell part of its stake in Maruti Suzuki
Suzuki
in a public offering. The worker's union opposed this sell-off plan on the grounds that the company will lose a major business advantage of being subsidised by the Government, and the union has better protection while the company remains in control of the government.

The standoff between the union and the management continued through 2001. The management refused union demands citing increased competition and lower margins. The central government privatized Maruti in 2002 and Suzuki
Suzuki
became the majority owner of Maruti Udyog Limited.

MANESAR VIOLENCE

On 18 July 2012, Maruti's Manesar plant was hit by violence. According to Maruti management. The production workers at one of its auto factories attacked supervisors and started a fire that killed a company General Manager of Human Resources Avineesh Dev and injured 100 other managers, including two Japanese expatriates. The workers also allegedly injured nine policemen. However Maruti Suzuki
Suzuki
Workers Union (MSWU) President Sam Meher alleged that management ordered 300 hired security guards to attack the workforce during the violence. The incident is the worst-ever for Suzuki
Suzuki
since the company began operations in India
India
in 1983.

Since April 2012, the Manesar union had demanded a three-fold increase in basic salary, a monthly conveyance allowance of ₹ 10,000, a laundry allowance of ₹ 3,000, a gift with every new car launch, and a house for every worker who wants one or cheaper home loans for those who want to build their own houses. According to the Maruti Suzuki
Suzuki
Workers Union a supervisor had abused and made discriminatory comments to a low-caste worker, Jiya Lal,. These claims were denied by the company and the police. Maruti said the unrest began, not over wage discussions, but after the workers' union demanded the reinstatement of Jiya Lal who had been suspended for allegedly beating a supervisor. The workers claim harsh working conditions and extensive hiring of low-paid contract workers which are paid about $126 a month, about half the minimum wage of permanent employees. On 27 June, 2013, an international delegation from the International Commission for Labor Rights (ICLR) released a report alleging serious violations of the industrial right of workers by the Maruti Suzuki
Suzuki
management . Company executives denied harsh conditions and claim they hired entry-level workers on contracts and made them permanent as they gained experience. Maruti employees currently earn allowances in addition to their base wage.

The police, in its First Information Report (FIR), claimed on 21 July that Manesar violence is the result of a planned violence by a section of workers and union leaders and arrested 91 people. Maruti Suzuki in its statement on the unrest, announced that all work at the Manesar plant has been suspended indefinitely. The shut down of Manesar plant is leading to a loss of about Rs 75 crore per day. On 21 July 2012, citing safety concerns, the company announced a lockout under The Industrial Disputes Act, 1947 pending results of an inquiry the company has requested of the Haryana government
Haryana government
into the causes of the disorder. Under the provisions of The Industrial Disputes Act for wages, the report claimed, employees are expected to be paid for the duration of the lockout. On 26 July 2012, Maruti announced employees would not be paid for the period of lock-out in accordance with Indian labour laws . The company further announced that it will stop using contract workers by March 2013. The report claimed the salary difference between contract workers and permanent workers has been much smaller than initial media reports – the contract worker at Maruti received about ₹ 11,500 per month, while a permanent worker received about ₹ 12,500 a month at start, which increased in three years to ₹ 21,000-22,000 per month. In a separate report, a contractor who was providing contract employees to Maruti claimed the company gave its contract employees the best wage, allowances and benefits package in the region.

Shinzo Nakanishi, managing director and chief executive of Maruti Suzuki
Suzuki
India, said this kind of violence has never happened in Suzuki Motor Corp's entire global operations spread across Hungary, Indonesia, Spain, Pakistan, Thailand, Malaysia, China and the Philippines. Mr. Nakanishi apologised to affected workers on behalf of the company, and in press interview requested the central and Haryana state governments to help stop further violence by legislating decisive rules to restore corporate confidence amid emergence of this new 'militant workforce' in Indian factories. He announced, "we are going to de-recognise Maruti Suzuki
Suzuki
Workers’ Union and dismiss all workers named in connection with the incident. We will not compromise at all in such instances of barbaric, unprovoked violence." He also announced Maruti plans to continue manufacturing in Manesar, that Gujarat
Gujarat
was an expansion opportunity and not an alternative to Manesar.

The company dismissed 500 workers accused of causing the violence and re-opened the plant on 21 August, saying it would produce 150 vehicles on the first day, less than 10% of its capacity. Analysts said that the shutdown was costing the company 1 billion rupees ($18 million) a day and costing the company market share. In July 2013, the workers went on hunger strike to protest the continuing jailing of their colleagues and launched an online campaign to support their demands.

A total of 148 workers were charged with the murder of Human Resources Manager Avineesh Dev. The court dismissed charges against 117 of the workers. On 17 March 2017, 31 workers were found guilty of variety of offences. 18 were convicted on charges of rioting, trespassing, causing hurt and other related offences under Indian Penal Code sections. The remaining 13 workers were sentenced to life in imprisonment after being found guilty of the murder of General Manager of Human Resources Avineesh Dev. Twelve of the thirteen sentenced were office-bearers of the Maruti Suzuki
Suzuki
Workers Union at the time of the alleged offences. The prosecution had sought the death penalty for the thirteen.

Both prosecution and defence have announced they will appeal the sentences. Defence counsel Vrinda Grover stated, “We will file appeals against all convictions in the HC. The evidence, as it stands, cannot withstand legal scrutiny. There is no evidence to link these workers to the murder. The 13 who have been convicted, it’s important to remember that they were the leaders of the union. Therefore, it is clear that this is targeted framing of these persons. We hope for justice in the superior court.”

The Maruti Suzuki
Suzuki
Workers Union is continuing to organise industrial action and protests calling for the workers to be released and criticising the judgement and sentences an unjust. An international appeal for the release of the workers has been made by the International Committee for the Fourth International (ICFI) and other organisations such as the Peoples Alliance for Democracy and Secularism.

PRODUCTS AND SERVICES

CURRENT MODELS

MODEL LAUNCHED CATEGORY IMAGE

Omni 1984 Minivan
Minivan

Gypsy King 1985 SUV

WagonR 1999 Hatchback
Hatchback

Swift 2005 Hatchback
Hatchback

Swift DZire 2008 Sedan

Eeco 2009 Minivan
Minivan

K10 2010 Hatchback
Hatchback

Ertiga 2012 Mini MPV

Alto 800 2012 Hatchback
Hatchback

Celerio 2014 Hatchback
Hatchback

Ciaz 2014 Sedan

Baleno 2015 Hatchback
Hatchback

S-Cross 2015 Mini SUV

Vitara Brezza 2016 Mini SUV

Ignis 2017 Hatchback
Hatchback

Baleno RS 2017 Hatchback
Hatchback

DISCONTINUED MODELS

MODEL LAUNCHED DISCONTINUED CATEGORY IMAGE

800 1983 2012 Hatchback
Hatchback

Gypsy E 1985 2000 SUV

1000 1990 2000 Sedan

Zen Zen Classic 1993 2006 Hatchback
Hatchback

Esteem 1994 2008 Sedan

Baleno 1999 2007 Sedan

Alto 2000 2012 Hatchback
Hatchback

Versa 2001 2010 Minivan
Minivan

Grand Vitara XL7 2003 2007 Mini SUV

Grand Vitara 2007 2015 Mini SUV

Zen Estilo 2007 2013 Hatchback
Hatchback

A-star 2008 2014 Hatchback
Hatchback

SX4 2008 2014 Sedan

Ritz 2009 2016 Hatchback
Hatchback

Kizashi 2011 2014 Sedan

SALES AND SERVICE NETWORK

Car showroom near Eluru

Maruti Suzuki
Suzuki
has 1,820 sales outlets across 1,471 cities in India. The company aims to double its sales network to 4,000 outlets by 2020. It has 3,145 service stations across 1,506 cities throughout India. Maruti’s dealership network is larger than that of Hyundai, Mahindra, Honda, Tata, Toyota
Toyota
and Ford combined. Service is a major revenue generator of the company. Most of the service stations are managed on franchise basis, where Maruti Suzuki
Suzuki
trains the local staff. Other automobile companies have not been able to match this benchmark set by Maruti Suzuki. The Express Service stations help many stranded vehicles on the highways by sending across their repair man to the vehicle.

NEXA

In 2015 Maruti Suzuki
Suzuki
launched NEXA, a new dealership format for its premium cars.

Maruti currently sells the Baleno, Baleno RS , S-Cross , Ciaz and Ignis through NEXA outlets. S-Cross was the first car to be sold through NEXA outlets. Several new models will be added to both channels as part of the Company’s medium term goal of 2 million annual sales by 2020.

MARUTI INSURANCE

Launched in 2002 Maruti Suzuki
Suzuki
provides vehicle insurance to its customers with the help of the National Insurance Company, Bajaj Allianz, New India
India
Assurance and Royal Sundaram. The service was set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and Insurance Brokers Pvt. Limited

This service started as a benefit or value addition to customers and was able to ramp up easily. By December 2005 they were able to sell more than two million insurance policies since its inception.

MARUTI FINANCE

To promote its bottom line growth, Maruti Suzuki
Suzuki
launched Maruti Finance in January 2002. Prior to the start of this service Maruti Suzuki
Suzuki
had started two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan. Maruti Suzuki
Suzuki
tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic partners in car finance. Again the company entered into a strategic partnership with SBI in March 2003 Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently available in 166 cities across India.

Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India
India
and Maruti Udyog Limited its primary business stated by the company is "hire-purchase financing of Maruti Suzuki
Suzuki
vehicles". Citi Finance India
India
Limited is a wholly owned subsidiary of Citibank Overseas Investment Corporation, Delaware
Delaware
, which in turn is a 100% wholly owned subsidiary of Citibank N.A. Citi Finance India
India
Limited holds 74% of the stake and Maruti Suzuki
Suzuki
holds the remaining 26%. GE Capital, HDFC and Maruti Suzuki
Suzuki
came together in 1995 to form Maruti Countrywide. Maruti claims that its finance program offers most competitive interest rates to its customers, which are lower by 0.25% to 0.5% from the market rates.

MARUTI TRUEVALUE

Maruti True service offered by Maruti Suzuki
Suzuki
to its customers. It is a market place for used Maruti Suzuki
Suzuki
Vehicles. One can buy, sell or exchange used Maruti Suzuki
Suzuki
vehicles with the help of this service in India. As of 1 July 2016 there are 1040 outlets.

N2N FLEET MANAGEMENT

N2N is the short form of End to End Fleet Management and provides lease and fleet management solution to corporates. Clients who have signed up of this service include Gas Authority of India
India
Ltd , DuPont , Reckitt Benckiser , Doordarshan , Singer India, National Stock Exchange of India
India
and Transworld. This fleet management service include end-to-end solutions across the vehicle's life, which includes Leasing, Maintenance, Convenience services and Remarketing.

MARUTI ACCESSORIES

Many of the auto component companies other than Maruti Suzuki
Suzuki
started to offer components and accessories that were compatible. This caused a serious threat and loss of revenue to Maruti Suzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps, stereo systems, seat covers and other car care products. These products are sold through dealer outlets and authorized service stations throughout India.

MARUTI DRIVING SCHOOL

A Maruti Driving School in Bangalore
Bangalore

As part of its corporate social responsibility Maruti Suzuki
Suzuki
launched the Maruti Driving School in Delhi. Later the services were extended to other cities of India
India
as well. These schools are modelled on international standards, where learners go through classroom and practical sessions. Many international practices like road behaviour and attitudes are also taught in these schools. Before driving actual vehicles participants are trained on simulators.

At the launch ceremony for the school Jagdish Khattar stated "We are very concerned about mounting deaths on Indian roads. These can be brought down if government, industry and the voluntary sector work together in an integrated manner. But we felt that Maruti should first do something in this regard and hence this initiative of Maruti Driving Schools."

AWARDS AND RECOGNITION

The Brand Trust Report published by Trust Research Advisory, a brand analytics company, has ranked Maruti Suzuki
Suzuki
in the thirty seventh position in 2013 and eleventh position in 2014 among the most trusted brands of India.

Viewers' Choice Car of the Year published by CNBC-TV18 OVERDRIVE, Overdrive is Indias No.1 Auto Publication for Cars and Bikes in India, has awarded Maruti Suzuki
Suzuki
Baleno the Viewers' Choice Car of the Year 2016

SEE ALSO

* Companies portal * Cars portal

* Cars in India
India
* Automobile industry in India
India

REFERENCES AND NOTES

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Suzuki
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Suzuki
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Suzuki
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Suzuki
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Suzuki
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Suzuki
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Suzuki
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Suzuki
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Suzuki
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Suzuki
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* ^ LabourStart (15 July 2013). "India: Free 147 jailed workers - support the hunger strikers". Retrieved 15 July 2013. * ^ "31 Maruti employees convicted for 2012 Manesar violence". Deccan Chronicle. 2017-03-10. * ^ Sakshi, Dayal (2017-03-19). "In Maruti plant violence: 13 sentenced to life, worker unions to hold rally". Indian Express. * ^ "Free the Maruti Workers! 13 Maruti Union members given \'Life Sentence\' for Struggling for Union Formation &Abolition of the Contract Worker System". Maruti Suzuki
Suzuki
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Suzuki
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Suzuki
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Wayback Machine
. * ^ Maruti Genuine Accessories Archived 21 April 2005 at the Wayback Machine
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. * ^ Deccan Herald, Online edition of Sunday, 20 March 2007 "Maruti Suzuki's first driving school in Bangalore""Archived copy". Archived from the original on 27 March 2006. Retrieved 2006-02-15. * ^ MUL sets up driving school in Bangalore * ^ "India\'s Most Trusted Brands 2013". Archived from the original on 28 August 2013. * ^ "2014". Archived from the original on 2 May 2015. * ^ "CNBC-TV18 OVERDRIVE Awards 2016: Maruti Suzuki
Suzuki
Baleno is the Viewers\' Choice Car of the Year".

EXTERNAL LINKS

Wikimedia