About
Maruti Suzuki India Ltd
Maruti Suzuki India Ltd (formerly Maruti Udyog Ltd) is India's largest passenger car company, accounting for over 50% of the domestic car market. The company offers full range of cars from entry level Maruti Alto to stylish hatchback Ritz, A-star, Swift, Wagon R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara. The company is a subsidiary of Suzuki Motor Corporation (SMC) of Japan, which currently holds 56.37% of its equity stake.
The company is engaged in the business of manufacturing, purchase and sale of motor vehicles and spare parts (automobiles). The other activities of the company include facilitation of pre-owned car sales, fleet management and car financing. They have four plants, three located at Palam Gurgaon Road, Gurgaon, Haryana and one located at Manesar Industrial Town, Gurgaon, Haryana.
The company has nine subsidiary companies, namely Maruti Insurance Business Agency Ltd, Maruti Insurance Distribution Services Ltd, Maruti Insurance Agency Solutions Ltd, Maruti Insurance Agency Network Ltd, Maruti Insurance Agency Services Ltd, Maruti Insurance Agency Logistics Ltd, True Value Solutions Ltd, Maruti Insurance Broker Ltd and J J Impex (Delhi) Pvt Ltd.
Maruti Suzuki India Ltd was incorporated on February 24, 1981 with the name Maruti Udyog Ltd. The company was formed as a government company, with Suzuki as a minor partner, to make a people's car for middle class India. Over the years, the company's product range has widened, ownership has changed hands and the customer has evolved.
In October 2, 1982, the company signed the license and joint venture agreement with Suzuki Motor Corporation, Japan. In the year 1983, the company started their productions and launched Maruti 800. In the year 1984, they introduced Maruti Omni and during the next year, they launched Maruti Gypsy in the market. In the year 1987, the company forayed into the foreign market by exporting first lot of 500 cars to Hungary.
In the year 1990, the company launched India's first three-box car, Sedan. In the year 1992, Suzuki Motor Corporation, Japan increased their stake in the company to 50%. In the year 1993, they introduced the Maruti Zen and in the next year they launched Maruti Esteem in the market.
In the year 1995, the company commenced their second plant. In the year 1997, they started Maruti Service Master as model workshop in India to look after sales services. In the year 1999, the third plant with new press, paint and assembly shops became operational. In the year 2000, the company launched Maruti Alto in the market.
In the year 2002, Suzuki Motor Corporation increased their stake in the company to 54.2%. In January 2002, the company introduced 10 finance companies (8 + 2JVs) in Mumbai. Also, they found one new business segment, Maruti True Value for sales, purchase and trade of pre-owned cars in India. In the year 2005, the company launched the first world strategic model from Suzuki Motor Corporation 'the SWIFT' in India. In the year 2006, they launched WaganR Duo with LPG and also the New Zen Estillo.
During the year 2006-07, the company commenced operations in the new car plant and the diesel engine facility at Manesar, Haryana. In November 2006, they inaugurated a new institute of Driving Training and Research (IDTR), which was set up as a collaborative project with Delhi Government at Sarai Kale Khan in South Delhi.
During the year 2007-08, the company signed an agreement with the Adani group for exporting 200,000 units annually through the Mundra port in Gujarat. They launched Swift Diesel and SX4- Luxury Sedan with Tag line 'MEN ARE BACK' during the year. In July 2007, the company launched the new Grand Vitara, a stylish, muscular and 5-seater in the MUV segment. The company changed its name from Maruti Udyog Ltd to Maruti Suzuki India Ltd with effect from September 17, 2007.
During the year, the company entered into a joint venture agreement with Magneti Marelli Powertrain SpA and formed Magneti Marelli Powertrain India Pvt Ltd for manufacturing Electric Control Units. Also they entered into another joint venture agreement with Futaba Industrial Co Ltd and formed FMI Automotive Components Ltd for manufacturing Exhaust Systems Components.
During the year, the company signed pact with Shriram City Union Finance Ltd, a part of Shriram Group, Chennai, to offer easy, transparent and hassle-free car finance to its customers, particularly in semi urban and rural markets. The agreement is a joint initiative of the two companies for providing competitive car finance to people in Tier-II and Tier-III cities across the country.
During the year 2008-09, the company launched a new A2 segment car, branded the A-star in India and in Europe as the new Alto. They raised their production capacity to a landmark 1 million cars. In June 2008, the company launched Maruti 800 Duo, which is a dual fuel (LPG-cum- petrol) model car.
In April 2009, the company revealed new Ritz K12M engine at Gurgaon plant. During the year 2009-10, the company raised the capacity of their next generation K-series engine plant to more than 500,000 units per annum. They started work on an additional plant of 250,000 cars per annum capacity at Manesar. The company launched their fifth world strategic model, the Ritz. They also came out with the spacious multi purpose van, Eeco and the all new WagonR with a K-series engine.
During the year 2010-11, the company launched refreshed variants of WagonR and Alto with the new K-series engines. SX4 was offered with a Super Turbo Diesel engine. The Company launched the Suzuki Kizashi, India's first sports luxury sedan. It sports a 2.4 litre engine and is endowed with best-in-class features. The company developed in-house i-GPI (Integrated Gas Port Injection) Technology and launched factory-fitted CNG variants for five of its models: Alto, WagonR, Eeco, Estilo and SX4.
During the year 2011-12, the company started the work to commission another diesel engine plant of 300,000 annual capacity in Gurgaon. At the 2012 Delhi Auto Expo, the Company unveiled the Ertiga - Life Utility Vehicle. The global premiere of Ertiga marks the entry of the company in the UV segment, which will help further strengthen its leadership position in the industry. The company also showcased the XA-Alpha, a concept compact SUV.
During the year 2012-13, the company started the work on the Gujarat site. During this period, Suzuki Japan decided that India will now be responsible for the export markets of Africa, the Middle East and its neighbouring countries. The company has to ensure adequate sales and marketing arrangements in these countries, with the help of Japan. It also has to determine the products to be manufactured for these markets and, if necessary, establish assembly plants overseas. This decision will greatly help the growth of its exports.
In 2014-15, Maruti launched a successful sedan, Ciaz model cars. The S-Cross creates a new market segment which combines the comfort and luxury of a sedan with the power and styling of an SUV. Both these products have been enriched with a number of premium features and enhanced performance levels. In January this year, the Hon'ble Chief Minister of Gujarat, laid the foundation stone of the Gujarat plant.
During the year 2015-16, two new products introduced by the company, namely the Baleno and the Brezza, exceeded its expectations of demand, and both cars had a waiting period of 6-7 months. On 4 October 2016, Maruti Suzuki announced that its premium hatchback Baleno has crossed cumulative domestic sale of one lakh units.
On 18 May 2016, Maruti Suzuki announced the launch of an updated version of its small car Alto 800 with more attractive front design, fresh interiors, vibrant colours, higher fuel efficiency and new features.
On 27 May 2016, Maruti Suzuki announced that it will proactively and voluntarily recall 75,419 Baleno cars (petrol and diesel) manufactured between 3 August 2015 and 17 May 2016 to upgrade the airbag controller software. Of these, 15,995 Baleno diesel cars manufactured between 3 August 2015 and 22 March 2016 will also be attended to for inspection and replacement of a faulty fuel filter. The Baleno cars covered in the recall include 17,231 units of exports. In addition, 1,961 DZire diesel cars (only AGS variant) will be attended to for inspection and replacement of a faulty fuel filter.
On 27 May 2016, Maruti Suzuki announced that it had begun exports of its Light Commercial Vehicle Super Carry to South Africa and Tanzania. At that time, the company said that it also plans to export the vehicle to SAARC nations in due course.
On 6 July 2016, Maruti Suzuki announced that its popular premium mid-size sedan Ciaz has crossed one lakh cumulative sales mark in the domestic market. The car was lunched in October 2014. On 28 July 2016, Maruti Suzuki announced that its premium retail showroom under the NEXA brand has completed one year of operations. At that time, the company said that NEXA is expected to contribute 15% of its sales by 2020.
Maruti Suzuki announced increase in prices of select models ranging from Rs 1,500 to Rs 5,000 (Ex-showroom Delhi) with effect from 1 August 2016. It also announced increase in price by up to Rs 20,000 for Vitara Brezza and up to Rs 10,000 for Baleno. The company attributed the price hike to factors like segment wise demand, foreign exchange movements and strategic objectives of the company. On 12 August 2016, Maruti Suzuki announced that the cumulative enrollment at its various driving training facilities has touched a record 3 million since it started driving training in the year 2000.
On 30 August 2016, Maruti Suzuki announced the launch of limited edition of its most popular hatchback Swift as Swift Deca. On 1 September 2016, Maruti Suzuki announced the launch of its first light commercial vehicle (LCV) Super Carry in the domestic market. The company has invested about Rs 300 crore towards the development of the Super Carry.
On 15 September 2016, Maruti Suzuki announced that it has signed a Memorandum of Understanding (MoU) with Uber India to train over 30,000 individuals/Uber partner-drivers in safe driving over a period of 3 years.
On 23 September 2016, Maruti Suzuki announced that it has attained cumulative exports of 15 lakh vehicles. These vehicles have been exported to over 100 countries including Europe, Latin America and Africa.
On 15 November 2016, Maruti Suzuki announced that it will set up a first-of-its-kind Industrial Training Institute in Mehsana, Gujarat.
On 25 November 2016, Maruti Suzuki announced the launch of limited edition of its small car Wagon R as Wagon R Felicity with an array of new features. On 9 December 2016, Maruti Suzuki India signed a Memorandum of Understanding (MoU) with Ola, the online cab aggregator, to train aspiring Ola driver-partners. The company said that its partnership with Ola will create entrepreneurship opportunities for aspiring Ola drivers-partners.
On 13 January 2017, Maruti Suzuki India announced the launch of IGNIS, its premium urban compact vehicle for the millennials. The company, alongwith its suppliers, has invested over Rs 950 crore towards the development of IGNIS. IGNIS has 98.5% localization.
On 27 January 2017, Maruti Suzuki announced the launch of a new VXi+ variant of its small car WagonR with a wide array of new features including Projector headlamps, stylish front grill, alloy wheels and side skirts, Dual Airbags, Anti-Lock braking System with Electronic brake - force distribution system, as optional. Maruti Suzuki announced a price hike ranging from Rs 1,500 to Rs 8,014 (Ex-showroom Delhi) across models with effect from 27 January 2017 due to increase in commodity, transportation and administrative costs.
On 30 January 2017, Maruti Suzuki inaugurated its 200th premium retail showroom NEXA in the country at Hyderabad. At that time, the company said that NEXA is now present in 121 cities and had already sold over 1.85 lakh vehicles since its inception. On 15 February 2017, Maruti Suzuki announced the launch of limited edition of its compact multi purpose vehicle Ertiga.
On 20 February 2017, Maruti Suzuki announced that its two Smart Hybrid vehicles viz. Ciaz SHVS and Ertiga SHVS have crossed cumulative sales of 1 lakh units. Smart Hybrid Vehicle by Suzuki (SHVS) is a technology which uses an integrated starter generator and an advanced high capacity battery to supplement the engine's power. SHVS technology makes it more efficient than the conventional set-up and saves energy while decelerating/braking.
On 2 March 2017, Maruti Suzuki announced that its popular urban sports utility vehicle Vitara Brezza crossed one lakh cumulative sales milestone in the domestic market. On 27 March 2017, Maruti Suzuki announced that its popular urban sports utility vehicle Vitara Brezza has clocked sales of over 1.1 lakh units in the first year of its launch.
On 31 March 2017, Maruti Suzuki announced that its popular midsize sedan Ciaz will be sold exclusively through its premium retail outlets NEXA from 1 April 2017. On 16 May 2017, Maruti Suzuki announced the launch of updated version of its sedan Dzire.
On 25 May 2017, Maruti Suzuki announced that it has decided to set up automobile skill enhancement centres across 15 government-run Industrial Training Institutes (ITIs) across 11 states over a period of three months.
On 1 July 2017, Maruti Suzuki announced that it has passed on the entire benefit of the goods and services tax (GST) rates on vehicles to its customers and as a result the ex-showroom prices of Maruti Suzuki models were cut by upto 3% with effect from 1 July 2017. However, owing to withdrawal of tax concessions on mild hybrid vehicles, the price of Smart Hybrid Ciaz Diesel model and Smart Hybrid Ertiga Diesel has increased.
On 7 July 2017, Maruti Suzuki announced that the National Company Law Tribunal (NCLT) has approved the scheme of amalgamation of Maruti Suzuki India Limited and seven of its wholly owned subsidiary companies viz. Maruti Insurance Business Agency Limited, Maruti Insurance Distribution Services Limited, Maruti Insurance Agency Network Limited, Maruti Insurance Agency Solutions Limited, Maruti Insurance Agency Services Limited, Maruti Insurance Agency Logistics Limited and Maruti Insurance Broker Limited.
On 3 August 2017, Maruti Suzuki announced the introduction of auto gear shift option in its top-end Alpha variant of its premium urban compact vehicle IGNIS. On 10 August 2017, Maruti Suzuki announced a complete revamp of its True Value operations, designed to make pre-owned cars more attractive and transparent to customers.
On 30 August 2017, Maruti Suzuki announced transformation of its retail network across India. The new showrooms, christened Maruti Suzuki ARENA, will sport modern looks and offer a warm, friendly and comfortable environment to the customers. On 29 September 2017, Maruti Suzuki announced the launch of parent Suzuki Motor Corporation's global ECSTAR brand of lubricants, coolants, and car care products in India.
On 1 October 2017, Maruti Suzuki announced the launch of new version of its premium urban offering S-Cross. Maruti further said at that time that it has sold over 53,000 units of S-Cross in the domestic market and exported over 4,600 units since its launch in August 2015.
On 5 October 2017, Maruti Suzuki announced the launch of a refreshed version of its compact car Celerio. Maruti further said at that time that Celerio has achieved the three-lakh sales mark within a short span of less than four years. On 1 December 2017, Maruti Suzuki announced the launch of the bold, sporty and trendy CelerioX compact car. The model is an extension of Maruti's Celerio compact car.
On 27 December 2017, Maruti Suzuki announced that it has entered into an agreement with the Government of NCT of Delhi to set up state-of-the-art Automated Driving Test Centres across 12 locations in the city. The company will invest approximately Rs 15 crore for setting up the driving test centres. While Maruti Suzuki will set up the centres and maintain them for three years, the Transport Department will conduct the tests and issue driving licenses to eligible applicants.
Maruti Suzuki announced price increase ranging from Rs 1,700 to Rs 17,000 (Ex-Showroom - Delhi) across models with effect from 10 January 2018, owing to increase in commodity and other administrative and distribution costs.
At the time of approval of Q3 December 2017 results on 25 January 2018, the Board of Directors of Maruti Suzuki discussed and approved a revision in the method of calculating royalty payment to Japanese parent Suzuki Motor Corporation that would result in lower royalty payments for Maruti Suzuki for new model agreements starting the Ignis. This would be implemented after approval by the Board of Suzuki Motor Corporation.
On 7 February 2018, Maruti Suzuki showcased new compact car ConceptFutureS at Delhi Auto Expo 2018 in New Delhi. On 8 February 2018, Maruti Suzuki announced the launch of an updated version of its premium hatchback Swift at Auto Expo 2018 in New Delhi. The all-new Swift comes offers the acclaimed auto gear shift technology for the convenience of customers. Built on Suzuki's innovative 5th generation HEARTECT platform, the all-new Swift has a superior power to weight ratio with an improved acceleration performance.
During 2017-18,the company posted a volume growth of 13.8% in passenger vehicles in the domestic market including the LCV and the company's domestic sales growth stood at 14.5%.During the year,the company added 203 dealer workshops to the network which is the highest ever in a single financial year.The company has 3403 service workshops covering 1659 cities across the country.
During the FY 2018-19,the company posted a volume growth of 5.3% in passenger vehicles in the domestic market,including the LCV segment.The company's domestic sales growth stood at 6.1%. During the year,the business partnership between Suzuki Motor Corporation and Toyota Motor Corporation,Japan started taking place.The company is likely to benefit immensely from this partnership by gaining access to the new-age technologies and from the mutual supply of vehicles.
During the fiscal 2020,the company registered an overall volume decline of 16.1% due to weak demand environment in both the domestic and export markets.The company's operations were suspended in the latter part of March 2020 due to unprecedented COVID-19 outbreak which lead to a nationwide shutdown of economic activities. During the year,250 service workshops were added to the network,which is the highest ever in a single financial year,taking the total number of workshops to 3864 covering 1914 cities across the country.
Suzuki Motor Gujarat Private Limited (SMG), a subsidiary of Suzuki Motor Corporation (SMC) was set up in Hansalpur, Gujarat to cater to the increasing market demand for the Company's products. In April 2021, the 3rd manufacturing plant with an annual production capacity of 0.25 million units, was made operational.
During FY 2021-22, the Company sold around 234,000 units of S-CNG vehicles. It launched petrol variant New Celerio in year 2021-22. The new WagonR with the next-gen K-series engine was launched with both petrol (1.0L and 1.2L) and S-CNG (1.0L) fuel options.
Maruti Suzuki India Ltd
Chairman Speech
IWa,
It is my pleasure to express my thoughts through the annual Integrated Report of Maruti
Suzuki India Limited. During 2021-22 we, like all other companies, were seriously affected
by the second wave of the Covid pandemic. Fortunately, since then the Covid pandemic seems
to have lost much of its virulence and the third wave did not disrupt our lives or
business to any great extent. The need to take precaution continues, including having
booster shots of the vaccine. I earnestly hope that 2022-23 will be a healthy and
productive year for all of us.
Before proceeding further, I would like to pay tribute to Mr. V. Krishnamurthy who
passed away in June at the age of 97. He was the Managing Director and Vice Chairman when
your company was incorporated. The joint venture with Suzuki was created under his
leadership. He was the person who guided all of us during our initial years and laid the
foundations for establishing a new management culture that led to the future success of
your company. I personally learnt a great deal from him and will always remember him with
deep respect.
We have also had a change in our Managing Director and CEO. Ayukawa San is moving on to
higher responsibilities in Suzuki Japan. On your behalf I would like to express our deep
appreciation of his contribution in building the company and wish him all the success. Mr.
Takeuchi is our new leader. He comes with a wealth of experience and achievements and we
look forward to his taking us to greater heights.
This year is a landmark not only for your company but also for the country. We
celebrate 75 years of Independence and have created history by electing a tribal leader,
who is a woman, to be our President. India moves towards greater inclusivity. Your company
also celebrates 40 years of the formation of the partnership with Suzuki of Japan. It was
on the 2nd of October 1982 that the Government of India and Suzuki of Japan signed a joint
venture agreement and set in motion a process that has resulted in the development of a
modern competitive automobile industry in India, generation of millions of jobs and
creation of immense wealth for the nation. I venture to say that manufacturing standards
in India changed as a result of practices we brought in. In many ways your company is
responsible for several of the positive factors that have marked the journey of our great
country during the last 40 years.
MSIL not only created a modern automobile industry in India but brought in new concepts
of quality, productivity and competitiveness to manufacturing activities in India. We now
have a large component manufacturing industry that is of global standards. Thanks to the
progressive policies of the present government, foreign companies are locating
manufacturing facilities in India and sourcing products and components because
manufacturing here is of global standards. Your company was the first to recognize the
importance of focussing on the consumer and introduced a host of new practices. The
success of your company attracted most of
the leading car manufacturers of the world to India. In the manufacturing sector,
foreign investments in the car and component industry are by far higher than in any other
sector. Your company is conscious of its role as an industry leader and commits to keep
doing its best to promote national interests and the development of the country.
The unexpectedly large success of Maruti created wide awareness in Japan about India
and the exciting possibilities of the two countries working together in the manufacturing
sector. Over the years the economic as well as political ties between our countries have
continued to strengthen. All of us fully recognize that this situation has come about
because of the trust that Mr. O. Suzuki showed in the Indian management, his love for this
country and the continued help and support that SMC, and all members of that company have
continued to give us. It has been demonstrated that when two countries work in the true
spirit of partnership, with trust and confidence in each other, the outcome has to be wins
for both partners. We look forward to reaching greater heights in the future with the
support and guidance of SMC. To mark 40 years of this wonderful partnership your company
is intending to launch a number of new initiatives. These will be announced at the
appropriate time and place. I am confident that all of you will find them of great
interest and value.
During the financial year 2021-22 our total sales increased by 13.4% to reach 16.52
lakh units. Even though profits were lower, the Board of Directors decided that in the
context of our completing 40 years of partnership, the dividend should be increased to INR
60 per share compared to INR 45 per share in FY2020-21. I hope this will have your
approval. Besides the loss of sales in the first quarter due to the pandemic, production
remained affected due to the shortage of semi-conductors, mainly for domestic models. The
number of unmet bookings with the company at the end of the year rose to about 2.7 lakhs.
The demand for CNG cars was particularly strong and the largest proportion of pending
orders were also those of CNG vehicles. The sale of the nonpremium hatch backs declined by
5% compared to 2020-2021, and were lower than sales in this sector in 201819 by 29%. I had
mentioned in my last year's address that this sector was the most affected by rising costs
and the trend has continued. On the other hand, the SUV sector continued to grow. We did
not have enough models in this segment to compete effectively, though the situation has
now become much better with the launch of the remodelled Brezza and the global launch of
the Grand Vitara. More models are to follow. We are hopeful that MSILs market share will
rapidly increase in the SUV segment.
One result of the sale pattern in 2021-22 was that MSIL's market share declined to
43.4%. While MSIL lost some opportunity in domestic market, it made all efforts to
maximise the overall production and sales volume. Export vehicles increased by 1.42 lakh
as semi-conductor shortage did not affect export models as much. Besides, OEM sales, which
are not counted in MSILs market share, were 49,000 units.
During the current year, the vehicle production would increase as the situation
regarding the availability of semiconductors has improved. Your company has also made
further improvisations to enhance production. I am exhorting our team to reach 2 million
units, though doing that remains a challenge.
I have mentioned the launch of the Grand Vitara. This product will be manufactured for
your company by Toyota in its Karnataka factory. This is one of the reasons why we are
expecting to increase production and challenge 2 million units. But what is more
significant is that this SUV will also come with Toyota's strong hybrid technology. This
is the first-time cars with this technology would be manufactured in India. In the
official tests the fuel efficiency of the Grand Vitara strong hybrid version is 27.97
km/litre, almost 10 km/litre higher than its competitors. This Strong hybrid variant
offers 26.4% lower CO2 emissions and 35.9% higher energy efficiency in comparison to its
IC Engine variant. With such a healthy CO2 reduction per car and faster adoption in terms
of number of cars, the strong hybrid technology is a very potent solution to reduce total
fleet emissions of cars in our country. You all are already aware that EV's will be
manufactured by the Gujarat plant of SMC from 202425 and sold by MSIL. As I had mentioned
last year, it will take time for EV's to become the major product in all the segments of
the car market. In the period till this change happens, the object of carbon footprint
reduction would be facilitated by incentivising the use of CNG, ethanol, biogas and strong
hybrids in addition to EVs.
All of you would be aware of the finalisation of the land purchase at Kharkhoda in
Haryana. We are giving high priority to expanding production facilities at this site so as
to meet future demands. The first unit is planned to be commissioned in 2025 and the
second about a year later. Depending on market conditions this site has
the potential to become one of the largest car manufacturing sites anywhere in the
world. The facilities will incorporate the best of technology and generate employment
opportunities in the State of Haryana and all over India. We are also increasing
manufacturing capacity in Manesar by another 100,000 units a year.
The emphasis of Health, Safety and Environment remains unchanged. The water treatment
facilities at both Gurgaon and Manesar Plants are being upgraded for zero liquid discharge
capabilities. We already have 26.3 MW of solar energy generation in operation in our
plants at Gurgaon and Manesar. There is a plan to add another 21.85 MW by 2024. At the
Kharkhoda site we plan to install another 20.0 MW of solar energy from the very beginning.
Our employees are fully vaccinated and most have had the booster dose. We work closely
with our supplier partners and dealers to ensure that they also adopt the best practices
in respect of employee safety, health and adopting practices that would minimise risk of
any damage from fire or other accidental causes.
The CSR programme continues as approved by the Board. Funds allocated are fully
utilized though, because of lower profitability during the last 2-3 years the CSR budget
has seen a substantial decrease. The hospital and school in Gujarat are functioning well
and the residents of that area are very satisfied with these new facilities. The emphasis
on road safety continues. Your company fully supports the government's programme of
reducing road fatalities. We believe that a big impact can be made in reducing road deaths
if those who drive cars as well as two wheelers are better trained in the methods of safe
driving and also are fully aware of all the laws and regulations applicable to them.
Further, drivers must learn to obey these laws and for that effective enforcement is
necessary. Technology enables these activities to be carried out much more effectively and
MSIL has, under the CSR programme, been working in areas like simulator equipped driving
schools, automated test tracks for testing drivers and cameras for enforcement of laws.
the effectiveness of what we are doing has been proven.
It is now necessary that State governments revise the legal framework and allot
necessary funds to introduce systems that will improve driving and enforcement of laws. In
addition, it is necessary that as long as a vehicle is on the road it should have all the
safety equipment fully functional. While new vehicles are certified as being fit it is
also necessary that periodic inspections and certification carried out transparently and
effectively. Many accidents are caused due to vehicle equipment malfunction due to poor
maintenance. I believe that the facilities and expertise with the private sector could be
used by the government in this area and it would help to reduce deaths in a short period
of time.
Your company has always given the highest importance to the role of employees in
building excellence. Teamwork and trust in each other have been the basis of our progress.
Our associates who work on the shop floor have shown that the traditional belief that
managements and workers cannot work together is not valid and that working as a team
creates the best value for both. Your company would never have made the progress it has
but for the contribution of all our employees without any exception. I again acknowledge
their role and thank them for what they have done and are doing. It is true that your
company and its leadership have won many awards, but it is very clear that these belong to
all the employees.
Lastly, I would like to express my thanks to all our shareholders who have steadfastly
supported us through good and bad times. This support has been a great source of strength
to us and with all of you behind us I look to the future with great confidence and
optimism.
Jai Hind
R. C. Bhargava
Chairman.
Maruti Suzuki India Ltd
Company History
Maruti Suzuki India Ltd (formerly Maruti Udyog Ltd) is India's largest passenger car company, accounting for over 50% of the domestic car market. The company offers full range of cars from entry level Maruti Alto to stylish hatchback Ritz, A-star, Swift, Wagon R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara. The company is a subsidiary of Suzuki Motor Corporation (SMC) of Japan, which currently holds 56.37% of its equity stake.
The company is engaged in the business of manufacturing, purchase and sale of motor vehicles and spare parts (automobiles). The other activities of the company include facilitation of pre-owned car sales, fleet management and car financing. They have four plants, three located at Palam Gurgaon Road, Gurgaon, Haryana and one located at Manesar Industrial Town, Gurgaon, Haryana.
The company has nine subsidiary companies, namely Maruti Insurance Business Agency Ltd, Maruti Insurance Distribution Services Ltd, Maruti Insurance Agency Solutions Ltd, Maruti Insurance Agency Network Ltd, Maruti Insurance Agency Services Ltd, Maruti Insurance Agency Logistics Ltd, True Value Solutions Ltd, Maruti Insurance Broker Ltd and J J Impex (Delhi) Pvt Ltd.
Maruti Suzuki India Ltd was incorporated on February 24, 1981 with the name Maruti Udyog Ltd. The company was formed as a government company, with Suzuki as a minor partner, to make a people's car for middle class India. Over the years, the company's product range has widened, ownership has changed hands and the customer has evolved.
In October 2, 1982, the company signed the license and joint venture agreement with Suzuki Motor Corporation, Japan. In the year 1983, the company started their productions and launched Maruti 800. In the year 1984, they introduced Maruti Omni and during the next year, they launched Maruti Gypsy in the market. In the year 1987, the company forayed into the foreign market by exporting first lot of 500 cars to Hungary.
In the year 1990, the company launched India's first three-box car, Sedan. In the year 1992, Suzuki Motor Corporation, Japan increased their stake in the company to 50%. In the year 1993, they introduced the Maruti Zen and in the next year they launched Maruti Esteem in the market.
In the year 1995, the company commenced their second plant. In the year 1997, they started Maruti Service Master as model workshop in India to look after sales services. In the year 1999, the third plant with new press, paint and assembly shops became operational. In the year 2000, the company launched Maruti Alto in the market.
In the year 2002, Suzuki Motor Corporation increased their stake in the company to 54.2%. In January 2002, the company introduced 10 finance companies (8 + 2JVs) in Mumbai. Also, they found one new business segment, Maruti True Value for sales, purchase and trade of pre-owned cars in India. In the year 2005, the company launched the first world strategic model from Suzuki Motor Corporation 'the SWIFT' in India. In the year 2006, they launched WaganR Duo with LPG and also the New Zen Estillo.
During the year 2006-07, the company commenced operations in the new car plant and the diesel engine facility at Manesar, Haryana. In November 2006, they inaugurated a new institute of Driving Training and Research (IDTR), which was set up as a collaborative project with Delhi Government at Sarai Kale Khan in South Delhi.
During the year 2007-08, the company signed an agreement with the Adani group for exporting 200,000 units annually through the Mundra port in Gujarat. They launched Swift Diesel and SX4- Luxury Sedan with Tag line 'MEN ARE BACK' during the year. In July 2007, the company launched the new Grand Vitara, a stylish, muscular and 5-seater in the MUV segment. The company changed its name from Maruti Udyog Ltd to Maruti Suzuki India Ltd with effect from September 17, 2007.
During the year, the company entered into a joint venture agreement with Magneti Marelli Powertrain SpA and formed Magneti Marelli Powertrain India Pvt Ltd for manufacturing Electric Control Units. Also they entered into another joint venture agreement with Futaba Industrial Co Ltd and formed FMI Automotive Components Ltd for manufacturing Exhaust Systems Components.
During the year, the company signed pact with Shriram City Union Finance Ltd, a part of Shriram Group, Chennai, to offer easy, transparent and hassle-free car finance to its customers, particularly in semi urban and rural markets. The agreement is a joint initiative of the two companies for providing competitive car finance to people in Tier-II and Tier-III cities across the country.
During the year 2008-09, the company launched a new A2 segment car, branded the A-star in India and in Europe as the new Alto. They raised their production capacity to a landmark 1 million cars. In June 2008, the company launched Maruti 800 Duo, which is a dual fuel (LPG-cum- petrol) model car.
In April 2009, the company revealed new Ritz K12M engine at Gurgaon plant. During the year 2009-10, the company raised the capacity of their next generation K-series engine plant to more than 500,000 units per annum. They started work on an additional plant of 250,000 cars per annum capacity at Manesar. The company launched their fifth world strategic model, the Ritz. They also came out with the spacious multi purpose van, Eeco and the all new WagonR with a K-series engine.
During the year 2010-11, the company launched refreshed variants of WagonR and Alto with the new K-series engines. SX4 was offered with a Super Turbo Diesel engine. The Company launched the Suzuki Kizashi, India's first sports luxury sedan. It sports a 2.4 litre engine and is endowed with best-in-class features. The company developed in-house i-GPI (Integrated Gas Port Injection) Technology and launched factory-fitted CNG variants for five of its models: Alto, WagonR, Eeco, Estilo and SX4.
During the year 2011-12, the company started the work to commission another diesel engine plant of 300,000 annual capacity in Gurgaon. At the 2012 Delhi Auto Expo, the Company unveiled the Ertiga - Life Utility Vehicle. The global premiere of Ertiga marks the entry of the company in the UV segment, which will help further strengthen its leadership position in the industry. The company also showcased the XA-Alpha, a concept compact SUV.
During the year 2012-13, the company started the work on the Gujarat site. During this period, Suzuki Japan decided that India will now be responsible for the export markets of Africa, the Middle East and its neighbouring countries. The company has to ensure adequate sales and marketing arrangements in these countries, with the help of Japan. It also has to determine the products to be manufactured for these markets and, if necessary, establish assembly plants overseas. This decision will greatly help the growth of its exports.
In 2014-15, Maruti launched a successful sedan, Ciaz model cars. The S-Cross creates a new market segment which combines the comfort and luxury of a sedan with the power and styling of an SUV. Both these products have been enriched with a number of premium features and enhanced performance levels. In January this year, the Hon'ble Chief Minister of Gujarat, laid the foundation stone of the Gujarat plant.
During the year 2015-16, two new products introduced by the company, namely the Baleno and the Brezza, exceeded its expectations of demand, and both cars had a waiting period of 6-7 months. On 4 October 2016, Maruti Suzuki announced that its premium hatchback Baleno has crossed cumulative domestic sale of one lakh units.
On 18 May 2016, Maruti Suzuki announced the launch of an updated version of its small car Alto 800 with more attractive front design, fresh interiors, vibrant colours, higher fuel efficiency and new features.
On 27 May 2016, Maruti Suzuki announced that it will proactively and voluntarily recall 75,419 Baleno cars (petrol and diesel) manufactured between 3 August 2015 and 17 May 2016 to upgrade the airbag controller software. Of these, 15,995 Baleno diesel cars manufactured between 3 August 2015 and 22 March 2016 will also be attended to for inspection and replacement of a faulty fuel filter. The Baleno cars covered in the recall include 17,231 units of exports. In addition, 1,961 DZire diesel cars (only AGS variant) will be attended to for inspection and replacement of a faulty fuel filter.
On 27 May 2016, Maruti Suzuki announced that it had begun exports of its Light Commercial Vehicle Super Carry to South Africa and Tanzania. At that time, the company said that it also plans to export the vehicle to SAARC nations in due course.
On 6 July 2016, Maruti Suzuki announced that its popular premium mid-size sedan Ciaz has crossed one lakh cumulative sales mark in the domestic market. The car was lunched in October 2014. On 28 July 2016, Maruti Suzuki announced that its premium retail showroom under the NEXA brand has completed one year of operations. At that time, the company said that NEXA is expected to contribute 15% of its sales by 2020.
Maruti Suzuki announced increase in prices of select models ranging from Rs 1,500 to Rs 5,000 (Ex-showroom Delhi) with effect from 1 August 2016. It also announced increase in price by up to Rs 20,000 for Vitara Brezza and up to Rs 10,000 for Baleno. The company attributed the price hike to factors like segment wise demand, foreign exchange movements and strategic objectives of the company. On 12 August 2016, Maruti Suzuki announced that the cumulative enrollment at its various driving training facilities has touched a record 3 million since it started driving training in the year 2000.
On 30 August 2016, Maruti Suzuki announced the launch of limited edition of its most popular hatchback Swift as Swift Deca. On 1 September 2016, Maruti Suzuki announced the launch of its first light commercial vehicle (LCV) Super Carry in the domestic market. The company has invested about Rs 300 crore towards the development of the Super Carry.
On 15 September 2016, Maruti Suzuki announced that it has signed a Memorandum of Understanding (MoU) with Uber India to train over 30,000 individuals/Uber partner-drivers in safe driving over a period of 3 years.
On 23 September 2016, Maruti Suzuki announced that it has attained cumulative exports of 15 lakh vehicles. These vehicles have been exported to over 100 countries including Europe, Latin America and Africa.
On 15 November 2016, Maruti Suzuki announced that it will set up a first-of-its-kind Industrial Training Institute in Mehsana, Gujarat.
On 25 November 2016, Maruti Suzuki announced the launch of limited edition of its small car Wagon R as Wagon R Felicity with an array of new features. On 9 December 2016, Maruti Suzuki India signed a Memorandum of Understanding (MoU) with Ola, the online cab aggregator, to train aspiring Ola driver-partners. The company said that its partnership with Ola will create entrepreneurship opportunities for aspiring Ola drivers-partners.
On 13 January 2017, Maruti Suzuki India announced the launch of IGNIS, its premium urban compact vehicle for the millennials. The company, alongwith its suppliers, has invested over Rs 950 crore towards the development of IGNIS. IGNIS has 98.5% localization.
On 27 January 2017, Maruti Suzuki announced the launch of a new VXi+ variant of its small car WagonR with a wide array of new features including Projector headlamps, stylish front grill, alloy wheels and side skirts, Dual Airbags, Anti-Lock braking System with Electronic brake - force distribution system, as optional. Maruti Suzuki announced a price hike ranging from Rs 1,500 to Rs 8,014 (Ex-showroom Delhi) across models with effect from 27 January 2017 due to increase in commodity, transportation and administrative costs.
On 30 January 2017, Maruti Suzuki inaugurated its 200th premium retail showroom NEXA in the country at Hyderabad. At that time, the company said that NEXA is now present in 121 cities and had already sold over 1.85 lakh vehicles since its inception. On 15 February 2017, Maruti Suzuki announced the launch of limited edition of its compact multi purpose vehicle Ertiga.
On 20 February 2017, Maruti Suzuki announced that its two Smart Hybrid vehicles viz. Ciaz SHVS and Ertiga SHVS have crossed cumulative sales of 1 lakh units. Smart Hybrid Vehicle by Suzuki (SHVS) is a technology which uses an integrated starter generator and an advanced high capacity battery to supplement the engine's power. SHVS technology makes it more efficient than the conventional set-up and saves energy while decelerating/braking.
On 2 March 2017, Maruti Suzuki announced that its popular urban sports utility vehicle Vitara Brezza crossed one lakh cumulative sales milestone in the domestic market. On 27 March 2017, Maruti Suzuki announced that its popular urban sports utility vehicle Vitara Brezza has clocked sales of over 1.1 lakh units in the first year of its launch.
On 31 March 2017, Maruti Suzuki announced that its popular midsize sedan Ciaz will be sold exclusively through its premium retail outlets NEXA from 1 April 2017. On 16 May 2017, Maruti Suzuki announced the launch of updated version of its sedan Dzire.
On 25 May 2017, Maruti Suzuki announced that it has decided to set up automobile skill enhancement centres across 15 government-run Industrial Training Institutes (ITIs) across 11 states over a period of three months.
On 1 July 2017, Maruti Suzuki announced that it has passed on the entire benefit of the goods and services tax (GST) rates on vehicles to its customers and as a result the ex-showroom prices of Maruti Suzuki models were cut by upto 3% with effect from 1 July 2017. However, owing to withdrawal of tax concessions on mild hybrid vehicles, the price of Smart Hybrid Ciaz Diesel model and Smart Hybrid Ertiga Diesel has increased.
On 7 July 2017, Maruti Suzuki announced that the National Company Law Tribunal (NCLT) has approved the scheme of amalgamation of Maruti Suzuki India Limited and seven of its wholly owned subsidiary companies viz. Maruti Insurance Business Agency Limited, Maruti Insurance Distribution Services Limited, Maruti Insurance Agency Network Limited, Maruti Insurance Agency Solutions Limited, Maruti Insurance Agency Services Limited, Maruti Insurance Agency Logistics Limited and Maruti Insurance Broker Limited.
On 3 August 2017, Maruti Suzuki announced the introduction of auto gear shift option in its top-end Alpha variant of its premium urban compact vehicle IGNIS. On 10 August 2017, Maruti Suzuki announced a complete revamp of its True Value operations, designed to make pre-owned cars more attractive and transparent to customers.
On 30 August 2017, Maruti Suzuki announced transformation of its retail network across India. The new showrooms, christened Maruti Suzuki ARENA, will sport modern looks and offer a warm, friendly and comfortable environment to the customers. On 29 September 2017, Maruti Suzuki announced the launch of parent Suzuki Motor Corporation's global ECSTAR brand of lubricants, coolants, and car care products in India.
On 1 October 2017, Maruti Suzuki announced the launch of new version of its premium urban offering S-Cross. Maruti further said at that time that it has sold over 53,000 units of S-Cross in the domestic market and exported over 4,600 units since its launch in August 2015.
On 5 October 2017, Maruti Suzuki announced the launch of a refreshed version of its compact car Celerio. Maruti further said at that time that Celerio has achieved the three-lakh sales mark within a short span of less than four years. On 1 December 2017, Maruti Suzuki announced the launch of the bold, sporty and trendy CelerioX compact car. The model is an extension of Maruti's Celerio compact car.
On 27 December 2017, Maruti Suzuki announced that it has entered into an agreement with the Government of NCT of Delhi to set up state-of-the-art Automated Driving Test Centres across 12 locations in the city. The company will invest approximately Rs 15 crore for setting up the driving test centres. While Maruti Suzuki will set up the centres and maintain them for three years, the Transport Department will conduct the tests and issue driving licenses to eligible applicants.
Maruti Suzuki announced price increase ranging from Rs 1,700 to Rs 17,000 (Ex-Showroom - Delhi) across models with effect from 10 January 2018, owing to increase in commodity and other administrative and distribution costs.
At the time of approval of Q3 December 2017 results on 25 January 2018, the Board of Directors of Maruti Suzuki discussed and approved a revision in the method of calculating royalty payment to Japanese parent Suzuki Motor Corporation that would result in lower royalty payments for Maruti Suzuki for new model agreements starting the Ignis. This would be implemented after approval by the Board of Suzuki Motor Corporation.
On 7 February 2018, Maruti Suzuki showcased new compact car ConceptFutureS at Delhi Auto Expo 2018 in New Delhi. On 8 February 2018, Maruti Suzuki announced the launch of an updated version of its premium hatchback Swift at Auto Expo 2018 in New Delhi. The all-new Swift comes offers the acclaimed auto gear shift technology for the convenience of customers. Built on Suzuki's innovative 5th generation HEARTECT platform, the all-new Swift has a superior power to weight ratio with an improved acceleration performance.
During 2017-18,the company posted a volume growth of 13.8% in passenger vehicles in the domestic market including the LCV and the company's domestic sales growth stood at 14.5%.During the year,the company added 203 dealer workshops to the network which is the highest ever in a single financial year.The company has 3403 service workshops covering 1659 cities across the country.
During the FY 2018-19,the company posted a volume growth of 5.3% in passenger vehicles in the domestic market,including the LCV segment.The company's domestic sales growth stood at 6.1%. During the year,the business partnership between Suzuki Motor Corporation and Toyota Motor Corporation,Japan started taking place.The company is likely to benefit immensely from this partnership by gaining access to the new-age technologies and from the mutual supply of vehicles.
During the fiscal 2020,the company registered an overall volume decline of 16.1% due to weak demand environment in both the domestic and export markets.The company's operations were suspended in the latter part of March 2020 due to unprecedented COVID-19 outbreak which lead to a nationwide shutdown of economic activities. During the year,250 service workshops were added to the network,which is the highest ever in a single financial year,taking the total number of workshops to 3864 covering 1914 cities across the country.
Suzuki Motor Gujarat Private Limited (SMG), a subsidiary of Suzuki Motor Corporation (SMC) was set up in Hansalpur, Gujarat to cater to the increasing market demand for the Company's products. In April 2021, the 3rd manufacturing plant with an annual production capacity of 0.25 million units, was made operational.
During FY 2021-22, the Company sold around 234,000 units of S-CNG vehicles. It launched petrol variant New Celerio in year 2021-22. The new WagonR with the next-gen K-series engine was launched with both petrol (1.0L and 1.2L) and S-CNG (1.0L) fuel options.
Maruti Suzuki India Ltd
Directors Reports
Your Directors have pleasure in presenting the 41st annual report together with the
audited financial statements for the year ended 31st March, 2022.
Financial Results
The Company's financial performance during 2021-22 as compared to the previous year
2020-21 is summarized below:
|
|
(Rs. in million) |
| Particulars |
2021-22 |
2020-2021 |
| Total revenue |
900,891 |
732,789 |
| Profit before tax |
45,823 |
51,594 |
| Tax expense |
8,160 |
9,297 |
| Profit after tax |
37,663 |
42,297 |
| Retained Earnings |
|
|
| Balance at the beginning of the year |
455,741 |
432,385 |
| Profit for the year |
37,663 |
42,297 |
| Other comprehensive income arising from remeasurement of defined benefit obligation* |
208 |
408 |
| Amount transferred to employee welfare fund |
- |
(565) |
| Income on employee welfare fund |
(106) |
(108) |
| Expenses on employee welfare fund |
74 |
14 |
| Amount transferred to scientific research fund |
- |
(565) |
| Payment of dividend on equity shares |
(13,594) |
(18,125) |
| Corporate dividend tax paid |
- |
- |
| Balance at the end of the year |
479,986 |
455,741 |
* net of deferred tax liabilities of Rs.12 million (previous year deferred tax
liabilities Rs.137 million)
Financial Highlights
The total revenue was Rs.900,891 million as against Rs.732,789 million in the previous
year showing an increase of 22.94%. Sale of vehicles in the domestic market was 1,414,277
units as compared to 1,361,722 units in the previous year showing an increase of 3.86%.
Total number of vehicles exported was 238,376 units as compared to 96,139 units in the
previous year showing an increase of 147.95%.
Profit before tax (PBT) was Rs.45,823 million against Rs.51,594 million showing a
decrease of 11.19% and profit after tax (PAT) stood at Rs.37,663 million against Rs.42,297
million in the previous year showing a decrease of 10.96%.
Dividend
The Board recommends a dividend of Rs.60/- per equity share of Rs.5/- each for the year
ended 31st March, 2022 amounting to Rs.18,125 million. The Company has formulated a
dividend distribution policy that forms part of the annual report. No amount was carried
to General Reserve.
Operational Highlights
The operations are exhaustively discussed in the ‘Management Discussion and
Analysis' forming part of the annual report.
Consolidated Financial Statements
In accordance with Indian Accounting Standard (IND AS) - 110 on Consolidated Financial
Statements read with Indian Accounting Standard (IND AS) - 28 on Investments in Associates
and Joint Ventures, the audited consolidated financial statements are provided in the
annual report.
A report containing the names of the companies which have become or ceased to become
subsidiaries, joint ventures and associates, their performance, financial position and
their contribution to the overall performance of the Company as required by the Companies
Act, 2013 (‘Act') is provided as an annexure to the consolidated financial statements
and hence are not repeated here for the purpose of brevity. (Form AOC-1)
Annual Return
The annual return of the Company for the year 2021 -22 is available on its website at
https://www.marutisuzuki.com/corporate/ investors/company-reports.
Material Subsidiaries
In accordance with Regulation 16(1)(c) of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (‘Listing Regulations'), the Company has a policy for
determining material subsidiaries. The policy is available on its website at https://marutistoragenew.blob.core.windows.net/msilintiwebpdf/
Policy on Subsidiary Companies.pdf
Particulars of Loans, Guarantees and Investments
Details of loans, guarantees and investments, if any, covered under the provisions of
Section 186 of the Act are given in the notes forming part of the financial statements.
Board Meetings
A calendar of meetings is prepared and circulated in advance to the Directors. During
the year, five board meetings were held, the details of which are given in the Corporate
Governance Report.
Audit Committee
For composition of the audit committee, please refer to the Corporate Governance
Report.
Independent Directors
The Company has received declarations of independence in accordance with the provisions
of Section 149 of the Act and Listing Regulations from all the Independent Directors.
Under the relevant provisions of the Act and the Listing Regulations, one separate meeting
of the Independent Directors was held during 2021-22. The Board is of the opinion that the
Independent Directors of the Company possess requisite qualifications, experience and
expertise and hold highest standards of integrity. The details of the familiarization
programmes for the Independent Directors are available on the website of the Company at https://marutistoragenew.blob.core.windows.net/msilintiwebpdf/
Familiarization Programme.pdf.
Directors' Responsibility Statement
To the best of their knowledge and belief and according to the information and
explanations obtained, in terms of Section 134 of the Act, your Directors state that:
a) in the preparation of the annual accounts, the applicable accounting standards have
been followed and proper explanations provided relating to material departures, if any;
b) such accounting policies have been selected and applied consistently and judgments
and estimates made that are reasonable and prudent so as to give a true and fair view of
the state of affairs of the Company at the end of the financial year and of the profit of
the Company for that period;
c) proper and sufficient care has been taken for the maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities;
d) the annual accounts have been prepared on a going concern basis;
e) internal financial controls were followed by the Company and they are adequate and
are operating effectively; and
f) proper systems have been devised to ensure compliance with the provisions of all
applicable laws and such systems are adequate and operating effectively.
Directors and Key Managerial Personnel (KMP)
Mr. Hisashi Takeuchi and Mr. Kenichiro Toyofuku shall retire by rotation in the ensuing
Annual General Meeting of the Company and, being eligible, have offered themselves for
re-appointment. Mr. Kenichi Ayukawa was appointed as Executive Vice Chairman with effect
from 1st April, 2022 for a period of six months till 30th September, 2022. Mr. Hisashi
Takeuchi was appointed as Managing Director and Chief Executive Officer with effect from
1st April, 2022 for a period of three years till 31st March, 2025.
Risk Management
Pursuant to Regulation 21 of the Listing Regulations, the Company has a Risk Management
Committee, the details of which are given in the Corporate Governance Report. The Company
has a Risk Management Policy and identified risks and taken appropriate steps for their
mitigation. For more details, please refer to the Management Discussion and Analysis
(MD&A).
Internal Financial Controls
Internal financial controls have been discussed under ‘CEO/CFO Certification' in
the Corporate Governance Report.
Vigil Mechanism
The Company has in place an established and effective mechanism called the Whistle
Blower Policy (Policy). The mechanism under the Policy has been appropriately communicated
within the organisation. The purpose of this Policy is to provide a framework to promote
responsible whistle blowing by employees. It protects employees wishing to raise concerns
about serious irregularities, unethical behavior, actual or suspected fraud within the
Company.
The Chairman of the audit committee is the ombudsperson and direct access has been
provided to the employees to contact him through e-mail, post and telephone for reporting
any matter.
Related Party Transactions
The Company has a policy on related party transactions which is available on the
Company's website at https://marutistoragenew.
blob.core.windows.net/msilintiwebpdf/Policy On Related Party Transactions.pdf. In
terms of Section 134(3) (h) of the Act read with Rule 15 of the Companies (Meetings of
Board and its Powers) Rules, 2014, there was no transaction to be reported in Form AOC 2.
The disclosure with respect to the transactions with promoter and promoter group which is
holding 10% or more of the shareholding in the Company are given in the notes forming part
of the financial statements.
Performance Evaluation
Pursuant to the provisions of the Act and the Listing Regulations, the annual
performance evaluation of the Board, its committees and the Directors was carried out as
per the Nomination and Remuneration Policy of the Company. The evaluation of the
performance of the Board, its Chairman and the Non-Independent Directors was carried out
by the Independent Directors. The evaluation of the performance of the Directors
individually was done by the Nomination and Remuneration Committee and the evaluation of
the performance of the Board, its committees and the individual Directors was done by the
Board. The criteria for the evaluation of individual Directors included
a) the extent of engagement and contribution to the affairs of the Company including by
way of attendance in Board and committee meetings;
b) ability to discharge their duties and obligations diligently in the best interest of
the Company;
c) ability to provide effective leadership and checks and balances towards sustaining
the highest levels of corporate governance;
d) exercise duty of care and skill in the discharge of their functions;
e) exercise independence of judgment and bring about objectivity to the Board process;
and
f) safeguarding the interest of all the stakeholders specially the minority
shareholders. The evaluation criteria of the performance of the Board and its committees
included, inter-alia, their culture and management with various factors like environment
of discussion, their roles and responsibilities, effectiveness to govern the organisation,
diversity, expertise, experience, independence of Directors, integrity, their composition,
attendance, participation levels, bringing specialised knowledge for decision making,
smooth functioning, effective decision making, terms of reference, conduct of committees
and frequency of meetings, etc. The Directors expressed their satisfaction with the
evaluation process. The Board also noted that the Independent Directors had fulfilled the
independence criteria as specified in the Listing Regulations and were independent from
the management.
Nomination and Remuneration Policy
The Nomination and Remuneration Policy is attached as Annexure A.
Corporate Social Responsibility (CSR)
The annual report on CSR activities containing details of CSR Policy, composition of
the CSR Committee and other prescribed details are given in Annexure B.
Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013
The Company has in place an Anti- Sexual Harassment Policy in line with the
requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013 and has also complied with its provisions relating to the
constitution of Internal Complaints Committee to redress complaints received regarding
sexual harassment.
The status of the complaints received by the Company during the year is as under:
| a) Number of complaints filed |
Nil |
| b) Number of complaints disposed of |
Nil |
| c) Number of complaints pending as on the end of financial year |
Nil |
Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo
Information in accordance with Section 134(3) (m) of the Act read with Rule 8 of the
Companies (Accounts) Rules, 2014 is attached as Annexure C.
Corporate Governance
The Company has complied with the corporate governance requirements, as stipulated
under the Listing Regulations. A certificate of compliance by auditors shall form part of
the annual report.
Secretarial Audit Report
In accordance with the provisions of Section 204 of the Act read with the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board appointed
M/s RMG & Associates, a firm of Company Secretaries in practice to undertake the
Secretarial Audit for 2021-22. The report on secretarial audit is attached as Annexure
D. The report does not contain any qualification.
Secretarial Standards
The Company has complied with the Secretarial Standards issued by the Institute of
Company Secretaries of India.
Management Discussion and Analysis Report
The annual report has a detailed report on Management Discussion and Analysis.
Personnel
As required by the provisions of Section 197 of the Act read with Rule 5 of The
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the
particulars of the employees are set out in Annexure E. However, as per the
provisions of Section 136 of the Act, the annual report is being sent to all the members
of the Company excluding the aforesaid information. The said information is available for
inspection by the members at the registered office of the Company up to the date of the
ensuing Annual General Meeting. Any member interested in obtaining such particulars may
write to the Company Secretary at the registered office of the Company.
Cost Auditors and Records
In accordance with the provisions of Section 148 of the Act read with Companies (Cost
Records and Audit) Rules, 2014, M/s R.J. Goel & Co., Cost Accountants, New Delhi
(Registration No. 000026) were appointed as the Cost Auditors of the Company to carry out
the cost audit for 2022-23. The maintenance of cost records as specified by the Central
Government under Section 148 (1) of the Act is required by the Company and such accounts
and records are made and maintained.
Auditors
The auditors, M/s Deloitte Haskins & Sells LLP ("Deloitte") were
re-appointed in the 40th Annual General Meeting and hold their office till the conclusion
of the 45th Annual General Meeting. In compliance with the conditions of the Foreign
Direct Investment, a certificate has been obtained from Deloitte Haskins & Sells for
the downstream investment made by the Company.
CRISIL Ratings
The Company was awarded the highest financial credit rating of AAA/stable (long term)
and A1+ (short term) on its bank facilities by CRISIL. The rating underscores the
financial strength of the Company in terms of the highest safety with regard to timely
fulfillment of its financial obligations.
Quality
The Company has established and is maintaining an environmental management system (EMS)
since 1999. During the year, surveillance audit for ISO 14001 was carried out by M/s
VINQOTTE nv, Belgium for the manufacturing plants located at Gurugram and Manesar in
November, 2021. The auditors appreciated various efforts taken by MSIL in regard to EMS
initiatives.
The Quality Management System of the Company is certified as per ISO 9001:2015
standard. Regular assessments of the Quality Systems are done through surveillance audits
and re-certification assessments are done every three years by an accredited third party
agency. The Company has an internal assessment mechanism to verify and ensure adherence to
defined Quality Systems across the Company.
Awards/Recognition/Rankings
The Company received many awards/recognitions/rankings during the year. Some of these
are mentioned hereunder:
a. The Company's advertising campaign ‘CalculateKiyaKya.' was selected as the
winner in the ‘Auto Four Wheelers' category in the IndIAA Awards 2021 (IAA INDIA
Awards 2021).
b. Mr. Kenichi Ayukawa, Executive Vice Chairman was conferred the ‘Lifetime
Automotive Industry Leader of the Year' award at the prestigious Jagran HiTech Awards
2021.
c. The All-New Celerio bagged ‘Hatchback of the Year' award.
d. The Company received many awards during India CSR Leadership Summit 2021 in the area
of its CSR activities.
e. The ET Edge, a special initiative by The Economic Times selected the Company amongst
the Best Brands 2021.
f. ‘Celerio' won entry level hatchback of the Year 2022 award at Indian Vehicles
Award 2022.
g. The Company was felicitated with five awards at the inaugural OLX Autos Autocar
Pre-Owned Car Awards 2022.
h. The Company was awarded ‘Gold' at the 2020/21 Vision Awards for its Annual
Integrated Report.
i. The Company was honoured with the prestigious National Safety Award (NSA) in the
automobile category.
Acknowledgment
The Board of Directors would like to express its sincere thanks for the co-operation
and advice received from the Government of India, the State Governments of Haryana and
Gujarat. Your Directors also take this opportunity to place on record their gratitude for
timely and valuable assistance and support received from Suzuki Motor Corporation, Japan.
The Board also places on record its appreciation for the enthusiastic co-operation, hard
work and dedication of all the employees of the Company including the Japanese staff,
dealers, vendors, customers, business associates, auto finance companies, state government
authorities and all concerned without which it would not have been possible to achieve all
round progress and growth of the Company. The Directors are thankful to the members for
their continued patronage.
| For and on behalf of the Board of Directors |
| Kenichi Ayukawa |
Hisashi Takeuchi |
| Executive Vice Chairman |
Managing Director & CEO |
| New Delhi |
|
| 29th April, 2022 |
|
Maruti Suzuki India Ltd
Company Background
| Incorporation Year | 1981 |
| Registered Office | Plot No 1 Nelson Mandela Road,Vasant Kunj
New Delhi,New Delhi-110070 |
| Telephone | 91-11-46781000,Managing Director |
| Fax | 91-11-46150275 |
R C BhargavaHisashi Takeuchi| Company Secretary | Sanjeev Grover |
| Auditor | Deloitte Haskins & Sells LLP |
| Face Value | 5 |
| Market Lot | 1 |
| Listing | BSE,MSEI ,NSE, |
| Registrar | KFin Techologies Ltd
Karvy Selenium Tow-B,31&32 Financial Dist,Nanakramguda ,Hyderabad-500032 |
Maruti Suzuki India Ltd
Company Management
| Director Name | Director Designation | Year |
|---|
| O Suzuki | Non-Exec & Non-Independent Dir | 2022 |
| R C Bhargava | Chairman (Non-Executive) | 2022 |
| D S Brar | Non-Exec. & Independent Dir. | 2022 |
| Kenichi Ayukawa | Vice Chairman | 2022 |
| Kinji Saito | Non-Exec & Non-Independent Dir | 2022 |
| R P Singh | Non-Exec. & Independent Dir. | 2022 |
| Toshihiro Suzuki | Non-Exec & Non-Independent Dir | 2022 |
| Sanjeev Grover | Company Sec. & Compli. Officer | 2022 |
| Hisashi Takeuchi | Managing Director & CEO | 2022 |
| Lira Goswami | Non-Exec. & Independent Dir. | 2022 |
| Kenichiro Toyofuku | Director (Corporate Planning) | 2022 |
| M S Sahu | Non-Exec. & Independent Dir. | 2022 |
Maruti Suzuki India Ltd
Listing Information
| Listing Information |
|---|
| BSE_SENSEX |
| NIFTY |
| BSE_500 |
| BSE_100 |
| BSE_200 |
| BSEDOLLEX |
| CNX500 |
| BSEAUTO |
| CNX100 |
| CNX_MNC |
| CNXCONSUMP |
| CNXAUTO |
| CNX200 |
| BSEGREENEX |
| BSECARBONE |
| NFT100LQ15 |
| NI15 |
| NFT100EQWT |
| BSEALLCAP |
| BSELARGECA |
| GOODSSERVI |
| BSEMANUFAC |
| NFTQULTY30 |
| SENSEX50 |
| ESG100 |
| LMI250 |
| BSEDSI |
| NFT50EQWT |
| BSE100LTMC |
| NFTYLM250 |
| NF500M5025 |
Maruti Suzuki India Ltd
Finished Product
| Product Name | Unit | Installed
Capacity | Production
Quantity | Sales
Quantity | Sales
Value |
|---|
| Passenger Cars/Vehicles | No | 1308000 | 1075530 | 1457861 | 59005.9 |
| Vehicle Spares | NA | 0 | 0 | 0 | 7527.7 |
| Recovery of Freight & Service | NA | 0 | 0 | 0 | 1909.6 |
| Service Charges | NA | 0 | 0 | 0 | 1188.6 |
| Scrap Sales | NA | 0 | 0 | 0 | 420.2 |
| Other Operating Revenues | NA | 0 | 0 | 0 | 211.8 |
| Rental Income | NA | 0 | 0 | 0 | 40.2 |
| Moulds & Dies | NA | 0 | 0 | 0 | 28.5 |