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A STUDY ON THE EQUITY RESEARCH IN
BANKING SECTOR
Project submitted to the Madurai Kamaraj University in partialfulfillment of the requirements for the award of the Degree of Master
of Business Administration
Submitted By
N. DINAKARAN(Reg. No. B029008)
Under the Guidance of
Dr. V. CHINNIAH
DEPARTMENT OF MANGEMENT STUDIES
MADURAI KAMARAJ UNIVERSITY
MADURAI – 625 021.
JANUARY 2012
Dr. V. CHINNIAH, M.Com., M.B.A., M.Phil., B.L., Ph.D.,
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Professor,Department of Management Studies,Madurai Kamaraj University,Madurai 625 021
CERTIFICATE
This is to certify that the project entitled “A STUDY ON THE
WORKING CAPITAL MANAGEMENT AT MEENAKSHI MISSION
HOSPITAL & RESEARCH CENTRE” submitted by Mr. N.
DINAKARAN, I year MBA is a record of research work carried out by him
for the degree of Master of Bussiness Administration, under my guidance. The
subject of the dissertation is her original work and it has not previously formed
the basis for the award of any degree, diploma, associateship, and any other
similar titles of any university or institution. The project represents entirely an
independent work on the part of the candidate.
Place: Madurai-21 (Dr.V.CHINNIAH)
Date:
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N. DINAKARAN,Department of Management Studies,Madurai Kamaraj University,Madurai – 625 021.
DECLARATION
I hereby declare that the project is entitled “A STUDY ON THE
WORKING CAPITAL MANAGEMENT AT MEENAKSHI MISSION
HOSPITAL & RESEARCH CENTRE” for the degree of Master of Bussiness
Administration, is my original work and done under the supervision of
Dr. V. CHINNIAH, M.Com., M.B.A., M.Phil., B.L., Ph.D., Professor,
Department of Management Studies, Madurai Kamaraj University, Madurai and
that it has not previously formed the basis for the award of any degree, diploma
or other similar titles of any university or institution.
Station : Madurai-21 (N.DINAKARAN)
Date:
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ACKNOWLEDGEMENT
First I would like to thank God and my beloved parents
and the members of my family, for their blessings and prayers in making this
dissertation a success.
I owe a deep of sense of gratitude to my esteemed guide Dr.
V. Chinniah, M.Com., M.B.A., M.Phil., B.L., Ph.D., Professor, Department of
Management Studies, Madurai Kamaraj University, Madurai. His help in
correcting the drafts and clarifying the doubts are greatly appreciated with deep
sense of gratitude.
I wish to express my sincere thanks to Dr.C. Chandran, M.B.A., Ph.D.,
Professor and Head of the Department of Management Studies, Madurai
Kamaraj University for his encouragement and support and also for permitting
me to do research work in the Department of Management Studies.
I am very thankful to Dr. N. Sethuraman – Founder Chairman, Dr. V.
N. Rajasekaran – Medical Director and Dr. N. Krishnamoorthy – AcademicDirector of MMHRC for permitting me to undergo summer project in their
organization.
I am also thankful to all the staffs of the Finance
department of MMHRC for helping me to complete summer project in their
organization.
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I wish to express my thanks to my classmates & my friends who have co-
operated with me to complete this project.
TABLE OF CONTENTS
Acknowledgement
Page No
List of Tables
List of Graphs
CHAPTER
1. Introduction and Design of the Study
1.1 Introduction
1.2 Scope of the Study
1.3 Objectives of the Study
1.4 Methodology
1.5 Limitation of the Study
1.6 Chapter Scheme
1 -11
II. Background of the study area
2.1Introduction
2.2 History of the Organisation
2.3 Objective of MMHRC
2.4 S.R.Trust
2.5 Quality Policy
12 – 30
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2.6Location and Layout
2.7Organisation Principles
2.8 Future Plans
2.9 Departments In MMHRC
2.10 Recognition Awards and Acceleration
2.11 Social Activities
2.12 SummaryIII. The Analysis and Interpretation
3.1 Introduction
3.2 Gross Working Capital to Total Assets Ratio
3.3 Net Working Capital to Current liability Ratio
3.4 Gross Working Capital to Sales
3.5 Working Capital Turnover Ratio
3.6 Gross Profit Ratio
3.7 Net Profit Ratio
3.8 Current Ratio
3.9 Quick Ratio
3.10 Absolute Liquid Ratio
3.11 Debtors Turnover Ratio
3.12 Average Collection Period
3.13 Creditors Turnover Ratio
3.14 Cash as Percentage of Current Assets
3.15 Statement Of Changes In Working Capital
31 – 87
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3.16 Regression Analysis
3.17 summary
IV. Summary of Findings, Suggestions and Conclusion
4.1 Findings
4.2 Suggestions
4.3 Conclusion
88 – 92
Bibliography
Appendix
Chapter-I
INTRODUCTION & DESIGN OF THE STUDY
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1.1 Introduction
1.2 Concept of working capital
1.3 Need for working capital
1.3 Introduction to the variable
1.4 Scope of the study
1.5 Objectives of the study
1.6 Methodology of the study
1.7 Period of the study
1.8 Sources of data
1.9 Tools used
1.10 Limitations of the study.
CHAPTER I - INTRODUCTION
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INTRODUCTION
India is a developing country. Nowadays many people
are interested to invest in financial markets especially on equities to get high
returns, and to save tax in honest way. Equities are playing a major role in
contribution of capital to the business from the beginning. Since the
introduction of shares concept, large numbers of investors are showing interest
to invest in stock market.
In an industry plagued with skepticism and a stock market
increasingly difficult to predict and contend with, if one looks hard enough there
may still be a genuine aid for the Day Trader and Short Term Investor. The
price of a security represents a consensus. It is the price at which one person
agrees to buy and another agrees to sell. The price at which an investor is
willing to buy or sell depends primarily on his expectations.
If he expects the security's price to rise, he will buy it; if
the investor expects the price to fall, he will sell it. These simple statements are
the cause of a major challenge in forecasting security prices, because they refer
to human expectations. As we all know firsthand, humans expectations are
neither easily quantifiable nor predictable.
If prices are based on investor expectations, then
knowing what a security should sell for (i.e., fundamental analysis) becomes
less important than knowing what other investors expect it to sell for. That's not
to say that knowing what a security should sell for isn't important--it is. But there
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is usually a fairly strong consensus of a stock's future earnings that the average
investor cannot disprove
Fundamental analysis and technical analysis can co-exist
in peace and complement each other. Since all the investors in the stock
market want to make the maximum profits possible, they just cannot afford to
ignore either fundamental or technical analysis.
FUNDAMENTAL ANALYSIS
Fundamental analysis is a method of forecasting the future price
movements of a financial instrument based on economic, political,
environmental and other relevant factors and statistics that will affect the basic
supply and demand of whatever underlies the financial instrument. It is the
study of economic, industry and company conditions in an effort to
determine the value of a company’s stock. Fundamental analysis
typically focuses on key statistics in company’s financial statements to
determine if the stock price is correctly valued. The term simply refers to theanalysis of the economic well-being of a financial entity as opposed to only its
price movements. Fundamental analysis is the cornerstone of investing. The
basic philosophy underlying the fundamental analysis is that if an investor
invests re.1 in buying a share of a company, how much expected returns
from this investment he has. The fundamental analysis is to appraise the intrinsic
value of a security. It insists that no one should purchase or sell a share on the basis of tips and rumors. The fundamental approach calls upon the investors to
make his buy or sell decision on the basis of a detailed analysis of the
information about the company, about the industry, and the economy. It is also
known as “top-down approach”. This approach attempts to study the economic
scenario, industry position and the company expectations and is also known
as
“economic-industry- company approach (EIC approach)”
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Thus the EIC approach involves three steps:
1. Economic analysis
2. Industry analysis
3. Company analysis
1.ECONOMIC ANALYSIS
The level of economic activity has an impact on investment in many ways.
If the economy grows rapidly, the industry can also be expected to show rapid
growth and vice versa. When the level of economic activity is low, stock prices
are low, and when the level of economic activity is high, stock prices are high
reflecting the prosperous outlook for sales and profits of the firms. The analysis
of macro economic environment is essential to understand the behavior of the
stock prices.
The commonly analyzed macro economic factors are as follows:
Gross Domestic Product (GDP): GDP indicates the rate of growth of theeconomy. It represents the aggregate value of the goods and services produced
in the economy. It consists of personal consumption expenditure, gross private
domestic investment and government expenditure on goods and services and net
exports of goods and services. The growth rate of economy points out the
prospects for the industrial sector and the return investors can expect from
investment in shares. The higher growth rate is more favorable to the stock market.
Savings and investment: It is obvious that growth requires investment which in
turn requires substantial amount of domestic savings. Stock market is a
channel through which the savings are made available to the corporate bodies.
Savings are distributed over various assets like equity shares, deposits, mutual
funds, real estate and bullion. The savings and investment patterns of the public
affect the stock to a great extent.
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Inflation:
Along with the growth of GDP, if the inflation rate also increases, then the
real growth would be very little. The effects of inflation on capital
markets are numerous. An increase in the expected rate of inflation is expected
to cause a nominal rise in interest rates. Also, it increases uncertainty of future
business and investment decisions. As inflation increases, it results in
extra costs to businesses, thereby squeezing their profit margins and leading
to real declines in profitability.
Interest rates:
The interest rate affects the cost of financing to the firms. A decrease in interest
rate implies lower cost of finance for firms and more profitability. More money
is available at a lower interest rate for the brokers who are doing
business with borrowed money. Availability of cheap funds encourages
speculation and rise in the price of shares.
Tax structure:
Every year in March, the business community eagerly awaits theGovernment’s announcement regarding the tax policy. Concessions and
incentives given to a certain industry encourage investment in that particular
industry. Tax relief’s given to savings encourage savings. The type of tax
exemption has impact on the profitability of the industries.
Infrastructure facilities:
Infrastructure facilities are essential for the growth of industrial andagricultural sector. A wide network of communication system is a must for the
growth of the economy. Regular supply of power without any power cut would
Boost the production. Banking and financial sectors also should be sound
enough to provide adequate support to the industry. Good infrastructure facilities
affect the stock market favorably.2.
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INDUSTRY ANALYSIS
An industry is a group of firms that have similar technological structure of
production and produce similar products and Industry analysis is a type of
business research that focuses on the status of an industry or an
industrial sector (a broad industry classification, like "manufacturing").
Irrespective of specific economic situations, some industries might be expected
to perform better, and share prices in these industries may not decline as much as
in other industries. This identification of economic and industry specific factors
influencing share prices will help investors to identify the shares that fit
individual expectations
Industry Life Cycle:
The industry life cycle theory is generally attributed to Julius Grodensky. The
life cycle of the industry is separated into four well defined stages.
Pioneering stage:
The prospective demand for the product is promising in this stage and the
technology of the product is low. The demand for the product attracts many
producers to produce the particular product. There would be severe competition
and only fittest companies survive this stage. The producers try to develop brand
name, differentiate the product and create a product image. In this situation, it is
difficult to select companies for investment because the survival rate isunknown.
Rapid growth stage:
This stage starts with the appearance of surviving firms from the pioneering
stage. The companies that have withstood the competition grow strongly in
market share and financial performance. The technology of the production
would have improved resulting in low cost of production and good quality
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products. The companies have stable growth rate in this stage and they declare
dividend to the shareholders. It is advisable to invest in the shares of these
companies.
Maturity and stabilization stage:
The growth rate tends to moderate and the rate of growth would be more or
less equal to the industrial growth rate or the gross domestic product
growth rate. Symptoms of obsolescence may appear in the
technology. To keep going, technological innovations in the production
process and products should be introduced. The investors have to closely
monitor the events that take place in the maturity stage of the industry.
Decline stage:
Demand for the particular product and the earnings of the companies in
the industry decline. It is better to avoid investing in the shares of the low growth
industry even in the boom period. Investment in the shares of these types of companies leads to erosion of capital.
Growth of the industry:
The historical performance of the industry in terms of growth and profitability
should be analyzed. The past variability in return and growth in reaction to
macro economic factors provide an insight into the future.
Nature of competition:
Nature of competition is an essential factor that determines the demand for the
particular product, its profitability and the price of the concerned
company scrips. The companies' ability to withstand the local as
well as the multinational competition counts much. If too many firms are
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present in the organized sector, the competition would be severe. The
competition would lead to a decline in the price of the product. The investor
before investing in the scrip of a company should analyze the market share of
the particular company's product and should compare it with the top five
companies.
SWOT analysis:
SWOT analysis represents the strength, weakness, opportunity and threat for an
industry. Every investor should carry out a SWOT analysis for the chosen
industry. Take for instance, increase in demand for the industry’s product
becomes its strength, presence of numerous players in the market, i.e.
competition becomes the threat to a particular company. The progress in R & D
in that industry is an opportunity and entry of multinationals in the industry is a
threat. In this way the factors are to be arranged and analyzed.
COMPANY ANALYSISIn the company analysis the investor assimilates the several bits of information
related to the company and evaluates the present and future values of the stock.
The risk and return associated with the purchase of the stock is analyzed to take
better investment decisions. The present and future values are affected by a
number of factors.
Competitive edge of the company:
Major industries in India are composed of hundreds of individual
companies. Though the number of companies is large, only few companies
control the major market share. The competitiveness of the company can be
studied with the help of the following;
Market share:
The market share of the annual sales helps to determine a company’s
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relative competitive position within the industry. If the market share is high, the
company would be able to meet the competition successfully. The companies in
the market should be compared with like product groups otherwise, the
results will be misleading.
Growth of sales:
The rapid growth in sales would keep the shareholder in a better position than
one with stagnant growth rate. Investors generally prefer size and growth in
sales because the larger size companies may be able to withstand the
business cycle rather than the company of smaller size.
Stability of sales:
If a firm has stable sales revenue, it will have more stable earnings. The fall in
the market share indicates the declining trend of company, even if the sales are
stable. Hence the stability of sales should be compared with its market share and
the competitor’s market share
Earnings of the company:
Sales alone do not increase the earnings but the costs and expenses of thecompany also influence the earnings. Further, earnings do not always increase
with increase in sales. The company’s sales might have increased but its
earnings per share may decline due to rise in costs. Hence, the investor should
not only depend on the sales, but should analyze the earnings of the company.
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Financial analysis:
The best source of financial information about a company is
its own financial statements. This is a primary source of information for
evaluating the investment prospects in the particular company’s stock. Financial
statement analysis is the study of a company’s financial statement from various
viewpoints. The statement gives the historical and current information about the
company’s operations. Historical financial statement helps to predict the
future and the current information aids to analyze the present status of the
company. The two main statements used in the analysis are Balance sheet and
Profit and Loss Account. The balance sheet is one of the financial statements
that companies prepare every year for their shareholders. It is like a financial
snapshot, the company's financial situation at a moment in time. It is prepared at
the year end, listing the company's current assets and liabilities. It helps to study
the capital structure of the company. It is better for the investor to avoid a
company with excessive debt component in its capital structure.
From the balance sheet, liquidity position of the company canalso be assessed with the information on current assets and current liabilities.
Ratio analysis:
Ratio is a relationship between two figures expressed mathematically. Financial
ratios provide numerical relationship between two relevant financial data.
Financial ratios are calculated from the balance sheet and profit and loss account.
The relationship can be either expressed as a percent or as a quotient. Ratiossummarize the data for easy understanding, comparison and interpretations.
Ratios for investment purposes can be classified into profitability ratios, turnover
ratios, and leverage ratios. Profitability ratios are the most popular ratios since
investors prefer to measure the present profit performance and use this
information to forecast the future strength of the company. The most often used
profitability ratios are return on assets, price earnings multiplier, price to book
value, price to cash flow, and price to sales, dividend yield, return on equity,
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present value of cash flows, and profit margins.
a) Return on Assets (ROA)
ROA is computed as the product of the net profit margin and the total asset
turnover ratios.
ROA = (Net Profit/Total income) x (Total income/Total Assets)
This ratio indicates the firm's strategic success.
Companies can have one of two strategies:
cost leadership, or product differentiation. ROA
should be rising or keeping pace with the company's competitors if the company
is successfully pursuing either of these strategies, but how ROA rises depend
on the company's strategy. ROA should rise with a successful cost leadership
strategy because the company’s increasing operating efficiency. An example is
an increasing, total asset, turnover ratio as the company expands into new
markets, increasing its market share. The company may achieve leadership by
using its assets more efficiently. With a successful product differentiation
strategy, ROA will rise because of a rising profit margin.b) Return on Investment (ROI)
ROI is the return on capital invested in business, i.e., if an investment Rs 1 crore
in men, machines, land and material is made to generate Rs. 25 lakhs of net
profit, then the ROI is 25%. The computation of return on investment is as
follows:
Return on Investment (ROI) = (Net profit/Equity investments) x 100As this ratio reveals how well the resources of a firm are being used, higher the
ratio, better are the results. The return on shareholder’s investment should be
compared with the return of other similar firms in the same industry. The inert-
firm comparison of this ratio determines whether the investments in the
firm are attractive or not as the investors would like to invest only where
the return is higher.
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c) Return on Equity
Return on equity measures how much an equity shareholder's investment is
actually earning. The return on equity tells the investor how much the invested
rupee is earning from the company. The higher the number, the better is
the performance of the company and suggests the usefulness of the projects
the company has invested in.
The computation of return on equity is as follows:
Return on equity = (Net profit to owners/value of the specific owner's
Contribution to the business) x 100
The ratio is more meaningful to the equity shareholders who are invested to
know profits earned by the company and those profits which can be made
available to pay dividend to them.
d) Earnings per Share (EPS)
This ratio determines what the company is earning for every share. For many
investors, earnings are the most important tool. EPS is calculated by dividing
the earnings (net profit) by the total number of equity shares.The computation of EPS is as follows:
Earnings per share = Net profit/Number of shares outstanding
The EPS is a good measure of profitability and when compared with EPS of
similar other companies, it gives a view of the comparative earnings or
earnings power of a firm. EPS calculated for a number of years indicates
whether or not earning power of the company has increased.e) Dividend per Share (DPS)
The extent of payment of dividend to the shareholders is measured in the
form of dividend per share. The dividend per share gives the amount of cash
flow from the company to the owners and is calculated as follows:
Dividend per share = T otal dividend payment / Number of shares
outstanding
The payment of dividend can have several interpretations to the
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shareholder. The distribution of dividend could be thought of as the
distribution of excess profits/abnormal profits by the company. On the other
hand, it could also be negatively interpreted as lack of investment opportunities.
In all, dividend payout gives the extent of inflows to the shareholders from the
company.
f) Dividend Payout Ratio
From the profits of each company a cash flow called dividend is distributed
among its shareholders. This is the continuous stream of cash flow to the owners
of shares, apart from the price differentials (capital gains) in the market. The
return to the shareholders, in the form of dividend, out of the company's profit
is measured through the payout ratio. The payout ratio is computed as follows:
Payout Ratio = (Dividend per share / Earnings per share) * 100
The percentage of payout ratio can also be used to compute the percentage of
retained earnings. The profits available for distribution are either paid as
dividends or retained internally for business growth opportunities. Hence,
when dividends are not declared, the entire profit is ploughed back into the business for its future investments.
g) Dividend Yield
Dividend yield is computed by relating the dividend per share to the market
price of the share. The market place provides opportunities for the investor to
buy the company's share at any point of time. The price at which the share
has been bought from the market is the actual cost of the investment to theshareholder. The market price is to be taken as the cum-dividend price. Dividend
yield relates the actual cost to the cash flows received from the company. The
computation of dividend yield is as follows
Dividend yield = (Dividend per share / Market price per share) * 100
High dividend yield ratios are usually interpreted as undervalued companies
in the market. The market price is a measure of future discounted values, while
the dividend per share is the present return from the investment. Hence, a
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high dividend yield implies that the share has been under priced in the market.
On the other hand a low dividend yield need not be interpreted as overvaluation
of shares. A company that does not pay out dividends will not have a dividend
yield and the real measure of the market price will be in terms of earnings per
share and not through the dividend internally for business growth opportunities.
Hence, when dividends are not declared, the entire profit is ploughed back into
the business for its future investments.
h) Price/Earnings Ratio (P/E)
The P/E multiplier or the price earnings ratio relates the current market price
of the share to the earnings per share. This is computed as follows:
Price/earnings ratio = Current market price / Earnings per share
This ratio is calculated to make an estimate of appreciation in the value of a
share of a company and is widely used by investors to decide whether or not to
buy shares in a particular company. Many investors prefer to buy the
company's shares at a low P/E ratio since the general interpretation is that the
market is undervaluing the share and there will be a correction in the market price sooner or later. A very high P/E ratio on the other hand implies that the
company's shares are overvalued and the investor can benefit by selling the
shares at this high market price.
i) Debt-to-Equity Ratio
Debt- Equity ratio is used to measure the claims of outsiders and the owners
against the firm’s assets.Debt-to-equity ratio = Outsiders Funds / Shareholders Funds
The debt-equity ratio is calculated to measure the extent to which debt financing
has been used in a business. It indicates the proportionate claims of
owners and the outsiders against the firm’s assets. The purpose is to get an idea
of the cushion available to outsiders on the liquidation of the firm.
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NEED OF THE STUDY
To start any business capital plays major role.
Capital can be acquired in two ways by issuing shares or by taking debt from
financial institutions or borrowing money from financial institutions. The
owners of the company have to pay regular interest and principal
amount at the end.
Stock is ownership in a company, with each
share of stock representing a tiny piece of ownership. The more shares you own,
the more of the company you own. The more shares you own, the more
dividends you earn when the company makes a profit. In the financial world,
ownership is called “Equity”.
Advantages of selling stock:
•A company can raise more capital than it could borrow.
•A company does not have to make periodic interest payments to creditors.
•A company does not have to make principal paymentsStock/shares play a major role in acquiring
capital to the business in return investors are paid dividends to the shares they
own. The more shares you own the more dividends you receive. role of equity
analysis is to provide information to the market. An efficient market
relies on information: a lack of information creates inefficiencies that result in
stocks being misrepresented (over or under valued). This is valuable because itfills information gaps so that each individual investor does not need to analyze
every stock thereby making the markets more efficient.
OBJECTIVES OF THE STUDY
The objective of this project is to deeply
analyze our Indian Automobile Industry for investment purpose by monitoring
the growth rate and performance on the basis of historical data.
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The main objectives of the Project study are:
• Detailed analysis of Automobile industry which is gearing towards
international standards
• Analyze the impact of qualitative factors on industry’s and
company’s prospects
• Comparative analysis of three tough competitors TATA Motors,
Maruti Suzuki and Mahindra and Mahindra through fundamental analysis.
• Suggesting as to which company’s shares would be best for an investor to
invest.
SCOPE OF THE STUDY
The scope of the study is identified after and during the study is conducted.
The project is based on tools like fundamental analysis and ratio analysis.
Further, the study is based on information of last five years.
• The analysis is made by taking into consideration five companies i.e. TATAMotor s, Maruti Suzuki and Mahindra and Mahindra.
• The scope of the study is limited for a period of five years.
• The scope is limited to only the fundamental analysis of the chosen stocks.
Sources and methods of collecting data:
To meet the objective of the project, a lot of data was required to be collected
from varied sources. For the technical analysis, the data was required in respect
of Interest Income, Advances, Various rates, Share Prices, etc. For this, the data
was obtained from Balance Sheets, Quarterly results, Websites, News Papers,
etc. A list of same is provided in the references.
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METHODOLOGY
Research design or research methodology is the procedure of collecting,
analyzing and interpreting the data to diagnose the problem and react to the
opportunity in such a way where the costs can be minimized and the desired
level of accuracy can be achieved to arrive at a particular conclusion. The
methodology used in the study for the completion of the project and
the fulfillment of the project objectives.
The sample of the stocks for the purpose of collecting secondary
data has been selected on the basis of Random Sampling. The stocks are
chosen in an unbiased manner and each stock is chosen independent of the other
stocks chosen. The stocks are chosen from the automobile sector. The sample
size for the number of stocks is taken as 3 for fundamental analysis of stocks
as fundamental analysis is very exhaustive and requires detailed study.
LIMITATIONS
• This study has been conducted purely to understand Equity analysis for
investors.
• The study is restricted to three companies based on Fundamental analysis.• The study is limited to the companies having equities.
• Detailed study of the topic was not possible due to limited size of the project.
• There was a constraint with regard to time allocation for the research study i.e.
for a period of 45 days.
• Suggestions and conclusions are based on the limited data of five years.
Equity Analysis
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Chapter-II
BACKGROUND OF THE STUDY AREA
Equity Analysis
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HDFC securities Ltd, a trusted financial services intermediary is a
subsidiary of India's respected private sector bank- (HDFC Bank)
Suggestions and conclusions are based on the limited data of five years
A leading stock broking company having completed 10 years in operation,
serves a diverse customer base of retail and institutional investors.
Discerning investors experience a robust platform to trade in
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The Web portal aims to provide a one stop window for all
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Based on Web 2.0 technology.
SPEED
Equity Analysis
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State-of-the art technology enabling seamless trading experience on
both the exchanges BSE and NSE.
CONVENIENCE
• Clients could adopt to trade with us either online, or on the phone, or
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and securities across your bank, demat and trading account.
• Clients get to enjoy limits across exchanges to trade
• No need to issue cheques or delivery instructions.
• Place IPO / NCD applications via few clicks using the trading account or
by the phone. No standing in queues or filling application forms.
• ASBA application facility.
• Customer care centre to address all queries and grievances.
REACH
HDFC securities has a strong unified call centre catering to clients across India
and overseas aiding clients who wish to have their orders placed by a tele-agent.
7 Regional language call centre facility is available for clients.
Over 128 exclusive branches across India also service clients locally by
dedicated relationship managers.
TRANSPARENCY
With our trusted pedigree, a client can be assured of best services in a
transparent manner and is in total control of their funds and stocks.
EXPERTISE
With a decade of experience and a rating of A1+1, HDFC securities has a
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admired lineage of providing financial services to customers in a transparent
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• PMS
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Automobile industry
The Automobile industry in India is one of the
largest in the world and one of the fastest growing globally. India's passenger
car and commercial vehicle manufacturing industry is the seventh largest in the
world, with an annual production of more than 3.7 million units in 2010.
According to recent reports, India is set to overtake Brazil to become the sixth
largest passenger vehicle producer in the world, growing 16-18 per cent to sell
around three million units in the course of 2011-12. In 2009, India emerged as
Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, andThailand.
As of 2010, India is home to 40 million passenger vehicles.
More than 3.7 million automotive vehicles were produced in India in 2010 (an
increase of 33.9%), making the country the second fastest growing automobile
market in the world. According to the Society of Indian Automobile
Manufacturers, annual vehicle sales are projected to increase to 5 million by
2015 and more than 9 million by 2020. By 2050, the country is expected to top
the world in car volumes with approximately 611 million vehicles on the
nation's roads. The majority of India's car manufacturing industry is based
around three clusters in the south, west and north. The southern cluster near
Chennai is the biggest with 35% of the revenue share. The western hub near
Maharashtrais
33% of the market. The northern cluster is primarily
Haryana with 32%. Chennai, is also referred to as the "Detroit of India” with the
India operations of Ford, Hyundai, Renault and Nissan headquartered in the city
and BMW having an assembly plant on the outskirts. Chennai accounts for 60%
of the country's automotive exports. Gorgon and Manesar in Haryana form the
northern cluster where the country's largest car manufacturer, MarutiSuzuki, is
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based. The Chakan corridor near Pune, Maharashtra is the western cluster with
companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra,
Tata Motors, Mercedes Benz, Land Rover , Fiat and Force Motors having
assembly plants in the area. Aurangabad with Audi, Skoda and Volkswagen
also forms part of the western cluster. Another emerging cluster is in the state of
Gujarat with manufacturing facility of General Motors in Halol and further
planned for Tata Nano at Sanand. Ford, Maruti Suzuki and Peugeot-Citroen
plants are also set to come up in Gujarat.[14] Kolkata with Hindustan Motors,
Noida with Honda and Bangalore with Toyota are some of the other automotive
manufacturing regions around the country
A total of 11.8 m two-wheelers were sold in India in FY11, a
growth of a strong 26% over the previous year. Motorcycles accounted for 76%
of the total two wheelers sold. The growth came in despite the series of interest
rate hikes undertaken by the RBI to bring inflation under control. The scooters
(geared & ungeared) improved their sales considerably, largely due to improved performance of the ungeared scooter segment. The 3-wheeler segment also
performed well as domestic volumes improved 19% YoY, led by 22% growth
in passenger carriers.
The medium and heavy commercial vehicles (M/HCVs)
segment saw its volumes grow by a huge 32% after having grown by animpressive 34% in FY10 as well. LCVs on the other hand, underperformed their
HCV peers as volumes increased at a relatively lower rate of 23%. The strong
growth in the overall CV segment was due to high growth rates during the first
half of the fiscal supported by sustained economic growth and impact of a lower
base in the corresponding period last year. Healthy growth in the agricultural
and industrial sectors also fuelled demand for CVs.
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The tractor industry, the world’s largest also logged in good
growth in FY11. Domestic volumes grew by 20% as against a growth of 32% in
the previous year. After increasing by 26% in FY10, sales of passenger cars did
well in FY11 as well as volumes grew by 30% YoY. A strong growth in GDP
aided by recovery in agriculture and good performance in the industry and
services sector had a positive impact on the same of passenger vehicles as well.
Utility Vehicles also logged in a strong grow 19% in FY11.
While raw material prices softened considerably in FY10 and bolstered
operating margins, the scenario reversed in FY11. Although sales growth in
FY11 remained strong, auto companies began to feel the pressure on operating
margins on the back of rising raw material prices.
The government spending on infrastructure in roads and
airports and higher GDP growth in the future will benefit the auto sector in
general. We expect a slew of launches in the Segment 'B' and Segment 'C' of
passenger cars. Utility vehicle segment is expected to grow at around 8% to 9%in the long-term
In the 2-wheeler segment, motorcycles are expected to
witness a flurry of new model launches. Though the market size is expected to
grow by 10% to 12%, competitive pressure could keep prices and margins
under control. TVS, Honda and Hero Motocorp are poised to benefit fromhigher demand for ungeared scooters in the urban and rural markets.
Riding the wave of structural changes taking place in the country, the tractor
industry registered good growth in FY10 as well as FY11. However, while
fiscal FY09 saw volumes grow marginally, the same roared back in FY10,
witnessing a growth of 32%. The strong performance continued in FY11 as well
as volumes grew by 20%. While good monsoon is a positive for the sector,
given the fact that non-farm incomes have continued to climb up, volumes
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should still hold up pretty well despite a year or two of poor monsoons. The
longer-term picture is impressive in light of poor mechanization levels in the
country’s farm sector and the thrust of the government on improving rural
infrastructure.
With an estimated 40% of CVs plying on the roads being 10
years old, demand for HCVs is expected to grow by 7% to 8% over the long
term. While the industry is going through cyclical hiccups currently, we expect
this factor to weaken in the future on account of strong structural tailwinds. The
privatization of select state transport undertakings bold well for the bus segment
The Indian Automobile Industry manufactures over 11
million vehicles and exports about 1.5 million each year. The dominant
products of the industry are two wheelers with a market share of over 75% and
passenger cars with a market share of about 16%. Commercial vehicles and
three wheelers share about 9% of the market between them. About 91% of the
vehicles sold are used by households and only about 9% for commercial
purposes. The industry has a turnover of more than USD $35 billion and
provides direct and indirect employment to over 13 million people.?
The supply chain is similar to the supply chain of the
automotive industry in Europe and America.
Interestingly, the level of trade exports in this sector in
India has been medium and imports have been low. However, this is rapidly
changing and both exports and imports are increasing. The demand
determinants of the industry are factors like affordability, product innovation,
infrastructure and price of fuel. Also, the basis of competition in the sector is
high and increasing, and its life cycle stage is growth. With a rapidly growing
middle class, all the advantages of this sector in India are yet to be leveraged.
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With a high cost of developing production facilities, limited accessibility to new
technology, and increasing competition, the barriers to enter the Indian
Automotive sector are high. On the other hand, India has a well-developed tax
structure. The power to levy taxes and duties is distributed among the three tiers
of Government. The cost structure of the industry is fairly traditional, but the
profitability of motor vehicle manufacturers has been rising over the past five
years. Major players, like Tata Motors and Maruti Suzuki have material cost of
about 80% but are recording profits after tax of about 6% to 11%.
The level of technology change in the Motor vehicle
Industry has been high but, the rate of change in technology has been medium.
Investment in the technology by the producers has been high. System-suppliers
of integrated components and sub-systems have become the order of the day.
However, further investment in new technologies will help the industry be more
competitive. Over the past few years, the industry has been volatile. Currently,
India's increasing per capita disposable income which is expected to rise by
106% by 2015 and growth in exports is playing a major role in the rise and
competitiveness of the industry.
Tata Motors is leading the commercial vehicle segment
with a market share of about 64%. Maruti Suzuki is leading the passenger
vehicle segment with a market share of 46%. Hyundai Motor India and
Mahindra and Mahindra are focusing expanding their footprint in the overseasmarket. Hero Honda Motors is occupying over 41% and sharing 26% of the two
wheeler market in India with Bajaj Auto. Bajaj Auto in itself is occupying about
58% of the three wheeler market.
Consumers are very important of the survival of the
Motor Vehicle manufacturing industry. In 2008-09, customer sentiment
dropped, which burned on the augmentation in demand of cars. Steel is the
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major input used by manufacturers and the rise in price of steel is putting a cost
pressure on manufacturers and cost is getting transferred to the end consumer.
The price of oil and petrol affect the driving habits of consumers and the type of
car they buy.
The key to success in the industry is to improve labour
productivity, labour flexibility, and capital efficiency. Having quality
manpower, infrastructure improvements, and raw material availability also play
a major role. Access to latest and most efficient technology and techniques will
bring competitive advantage to the major players. Utilising manufacturing
plants to optimum level and understanding implications from the government
policies are the essentials in the Automotive Industry of India.
Both, Industry and Indian Government are obligated to
intervene the Indian Automotive industry. The Indian government should
facilitate infrastructure creation, create favourable and predictable business
environment, attract investment and promote research and development. The
role of Industry will primarily be in designing and manufacturing products of
world-class quality establishing cost competitiveness and improving
productivity in labour and in capital. With a combined effort, the Indian
Automotive industry will emerge as the destination of choice in the world for
design and manufacturing of automobiles.
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Key statistics
The production of automobiles has greatly increased in the last decade. It passed the 1 million
mark during 2003-2004 and has more than doubled since.
Year Car
Production
%
Change
Commercial %
Change
Total Vehicles
Prodn.
%
Change
2010 2,814,584 29.39 722,199 54.86 3,536,783 33.89
2009 2,175,220 17.83 466,330 -4.10 2,641,550 13.25
2008 1,846,051 7.74 486,277 -9.99 2,332,328 3.35
2007 1,713,479 16.33 540,250 -1.20 2,253,999 10.39
2006 1,473,000 16.53 546,808 50.74 2,019,808 19.36
2005 1,264,000 7.27 362,755 9.00 1,628,755 7.22
2004 1,178,354 29.78 332,803 31.25 1,511,157 23.132003 907,968 28.98 253,555 32.86 1,161,523 22.96
2002 703,948 7.55 190,848 19.24 894796 8.96
2001 654,557 26.37 160,054 -43.52 814611 1.62
2000 517,957 -2.85 283,403 -0.58 801360 -2.10
1999 533,149 285,044 818193
Year 2005-
2006
2006-
2007
2007-2008 2008-2009 2009-
20010
Motor Vehicle Production 8,467,853 9,743,503 11,087,997
10,853,930
11,175,479
Industry Revenue USDMillion
24,379 26,969 30,507 32,383 33,342*
Exports (Units) 629,544 806,222 1,011,529 1,238,333 1,530,660
Exports (Revenue) 1,915 2,231 2,552 3,008 3,718*
Automobile Production
Type of Vehicle 2005-
2006
2006-
2007
2007-2008 2008-2009 2009-2010
Passenger Vehicles 1,209,876 1,309,300 1,545,223 1,777,583 1,838,697
Commercial Vehicles 353,703 391,083 519,982 549,006 417,126Three Wheelers 374,445 434,423 556,126 500,660 501,030
Two Wheelers 6,529,829 7,608,697 8,466,666 8,026,681 8,418,626
Total 8,467,853 9,743,503 11,087,997
10,853,930
11,175,479
Automobile Sales
Type of Vehicle 2005-
2006
2006-
2007
2007-2008 2008-
2009
2009-2010
Passenger Vehicles 1,061,572 1,143,076 1,379,979 1,549,882 1,551,880
Commercial Vehicles 318,430 351,041 467,765 490,494 384,122Three Wheelers 307,862 359,920 403,910 364,781 349,719
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Two Wheelers 6,209,765 7,052,391 7,872,334 7,249,278 7,437,670
Total 7,897,629 8,906,428 10,123,988
9,654,435 9,723,391
Automobile Exports
Type of Vehicle 2005-
2006
2006-
2007
2007-
2008
2008-
2009
2009-2010
Passenger Vehicles 166,402 175,572 198,452 218,401 335,739
Commercial Vehicles 29,940 40,600 49,537 58,994 42,673
Three Wheelers 66,795 76,881 143,896 141,225 148,074
Two Wheelers 366,407 513,169 619,644 819,713 1,004,174
Total 629,544 806,222 1,011,529 1,238,333 1,530,660
Product and service segmentation
The automotive industry of India is categorised into
passenger cars, two wheelers, commercial vehicles and three wheelers, with two
wheelers dominating the market. More than 75% of the vehicles sold are two
wheelers. Nearly 59% of these two wheelers sold were motorcycles and about
12% were scooters. Mopeds occupy a small portion in the two wheeler market
however; electric two wheelers are yet to penetrate.
The passenger vehicles are further categorised into passenger
cars, utility vehicles and multi-purpose vehicles. All sedan, hatchback, stationwagon and sports cars fall under passenger cars. Tata Nano, is the world's
cheapest passenger car , manufactured by Tata Motors - a leading automaker of
India. Multi-purpose vehicles or people-carriers are similar in shape to a van
and are taller than a sedan, hatchback or a station wagon, and are designed for
maximum interior room.
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Utility vehicles are designed for specific tasks. The
passenger vehicles manufacturing account for about 15% of the market in India.
Commercial vehicles are categorised into heavy, medium andlight. They account for about 5% of the market. Three wheelers are categorised
into passenger carriers and goods carriers. Three wheelers account for about 4%
of the market in India.
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Chapter- IV
Industry Profile
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Bajaj Auto
Bajaj Auto Limited
Type Public
Industry Automobile
Headquarters Pune, Maharashtra, India
Key people
Rahul Bajaj (Chairman),
Rajiv Bajaj (Managing
Director)
ProductsBikes, scooter,
Autorickshaw, cars
Revenue 16,975 crore (US$3.23 billion) [1]
Net income3,340 crore (US$634.6
million)
Employees 10,250 (2006-07)
Parent Bajaj Group
Website www.bajajauto.com
Bajaj Auto is a major Indian vehicle manufacturer started by Jamnalal Bajaj
from Rajasthan in the 1930s. It is based in Pune, Maharashtra, with plants in
Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttaranchal. The
oldest plant at Akurdi (Pune) now houses the R&D centre Ahead. Bajaj Auto
makes and exports automobiles, scooters, motorcycles and the auto rickshaw.
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The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1,946. It
features at 1639 in forbes 2011 list.
Over the last decade, the company has successfully changed its image from ascooter manufacturer to a two wheeler manufacturer. Its product range
encompasses scooterettes, scooters and motorcycles. Its real growth in numbers
has come in the last four years after successful introduction of a few models in
the motorcycle segment.
The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.
Bajaj Auto came into existence on 29 November 1945 as M/s Bachraj Trading
Corporation Private Limited. It started off by selling imported two- and three-
wheelers in India. In 1959, it obtained license from the Government of India to
manufacture two- and three-wheelers and it went public in 1960. In 1970, it
rolled out its 100,000th vehicle. In 1977, it managed to produce and sell
100,000 vehicles in a single financial year. In 1985, it started producing at
Waluj near Aurangabad. In 1986, it managed to produce and sell 500,000
vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicle
and produced and sold one million vehicles in a year.
According to the authors of Globality: Competing with Everyone from
Everywhere for Everything , Bajaj has grown operations in 50 countries by creating a line
of value-for-money bikes targeted to the different preferences of entry-level buyers.
Timeline of new releases
• 1960-1970 - Vespa 150 - Under the licence of Piaggio of Italy
• 1971 - three-wheeler goods carrier
• 1972 - Bajaj Chetak
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• 1976 - Bajaj Super
• 1977 - Bajaj Priya
• 1977 - Rear engine Autorickshaw
• 1981 - Bajaj M-50
• 1986 - Bajaj M-80, Kawasaki Bajaj KB100, Kawasaki Bajaj KB125,
• 1990 - Bajaj Sunny
• 1991 - Kawasaki Bajaj 4S Champion
• 1993 - Bajaj Stride
• 1994 - Bajaj Classic
• 1995 - Bajaj Super Excel
• 1997 - Kawasaki Bajaj Boxer , Rear Engine Diesel Autorickshaw
• 1998 - Kawasaki Bajaj Caliber , Bajaj Legend, India's first four-stroke
scooter, Bajaj Spirit
• 2000 - Bajaj Saffire
• 2001 - Eliminator , Bajaj Pulsar
• 2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar Bajaj Endura FX• 2004 - Bajaj CT 100, New Bajaj Chetak 4-stroke with Wonder Gear ,
Bajaj Discover DTS-i
• 2005 - Bajaj Wave, Bajaj Avenger , Bajaj Discover
• 2006 - Bajaj Platina
• 2007 - Bajaj Pulsar-200 (Oil Cooled), Bajaj Kristal, Bajaj Pulsar 220
DTS-Fi (Fuel Injection), XCD 125 DTS-Si• 2008 - Bajaj Discover 135 DTS-i - sport (Upgrade of existing 135cc
model)
• 2009 - Bajaj Pulsar 135(December 9) (January) Bajaj XCD 135 cc, Bajaj
Pulsar 150 DTS-i UG IV, Bajaj Pulsar 180 DTS-i UG IV, Bajaj Pulsar 220
DTS-i, Bajaj Discover 100 DTS-Si, Kawasaki Ninja 250R
• 2012 - Bajaj RE 60, mini car for intra-city urban transportation
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Spinoffs and acquisitions
The demerger of Bajaj Auto Ltd into three separate corporate entities—Bajaj
Finserv Ltd (BFL), Bajaj Auto Ltd (BAL), and Bajaj Holdings and InvestmentLtd (BHIL)—was completed with the shares listing on 26 May 2008.
In November 2007, Bajaj Auto acquired 14.5% stake in KTM Power Sports AG
(holding company of KTM Sportmotocycles AG). The two companies have
signed a cooperation deal, by which KTM will provide the know-how for joint
development of the water-cooled four-stroke 125 and 250 cc engines, and Bajaj
will take over the distribution of KTM products in India and some other
Southeast Asian nations. Bajaj said it is open to taking a majority stake in KTM
and is also looking at other takeover opportunities. On 8 January 2008,
Managing Director Rajiv Bajaj confirmed the collaboration and announced his
intention to gradually increase Bajaj's stake in KTM to 25%.
Products
Main article: List of Bajaj Auto products
Bajaj has made a number of motorcycles, scooters and cars. Motorcycles in
current production are the XCD, Platina, Discover , Pulsar and Avenger . Bajaj
also produces many motorcycles for other manufacturers, such as the Kawasaki
Ninja 250R , and new for 2011, the KTM Duke 125.[citation needed ] Cars include the
Bajaj ULC ultra-low-cost car.
Low cost cars
In 2010, Bajaj Auto announced the cooperation with Renault and Nissan Motor
to develop of a US$ 2,500 car, aiming at a fuel-efficiency of 30 kilometres per
litre (85 mpg-imp; 71 mpg-US) (3.3 L/100 km), or twice an average small car, and
carbon dioxide emissions of 100 g/km.[9][10] On 3 January 2012, Bajaj auto
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unveiled the Bajaj RE 60, a mini car for intra-city urban transportation. The
target customer group will be Bajaj's three wheeler customers.[11] According to
Managing Director Rajiv Bajaj, the Bajaj RE60 powered by a new 200 cc rear
mounted petrol engine will have a top speed of 70 kilometres per hour
(43 mph), a mileage of 35 kilometres per litre (99 mpg-imp; 82 mpg-US) and
carbon dioxide emissions of 60 g/km.
The Bajaj RE 60 will be a direct Tata Nano competitor. The Bajaj venture will
have an initial capacity of 400,000 units, while Tata expects eventual demand of
one million Nanos.
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Hero MotoCorp (BSE: 500182, NSE: HEROMOTOCO) formerly Hero
Honda is a motorcycle and scooter manufacturer based in India. Hero Honda started in 1984as a joint venture between Hero Cycles of India and Honda of Japan. The company is thelargest two wheeler manufacturer in India. The 2006 Forbes 200 Most Respected companies
list has Hero Honda Motors ranked at 108.
In 2010, When Honda decided to move out of the joint venture, Hero Group bought the shares held by Honda. Subsequently, in August 2011 the company was renamedHero MotoCorp with a new corporate identity.
•
Company profile
Hero” is the brand name used by the Munjal brothers for their flagshipcompany Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited At Dharuhera India.Munjal family and Honda group both own 26% stake in the Company. In 2010, it wasreported that Honda planned to sell its stake in the venture to the Munjal family.
During the 1980s, the company introduced motorcycles that were popular inIndia for their fuel economy and low cost. A popular advertising campaign based on theslogan 'Fill it - Shut it - Forget it' that emphasised the motorcycle's fuel efficiency helped thecompany grow at a double-digit pace since inception. The technology in the bikes of HeroHonda for almost 26 years (1984–2010) has come from the Japanese counterpart Honda [9]
Hero MotoCorp has three manufacturing facilities based at Dharuhera,Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes per year.[10] Hero MotoCorp has a large sales and servicenetwork with over 3,000 dealerships and service points across India. Hero Honda has acustomer loyalty program since 2000,[11] called the Hero Honda Passport Program.
The company has a stated aim of achieving revenues of $10 billion andvolumes of 10 million two-wheelers by 2016-17. This in conjunction with new countrieswhere they can now market their two-wheelers following the disengagement from Honda,Hero MotoCorp hopes to achieve 10 per cent of their revenues from international markets,and they expected to launch sales in Nigeria by end-2011 or early-2012. In addition, to copewith the new demand over the coming half decade, the company was going to build their fourth factory in South India and their fifth factory in Western India. There is no confirmationwhere the factories would be built. [12]
History
Hero MotoCorp was started in 1984 as Hero Honda Motors Ltd.[3]
• 1956 -- Formation of Hero Cycles in Ludhiana(majestic auto limited)• 1975 -- Hero Cycles becomes largest bicycle manufacturer in India.
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• 1983 -- Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signedShareholders Agreement signed• 1984 -- Hero Honda Motors Ltd. incorporated• 1985 -- Hero Honda motorcycle CD 100 launched.• 1989 -- Hero Honda motorcycle Sleek launched.
• 1991 -- Hero Honda motorcycle CD 100 SS launched.• 1994 -- Hero Honda motorcycle Splendor launched.• 1997 -- Hero Honda motorcycle Street launched.• 1999 -- Hero Honda motorcycle CBZ launched.• 2001 -- Hero Honda motorcycle Passion and Hero Honda Joy launched.• 2002 -- Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambitionlaunched.• 2003 -- Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor, HeroHonda motorcycle Passion Plus and Hero Honda motorcycle Karizma launched.• 2004 -- Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ*launched.• 2005 -- Hero Honda motorcycle Super Splendor, Hero Honda motorcycle CD Deluxe,Hero Honda motorcycle Glamour, Hero Honda motorcycle Achiever and Hero HondaScooter Pleasure.• 2007 -- New Models of Hero Honda motorcycle Splendor NXG, New Models of HeroHonda motorcycle CD Deluxe, New Models of Hero Honda motorcycle Passion Plus andHero Honda motorcycle Hunk launched.• 2008 -- New Models of Hero Honda motorcycles Pleasure, CBZ Xtreme, Glamour,Glamour Fi and Hero Honda motorcycle Passion Pro launched.• 2009 -- New Models of Hero Honda motorcycle Karizma:Karizma - ZMR and limitededition of Hero Honda motorcycle Hunk launched• 2010 -- New Models of Hero Honda motorcycle Splendor Pro and New Hero Hondamotorcycle Hunk and New Hero Honda Motorcycle Super Splendor launched.• 2011 -- New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZXtreme, Karizma launched.
New licensing arrangement signed between Hero and Honda.
• August 2011 -- Hero and Honda part company, thus forming Hero MotoCorpand Honda moving out of the Hero Honda joint venture.
• November 2011 -- Hero launched its first ever Off Road Bike Named Hero"Impulse".
Termination of Honda joint venture
Main article: Hero Honda split
In December 2010, the Board of Directors of the Hero Honda Group have decided toterminate the joint venture between Hero Group of India and Honda of Japan in a phasedmanner. The Hero Group would buy out the 26% stake of the Honda in JV Hero Honda.[13] Under the joint venture Hero Group could not export to international markets (exceptSri Lanka) and the termination would mean that Hero Group can now export. Since the
beginning, the Hero Group relied on their Japanese partner Honda for the technology in
their bikes. So there are concerns that the Hero Group might not be able to sustain the performance of the Joint Venture alone.[14]
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Hero MotoCorp
The new brand identity and logo, Hero MotoCorp, was developed by the London firm
Wolff Olins.[15] The logo was revealed on 9 August 2011 in London, the day before thethird test match between England and India.[15]
Hero MotoCorp can now export to Latin America, Africa and West Asia. [15] Hero is freeto use any vendors for its components instead of just Honda-approved vendors. [15]
Company performance
During the fiscal year 2008-09, the company sold 3.7 million bikes, a growth of 12%over last year. In the same year, the company had a market share of 57% in the Indian
market.[16] Hero Honda sells more two wheelers than the second, third and fourth placedtwo-wheeler companies put together.[9] Hero Honda's bike Hero Honda Splendor sellsmore than one million units per year.[17]
Recognition
Logo of Hero Honda, as the company was known till Aug. 2011
The Brand Trust Report published by Trust Research Advisory has ranked Hero Honda inthe 13th position among the brands in India.
Motorcycle models
See also: Category:Hero Honda motorcycles
• Sleek • Achiever
• Ambition 133, Ambition 135• CBZ, CBZ Star, CBZ Xtreme• CD 100, CD 100 SS, CD Dawn, CD Deluxe, CD Deluxe (Self Start)• Glamour, Glamour F.I• Hunk • Karizma , Karizma R, Karizma ZMR FI• Passion, Passion+, Passion Pro• Pleasure• Splendor , Splendor+, Splendor+ (Limited Edition), Super Splendor, Splendor
NXG,Splendor PRO
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Suppliers
It is reported Hero Honda has five joint ventures or associate companies,Munjal Showa, AG Industries , Sunbeam Auto, Rockman Industries and Satyam Auto
Components, that supply a majority of its components.
Company
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largestmanufacturer of two - wheelers, based in India.In 2001, the company achieved the coveted position of being the largest two-wheeler manufacturing company in India and also, the 'World No.1' two-wheeler company in terms of unit volume sales in a calendar year. HeroMotoCorp Ltd. continues to maintain this position till date.
Vision
The story of Hero Honda began with a simple vision - the vision of a mobileand an empowered India, powered by its bikes. Hero MotoCorp Ltd., company'snew identity, reflects its commitment towards providing world class mobilitysolutions with renewed focus on expanding company's footprint in the globalarena.
Mission
Hero MotoCorp's mission is to become a global enterprise fulfilling itscustomers' needs and aspirations for mobility, setting benchmarks intechnology, styling and quality so that it converts its customers into its brandadvocates. The company will provide an engaging environment for its people to
perform to their true potential. It will continue its focus on value creation andenduring relationships with its partners.
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Strategy
Hero MotoCorp's key strategies are to build a robust product portfolio acrosscategories, explore growth opportunities globally, continuously improve itsoperational efficiency, aggressively expand its reach to customers, continue toinvest in brand building activities and ensure customer and shareholder delight.
MANUFACTURING Hero MotoCorp two wheelers are manufactured across three globally
benchmarked manufacturing facilities. Two of these are based at Gurgaon andDharuhera which are located in the state of Haryana in northern India. The thirdand the latest manufacturing plant is based at Haridwar, in the hill state of Uttrakhand.
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This article is about the company. For the entire conglomerate, see Mahindra Group. For
other uses, see Mahindra Group.
Mahindra & Mahindra Limited
Type Public (BSE: 500520)
Industry Automotive
Founded 1945
Headquarters Mumbai, Maharashtra, India
Products Automobiles
Revenue23,803.24 crore (US$4.52
billion) (2011).[1]
Net income
2,871.49 crore
(US$545.58 million) (2010).
[2]
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Employees 119,900 [2]
Parent Mahindra Group
Website Mahindra.com
Mahindra & Mahindra Limited (M&M) (BSE: 500520) is an Indian
multinational automaker company and a subsidiary of Mahindra Group
conglomerate. Its based in Mumbai, India. The company was set up in 1945 in
Ludhiana as Mahindra & Mohammed by brothers K.C. Mahindra and J.C.
Mahindra and Malik Ghulam Mohammed.[3] After India gained independence and
Pakistan was formed, Mohammed emigrated to Pakistan where he became the
nation's first finance minister . The company changed its name to Mahindra &
Mahindra in 1948.[4]
•
History
Mahindra & Mahindra was set up as a steel trading company in 1945. It soon
expanded into manufacturing general-purpose utility vehicles, starting with
assembly under licence of the iconic Willys Jeep in India. Soon established as the
Jeep manufacturers of India, M&M later branched out into the manufacture of
light commercial vehicles (LCVs) and agricultural tractors. Today, M&M is the
leader in the utility vehicle segment in India with its flagship UV Scorpio and
enjoys a growing global market presence in both the automotive and tractor
businesses.
Over the past few years, M&M has expanded into new industries and
geographies. They entered into the two-wheeler segment by taking over Kinetic
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Motors in India.[5] M&M also has controlling stake in REVA Electric Car
Company[6] and acquired South Korea's SsangYong Motor Company in 2011.[7]
The US based Reputation Institute recently ranked Mahindra among the top 10
Indian companies in its 'Global 200: The World's Best Corporate Reputations' list.
[8]
[edit] Major Mahindra & Mahindra Divisions
[edit] Automotive
Automotive
Mahindra & Mahindra Limited
•
Mahindra Scorpio
•
Mahindra Jeep CJ 340.
•
Mahindra Bolero
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•
Mahindra XUV 500
•
Mahindra Axe
•
Mahindra Bolero Camper (old version)
•
Mahindra Legend used by MONUC in DR of Congo
•
Mahindra Xylo
•
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Mahindra Verito
Mahindra & Mahindra is a major automobile manufacturer of utility vehicles,
passenger cars, pickups, commercial vehicles, and two wheelers. Its tractors are
sold on six continents. It has acquired plants in China[9] and the United Kingdom,
[10] and has three assembly plants in the USA. M&M has partnerships with
international companies like Renault SA, France[11] and International Truck and
Engine Corporation, USA.
M&M has a global presence[12] and its products are exported to several countries.
[13] Its global subsidiaries include Mahindra Europe Srl. based in Italy,[14]
Mahindra USA Inc., Mahindra South Africa[15] and Mahindra (China) Tractor Co.
Ltd.
M&M made its entry into the passenger car segment with the Logan in April 2007
under the Mahindra Renault joint venture.[16] M&M will make its maiden entry
into the heavy trucks segment with Mahindra Navistar , the joint venture with
International Truck , USA.[17]
M&M's automotive division makes a wide range of vehicles including MUVs,
LCVs and three wheelers. It offers over 20 models including new generation
multi-utility vehicles like the Scorpio and the Bolero. It formerly had a joint
venture with Ford called Ford India Private Limited to build passenger cars.
At the 2008 Delhi Auto Show, Mahindra executives said the company is pursuing
an aggressive product expansion program that would see the launch of several
new platforms and vehicles over the next three years, including an entry-level
SUV designed to seat five passengers and powered by a small turbodiesel engine.
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[18] True to their word, Mahindra & Mahindra launched the Mahindra Xylo in
January 2009, and as of June 2009, the Xylo has sold over 15000 units.[19]
Also in early 2008, Mahindra commenced its first overseas CKD operations with
the launch of the Mahindra Scorpio in Egypt,[20] in partnership with the Bavarian
Auto Group. This was soon followed by assembly facilities in Brazil. Vehicles
assembled at the plant in Bramont, Manaus, include Scorpio Pik Ups in single and
double cab pick-up body styles as well as SUVs.[21]
Mahindra planned to sell the diesel SUVs and pickup trucks starting in late 2010
in North America[22] through an independent distributor, Global Vehicles USA,
based in Alpharetta, Georgia.[23] Mahindra announced it will import pickup trucks
from India in knockdown kit (CKD) form to circumvent the Chicken tax.[24] CKDs
are complete vehicles that will be assembled in the U.S. from kits of parts shipped
in crates.[24] On 18 October 2010, however, it was reported that Mahindra had
indefinitely delayed the launch of vehicles into the North American market, citing
legal issues between it and Global Vehicles after Mahindra retracted its contract
with Global Vehicles earlier in 2010, due to a decision to sell the vehicles directly
to consumers instead of through Global Vehicles.[25] However, a November 2010
report quoted John Perez, the CEO of Global Vehicles USA, as estimating that he
expects Mahindra’s small diesel pickups to go on sale in the U.S. by spring 2011,
although legal complications remain, and Perez, while hopeful, admits thatarbitration could take more than a year.[26] Later reports suggest that the delays
may be due to an Manindra scrapping the original model of the truck and
replacing it with an upgraded one before selling them to Americans[27]
Mahindra & Mahindra has a controlling stake in Mahindra Reva Electric
Vehicles. In 2011, it also gained a controlling stake in South Korea's SsangYong
Motor Company.[28]
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Mahindra & Mahindra Ltd. (M&M), has launched its much awaited SUV, XUV
500, code named as W201[29] in September 2011. The last ‘500’ in the name is
pronounced as ‘5 double-O’ (alphabet). The new SUV by Mahindra has been
designed in-house and it is developed on the first global SUV platform that could
be used for developing more SUVs. In India, the new Mahindra XUV 500 comes
in a price range[30] between Rs 14 lakh to Rs 15 lakh. Besides India, the company
also targets Europe, Africa, Australia and Latin America for this model.[31]
[edit] Components
Combining its experience in the automotive and farm equipment industries with a
series of key acquisitions of European components companies, Mahindra &
Mahindra maintains art-to-part manufacturing units across India, Germany, Italy,
and the United Kingdom. Mahindra & Mahindra has expertise in forgings,
castings, gears, stampings, steel, ferrites, contract sourcing, and composites. It
also offers full-service art-to-part solutions that integrate design, manufacturing,
and sourcing. More than 12,000 people are employed at Mahindra & Mahindra's
Components division.[32]
[edit] Defense
Mahindra & Mahindra became involved in defense systems in 1947, when it
started importing, assembling, and adapting the Willys Jeeps used in World War
II.[33] It later began designing and constructing its own line of armored vehicles,
becoming the largest private-sector supplier to the Government of India. Today,
Mahindra & Mahindra partners with several countries to provide a range of
defense solutions for police forces, Armies, and Navies—including sea mines,
surveillance solutions, weapons, ammunition, and more.
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Defence Land Systems India is Mahindra & Mahindra’s joint venture with BAE
Systems, a world leader in defense technology. With more than 100 employees, it
develops new technologies and manufactures armored vehicles like the Axe,
Rakshak, Marksman, up-armored and bulletproof Scorpios and Boleros, and
Rapid Intervention Vehicles. Its Special Military Vehicles facility outside
Faridabad is ISO-9000-2008 certified. The facility manufactures world-class
military vehicles, select artillery systems, and other land system weapons and will
provide support to the Indian Army as it pursues its Field Artillery Rationalization
Plan and upgrade program as a center for design, development, manufacture,
assembly, integration, and test of artillery systems.[34]
[edit] Energy
Mahindra & Mahindra entered the energy sector in 2002, in response to growing
demands for reliable and quality power in India.[35]
Since then, more than 150,000 Mahindra Powerol engines and diesel generator
sets (gensets) have been installed in India, offering uninterrupted power in areas
with unreliable grid electricity. The inverters, batteries, and gensets are
manufactured at three facilities in Pune, Chennaie, and Delhi; and 160 service
points across India offer 24-7 support to most key markets. Powerol is present in
countries across Latin America, Africa, the Middle East, and Southeast Asia—and
expanding into the United Arab Emirates, Bangladesh, and Nepal.[35]
M&M’s energy services include power leasing and telecom infrastructure
management.[36] In 2006, it became the market leader in the telecom segment (and
in 2011, its market share passed 45 percent). In 2007, it won the Frost and
Sullivan “Voice of the Customer” award for best practices in telecom.
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Mahindra Cleantech Ltd examines reliable and creative energy solutions through
green power. In response to growing demand, it formed a subsidiary, Mahindra
Solar, in 2010 to offer a range of solar solutions, including on- and off-grid
solutions and Engineering, Procurement, and Construction (EPC). [37] By building
utility-scale solar power plants, it offers turnkey EPC solutions. Meanwhile, its
off-grid solutions include power packs and rooftop setups for commercial
organizations and institutions, solar hybrid solutions to telecom towers, and rural
electrification through lanterns and home and street lighting systems. The
company works closely with Mahindra’s farm equipment division to offer lighting
solutions to even the most rural areas in India. It also works with Mahindra
Powerol to offer solar power backup to telecom sites in India. In 2011, Mahindra
Solar received a CRISIL rating of SP1A in 2011, the highest rating for any solar
photovaltaic off-grid company.[37]
[edit] Farm Equipment
Main article: Mahindra Tractors
Mahindra & Mahindra began manufacturing tractors for the Indian market in the
early 1960s. Today, it is one of the top three tractor companies in the world with
annual sales totaling more than 150,000 tractors.[38] It has expanded its offerings
to include farm-support services via Mahindra AppliTrac (agri-mechanization
solutions), Mahindra ShubhLabh (seeds, crop protection, and market linkages and
distribution), and the Samriddhi Initiative (agri-support information and
counseling).
Mahindra & Mahindra’s farm equipment division (Mahindra Tractors) is one of
the top-selling tractor companies in the world, with more than 1,000 dealers
servicing more than 1.45 million customers.[39]
Mahindra tractors are sold in 40countries on six continents, including the United States, China, Australia, New
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Zealand, Africa (Nigeria, Mali, Chad, Gambia, Angola, Sudan, Ghana, and
Morocco), Latin America (Chile, Argentina, Brazil, Venezuela, Central America,
and the Caribbean), South Asia (Sri Lanka, Bangladesh, and Nepal), the Middle
East (Iran and Syria) and Eastern Europe (Serbia, Turkey, and Macedonia. [39]
Mahindra tractors are manufactured at four plants in India, two in China, three in
the United States, and one in Australia—allowing Mahindra & Mahindra a
foothold in major agricultural hubs. It has three major subsidiaries: Mahindra
USA, Mahindra (China) Tractor Company, and Mahindra Yueda (Yancheng)
Tractor Company (a joint venture with the Jiangsu Yueda Group).[39]
The company has enjoyed 27 years of market leadership and has garnered the
highest customer satisfaction index (CSI) in the industry at 88 percent.[39] In its
2009 survey of Asia’s 200 most admired and innovative companies, the Wall
Street Journal named Mahindra & Mahindra one of the 10 most innovative Indian
companies. It earned a 2008 Golden Peacock Award in the Innovative
Product/Services category for its in-house development of a load-car. In 2007,
Mahindra & Mahindra became the only tractor company to win the Deming
Application Prize and the Japan Quality Medal for Total Quality Management
excellence in entire business operations.
In addition to tractors, Mahindra sells farm implements.
[edit] Aerospace
Main articles: Mahindra Aerospace and Gippsland Aeronautics
Mahindra Aerospace is aerospace division of the Indian multinational
conglomerate company Mahindra Group. It is the first Indian private firm to make
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smaller civil aircraft for the Indian general aviation market. It is an AS9100
Rev.B certified design organization.
• Gippsland GA200
• Gippsland GA8 Airvan
• Gippsland GA10 Airvan
• Gippsland GA18
[edit] Awards
1. Bombay Chamber Good Corporate Citizen Award for 2006-07 [40]
2. Businessworld FICCI-SEDF Corporate Social Responsibility Award –
2007
3. Deming Prize [41]
4. Japan Quality Medal in 2007[42]
[edit] Automotive Models
• Mahindra MM540DP
• Mahindra MM550DP
• Mahindra Armada
• Mahindra Commander
• Mahindra Marshal
• Mahindra Major
• Mahindra Legend
• Mahindra Thar
• Mahindra Invader
• Mahindra Bolero
• Mahindra Xylo
• Mahindra Scorpio
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• Mahindra Verito
• Mahindra XUV500
• Founded in 1945 as a steel trading company, we entered automotive
manufacturing in 1947 to bring the iconic Willys Jeep onto Indian roads.
Over the years, we’ve diversified into many new businesses in order to
better meet the needs of our customers. We follow a unique business
model of creating empowered companies that enjoy the best of
entrepreneurial independence and Group-wide synergies. This principle
has led our growth into a US $14.4 billion multinational group with more
than 144,000 employees in over 100 countries across the globe.
•
• Today, our operations span 18 key industries that form the foundation of
every modern economy: aerospace, aftermarket, agribusiness, automotive,
components, construction equipment, consulting services, defense, energy,
farm equipment, finance and insurance, industrial equipment, informationtechnology, leisure and hospitality, logistics, real estate, retail, and two
wheelers.
•
• Our federated structure enables each business to chart its own future and
simultaneously leverage synergies across the entire Group’s competencies.
In this way, the diversity of our expertise allows us to bring our customers
the best in many fields
• Our motivation to give our best every day comes from our core
purpose: we will challenge conventional thinking and innovatively use all
our resources to drive positive change in the lives of our stakeholders and
communities across the world—to enable them to Rise.
•
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• Our products and services support our customers’ ambitions to improve
their living standards; our responsible business practices positively engage
the communities we join through employment, education, and outreach;
and our commitment to sustainable business is bringing green technology
and awareness into the mainstream through our products, services, and
light-footprint manufacturing processes.
•
• This commitment to sustainability—social, economic, and environmental—
rests upon a set of core values. They are an amalgamation of what we have
been, what we are, and what we want to be. These values are the compass
that guides our actions, both personal and corporate. They are:
•
• Good corporate citizenship
•
We will continue to seek long term success in alignment with the needs of the communities we serve. We will do this without compromising on
ethical business standards.
•
• Professionalism
•
• We have always sought the best people for the job and given them the
freedom and the opportunity to grow. We will continue to do so. We will
support innovation and well reasoned risk taking, but will demand
performance.
•
• Customer first
•
We exist and prosper only because of the customer. We will respond to the
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changing needs and expectations of our customers speedily, courteously
and effectively.
•
• Quality focus
•
Quality is the key to delivering value for money to our customers. We will
make quality a driving value in our work, in our products and in our
interactions with others. We will do it 'First Time Right.'
•
• Dignity of the individual
•
We will value individual dignity, uphold the right to express disagreement
and respect the time and efforts of others. Through our actions, we will
nurture fairness, trust, and transparency
•
Mahindra 2 Wheelers launches the New Mahindra Duro DZ at Auto-Expo
• 11 Jan 2012
• Mahindra to launch its new range of mobility products in FY 2012-13
• 10 Jan 2012
• Mahindra Solar One amongst first to commission a 5 MW solar power
plant in Rajasthan
• 09 Jan 2012
• Mahindra Solar 1 amongst first to commission a 5 MW solar power
plant in Rajasthan
• 09 Jan 2012
• Shaping the FUTURE of Mobility
• 06 Jan 2012
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• Mahindra showcases comprehensive suite of mobility solutions at the
Delhi Auto Expo 2012
• 05 Jan 2012
• Mahindra Blues Festival is back with global superstars on February 11
and 12
• 05 Jan 2012
• Mahindra Lifespaces set to enter Hyderabad
• 05 Jan 2012
• Mahindra 2 Wheelers to launch its much awaited scooter, Duro DZ,
this month
• 03 Jan 2012
• Mahindra Tractors selctors sells 15315 units in the domestic market
during December 2011
• 02 Jan 2012
•
Ssangyong Motor records combined total of 8,665 in domestic andoverseas sales for December
• 02 Jan 2012
• Mahindra's Automobile Sector registers a 26% growth in sales during
December 2011
• 01 Jan 2012
The Company started its business in the year 1909 as
Suzuki Loom Works and then was incorporated as
Suzuki Motor Corporation in the year 1920.
With headquarters at Hamamatsu, Japan, Suzuki has
steadily grown and expanded its business acrossgeographies. During the post WW II period, the
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company's 'Power Free' motorized bike earned a good
reputation.
Post the success of its first motorized bike 'Power Free',
the company launched a 125cc motorcycle 'Colleda', and
later launched its first lightweight car 'Suzulight' that
marked the start of Japan's automotive revolution. Each
of these products were epoch-making in their own right
as they were developed and manufactured by optimizing
the most advanced technologies of that period.
Suzuki today offers its customers a wide range of motorcycles, automobiles,
outboard motors and related products such as generators and motorized
wheelchairs.
Suzuki's trademark is recognized throughout the world as a brand that offers
high quality, reliable and genuine products. Suzuki stands behind this global
symbol with a determination to maintain this confidence in the future as well,
never stopping in creating such advanced 'value-packed' products.
Financial highlights for FY 2009 (1 April 2009 - 31 March 2010)
Net sales ¥ 2.5 trillion (up 1.3% y-o-y)Operating Income ¥ 80.0 billion (up 0.8% y-o-y)
Net Income ¥ 30.0 billion (up 3.8% y-o-y)
The company's consolidated profits exceeded those of the previous year with
¥79.4 billion of operating income (103.2% y-o-y), ¥93.8 billion of ordinary
income (117.8% y-o-y) and ¥28.9 billion of net income (105.4% y-o-y).
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Suzuki develops products for the new generation and changeable
lifestyles, constantly creating new technologies and applying them to
products with affluent imagination. The team covers a wide range of
latest advances in energy, environment, electronics, communication,
information and control applications.
Maruti Suzuki
From Wikipedia, the free encyclopedia
Jump to: navigation, search
Maruti Suzuki India Limited
Type Public
Traded asBSE: 532500
NSE: MARUTI
Industry Automotive
Founded1981(as Maruti Udyog
Limited)
Headquarters New Delhi, India[1]
Key peopleShinzo Nakanishi, Managing
Director and CEO
Products Automobiles
Revenue 37,522.4 crore (US$7.13
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billion) (2010-11) [2]
Net income 2,288.6 crore (US$434.83million) (2010-11) [2]
Employees 6,903[3]
Parent Suzuki Motor Corporation
Website www.marutisuzuki.com
Maruti Suzuki India Limited ( NSE: MARUTI, BSE: 532500) is a subsidiary
company of Japanese automobile and motorcycle manufacturer Suzuki. The
company offers a complete range of cars from entry level Maruti 800 and Alto, to
hatchback Ritz, A-Star , Swift, Wagon-R , Estillo and sedans DZire, SX4, in the 'C'
segment Maruti Eeco and Sports Utility vehicle Grand Vitara.[4]
It was the first company in India to mass-produce and sell more than a millioncars. It is largely credited for having brought in an automobile revolution to India.
It is the market leader in India, and on 17 September 2007, Maruti Udyog
Limited was renamed as Maruti Suzuki India Limited. The company's
headquarters are located in New Delhi.[1]
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Contents
[hide]
• 1 Profile
• 2 Joint venture related issues
• 3 Industrial relations
• 4 Services offered
o 4.1 Current sales of automobiles
4.1.1 Imported
o 4.2 Discontinued car models
o 4.3 Manufacturing facilities
4.3.1 Gurgaon Manufacturing Facility
4.3.2 Manesar Manufacturing Facility
o 4.4 Sales and service network
o 4.5 Maruti Insurance
o 4.6 Maruti Finance
o 4.7 Maruti TrueValue
o 4.8 N2N Fleet Management
o 4.9 Accessories
o 4.10 Maruti Driving School
•
5 Issues and problems• 6 Exports
• 7 Awards and recognition
• 8 See also
• 9 References and notes
• 10 External links
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[ edit ] Profile
The old logo of Maruti Suzuki India Limited. Later the logo of Suzuki Motor
Corp. was also added to it
'To Munsiyari on a Maruti 800', Uttarakhand Himalayas
Maruti Suzuki plant in Manesar
Maruti Suzuki is India and Nepal's number one leading automobile manufacturer
and the market leader in the car segment, both in terms of volume of vehicles sold
and revenue earned. Until recently, 18.28% of the company was owned by the
Indian government, and 54.2% by Suzuki of Japan. The BJP-led government held
an initial public offering of 25% of the company in June 2003. As of 10 May
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2007, the government of India sold its complete share to Indian financial
institutions and no longer has any stake in Maruti Udyog. [citation needed]
Maruti Udyog Limited (MUL) was established in February 1981, though the
actual production commenced in 1983 with the Maruti 800, based on the Suzuki
Alto kei car which at the time was the only modern car available in India, its only
competitors- the Hindustan Ambassador and Premier Padmini were both around
25 years out of date at that point. Through 2004, Maruti Suzuki has produced over
5 Million vehicles. Maruti Suzukis are sold in India and various several other
countries, depending upon export orders. Models similar to Maruti Suzukis (but
not manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation and
manufactured in Pakistan and other South Asian countries.[citation needed]
The company exports more than 50,000 cars annually and has an extremely large
domestic market in India selling over 730,000 cars annually. Maruti 800, till
2004, was the India's largest selling compact car ever since it was launched in
1983. More than a million units of this car have been sold worldwide so far.
Currently, Maruti Suzuki Alto tops the sales charts.[citation needed]
Due to the large number of Maruti 800s sold in the Indian market, the term
"Maruti" is commonly used to refer to this compact car model. Its manufacturing
facilities are located at two facilities Gurgaon and Manesar south of Delhi. Maruti
Suzuki’s Gurgaon facility has an installed capacity of 350,000 units per annum.
The Manesar facilities, launched in February 2007 comprise a vehicle assembly
plant with a capacity of 100,000 units per year and a Diesel Engine plant with an
annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon
facilities have a combined capability to produce over 700,000 units annually.
More than half the cars sold in India are Maruti Suzuki cars. The company is a
subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of
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Maruti Suzuki. The rest is owned by public and financial institutions. It is listed
on the Bombay Stock Exchange and National Stock Exchange in India.[citation needed]
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were
exported. In all, over six million Maruti Suzuki cars are on Indian roads since the
first car was rolled out on 14 December 1983. Maruti Suzuki offers 14 models,
Maruti 800, Alto, WagonR , Estilo, A-star , Ritz, Swift, Swift DZire, SX4, Omni,
Eeco, Gypsy, Grand Vitara, Kizashi. Swift, Swift DZire, A-star and SX4 are
manufactured in Manesar, Grand Vitara and Kizashi are imported from Japan as
completely built units(CBU), remaining all models are manufactured in Maruti
Suzuki's Gurgaon Plant.[citation needed]
Suzuki Motor Corporation, the parent company, is a global leader in mini and
compact cars for three decades. Suzuki’s technical superiority lies in its ability to
pack power and performance into a compact, lightweight engine that is clean and
fuel efficient. Nearly 75,000 people are employed directly by Maruti Suzuki and
its partners. It has been rated first in customer satisfaction among all car makers in
India from 1999 to 2009 by J D Power Asia Pacific.[5]
Further information: Timeline of Maruti Suzuki
[ edit ] Joint venture related issues
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Maruti Suzuki's A-Star vehicle during its unveiling in Pragati Maidan, Delhi. A-
Star , Suzuki's fifth global car model, was designed and is made only in India.[6]
Maruti Suzuki is also Suzuki's leading research and development arm outside
Japan
Relationship between the Government of India, under the United Front (India)
coalition and Suzuki Motor Corporation over the joint venture was a point of
heated debate in the Indian media till 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 to increase its equity from 26% to 40% in 1987, and further to 50% in
1992. In 1982 both the venture partners had entered into an agreement to
nominate their candidate for the post of Managing Director and every Managing
Director will have a tenure of five years[7]
R.C. Bhargava was the initial managing director of the company since the
inception of the joint venture. Till today he is regarded as instrumental for the
success of Maruti Suzuki. Joining in 1982 he held several key positions in the
company before heading the company as Managing Director. Currently he is on
the Board of Directors.[8] After completing his five year tenure, Mr. Bhargava
later assumed the office of Part-Time Chairman. The Government nominated Mr.S.S.L.N. Bhaskarudu as the Managing Director on 27 August 1997. Mr.
Bhaskarudu had joined Maruti Suzuki in 1983 after spending 21 years in the
Public sector undertaking Bharat Heavy Electricals Limited as General Manager.
In 1987 he was promoted as Chief General Manager. In 1988 he was named
Director, Productions and Projects. The next year (1989) he was named Director
of Materials[clarification needed] and in 1993 he became Joint Managing Director.[citation
needed]
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Suzuki Motor Corporation didn't attend the Annual General Meeting of the Board
with the reason of it being called on a short notice.[9] Later Suzuki Motor
Corporation went on record to state that Bhaskarudu was "incompetent" and
wanted someone else. However, the Ministry of Industries, Government of India
refuted the charges. Media stated from the Maruti Suzuki sources that Bhaskarudu
was interested to indigenise most of components for the models including gear
boxes especially for Maruti 800. Suzuki also felt that Bhaskarudu was a proxy for
the Government and would not let it increase its stake in the venture.[10] If Maruti
Suzuki would have been able to indigenise gear boxes then Maruti Suzuki would
have been able to manufacture all the models without the technical assistance
from Suzuki. Till today the issue of localization of gear boxes is highlighted in the
press.[11]
The relations strained when Suzuki Motor Corporation moved to Delhi High
Court to bring a stay order against Bhaskarudu's appointment. The issue was
resolved in an out-of-court settlement and both the parties agreed that R S S L N
Bhaskarudu would serve up to 31 December 1999, and from 1 January 2000,
Jagdish Khattar , Executive Director of Maruti Udyog Limited would assume
charges as the Managing Director.[12] Many politicians stated in parliament that
the Suzuki Motor Corporation is unwilling to localize manufacturing and reduce
imports. As of 2011 Gear boxes are still imported from Japan and are assembled
at the Gurgaon facility.[citation needed]
[ edit ] Industrial relations
For most of its history, Maruti Udyog Limited had relatively few problems with
its labour force. Its emphasis of a Japanese work culture and the modern
manufacturing process, first instituted in Japan in the 1970s, was accepted by the
workforce of the company without any difficulty. But with the change in
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management in 1997, when it became predominantly government controlled for a
while, and the conflict between the United Front Government and Suzuki may
have been the cause of unrest among employees. A major row broke out in
September 2000 when employees of Maruti Udyog Ltd (MUL) went on an
indefinite strike, demanding among other things, revision of the incentive scheme
offered and implementation of a pension scheme.[citation needed]
Employees struck work for six hours in October 2000, irked over the suspension
of nine employees, going on a six-hour tools-down strike at its Gurgaon plant,
demanding revision of the incentive-linked pay and threatened to fast to death if
the suspended employees were not reinstated. About this time, the NDA
government, following a disinvestments policy, proposed to sell part of its stake
in Maruti Suzuki in a public offering. The Staff union opposed this sell-off plan
on the grounds that the company will lose a major business advantage of being
subsidised by the Government.[citation needed]
The standoff with the management continued to December with a proposal by the
management to end the two-month long agitation rejected with a demand for
reinstatement of 92 dismissed workers, with four MUL employees going on a
fast-unto-death. In December the company's shareholders met in New Delhi in an
AGM that lasted 30 minutes. At the same time around 1500 plant workers from
the MUL's Gurgaon facility were agitating outside the company's corporate officedemanding commencement of production linked incentives, a better pension
scheme and other benefits. The management has refused to pass on the benefits
citing increased competition and lower margins.[13]
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[ edit ] Services offered
[edit] Current sales of automobiles
Red Bull Maruti Suzuki Swift
Maruti Omni
India's Corps of Military Police personnel patrolling the Wagah border crossing in
the Punjab in a Maruti Gypsy.
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Maruti Alto
Maruti Suzuki Swift
Maruti Suzuki Zen Estilo
Suzuki SX4
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7th Generation Suzuki Alto is sold as Maruti Suzuki A-Star in India.
Maruti Suzuki Swift DZire
Suzuki Splash is sold as Maruti Suzuki Ritz in India.
1. 800 (Launched 1983)
2. Omni (Launched 1984)
3. Gypsy (launched 1985)
4. Zen (launched 1995)
5. WagonR (Launched 1999)
6. Alto (Launched 2000)
7. Swift (Launched 2005)
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8. Estilo (Launched 2009)
9. SX4 (Launched 2007)
10. Swift DZire (Launched 2008)
11. A-star (Launched 2008)
12. Ritz (Launched 2009)
13. Eeco (Launched 2010)
14. Alto K10 (Launched 2010)
15. Maruti Ertiga, seven seater MPV R3 designed and developed in India, will
compete with Toyota Innova, Mahindra Xylo, and Tata Sumo Grande.[14]
In
early 2012, Suzuki Ertiga will be exported first to Indonesia in Completely
Knock Down car.[15]
16. Maruti XA Alpha will be launched in the year 2014
[edit] Imported
Suzuki Grand Vitara
1. Grand Vitara (Launched 2007)
2. Kizashi (Launched 2011)
[edit] Discontinued car models
1. 1000 (1990–1994)
2. Zen (1993–2006)
3. Esteem (1994–2008)
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4. Baleno (1999–2007)
5. Zen Estilo (2006–2009)
6. Versa (2001–2010)
7. Grand Vitara XL7 (2003–2007)
*Source
[edit] Manufacturing facilities
Maruti Suzuki has two state-of-the-art manufacturing facilities in India.[16] Both
manufacturing facilities have a combined production capacity of 1,250,000
vehicles annually.
[edit] Gurgaon Manufacturing Facility
The Gurgaon Manufacturing Facility has three fully integrated manufacturing
plants and is spread over 300 acres (1.2 km2). All three plants have an installed
capacity of 350,000 vehicles annually but productivity improvements have
enabled it to manufacture 700,000 vehicles annually. The Gurgaon facilities also
manufacture 240,000 K-Series engines annually. The entire facility is equipped
with more than 150 robots, out of which 71 have been developed in-house. The
Gurgaon Facilities manufactures the 800, Alto, WagonR , Estilo, Omni, Gypsy
and Eeco.
[edit] Manesar Manufacturing Facility
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
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total production capacity to 550,000 vehicles annually. The Manesar Plant
produces the A-star , Swift, Swift DZire and SX4.
[edit] Sales and service network
As of 31 March 2011 Maruti Suzuki has 933 dealerships across 666 towns and
cities in all states and union territories of India. It has 2,946 service stations
(inclusive of dealer workshops and Maruti Authorised Service Stations) in 1,395
towns and cities throughout India.[17] It has 30 Express Service Stations on 30
National Highways across 1,314 cities in India.
Service is a major revenue generator of the company. Most of the service stations
are managed on franchise basis, where Maruti 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. [18]
[edit] Maruti Insurance
Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with
the help of the National Insurance Company, Bajaj Allianz, New 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 Maruti
Insurance Brokers Pvt. Limited[19]
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.[20]
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[edit] Maruti Finance
To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in
January 2002. Prior to the start of this service Maruti 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.[21] Maruti 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[22] 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.[23]
"Maruti Finance marks the coming together of the biggest players in the car
finance business. They are the benchmarks in quality and efficiency. Combined
with Maruti volumes and networked dealerships, this will enable Maruti Finance
to offer superior service and competitive rates in the marketplace".
— Jagdish Khattar, Managing director of Maruti Udyog Limited in a press
conference announcing the launch of Maruti Finance on 7 January 2002[21]
Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India
and Maruti Udyog Limited its primary business stated by the company is "hire-
purchase financing of Maruti Suzuki vehicles". Citi Finance India Limited is a
wholly owned subsidiary of Citibank Overseas Investment Corporation,
Delaware, which in turn is a 100% wholly owned subsidiary of Citibank N.A. Citi
Finance India Limited holds 74% of the stake and Maruti Suzuki holds the
remaining 26%.[24] GE Capital, HDFC and Maruti Suzuki came together in 1995
to form Maruti Countrywide. Maruti claims that its finance program offers most
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competitive interest rates to its customers, which are lower by 0.25% to 0.5%
from the market rates.[citation needed]
[edit] Maruti TrueValue
Main Article: Maruti True Value
Maruti True service offered by Maruti Suzuki to its customers. It is a market place
for used Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti
Suzuki vehicles with the help of this service in India. As of 31 March 2010 there
are 341 Maruti True Value outlets.[citation needed]
[edit] 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 Ltd, DuPont, Reckitt Benckiser , Sona
Steering, Doordarshan, Singer India, National Stock Exchange and Transworld.
This fleet management service include end-to-end solutions across the vehicle's
life, which includes Leasing, Maintenance, Convenience services and
Remarketing.[25]
[edit] Accessories
Many of the auto component companies other than Maruti 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.[26]
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[edit] Maruti Driving School
A Maruti Driving School in Chennai
As part of its corporate social responsibility Maruti Suzuki launched the Maruti
Driving School in Delhi. Later the services were extended to other cities of 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.[27]
"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."[citation needed]
— Jagdish Khattar, at the launch ceremony of Maruti Driving School, Bangalore
[ edit ] Issues and problems
On 24 February 2010, Maruti Suzuki India announced recalling of 100,000 A-Star
hatchbacks to fix a fuel leakage problem. the company will replace the gaskets for
all 100,000 A-Star cars.[28]
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[ edit ] Exports
Maruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on
exports and it does not operate in the domestic Indian market. The first
commercial consignment of 480 cars were sent to Hungary. By sending a
consignment of 571 cars to the same country Maruti Suzuki crossed the
benchmark of 300,000 cars. Since its inception export was one of the aspects
government was keen to encourage.[citation needed] Every political party expected
Maruti Suzuki to earn foreign currency. Angola, Benin, Djibouti, Ethiopia,
Europe, Kenya, Morocco, Nepal, Sri Lanka, Uganda, Chile, Guatemala, Costa
Rica and El Salvador are some of the markets served by Maruti Exports. [citation needed]
[ edit ] Awards and recognition
The Brand Trust Report published by Trust Research Advisory has ranked Maruti
Suzuki in the seventh position among the brands in India.
Madras Rubber Factory
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Type Public
Founded 1949
Founder(s) K.M.Mammen Mappillai
Headquarters Chennai, India
Key people Arun Mammen (MD)
Products Tyres, Toys, Sports Goods
Revenue8,080 crore (US$1.54
billion) (2010)
Operating
income
354 crore (US$67.26
million) (2010)
Net income543 crore (US$103.17
million) (2010)
SubsidiariesFunskool, MRF Pace
Foundation, MRF Racing
Website www.mrftyres.com
Madras Rubber Factory, popularly known as MRF, is a major tyre
manufacturing company located in Chennai, Tamil Nadu, India.The name was
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later changed as "Manorama Rubber Factory". MRF is mainly involved in making
vehicle tyres. It is India's largest tyre manufacturing company, and among the
dozen largest worldwide. It exports to more than 65 countries.MRF is the sister
concern of the leading malayalam daily "Malayala Manorama".The founder of the
MRF, Mr.K.M.Mammen Mappilai was the brother of late Mr.K.M.Mathew, ex-
chief editor of "Malayala Manorama"
1946
A young entrepreneur, K.M.Mammen Mappillai, opened a small toy
balloon manufacturing unit in a shed at Tiruvottiyur , Madras (now
Chennai).
1949
Although the factory was just a small shed without any machines, a varietyof products, ranging from balloons and latex-cast squeaking toys to
industrial gloves and contraceptives, were produced. During this time,
MRF established its first office at 334, Thambu Chetty Street, Madras (now
Chennai), Tamil Nadu, India.
1952
MRF ventured into the manufacture of tread rubber. And with that, the first
machine, a rubber mill, was installed at the factory. This step into tread-
rubber manufacture, was later to catapult MRF into a league that few had
imagined possible.
1955
MRF soon became the only Indian-owned unit to manufacture the superior
extruded, non-blooming and cushion-backed tread-rubber, enabling it to
compete with the MNC's operating in India at that time.
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1956
By the close of 1956, MRF had become the market leader with a 50% share
of the tread-rubber market in India. So effective was MRF's hold on the
market, that the large multinationals had no other option but to withdraw
from the tread rubber business in India.
1960
The Company was incorporated as a private limited company on 5
November. The Company Manufacture automobile, aircraft, cycle tyres and
tubes in collaboration with the Mansfield Tire & Rubber Co., Mansfield,
Ohio, U.S.A. The tyres are sold under the trade name Mansfield Tyres
(MRF). The Company also produces other industrial products made of
rubber like conveyor belt, hoses etc. It took over the entire business of the
Madras Rubber Factory as a going concern as from 16 November, for a
consideration of Rs.25 Lakh.1961
The Madras Rubber Factory Private Limited was converted into a public
company on 1 April, and additional capital was issued in order to start the
manufacture of automobile tyres and tubes in collaboration with the
Mansfield Tire & Rubber Co., Mansfield, Ohio, U.S.A. The Company was
given permission to export tyres having Mansfield trade mark to all world
markets except U.S.A. and Canada. : 2,49,650 shares allotted without
payment in cash. 350 shares subscribed for by the signatories to the
Memorandum of Association. 2,50,000 shares reserved and allotted
directors. 5,00,000 shares issued to public in April 1961. The balance
2,50,000 shares allotted to collaborators as payment for machinery.
1962
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The main plant for production of tyres and tubes were commissioned on 4
December.
1963
Nylon Hot-Stretch Unit of the latest design was commissioned in
November.
6,25,000 Right Equity shares offered at par in the proportion 1:2.
1964
With the commissioning of the main plant in 1964, MRF also made
progress in the export of tyres. An overseas office at Beirut
(Lebanon) was established to develop the export market, and it was amongst
India's very first efforts. This year also marked the birth of the now famous
MRF Muscleman.
1967
MRF became the first Indian company to export tyres to USA - the very
birthplace of tyre technology.
1970
In March, 5,62,500 bonus equity shares issued in the proportion 3:10.
1973MRF scored a major breakthrough by being among the very first in India to
manufacture and market Nylon tyres.
1975
During September, 12,18,714 bonus shares issued in proportion 1:2. (Only
12,18,689 shares were taken up).
1978
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The Company finalised a technical know-how collaboration with B.F.
Goodrich Co., U.S.A., which became fully operative in early 1980-81.This
agreement was revalidated for further five years.
1979
The Mansfield Tire & Rubber Co., U.S.A. offered for sale out of its holding
3,74,250 No. of Equity shares of Rs 10 each of the Company ata premium
of Rs 4 each as follows: 3,63,786 shares as rights to the existing
shareholders in the proportion 1:8 and 10,464 shares to the employees of
the Company.
1980
The Company crossed several milestones in its history. It went into
technical collaboration with BF Goodrich Tire Co., USA in the year.
The name of the Company, Madras Rubber Factory
Ltd. was changed to MRF Ltd in the year.
1981
Mansfield Tire & Rubber Co. of U.S.A., offered for the their balance
shareholding of 3,55,537 No. of Equity shares of Rs 10 each in
theCompany at a premium of Rs.4 per share as follows: 3,29,587 shares to
the existing resident Indian shareholders and non-resident Indian
shareholders (on non-repatriation basis) in proportion 1:10 and 25,950
shares to the Indian employees, business associates and dealers of the
Company.
2,00,000 No. of Equity shares allotted in Feb. 1982 to IFCI at a premium of
Rs 5 per shares on conversion of loans.
1983
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The Company finalised a technical collaboration agreement with M/s.
Marangoni TRS SPA, Italy for the supply of know-how for the
manufacture pre-cured tread rubber for retreading industry.
1984
Sales crossed INR two billion. MRF tyres were the first tyres selected for
fitment onto the Maruti Suzuki 800 - India's first
small, modern car.
1985
A letter of intent was obtained for the manufacture of conveyor belts and
hoses in collaboration with Industrial Pirelli SPA,
Italy. Plans were also on hand to go in for a joint venture with the aero tyre
division of B.F. Goodrich & Co., for retreading and subsequently for
manufacturing aircraft tyres.
1986
The Company issued 15% non-convertible debentures of Rs 100 each (II
Series) for Rs.8 Crore as rights to the existing shareholders to raise finances
for modernisation of the Company. Under Cumulative interest payment
scheme, these debentures are redeemable in 3 annual
instalments of Rs 35 each commencing on 8 May 1993 at a premium of 5% in the
first instalment. Under the non-cumulative interest payment scheme, the
debentures are redeemable in five equal annual instalments of Rs.20 each
commencing from 8 May 1991 at a premium of 5% which will be paid on 8 May
1993.
1987
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(18 months), The Company obtained MRTP clearance and a letter of intent
for the manufacture of pre-cured tread rubber up to 6,000
tonnes per annum by using indigenous technology developed by the Company.
MRTP clearance was also obtained for setting up a new plant at Tada in Andhra
Pradesh for manufacture of 1.5 million number of tyres and tubes per annum.
The Company entered into a collaboration agreement with Vapocure of
Australia to manufacture polyurethane paint formulations that can be
rapidly cured at room temperature and would also help in the manufacture of
shatter-proof glass. The plant with an installed capacity of 10,000 tonnes per
annum was being set up at Gummidipoondi in Tamil Nadu.
Funskool (India), Ltd. and `Crystal Investment and Finance Co. Ltd.'
became subsidiaries of the Company. Funskool (India), Ltd.
was promoted in collaboration with Hasbro International, U.S.A., the World's
largest toy makers.
1988
The MRF Pace Foundation was set up, with international pace bowler,
Dennis Lillee as its Director. Not long thereafter, pace bowlers
trained at the Foundation were selected for the Indian Cricket Team.
1989
The Company was identified as `Star Exporter', a status that enables the
company to get priority treatment in several areas concerned
with Customs, RBI, etc.
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Aero tyre division of B.F. Goodrich Co., USA was taken over by Michelin
Cie of France.
Government approved the technical collaboration with Uniroyal Goodrich
Tire Co., U.S.A., a subsidiary of Michelin Cie., France,
for imparting latest technology for bias ply/radial aircraft tyres for a period of 5
years.
1990
The Aruna Leathers & Exports Ltd. was amalgamated with the
Company. As per the scheme one equity share of Rs 10 each of MRF Ltd. was
allotted for every 10,000 shares of Rs.10 each fully paid-up held in ALEL.
Accordingly, 25 equity shares were allotted to the erstwhile shareholders of
ALEL.
The Company introduced `Vapocure' colours in the market.
(6 months), the Company privately placed 15,00,000 - 14% non-convertible
debentures of Rs 100 each (III Series). The debentures
are redeemable - at a premium of 5% in three annual instalments of Rs.35 each
commencing from 31 July 1997.
The Company privately placed with SBI Mutual Fund 10,00,000 - 14%
debentures (IVth Series) which are redeemable at a premium of 5% on
26 June 1998.
During the year 5,00,000 - 14% debentures were also privately placed with
Infrastructure Leasing & Financial Services, Ltd. These
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debentures are redeemable in three annual instalments at a premium of 5%
commencing from 23 July 1997.
1991
The Company promoted a new Company viz. MRF International, Ltd., in
view of the tremendous growth potential in the export market.
3,85,000 of equity shares issued at a premium of Rs.242 per share to the
foreign collaborators M/s. Asia Trading Services, Hong Kong.
1992
The Company has formed a new Company, viz., MRF INTERNATIONAL
LIMITED and the Company has received the certificate of commencement
of business.
1993
K.M.Mammen Mappillai was awarded the Padma Shri Award of National
Recognition for his contribution to industry - the only industrialist
from South India to be accorded this honour. MRF also became the first tyre
company in India to cross the INR 10 billion mark. In addition, the company was
voted by the Far Eastern Economic Review, as one of the ten leading Corporate
Groups in India and a Leader in Asia, and by readers of the A & M magazine, as
one of India's most admired Marketing Companies.
1995
The Company has received the Top Export Award for the year from All
India Rubber Industries Association.
1996
The Company has received an award from CAPEXIL - Certificate of Merit
based on the export performance for the year.
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The Far Eastern Economic Review Award was presented to MRF for the
fourth year in succession in recognition of excellence.
1997
MRF Ltd has been assigned a credit rating of `PR1+' (superior) for its
proposed Rs 100 crore commercial paper (CP) programme by Credit
Analysis and Research Ltd (CARE).
MRF is setting up a new plant in Pondicherry for the production of radial
tyres.
The company set up the Arakkonam plant in Chennai to produce bicycle
tyres and tubes.
MRF began manufacturing tyres and tubes in technical collaboration with
Mansfield Tire and Rubber Company, USA.
MRF has launched Nylogrip Zapper, a high performance tyre for new
generation bikes.
The company tied up with Uniroyal Goodrich Tire Co. of USA, a
subsidiary of the French Tyre giant Michelin, which held 9.8 percent
stake in the company.
1998
MRF Tyres has signed an OEM (original equipment manufacturer) alliance
with Siel Honda Motors and Hindustan Motors.
MRF has launched a market sampling operation for the MRF Zigma.
1999
MRF Ltd has decided to set up more such clinics in Northern and Western
cities.
The Company has entered into agreements with the Depositories viz., National Securities Depository Ltd. [NSDL] & Central Depository
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Services (India) Ltd.
2000
The Company has set up shop in Dubai to target markets in the UAE as part
of its export thrust.
MRF has launched a steel-belted premium radial tyre variant called `MRF
ZVTS'.
2002
MRF Tyres Ltd sees slump in commercial vehicle tyre market and
passenger car growth has also declined.
High court dismisses the writ petition filed by MRF Employees Union
challenging the order
of dismissal of a worker, who was the secretary of the union.
Advertising Standard Council of India Quashed the objection raised by
MRF by upholding J K Industries claim of being India's Number one tyre
maker in the four wheeler segment.
2003
MRF and Bridgestone are ranked highest in a tie for the second year in a
row in customer satisfaction with original tries according to JD Power Asia
Pacific.
Shri K.M. Mammen Mappillai, Chairman and Managing Director
expired[clarification needed ] on March 2nd.
Mr. C.D.Khanna has ceased to be the Director of the company. And Mr.
K.S.Narayanan has resigned from the board of MRF.
Mr. N.Kumar and Mr. Ranjit Issac Jesudasen have been appointed as the
directors of the company.
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Mr. K.S.Narayanan ceased to be director of the Company with effect from
April 17, 2003, consequent to his resignation from the Board of
Directors.
MRF Ltd. has informed the Exchange that at its meeting held on December
19, 2003 the BOD have re-designated Jt. Managing Director
Mr. Arun Mammen as Managing Director of the Company w.e.f April 1, 2004.
2004
MRF Ltd. has informed that Mr. Ravi Mannath has been appointed as
Additional Company Secretary of the Company w.e.f. January 5, 2004.
MRF Tyres is the biggest consumer of natural rubber in India during 2002-
03
Ties up with Maruti Udyog to boost motorsports in India
2007
MRF Ltd launches premium truck tyre Super Lug 50-FS
2011
MRF Ltd inaugurated its 7th manufacturing facility at Ankanpally near
Hyderabad, exclusively for radial tyres.
2011
MRF Ltd crosses gross revenue mark of 10,000 crores. ₨
Sports
MRF has been involved in the development of cricket through its sponsorship of
many cricketers and MRF Pace Foundation. At one point of time, MRF was the
bat sponsor of world-class batsmen including Brian Lara, Sachin Tendulkar , and
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former Australian captain Steve Waugh. MRF currently sponsoring Gautam
Gambhir and Rohit Sharma.
At IPL 2010, MRF got the charge of the moored balloon floating above the
cricket grounds. It contained a high-definition camera recording live actions of the
cricket match.