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1. Unsolicited Proposal for
Maruti Suzuki
• Presented by- Group 3:
• DEEPANSHU VARSHNEY
• SOURAV NANDI
• VINEET BALWANI
• GURKIRAT SINGH
• KARAN MALHOTRA
• AASTHA TANDON
• ABHIJEET GANGULY
• ADHAR GUPTA
• MUSKAN JAIN

2. Executive summary
Maruti has twice the market capitalization that of Suzuki, and that difference is reflected in real-world
statistics as well: Maruti produces 61% of Suzuki's global vehicle output. India has a more advantageous
manufacturing base than other countries, as evidenced by the fact that the subsidiary's automobile
exports have surpassed those of the parent. Yet Maruti Suzuki has failed to tap the full potential of the
market that the country has to offer. As the world is more focusing on digitization, research and
development has become a crucial part of every company and is helping them to stand up to the
competition. The market is so competitive right now that every company is struggling to minimize cost
as the option available to every customer is enormous. It is also crucial for the company to provide
customization option as many customers demand it and one of the major problems for automobile
companies to provide customers with customized cars and in same duration of time. In this unsolicited
proposal we have tried to identify a missed opportunity by Maruti Suzuki and proposed a solution that
the company can implement.

3. About the company:
Maruti Suzuki, an Indian automaker with headquarters in New Delhi, was founded on February 24, 1982, under the name Maruti
Udyog Limited.
The firm began operations in 1983 with the introduction of the Maruti 800, and it entered the international market by exporting 500
automobiles to Hungary.
The automotive revolution in the country is credited to Maruti Suzuki.
The company operates a passenger vehicle manufacturing and sales operation in India.
Maruti Suzuki has expanded from a modest start with the well-known Maruti 800 car to a vast selection of 16 car models with more
than 150 variants.
The model line-up from Maruti Suzuki ranges from compact cars like hatchbacks to sedans and crossovers.
In addition to modern R&D facilities in Rohtak, Haryana, the company has production facilities in Gurgaon and Manesar.
Maruti Suzuki currently owns 56.2% of the company's equity.

4. Products
offered
Automobiles
Commercial vehicles
Automotive parts
Manufacturing hatchbacks
Motor vehicles, components, and spare
parts

5. Main Competitors:
 Honda
 Hyundai
 Tata
 Toyota
 Kia

6. • The market for Indian engineering R&D outsourcing is
anticipated to more than triple from USD36 Billion in 2020-21 to
USD117 Billion in 2030-31. In line with this growth, Maruti
Suzuki's contract research revenue from parent company Suzuki
Motors increased from INR33 Crore in FY18 to INR449 Crore in
FY22.
• One may describe the growth as significant. But that only
represents 4.2% of Suzuki's overall R&D expenditures. Maruti's
gross R&D expenditures in FY22, including the portion covered
by parent profit margin, were just 8% of Suzuki Motors' overall
R&D expenditures. Japan, the country of Suzuki's birth, pays for
91% of the R&D expenses.
The missed opportunity

7. • Even worse, compared to 1% in FY16, Maruti Suzuki's R&D
expenditure as a proportion of sales has fallen to a low of 0.5%
in FY22. However, R&D activities have increased over this time,
and there are now more R&D engineers than ever before—
1,920 in FY22 compared to 1,300 in FY16. Three patents were
awarded in FY18, while 56 were granted in FY22. This apparent
oddity is caused by a decrease in capex at the Rohtak site and
an increase in contract R&D income, which is deducted from
total R&D expenses.

8. Background and Context
R&D is the weak line at Maruti Suzuki as only
8% of Suzuki's worldwide R&D expenditures
are made in Maruti in India. This is obviously
a missed opportunity for Maruti Suzuki to
add value, as the country is viewed as a
desirable base for R&D due to its young
technical workforce, which offers new ideas,
new skills (such as software, analytics, and
AI), and the flexibility to adapt as new
technologies centred around electronics and
algorithms shape the auto industry.

9. Commoditized Solution
R&D Department is very important for every company in a country like
India which is viewed as a desirable base for R&D due to its young
technical workforce, which offers new ideas, new skills (such as software,
analytics, and AI), and the flexibility to adapt as new technologies centred
around electronics and algorithms shape the auto industry if they want to
grow. Maruti Suzuki, being one of the largest auto manufacturers in India,
wants to keep all options open when it comes to product development in
India. From the launching of electric vehicles in 2020 to work on hybrid and
alternative fuel technology, the company does not want to lose out on
"opportunities in the future" as the new technologies like autonomous
driving and ride-aggregating apps gain popularity. It has been observed
that Suzuki spends only 8% of its R&D expenditures worldwide in Maruti so it
becomes very important for Suzuki to spend a good amount of their money
for the R&D expenditure in Maruti Suzuki which will lead to better
profitability for the company.

10. Assumptions
Considered
Purchase of Information or Expertise Process Consultation
Who defines the problem The client The client sometimes presents symptoms of the problem, but more
often presents a possible solution from which the underlying
problem must be investigated. Getting to the real problem is a joint
effort of the consultant and the client.
Who defines the solution Mostly the client The consultant works with the client to arrive at a mutually
understood solution.
Who implements the solution The consultant The client and consultant in partnership.
How is the solution sustained? The client has the resources to sustain the solution,
often including hiring the consultant if the need
again occurs.
The client desires to (or because of limited resources, must) sustain
the solution.
How is capacity increased Embodied in the solution. Primarily in the learning by the client and their ability to use and
maintain the solution. But also, in the solution itself.
What is the level of interaction between the client and
consultant
Medium Highest
In what situation is model appropriately applied? Appropriate only when clients can determine their
needs correctly, have correctly identified consultant
capabilities, can communicate their needs to the
consultant, and can support (or can pay to support)
the outcomes once the initial consultancy is over
Appropriate when the client can and wants to learn, desiring to take
greater control and responsibility for understanding problems as
well as designing and implementing solutions. Appropriate when
the client is motivated to work on improvements on an ongoing
basis and wants to develop greater capacity to do it within their
own organization

11. Approach & Tools for Due
Diligence
Due Diligence
It is an investigation or audit of a potential investment, product or client
to confirm all facts, that might include the review of financial records.
Due diligence refers to the research done before entering into an
agreement or a financial transaction with another party.
Goal
Determining if prospective clients are good businesspeople or pay their
bills in a timely manner is futile if they want something that the
business cannot (or does not want to) offer. Understanding what
potential clients are looking to gain from the business relationship
must be the first step in conducting due diligence.

12. The Due Diligence Process
1. Identification:
The due diligence process typically starts with identification. The most important information is collected directly from the future partner or
via a compliance. Simple questionnaires can be used for this purpose.
• In the case of incorporated companies, the information collected includes details of the company, shareholders, beneficiaries, group
structure, and members of the board and their political links. Official documents and contracts may also be requested at this stage.
• In relation to individuals, the information required may include proof of identify and sources of financing, political links and other details
depending on the nature of the planned transaction.
2. Sanctions list check:
The second step involves cross-checks with global sanctions lists. Lists relating to prosecutions, disqualification and individuals named by
government agencies are also consulted. Frequently, too, companies have lists of other companies with whom they do not wish to do business.
Politically exposed persons (PEPs) are identified, checked against PEP lists and if necessary subjected to a risk assessment.
3. Risk assessment:
On the basis of the results of the investigations, the risk assessment is now performed, and a risk-based approach is drawn up. Further
information is available in the white paper “Due Diligence - from Business Burden to Business Benefit”.

13. Solution
Why R&D is important
 Engine Performance Enhancement & Emission Control: To get the most out of the engines they depend on for their jobs, many OEMs, engine designers,
and engine calibrates invest time and money in this vital area. The fundamental goal of engine performance is to maximise the torque and power
production from the engine while using the least amount of gasoline possible. Obtaining the desired engine performance with the least number of
emissions is also crucial.
 Passenger Safety: Another significant area in which the car manufacturers invest heavily is passenger safety. It is the duty of automobile manufacturers to
assure passenger safety given the rise in the number of vehicles on the road and the increased power of modern vehicles. Over the past 50 years,
numerous safety features have been added to modern automobiles.
 Comfort Enhancement: The OEMs consider improving the comfort that a passenger experiences inside the car in addition to a decent engine and a safer
ride. Automobiles are getting a lot of new features to make sure the passengers are as comfortable as possible. Modern cars come equipped with a
number of comfort elements, including adaptive suspension systems, entertainment systems, air conditioning, seat-belt adjustability, seat placement, and
massaging capabilities on the seats.
 Driver Assistance: There is a lot of research and development being place in this one key area. The car cameras monitor the state of the roads and provide
driving assistance thanks to sophisticated vision sensors. Additionally, radar-based systems that are installed in vehicles sold in European markets keep
track on traffic conditions and alert drivers as needed are also available. With the advancement of technology and the creation of GPS and the Internet, it
is now possible to follow cars wherever they go. Additionally, navigation systems assist in determining the best driving routes by providing real-time traffic
updates that provide drivers a general notion of the path they should take to get to their destination. Technologies like Adaptive Cruise Control (ACC) make
it more comfortable for drivers to travel at desired highway speeds. Additional features that help drivers at night include automatic light and mirror
dimming, night vision, etc. Park assists, power steering, and ABS are further features that help drivers enjoy their driving.

14. The solution:
• Significant changes are being faced by R&D leaders as a result of software, Industry 4.0, and digitization. Data from customers, devices, and sensors is
flowing in, and sophisticated analytical tools are combining this data with new sources of insight to fuel the creation of products and services. The
economics of many offerings may alter significantly as a result of new materials and innovative manufacturing techniques. With so many options and ways
to compare items, consumer habits and demand are subject to rapid change. The market's new difficulties cannot be met by the current infrastructure and
skill pool. Success depends on being able to adjust to the environment by focusing on value drivers and monitoring trends.
• What we recommend the company to focus on:
• Advanced analytics, big data, and IoT enable firms to connect and share product information among geographically dispersed teams. They convey changes
and requirements automatically throughout the product lifecycle and guarantee the traceability and usage of the appropriate product information despite
the expansion of product choices. The entire product lifecycle can be fully digitalized to spur innovation and outperform the competition.
 Leveraging big data, IoT and advanced analytics for product development
 Digital and feature-based development
 Adapting product development to advanced materials and new manufacturing techniques
 Excellence in software development
 Globalizing R&D footprint
 Transparency and accountability on R&D performance

15. CONSULTANCY
ORGANISATION-
BAIN&
COMPANY FOR
CLIENT
Associate Consultant (AC)
• Requirement Undergraduate or a professional a few years out of college
• Role As an associate consultant, AC shall apply and develop analytical, interpersonal,
creative thinking, business management and leadership skills from day one. Associate
consultant will begin as a generalist and be placed in the thick of the action
• Responsibilities
• Work on a case team with three to five other consultants, owning a distinct aspect of the
project
• Take charge of identifying information sources, gathering, and interpreting data, executing
analysis, and presenting findings to case team members and client stakeholders
• Interview clients' customers, competitors, suppliers, and employers—work that will become
the basis of the case team's strategic recommendations
Consultant
• Requirement Business school graduate, advanced degree holder or an experienced
professional who’s ready to solve transformative challenges for industry leaders and
disruptors
• Role Consultants are analytical and creative, leaders and collaborators. Consultant will be at
the centre of integrated teams with diverse thinkers and skillsets, all working together to
deliver extraordinary outcomes.
• Responsibilities
• Become experts in the client’s organization and industry
• Turn data into meaningful insights and transformative solutions
• Move clients to action with plans to execute our recommendations
• Manage and mentor junior team members

16. Senior Manager
• Requirement Senior managers should have at least a bachelor’s degree. Relevant majors include business, finance, accounting,
economics, statistics and computer science. Senior managers should have extensive training and experience
• Role
• Senior managers, serve as leaders for both case teams and clients. They will learn to view entire fields, refine general management
skills, drive business decisions, and build the firm's assets.
• Internally, senior managers have a seat and a voice at the leadership table; Senior manager will play a pivotal role in the office as to
fulfil various leadership roles, increase practice-area expertise, intensify Bain's positive social impact and support associate
consultants and consultants.
• Responsibilities Responsibility for cracking clients' toughest problems and presenting insights in a compelling way that convinces
the client to act. To succeed, Senior Manager will learn to cultivate talented groups of people and collaborate with multiple teams.
• Senior Manager will play a critical leadership role in the office, coordinating training, aligning professional standards and social
impact initiatives, and sharing their expertise by supporting ACs and consultants with their career planning.
Partner
• Role Partners run the firm. Top level talent within the firm is promoted to this position after more than a decade of dedication.
Partners are trusted allies to clients and are respected as experts in their fields. Partners are the money-makers at consulting firms,
as their most important responsibility is to win projects and maintain client relationships. The position requires great leadership
skills and creativity to create catered, innovative solutions for clients and to grow the firm.
• Responsibilities Partner will be part of a ‘practice area’ that provides a portfolio of related services to clients. In addition to advising
them, Partner will be responsible for developing and managing client relationships, identifying new business opportunities, and
contributing to growth and development. This includes making sure financial targets are met, and that the right team is in place to
meet the needs of Bain’s clients.

17. Project Timeline - Gantt Chart

18. Total Projected Budget for Consultancy as per the Activity Plan
Designation Number of People
Required
Number of Days
Worked
Average Daily
Rate(in Rs)
Total Consultancy
Charges(in Rs)
Sales Executive 1 27 5,400 1,45,800
Practice Director 1 11 18,200 2,00,200
Engagement Manager 1 27 13,000 3,51,000
Associate Consultant 6 45 6,000 10,44,000
Total Charges 17,41,000
Assumptions
• The total number of people assumed are 9 and for each designation the assumptions were made based on the past projects
taken by the company.
• The average consultancy rate for each designation is as per the rate of the consulting organization: Bain & Co. Ltd.
• All the members of the team are expected to work for five days in a week.
• The members of the team are expected to work as per the schedule of the tasks, either sequentially or simultaneously.

19. SWOT ANALYSIS

20. PESTLE
Political
•Government
Stability
•Tax policy
•Competition
regulation
•Trade blocks
Economies
•Inflation Rate
•Interest rate
•Consumer
spending trend
•Unemployment
Social
•Demographics
•Education
•Family size and
structures
Technology
•Technology
infrastructure
•Internet
penetration
•Use of social
media
•Investment in
R&D
Environment
•Recycling
•Waste
management
•Green
consumption
Legal
•Health and
safety law
•employment
laws
•Anti-
discrimination
laws

21. Organizational
chart

22. COMMERCIAL TERMS & CONDITIONS
Scope of the
General Terms
and Conditions
Scope and
realization of the
service contract
Duty of
disclosure by the
client
Intellectual
Property and
Copyrights
Limitation of
liability

23. Confidentiality
and data
protection
Fees and
payment
Governing law
and
jurisdiction
Force Majeure