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REPORT ON SWARAJ MAZDA LIMITED SUBMITTED BY- AMARDEEP SINGH KAMALJIT KAUR MANAVJEET SINGH GURVIKRAM SINGH GAURAV SOHARUINTRODUCTIONSML ISUZU LIMITED was incorporated in July 1983 as Swaraj Vehicles Limited to manufacture Light Commercial Vehicles (LCV) in the state of Punjab. It was the result of Government of India initiatives for installing the LCV unit in order to save the fuel consumption in the economy. Punjab State Industrial Development Corporation (PSIDC) obtained the letter of intent in 1981 and subsequently transferred the same in favor of the Company in 1983.The project in its concept, aims at breaking new ground not only in terms of product and production technology, but also in building a new culture and value system in the organization, which enables it to move forward with confidence into the era of competitive markets. This guiding philosophy is dictating every facet of project implementation both in physical facilities and the human side.

MAJOR MILESTONES1983-The Company was incorporated in July 1983 in the name of Swaraj Vehicles Limited.1984-joint Venture and Technical Assistance concluded between Punjab Tractor Ltd., MazdaMotor Corporation, Japan & Sumitomo Corporation, Japan. SVL renamed Swaraj MazdaLtd1985-Project set up with a capacity of 5000 LCVs at capital outlay of Rs.20.0 crores. 1990-In-house developed Second Truck Model (Swaraj Mazda Super) launched1998-Complete wipe off of accumulated losses2001-Cumulative sales crossed 50,000 vehicles.

PRODUCTS

PERFORMANCE REVEIEW in crores 2013 2014Sales Volume (Nos.)976012045Net Revenue885.991011.06Material Cost & Other Expenses849.58931.78Operating Profit36.4179.28Profit Before Tax17.7148.49Profit After Tax17.4036.43Balance of Profit from Prior Years92.7073.45Surplus available 110.10109.88Transfer to General Reserve1.743.64Proposed Dividend (inc. taxes)5.0813.54Amount carried to Balance Sheet103.2892.70SWARAJ IN MARKETWith more than 2 lac tractors and harvesters combine in Indian farms, swaraj is now a well established company in country. Swaraj is internationally recognized name in the developing world.The products of swaraj are not only restricted to Indian market, but they have entered international market. Swaraj tractors find an important place in developing countries like Ghana, Tanzania, Zambia, Indonesia, Malaysia, etc. SML has major technical alliance with Isuzu Motors. The company has also entered major alliances with Peugeot and Renault of France, Volkswagen and Man of West Germany, Leyland of U.K., TAM of Yugoslavia and Isuzu Daihatsu and Mazda of Japan for technological collaborations. While evaluating the relevant technologies of these countries, the major criteria was to select a vehicle powered by a four cylinder diesel engine, capable of providing maximum pay-load capacity best suited for local conditions and fuel efficient thus ensuring best value for money to the Indian consume.

SWOT ANALYSISSWOT Analysis is a framework used extensively for an assessment of the internal as well as external business environment as part of the strategic or corporate planning process. The framework generates a snapshot of the firms strengths & weaknesses as part of internal environment assessment and opportunities & threats as part of the external environment assessment that aids strategic decision making.This comparative SWOT analysis will be extremely useful for:

--Strategic Planning & Decision-Making Process at all levels--Comparative assessment of strategic orientation, focus & outlook--Assessment & evaluation of degree of responsiveness to the environment.--Identification of opportunities which could be capitalizedupon--Identification of potential threats in the business environment--Identifying areas for strategic changes, adjustments & realignment--Strategic assessment of key market players from the perspective of forming JV, strategic alliances or M&A activitySWOT ANALYSIS OF SML STRENGTHS A very strong in house R & D centre. Full technology transfer from Isuzu Ltd. Japan. Large number of developed vendors connected online with the company. In house development of IT software like SAP.Internal brainstorming of employees.WEAKNESSES Bus body manufacturing is outsourced. Some costly parts and components are imported from other countries. Steep rise in the steel price. No model up gradation of products like Sartaj, Samrat and Super etc. for the past many years.

OPPORTUNITIESEasy availability of loans.Rising demand of mini buses with encouragement to tourism, education and healthcare by Government. Rising demand of vehicles with alternate fuels like CNG, LPG

THREATSGovt . policies like excise rate.Reducing profit margins.Rising market share of new entrants and small scale manufacturers of agricultural equipment.Rising price of diesel and potential threat of decontrol of diesel prices.Reducing profit margins.Performance of Railways and movement in freight rates are also key factors that have a bearing on demand for cargo carriers.

GROWING COMPETITIONIn order to maintain profit, competitive advantage and market share in the era of tough competition, organizations must be flexible and quick enough to respond to changing market conditions The case of SML shows that the company is facing tough competition from local level competitors like Sonalika, Standard Combines, and Preet Tractors etc. apart from global level competitors like TATA, Ashok Leyland and HMT. An organization may face high degree of competition from competitors, having better ability to respond to market changes and equipped with better capabilities.

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