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The Maruti Story: How A Public Sector Company put India on Wheels, by R.C. Bhargava, Seetha
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The targets were stupendous and almost unachievable. Slightly over two years to find a suitable partner, finalize all legal documentation, build a factory, create a sales and service network, and develop and launch a people s car that would sell 100,000 a year, in a sector where Indian expertise was limited. However, the Maruti project succeeded, and in ways that were unimaginable in 1983. The car revolutionized the industry and put a country on wheels. Twenty-six years later, the company, now facing competition from the world s major manufacturers who have entered the Indian market, still leads the way.
- Sales Rank: #2325011 in Books
- Published on: 2011-12-10
- Original language: English
- Number of items: 1
- Dimensions: .0" h x .0" w x .0" l, 1.10 pounds
- Binding: Paperback
- 408 pages
About the Author
R.C. BHARGAVA joined the Indian Administrative Service in 1956. After an eventful tenure, during which he had postings in Uttar Pradesh, Jammu and Kashmir and in the Central government, he was deputed to BHEL as its commercial director in 1979. In 1981, he moved to Maruti Udyog Limited, retiring from the IAS shortly thereafter.
Most helpful customer reviews
0 of 0 people found the following review helpful.
India comes home in a Maruti
By B.Sudhakar Shenoy
'At 60 miles an hour the loudest noise in the new Rolls-Royce comes from the electric clock,' by David Ogilvy in 1950's was perhaps the best known headline ever written for an automobile ad. Thankfully, during that time, India's leading automobile producers did not hire David for an ad campaign, since Indian made cars were in a sellers' market domestically, with a long waiting line. Had David really driven any of the Indian cars, he would have created an even more exciting campaign to describe them: "In our cars, all parts, except the horn, make noise".
This was in short, the true status of India's Automobile Industry till the arrival of Maruti Suzuki in 1983. It would be an understatement to say that Maruti Suzuki transformed the industry. In fact it reinvented and revolutionized it.
Most of India's economic failures in the previous century is attributed to the industrial licencing policy that emanated from the philosophy of central planning and governmental control of all businesses. Though well intentioned to begin with, these policies of protectionism led to rampant corruption in government sector and profiteering in private sector, while delivering shoddy goods at high costs to consumers who had no other choice.
The Maruti story is a great paradoxical example of a government owned company that delivered extraordinary performance by producing India's most fuel efficient car that was real value for money. In collaboration with Suzuki motors of Japan, this company even exported cars to Western Europe, a testimony for the international quality of its products. Needless to say, this company soon commanded over 90% market share, while achieving profitability from day one.
The story can only be appreciated if one can really imagine the odds against the company in 1980's. Firstly, since the government owned majority of the shares initially, bureaucratic control and political interference was a major headwind, for any professional manager. Bureaucrats do not understand business while politicians are in business for themselves. Secondly, the entire value chain including vendors, manufacturing facility, dealerships, parts and service was non-existent and had to be created ground up. Thirdly, a culture of running a business profitably for all stakeholders was considered sinful, since profit was a bad word.
Despite this, Maruti Suzuki was an outstanding success on all fronts. In my opinion, the single most important ingredient for this was the passionate Leadership of its founding managers - Mr V. Krishnamurthy and Mr R.C. Bhargava.
In this wonderful book, Mr Bhargava, the current Chairman, narrates the exciting journey of Maruti Suzuki from 1981 till date, starting from a dilapidated workshop in the once sleepy town of Gurgaon, near India's capital city, New Delhi.
Even today, despite over 16 global car giants competing on a level playing field in India, Maruti Suzuki commands over 54 per cent market share, and is the undisputed leader, with an extremely strong brand image that stands for quality, customer service and value for money. Maruti is today a household name in every corner of India, with the widest network of dealerships and Maruti Authorised Service Stations (MASS).
In one famous ad, a little boy in a barren mountainous area tells people in a car that there are no hotels or restaurants in that area, but there is a MASS.
No wonder, they say `India comes home in a Maruti'.
Outstanding book, as great as Maruti Suzuki.
0 of 0 people found the following review helpful.
Shows how success is possible even for a state owned company
By WhiteHorse74
Its all about leadership and political support that was needed to fast forward India's non-existing consumer automobile industry. Veteran R.C.Bhargava walks us through the journey of navigating government corridors, halls of Suzuki Motor to make it all possible. Though the book falls short of lessons as readers we can use, it nevertheless fills the void of books written by Indian Management. Appreciate the author for sharing his experiences.
0 of 0 people found the following review helpful.
Too dull to read
By Pawan Prabhat
Mr. Bhargava is definitely a great man ( he has mentioned it umpteen number of times in the book) but the book is boring. Even though Maruti is one of the biggest success stories of corporate India he made is look so easy with all the support of the government. I wouldn't recommend this book to anyone.
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