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MUL scripts 4-point turnaround plan

Swati Prasad

As part of its turnaround strategy, Maruti Udyog Ltd plans to have a product portfolio of 12 models based on just 3-4 car platforms. This year, a new model will be introduced on the Esteem platform. Through this route, MUL hopes to expand its product portfolio without incurring huge investments.

MUL has devised a four-pronged turnaround strategy for the current fiscal. This includes measures like introducing new models, increasing prices of its cars, stepping up local content in newer models and a new HR policy that will improve employee efficiency and reduce redundant staff over the next two years.

"We are working on a commonalisation of components strategy whereby we will have 12 models based on three-to-four platforms," Jagdish Khattar, managing director, MUL told Business Standard. "With this, 60-65 per cent of the components of cars based on the same platform can be common," he added.

As part of this strategy, the company will introduce one model this year. "This new model will be positioned in the medium segment and will create a new niche for itself," he added.

Sources say that the company will introduce a multi-utility vehicle, the Suzuki Every, around the fourth quarter of the current fiscal.

This model is likely to be based on the Esteem platform and will be launched under a new name. At present, MUL has three models that are based on two platforms.

"Alto and WagonR are based on the same platform. The engine of Alto LX and Maruti 800 Deluxe is common. Similarly, the engine of Alto VX and Wagon R is the same," Khattar explained.

MUL's turnaround strategy is centered on the company's target of retaining a marketshare of 60 per cent in the next three years, Khattar said. Speaking on price rationalisation, Khattar mentioned that the company would be looking at an upward revision in prices of some of its models in order to improve bottomlines.

The company is also aggressively working on its localisation programme. "We plan to achieve 90 per cent local content in WagonR and Alto within three years of their launch," the MUL chief said. Besides this, the company has devised a new HR policy whereby remuneration of executives will be linked to their performance.

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