Inventory management is one of the most critical components of working capital management because inventory constitutes a significant portion of current assets in manufacturing organizations. Efficient inventory management ensures uninterrupted production, minimizes investment in stock, reduces carrying costs, and improves profitability. Maruti Suzuki India Limited (MSIL), India's leading automobile manufacturer, has developed an advanced inventory management system that integrates modern production techniques, information technology, supplier partnerships, and lean manufacturing principles. The case of Inventory Management in Maruti Suzuki India Limited demonstrates how an effective inventory system contributes to operational efficiency, customer satisfaction, and better working capital utilization. MSIL follows the Just-in-Time (JIT) inventory system as one of its major inventory management practices. Under this system, raw materials and components are procured only when they are required in the production process. This minimizes the need to maintain large inventories and significantly reduces storage and carrying costs. Since inventory represents blocked working capital, reducing inventory levels improves liquidity and enables the company to utilize its funds for other productive purposes. The company maintains strong relationships with a large network of suppliers. Most suppliers are located close to the manufacturing plants, allowing components to be delivered several times a day according to production schedules. This proximity reduces transportation time, ensures timely availability of materials, and lowers the need for maintaining safety stock. Such supplier integration enhances the efficiency of inventory management and minimizes the risk of production interruptions. MSIL extensively uses information technology and Enterprise Resource Planning (ERP) systems for inventory planning and control. The company receives real-time information regarding production schedules, inventory levels, supplier deliveries, and customer demand. Advanced software enables accurate demand forecasting and production planning. This synchronization helps prevent overstocking as well as stockouts, thereby maintaining an optimal inventory level. Demand forecasting plays a significant role in the inventory management practices of MSIL. The company studies historical sales data, seasonal demand, market trends, customer preferences, and dealer feedback to estimate future demand accurately. Reliable forecasting enables production planning according to market requirements and reduces unnecessary accumulation of inventory. Accurate forecasts also improve customer satisfaction by ensuring timely delivery of vehicles. MSIL employs lean manufacturing principles to eliminate waste from production processes. Lean manufacturing focuses on reducing excess inventory, minimizing defects, shortening production cycles, and improving operational efficiency. Inventory is considered a form of waste if it exceeds actual production requirements. By eliminating unnecessary inventory, the company reduces working