Material constitutes a very important position of total cost of finished product in most of the manufacturing industries. Therefore, proper recording and control over material cost is essential. Material control may be as, the regulation of the procedures for requisitioning, buying receiving, storing, handling and uses of material, also its applies the system for A, B, C classification of components is based mainly on cost and consumption of a particular component. This system also provides for various risk factors. The inventory management in Indian industry are developed in a systematically in the modern business world and also to evaluate the concept as well as precepts pertaining to inventory management develop in Indian industry, as a special reference of Maruti Udyog Limited (MUL).