Bajaj Report 1

7/27/2019 Bajaj Report 1

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Principals of Management-

Project

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Sunil Jaiswal - 9819212154

Masters in Marketing Management



• About Auto Industry

•Bajaj Auto Ltd

•History of Bajaj

•Sales/Income Statistics

• Achievements & Awards

Overview

•Management•Structure

• Vision, Mission, Values & Goal

•Management Policy & Belief

•Corporate Social Responsibility

•SWOT Analysis

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Indian Auto Industry – at a Glace

India is the 2nd largest two-wheeler market in the world

4th largest commercial vehicle market in the world

11th largest passenger car market in the world and isexpected to become the 7th largest by 2016

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Automobile Industry in India

Two wheelers

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Indian Domestic Industry (Dom+Export)

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Two Wheelers Manufacturers - Growth

Factors• The Gross Domestic Product has grown to 8%

• The average family income has increased

• The finance have become easier to access

• The reduction in taxes and duties

• Introduction of international standards in India

• The economic and fuel-efficient engines

• The teenager and the youth using more and more motorcycles

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Key Players in Market

• Hero Honda Motors India Limited

• Bajaj Auto Ltd. (BAL)

• TVS Motor Company

• Honda Motorcycle Scooter India (P) Ltd.

• Yamaha Motors India Pvt. Ltd.

• Suzuki Motor Corporation

• LML (India) Limited

• Royal Enfield Motors India Limited

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Conclusion

Market Share

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Bajaj Auto – at a Glace

Market Capital : Rs 41,554.22 Crores (Aug2010)

Total Income : Rs. 11900+ Crores

One of the oldest and the largest manufacturer of automobiles in India

India's largest and the world's 4th largest two-and three-wheeler maker

Bajaj Auto makes motor scooters, motorcyclesand the auto rickshaw.

Changed its image from a scooter manufacturerto a two wheeler manufacturer

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Bajaj Auto – at a Glance

2009-10 has been a record year for Bajaj Auto in terms of highest ever sales,exports, profits and margins.

Net sales and other operating income grew by 35% to Rs.119.21 billion.

The year saw record sales of 2.85 million units – over 2.5 million motorcyclesand 340,937 three-wheelers.

Exports rose by 15% to 891,002 units.

Profit after tax (PAT) grew by 160% to Rs.17.03 billion.

Surplus cash and cash equivalents in the Company’s balance sheet as on 31March 2010 stood at Rs.32.6 billion,

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BAJAJ AUTO

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• Founded in 1926• Bajaj Auto came into existence on November 29,1945 as M/s Bachraj

Trading Corporation Private Limited.

• It started off by selling imported two- and three-wheelers in India.

• In1959, it obtained license from the Government of India to manufacturetwo- and three-wheelers and it went public as Bajaj Auto Ltd (BAL) in1960.

• It started producing at Waluj in Aurangabad. In1986, it managed toproduce and sell 500,000 vehicles in a single financial year.

• In1995, it rolled out its ten millionth vehicle and produced and sold 1million vehicles in a year.

History

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• Bajaj has made a number of motorcycles, scooters andcars. Motorcycles in current production are the

▫ XCD

▫ Platina

▫ Discover

▫ Pulsar

▫ Avenger &

▫ Ninja

• Cars include the Bajaj ULC ultra-low-cost car.

History

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• With the demerger of Bajaj Auto Ltd, following separate corporateentities came into existence in May’ 2008

▫ Bajaj Finserv Ltd (BFL),

▫ Bajaj Auto Ltd (BAL), and

▫ Bajaj Holdings and Investment Ltd (BHIL)

Demerger of Bajaj Auto Ltd.

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• Bajaj is present in over 50 countries all over the globe

• Dominant presence in Africa, Latin America and South Asia withincreasing market share every year

• Market leader in motorcycles in Colombia, Central America, SriLanka, Bangladesh, Philippines, Nigeria, Uganda and Kenya

• 891,002 units exported in 2009-10, an increase of over 15 % over theprevious year

• Largest exporter of three wheeled commercial vehicles in the world:164,887 units exported in 2009-10, a rise of 19% over 2008-09

Bajaj Global

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Bajaj Global

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Bajaj Auto – Product Segmentations

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Bajaj Auto – Product Segmentations

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Bajaj Auto – Two Wheelers

Two

Wheelers

• Bajaj Discover (100 & 150cc)

• Bajaj Platina (100 & 125cc)

• Bajaj Puslar (150, 180, 200, 220 & 135cc)

• Bajaj Avenger (220cc) &

• Ninja (2502cc)

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Two Wheeler Products

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Product Demonstration- Pulsar

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Product Demonstration- Discover & Platina

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Avenger 220 DTS-i

Product Demonstration- Avenger & Ninja

Ninja 250R

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Bajaj Auto - Commercial Vehicles

Goods

Carriers

• CG Max (Diesel & CNG)• RE600

PassengerCarriers

• RE 4S (Petrol, CNG & LPG)• RE 2S (Petrol, CNG & LPG)• RE (Petrol, CNG & LPG)

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Commercial Products

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Goods Carriers

Passenger Carriers

GC Max Diesel

GC Max CNG

RE600

RE 2S

Mega Max

RE 2S CNGetc

etc

Product Demonstration- Commercial Vehicles

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Bajaj Auto – Low Cost Cars

• Launching Soon…

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•Launching Soon…

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The Company lives its brand by its values of Learning, Innovation, Perfection,

Speed and Transparency. Bajaj will constantly inspire confidence through

excitement engineering.

Learning : Learning is how we ensure proactivity.

Innovation : Innovation is how we create the future.

Perfection : Perfection is how we set new standards.

Speed: Speed is how we convey clear conviction

Transparency : Transparency is how we characterise ourselves

Brand Value

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USP of Bajaj Brands

• Style

• Technology

• Pricing Strategy

Focus Values:

• Innovation

• Speed • Perfection

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Sales in Units

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Financial Results ( Rs In crores ) 34



Financial Results ( Rs. In crores ) 34

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Performance by Major CompaniesTwo Wheeler

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Achievements1945 Bajaj Auto comes into existence as M/s Bachraj Trading Corporation Private Limited.

1948 Sales in India commence by importing two- and three-wheelers.

1959Bajaj Auto obtains licence from the Government of India to manufacture two- andthree-wheelers.

1960 Bajaj Auto becomes a public limited company. Bhoomi Poojan of Akurdi Plant.

1970 Bajaj Auto rolls out its 100,000th vehicle.

1971 The three-wheeler goods carrier is introduced.1972 The Bajaj Chetak is introduced.

1975 BAL & Maharashtra Scooters Ltd. joint venture

1976 The Bajaj Super is introduced

1977The Rear Engine Autorickshaw is introduced. Bajaj Auto achieves production and salesof 100,000 vehicles in a single financial year.

1981 The Bajaj M-50 is introduced.

1984 Foundation stone laid for the new Plant at Waluj, Aurangabad.

1985The Waluj plant inaugurated by the erstwhile President of India, Shri Giani Zail Singh.Production commences at Waluj, Aurangabad in a record time of 16 months.

1986The Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles are introduced. 500,000vehicles produced and sold in a single financial year.

1990 The Bajaj Sunny is introduced.

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Achievements1991 The Kawasaki Bajaj 4S Champion is introduced.1994 The Bajaj Classic is introduced.

1995

Bajaj Auto is 50. Agreements signed with Kubota of Japan for the development of diesel engines for three-wheelers and with Tokyo R&D for ungeared Scooter and moped development. The Bajaj Super Excel isintroduced while Bajaj celebrates its ten millionth vehicle. One million vehicles were produced and sold in thisfinancial year.

1997 The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw are introduced.1998 Production commences at Chakan plant.

June Kawasaki Bajaj Caliber rolls out of Waluj.

July Legend, India's first four-stroke scooter rolls out of Akurdi.

October Spirit launched.1999 Caliber motorcycle notches up 100,000 sales in record time of 12 months.2000 The Bajaj Saffire is introduced.

2001

November Bajaj Auto launches its latest offering in the premium bike segment 'Pulsar'.

January The Eliminator is launched.

2003

October Bajaj Pulsar DTS-i is launched.

October 107,115 Motorcycles sold in a month.July Bajaj Wind 125,The World Bike, is launched in India.

February Bajaj Auto launched its Caliber115 "Hoodibabaa!" in the executive motorcycle segment.

2004

October Bajaj Discover DTS-i launched

August New Bajaj Chetak 4 stroke with Wonder Gear launched

May Bajaj CT100 Launched

January Bajaj unveils new brand identity, dons new symbol, logo and brandline

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http://www.vicky.in/straightfrmtheheart/wp-content/uploads/2007/06/bajaj.jpg




Achievements2005

December Bajaj Discover launchedJune Bajaj Avenger DTS-i launched

February Bajaj Wave DTS-i launched

2006

April Bajaj Platina launched

2007

December RE GDi autorickshaw launched

September Bajaj XCD 125 DTS-Si launched August DTS-Si engine launched

July Revamping of Organisational structure

June Bajaj Pulsar 220 DTS-Fi launched

April New Bajaj Auto Plant at Pantnagar, Uttarakhand

February 200 cc Pulsar DTS-i launched

January Bajaj Kristal DTS-i launched

2008September Bajaj Platina 125 DTS-Si launched

August Bajaj XCD 125 DTS-Si is largest selling 125cc motorcycle

July Bajaj Discover 135 DTS-i Upgrade Launched.

June Bajaj Pulsar 220 bags IMOTY award

2009

April Bajaj Pulsar 150 & 180 upgrade launched

January Bajaj XCD 135 DTS-Si launched

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Achievements• Discover 100 crosses 8 Lakh Bikes sold in just 1 year!

• Bajaj Auto gets Chinese patent for ExhausTec technology

• Kawasaki Ninja 250 R wins the coveted Indian Motorcycle of

the Year (IMOTY) for 2009

• Pulsar 135LS crowned as 2009 ET-ZigWheels Bike of the year.

• Bajaj Auto launches much awaited Kawasaki Ninja 250R − Best250cc motorcycle in the world

• A Quarter of Records for Bajaj Auto − highest ever turnover of 2909 crore, highest ever exports of 224334 vehicles and highestever net profit of 403 crore.

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Awards & Recognitions

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Awards & RecognitionsProduct Award Award Body

Ninja Bike of the Year IMOTY

Pulsar 135LS Bike of the Year ET NOW - ZigWheels

Discover DTS-Si 100cc Bike of the Year ET NOW - ZigWheels

Pulsar 135LS 150cc Bike of the Year ET NOW - ZigWheels

Ninja 250cc Bike of the Year ET NOW - ZigWheels

Pulsar 135LS 4-V Technology of the Year ET NOW - ZigWheels

Discover DTS-Si Most Value for Money-Bike of the Year ET NOW - ZigWheels

Ninja Motorcycle of the Year - Bike upto 250 cc NDTV Profit - Car & Bike

Bajaj Discover DTS-

Si

Motorcycle of the Year - Bike upto 125 cc NDTV Profit - Car & Bike

Ninja Two Wheeler of the Year NDTV Profit - Car & Bike

Bajaj Discover And

Pulsar

Best Integrated Campaign - Two wheelers NDTV Profit - Car & Bike

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Management

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Conclusion

Management

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Mission, Vision, Objective & Goal

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Key Policies – April 2010

• BAL will continuously specialize in Motorcycle and commercial vehicle though its strategy of differentiations

• TO “Defend” its brands, BAL will continuously improve its corecompetencies in all its functions, as also across its supply chain,including its suppliers and dealers.

• BAL’s core competencies rest on its values of innovations,Perfections & supply.

• BAL has adopted TPM, The Prime Mover towards excellence, to build and to continuously improve its core competencies.

• TPM shall provide a holistic, structured and quantifiablemethodology for deeper and wider continuous improvements inan integrated way aligned to BAL’s business vision.

• TPM ensures that individually and collectively, every employee of BAL and its business partners strive to keep BAL Distinctly

Ahead.

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Bajaj Image

• The Bajaj Group is amongst the top 10 business houses in India. Itsfootprint stretches over a wide range of industries, spanningautomobiles (two-wheelers and three-wheelers), home appliances,lighting, iron and steel, insurance, travel and finance.

• The company has successfully changed its image from a scootermanufacturer to a two wheeler manufacturer.

• Its product range encompasses scooterettes, scooters and motorcycles.Its real growth in numbers has come in the last four years after

successful introduction of a few models in the motorcycle segment.

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Bajaj Image

• Bajaj brand is well-known across several countries in Latin America, Africa,Middle East, South and South East Asia.

• The integrity, dedication, resourcefulness and determination to succeed arethe characteristic of the group today

• The present Chairman of the group, Rahul Bajaj, took charge of the business in1965. Under his leadership, the turnover of the Bajaj Auto the flagshipcompany has gone up from INR.72 million to INR. 120 billion, its productportfolio has expanded and the brand has found a global market.

• • Rahul Bajaj is one of India’s most distinguished business leaders andinternationally respected for his business acumen and entrepreneurial spirit.

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Corporate Social Responsibility (CSR)

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• Education▫ Shiksha Mandal, Wardha

▫ Jamnalal Bajaj Institute of Management Studies etc

• Health▫ Kamalnayan Bajaj Hospital – Aurangabad

▫ Bajaj - YCM Hospital A.R.T. Centre for HIV/Aids – Pimpri

▫ Jankidevi Bajaj Gram Vikas Sanstha etc

• Women Empowerment▫ Jankidevi Bajaj Gram Vikas Sanstha

▫ IIMC Ladies' Wing Jankidevi Bajaj Puraskar for Rural Entrepreneurship


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Self Reliance Jamnalal Bajaj Seva Trust

Institute of Gandhian Studies

IMC Ramkrishna Bajaj National Quality Award

Jankidevi Bajaj Gram Vikas Sanstha

Rural Development Distribution of solar-lantern & solar cookers

Installation of bio-gas plants

Deepening and widening of wells and drinking water scheme

Environment & Natural Resources Water conservation projects for improving agricultural productivity

Construction of latrines

Family size biogas plants


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SWOT Analysis

Strengths:

• Highly experienced management

• Product design and development capabilities

• Extensive R & D focus

• Widespread distribution network

• High performance products across all categories

• High export to domestic sales ratio• Great financial support network (For financing the automobile)

• High economies of scale

• High economies of scope

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SWOT Analysis

Weaknesses:

• Hasn't employed the excess cash for long.

• Still has to establish a brand to match Hero Honda's Splendor incommuter segment.

• Not a global player in spite of huge volumes.

• Not a globally recognizable brand (unlike the JV partner Kawasaki)

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SWOT Analysis

Opportunities:

• Double-digit growth in two-wheeler market.

• Untapped market above 180 cc in motorcycles.

• More maturity and movement towards higher-end motorcycles.

• The growing gearless trendy scooters and scoottee market.

• Growing world demand for entry-level motorcycles especially in

emerging markets.

• It is also proposing to launch motorcycles from Austrian bike makerKTM, in which Bajaj Auto has over 25 per cent stake.

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SWOT Analysis

Threats:

• The competition catches-up any new innovation in no time.

• Threat of cheap imported motorcycles from China.

• Margins getting squeezed from both the directions (Price as well asCost)

• TATA Ace is a serious competition for the three-wheeler cargosegment.

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SWOT Analysis

Strengths:

• Highly experienced management• Product design and development capabilities

• Extensive R & D focus

• Widespread distribution network

• High performance products across all categories

• High export to domestic sales ratio

• Great financial support network (For financing the

automobile)

• High economies of scale

• High economies of scope

Weaknesses:

• Hasn't employed the excess cash for long.

• Still has to establish a brand to match Hero Honda's

Splendor in commuter segment.

• Not a global player in spite of huge volumes.

• Not a globally recognizable brand (unlike the JV partner

Kawasaki)

Opportunities:

• Double-digit growth in two-wheeler market.

•Untapped market above 180 cc in motorcycles.

•More maturity towards higher-end motorcycles.

•The growing gearless trendy scooters and scoottee market.

•Growing world demand for entry-level motorcycles

especially in emerging markets.

Threats:

•The competition catches-up any new innovation in no time.

•Threat of cheap imported motorcycles from China.

•Margins getting squeezed from both the directions (Price as

well as Cost)

•TATA Ace is a serious competition for the three-wheeler cargo

segment.

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Thank You

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Documents

Bajaj Report 1