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BAJAJ AUTO LTD

Team Apple

1
 Overall View

• Automobile Industry – Major Players (Two & Three Wheeler Segment)

- Bajaj Auto
- Hero Honda
- TVS Motor
- Mahindra Scooters
- LML
- Kinetic Motor
Sales Turnover – March 2010
PAT – March 2010
Market Share – Percentage View
Market Share Capital – Year 2010
 Bajaj Auto Ltd.

• November 29, 1945 – Came in to existence as M/s Bachraj Trading

Corporation Private Limited.

• 1959 - License from the Government of India

1960 – Public Company Limited

• 1977 - Produce and Sell 100,000 vehicles in a single financial year

1986 - Produce and Sell 500,000 vehicles in a single financial year
1995 - Produce and Sell 1 millionth vehicles in a single financial year
 Porter’s 5 Force Model
Porter’s 5 Force Model

Treat From the competitive rivalry

•local players in 2/3 players

Competitors
The main competitors would High Potential buyers
Bargaining Power of
Suppliers
be the local and
* Bargaining Power
global players.
* New Market Entrants.

Treat of substitutes

* Technological Change
 Key Success Factors

• “Set strategies to satisfy key stakeholders by improving critical business and aligning
resources and organizing”.
• Stakeholders:
• Stock holders, customers, Employees, Suppliers, Distributers.

• Processes: 
• Focusing on Core business processes – New product development, Sales
generation, Order fulfillment.

• Resources: 
• People, Materials, Machine, Information, Energy. It may be Owned, Leased and
Rented. Outsource for increased Quality & Cost reduction.

• Organization: 
• Companies Structures / Policies / Cultures – to change and adapt in this dynamic
market situation.
 Critical Success Factors for Automobile Industry

• Widespread sales and services.

• One-stop easy solutions.

• Ability to enhance and vary product mix.

• Balance between outsource and in-house production.

• Efficient operations.

• Human resources.
 Key Risk Factors 

• Correlation with the economy

• Rising material prices

• Higher inflation and fuel prices

• Rise in interest rates

• Low availability of skilled resources

 Group Profile
• Jamnalal Bajaj eight decades back in 1926.

• India’s largest exporter of two and three wheelers where in the year in 2009-10 - market
share of 23.2% in two wheeler segment.

• 'Inspiring Confidence,‘

• Has an illustrious history right from India’s movement of Independence from the British.

• Chairman of the group, Rahul Bajaj, 1965.

• Turnover from INR.72 million to INR. 120 billion - global market.

• India’s most distinguished business leaders & internationally respected for his business
acumen and entrepreneurial spirit.
 Company Profile
• Major Indian automobile manufacturer - Rajasthani merchant.

• Plants in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttaranchal.

• Akurdi (Pune) - R&D centre.

• Motorscooters, motorcycles & the auto rickshaw.

• Changed image from a scooter manufacturer to a two wheeler manufacturer.

• Amongst the top 10 business houses in India.

• Into spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting,

iron and steel, insurance, travel and finance.

• The group's flagship company - Bajaj Auto, ranked as the world's 4 th largest two- and three-
wheeler manufacturer.

• Latin America, Africa, Middle East, South and South East Asia.
 Group of Companies
• 34 companies.
• Major being :
– Bajaj Auto Ltd.
– Bajaj Allianz LI Co. Ltd.
– Bajaj Electricals Ltd.
– Jamnalal Sons Pvt. Ltd.
– Hospet Steels Ltd.
 Management Team
Rahul Bajaj Chairman
Madhur Bajaj Vice Chairman
Rajiv Bajaj Managing Director
Sanjiv Bajaj Executive Director
Pradeep Shrivastava Chief Operating Officer President (Research & Development)
Abraham Joseph President (Research & Development)
S Sridhar President (Motorcycle Business)
R C Maheshwari President (Commercial Vehicle Business)
Rakesh Sharma President (International Business)
Eric Vas President (New Projects)
K Srinivas President (Retail Finance)
Kevin P D'sa President (Finance)
S Ravikumar Senior Vice President (Business Development & Assurance)
Amrut Rath Vice President (Human Resources)
N H Hingorani Vice President (Commercial)
C P Tripathi Vice President (Corporate Social Responsibility)
 Management Team
Company Secretary

J. Sridhar Company Secretary

Board Of Directors – 16 (4+ 12 Directors)

Rahul Bajaj Chairman

Madhur Bajaj Vice Chairman
Rajiv Bajaj Managing Director
Sanjiv Bajaj Executive Director

Audit Committee – 4 (1+3 Members)

Shri Nanoo Pamnani Chairman

Remuneration & Nomination Committee – 4 (1+3 Members)

Shri D.J. Balaji Rao Chairman

Shareholders’ & Investors’ Grievance Committee – 4 (1+3 Members)

Shri D.J. Balaji Rao Chairman
 Products/Plants
TWO WHEELERS

GOODS CARRIERS PLANTS

Waluj (Maharashtra) – Two/Three Wheelers
Chakan (Maharashtra) – Two Wheelers
Pant Nagar (Uttranchal) – Two wheelers

GC Max Diesel GC Max CNG RE600

 Products/Plants
PASSENGER CARRIERS

RE 2S RE 2S CNG RE 2S LPG

RE 4S RE 4S CNG RE 4S LPG

RE Diesel RE GDI Mega Max

 Important Credentials
S.No. Product Award Award Body
1 Kawasaki Ninja Bike of the Year IMOTY
2 Pulsar 135LS Bike of the Year ET NOW - ZigWheels
3 Discover DTS-Si 100cc Bike of the Year ET NOW - ZigWheels
4 Pulsar 135LS 150cc Bike of the Year ET NOW - ZigWheels
5 Kawasaki Ninja 250cc Bike of the Year ET NOW - ZigWheels
6 Pulsar 135LS 4-V Technology of the Year ET NOW - ZigWheels
7 Discover DTS-Si Most Value for Money-Bike of the Year ET NOW - ZigWheels
8 Kawasaki Ninja Motorcycle of the Year - Bike upto 250 cc NDTV Profit - Car & Bike
9 Bajaj Discover DTS-Si Motorcycle of the Year - Bike upto 125 cc NDTV Profit - Car & Bike
10 Kawasaki Ninja Two Wheeler of the Year NDTV Profit - Car & Bike
11 Bajaj Discover And Pulsar Best Integrated Campaign - Two wheelers NDTV Profit - Car & Bike
12 Kawasaki Ninja Bike of the Year CNBC - Overdrive
13 Bajaj Discover Best Story Board Commercial CNBC - Overdrive
14 Pulsar135LS Bike of the Year 2010 UTV Bloomberg-AutoCar
15 Pulsar135LS Viewer's Choice of the Year UTV Bloomberg-AutoCar
16 Bajaj Discover Best TV Commercial Auto India
17 Kawasaki Ninja Bike of the Year 2010 BS Motoring
18 Bajaj Auto Best Advertising Auto India
19 Pulsar Silver Effie for Pulsar Mania Ad Effie
20 Bajaj Auto Most Trusted Brands - Auto Two Wheeler Brand Equity
21 Bajaj Auto Most Popular Two Wheelers Amongst Youth Global Youth Marketing Forum 2010
22 Bajaj Auto Chakan Plant - Super Platinum for Manufacturing Excellence ET - Frost & Sullivan
23 Bajaj Auto Waluj Plant -Best-In-Class Manufacturing Leadership Award - 2Wheeler Stars of the Industry Group
 Why Bajaj Auto Ltd.
“Bajaj Auto Ltd believes in building a Distinctly Ahead organization by
developing competent and engaged employees”

• Proud Indian MNC

• Be at the forefront of Technological Innovation
• World class manufacturing
• “Grow with us”
• Culture of Empowerment
• Fair and Transparent Annual and Quarterly PMS
• Amongst Top Quartile in Industry Compensation
• Employee friendly work practices
• Superior “Quality of Life”
 Why Bajaj Auto Ltd.

TALENT ACQUISITION
• A) Campus: Engineers/Graduates and Management/ Post Graduates
• B) Lateral Hiring

LEARNING
• A) Individual-Owned Learning – “I do it my way”
• B) User friendly Learning Management Software
• C) Idea Management and Knowledge sharing

WHISTLE BLOWER POLICY

Corporate Social Responsibility
 Contd.
Financial Performance

2009-10 - a record year for Bajaj Auto in terms of highest ever sales, exports, profits and margins.
Exports rose by 15% to 891,002 units. Record sales of 2.85 million units – over 2.5 million motorcycles
and 340,937 three-wheelers. Due to major brand-building effort in Africa for the Boxer.
 Financial Performance

Sales increased in 2010 due to launch of Bajaj Pulsar 150 & 180
(April’10) and Bajaj XCD 135 DTS-Si (Jan’11).
 Financial Performance
• Company Listings:-
Domestic : BSE and NSE.
– Earlier Pune and Delhi.

Global : GDR’s - LSE.

* EPS and P/E ratios

– Bonus of 1:1 on 22nd July, 2010.
– Market Cap
– P/E Ratio
– Face Value
– Dividend
 Financial Performance

EPS raised from 45 to 118 due to the huge increase in profit from 2009
to 2010
 SWOT Analysis

Strengths
* Highly experienced management.
* Product design and development capabilities. Weakness
* Extensive R & D focus. Not a global player.
* Widespread distribution network.
Not a globally recognizable brand –
* High performance products - all categories.
* High export to domestic sales ratio. (unlike the JV partner Kawasaki)
* Great financial support network.
* High economies of scale / scope.

Opportunities
Double-digit growth- two-wheeler market.
Untapped market >180 cc motorcycles.
More maturity & movement - higher-end.
Growing gearless trendy scooters market.
Growing world demand: entry-level motorcycles.
Threats
Competition catches-up new innovation.
Cheap imported motorcycles from China.
Margins getting squeezed – both ways
(Price as well as Cost)
Video
Questions Answers
Thank You