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Principals of ManagementProject

Sunil Jaiswal - 9819212154


Masters in Marketing Management

Overview
Bajaj Auto Ltd

Management
Structure
Vision, Mission, Values & Goal

History of Bajaj

Management Policy & Belief

Sales/Income Statistics

Corporate Social Responsibility

Achievements & Awards

SWOT Analysis

About Auto Industry

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 is


expected to become the 7th largest by 2016

Automobile Industry in India


Two wheelers

Indian Domestic Industry (Dom+Export)

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

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

Market Share

Conclusion

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Bajaj Auto at a Glace


Market Capital : Rs 41,554.22 Crores (Aug
2010)
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 twoand three-wheeler maker
Bajaj Auto makes motor scooters, motorcycles
and the auto rickshaw.
Changed its image from a scooter manufacturer
to 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 motorcycles
and 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 Companys balance sheet as on 31
March 2010 stood at Rs.32.6 billion,

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BAJAJ AUTO

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History
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 manufacture
two- and three-wheelers and it went public as Bajaj Auto Ltd (BAL) in1960.
It started producing at Waluj in Aurangabad. In1986, it managed to
produce and sell 500,000 vehicles in a single financial year.
In1995, it rolled out its ten millionth vehicle and produced and sold 1
million vehicles in a year.

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History
Bajaj has made a number of motorcycles, scooters and
cars. Motorcycles in current production are the
XCD
Platina
Discover
Pulsar
Avenger &
Ninja
Cars include the Bajaj ULC ultra-low-cost car.

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Demerger of Bajaj Auto Ltd.


With the demerger of Bajaj Auto Ltd, following separate corporate
entities came into existence in May 2008
Bajaj Finserv Ltd (BFL),
Bajaj Auto Ltd (BAL), and
Bajaj Holdings and Investment Ltd (BHIL)

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Bajaj Global
Bajaj is present in over 50 countries all over the globe
Dominant presence in Africa, Latin America and South Asia with
increasing market share every year
Market leader in motorcycles in Colombia, Central America, Sri
Lanka, Bangladesh, Philippines, Nigeria, Uganda and Kenya
891,002 units exported in 2009-10, an increase of over 15 % over the
previous 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

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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


Bajaj Discover (100 & 150cc)
Bajaj Platina (100 & 125cc)
Bajaj Puslar (150, 180, 200, 220 & 135cc)

Two
Wheelers

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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Product Demonstration- Avenger & Ninja

Ninja 250R
Avenger 220 DTS-i

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Bajaj Auto - Commercial Vehicles

CG Max (Diesel & CNG)

Goods
Carriers

Passenger
Carriers

RE600

RE 4S (Petrol, CNG & LPG)


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

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Commercial Products

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Product Demonstration- Commercial Vehicles


Goods Carriers
GC Max Diesel
GC Max CNG

etc

RE600
Passenger Carriers
RE 2S
RE 2S CNG
Mega Max

etc

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Bajaj Auto Low Cost Cars


Launching Soon

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Launching Soon

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Brand Value
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

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USP of Bajaj Brands


Style
Technology
Pricing Strategy
Focus Values:
Innovation
Speed
Perfection

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Sales in Units

Financial Results ( Rs. In crores )

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Performance by Major Companies


Two Wheeler

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Performance by Major Companies


Two Wheeler

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Performance by Major Companies


Two Wheeler

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Achievements
1945

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

1948

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

1959

Bajaj Auto obtains licence from the Government of India to manufacture two- and
three-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

1977

The Rear Engine Autorickshaw is introduced. Bajaj Auto achieves production and sales
of 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.

1985

The 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.

1986

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

1990

The Bajaj Sunny is introduced.

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Achievements
1991
1994

1997
1998

The Kawasaki Bajaj 4S Champion is introduced.


The Bajaj Classic is introduced.
Bajaj Auto is 50. Agreements signed with Kubota of Japan for the development of diesel engines for threewheelers and with Tokyo R&D for ungeared Scooter and moped development. The Bajaj Super Excel is
introduced while Bajaj celebrates its ten millionth vehicle. One million vehicles were produced and sold in this
financial year.
The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw are introduced.
Production commences at Chakan plant.

June

Kawasaki Bajaj Caliber rolls out of Waluj.

July
October
1999
2000
2001
November
January
2003
October
October
July

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


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

February

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

2004
October
August
May
January

Bajaj Discover DTS-i launched


New Bajaj Chetak 4 stroke with Wonder Gear launched
Bajaj CT100 Launched
Bajaj unveils new brand identity, dons new symbol, logo and brandline

1995

Bajaj Auto launches its latest offering in the premium bike segment 'Pulsar'.
The Eliminator is launched.
Bajaj Pulsar DTS-i is launched.
107,115 Motorcycles sold in a month.
Bajaj Wind 125,The World Bike, is launched in India.

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Achievements
2005
December
June
February
2006
April
2007
December
September
August
July
June
April
February
January
2008
September
August
July
June
2009
April
January

Bajaj Discover launched


Bajaj Avenger DTS-i launched
Bajaj Wave DTS-i launched
Bajaj Platina launched
RE GDi autorickshaw launched
Bajaj XCD 125 DTS-Si launched
DTS-Si engine launched
Revamping of Organisational structure
Bajaj Pulsar 220 DTS-Fi launched
New Bajaj Auto Plant at Pantnagar, Uttarakhand
200 cc Pulsar DTS-i launched
Bajaj Kristal DTS-i launched
Bajaj
Bajaj
Bajaj
Bajaj

Platina 125 DTS-Si launched


XCD 125 DTS-Si is largest selling 125cc motorcycle
Discover 135 DTS-i Upgrade Launched.
Pulsar 220 bags IMOTY award

Bajaj Pulsar 150 & 180 upgrade launched


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 Best
250cc motorcycle in the world
A Quarter of Records for Bajaj Auto highest ever turnover of
2909 crore, highest ever exports of 224334 vehicles and highest
ever net profit of 403 crore.

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Awards & Recognitions

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Awards & Recognitions


Product

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- Motorcycle of the Year - Bike upto 125 cc


Si

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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Management

Conclusion

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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 core
competencies in all its functions, as also across its supply chain,
including its suppliers and dealers.
BALs 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 quantifiable
methodology for deeper and wider continuous improvements in
an integrated way aligned to BALs 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. Its
footprint stretches over a wide range of industries, spanning
automobiles (two-wheelers and three-wheelers), home appliances,
lighting, iron and steel, insurance, travel and finance.
The company has successfully changed its image from a scooter
manufacturer 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 are
the characteristic of the group today

The present Chairman of the group, Rahul Bajaj, took charge of the business in
1965. Under his leadership, the turnover of the Bajaj Auto the flagship
company has gone up from INR.72 million to INR. 120 billion, its product
portfolio has expanded and the brand has found a global market.

Rahul Bajaj is one of Indias most distinguished business leaders and


internationally respected for his business acumen and entrepreneurial spirit.

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Corporate Social Responsibility (CSR)

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Corporate Social Responsibility (CSR)


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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Corporate Social Responsibility (CSR)


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 in


commuter 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 maker
KTM, 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 as
Cost)

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


segment.

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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:

Threats:

Double-digit growth in two-wheeler market.

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

Untapped market above 180 cc in motorcycles.

Threat of cheap imported motorcycles from China.

More maturity towards higher-end motorcycles.

Margins getting squeezed from both the directions (Price as


well as Cost)

The growing gearless trendy scooters and scoottee market.

Growing world demand for entry-level motorcycles


especially in emerging markets.

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


segment.

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Thank You

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