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Statistics of Bajaj

Statistics of Bajaj



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Published by moses_3001
its based on Market research of BAJAJ PULSAR
its based on Market research of BAJAJ PULSAR

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Categories:Types, School Work
Published by: moses_3001 on Feb 18, 2009
Copyright:Attribution Non-commercial


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Honda, Suzuki heat up two-wheeler market
( September
6,2004, ET) Global two-wheeler majors with deep pockets such as Honda (with its 100% subsidiaryHonda Motorcycles & Scooter) and Suzuki are expected to give existing players like BajajAuto, Hero Honda and TVS a run for their market share.While Honda Motorcycle & Scooters (HMSI) is planning the launch of its 150cc Unicornmotorcycle this month, Suzuki (which severed ties with TVS Motors in ’02) is gearing for aFY06 launch. Indian majors are also working doubly hard to take on competition bylaunching new models and variants.Current offerings in the premium motorcycle segment include Bajaj’s Pulsar (65% share),TVS’ Fiero (11% share) and Hero Honda’s CBZ (5% share). Analysts indicate that the entryof HMSI into the premium motorcycle segment is unlikely to have any significant impact onthe market share.An analyst from a Mumbai-based brokerage said, “looking at Honda’s style of functioning inscooters, it will not start a price war. It will offer value-added features, ensuring that itsproducts are not available at substantial premiums to those of competitors.” However, with a sales target of 6,000 per month in the second half of this fiscal and 10,000per month in FY06 in a market of 50,000 per month, it is unlikely that HMSI would be ableto challenge Pulsar’s leadership position in the segment, analysts added.Despite various models being launched by competition in this segment, the companycontinues to sell about 22,000-23,000 Pulsars per month. In the first four months of thisfiscal, the company has sold about 93,000 Pulsars.Honda has indicated that by FY07, the global manufacturer expects to garner 50% share of India’s two-wheeler market. HMSI’s plans include introducing 125cc and above motorcyclemodels to develop this nascent market segment, consolidate position in the scootersegment and eventually exercise its bargaining power with domestic partner Hero Honda tointroduce overlapping 100cc motorcycle models.Since the entry of HMSI in India, the company has captured a 35% share of the aggregatescooters market and a 5.8% share of the two-wheeler market. Both BAL and TVS have beenlosers, with the former losing half its market share in scooters and TVS losing market sharein automatic scooters.To take on competition, Bajaj Auto is planning to launch an upgraded version of the Pulsar.Domestic two-wheeler majors are working on new features and variants to further improvemarket share. “A plethora of planned new launches will imply that no single player is likely to achievesignificant market share gains for extended periods of time,” an official said. Incidentally,over the past 10 years, BAL, Hero Honda and TVS have consolidated their positions, raisingcollective market share from 68% to 87%.
Statistics:Public Company
1945 as M/s Bachraj Trading Ltd.
Rs 42.16 billion ($903.36 million)(2000)
Stock Exchanges:
Pune Mumbai Delhi London Berlin Frankfurt Munich
Ticker Symbols:
BAJAJAUTO 490 BJATq.L 893361.BE 893361.F 893361.MU
336991 Motorcycle, Bicycle, and Parts Manufacturing
Company Perspectives:
Our Philosophy: We approach our responsibilities with ambition and resourcefulness. Weorganise ourselves for a transparent and harmonious flow of work. We respect sound theory andencourage creative experimentation. And we make our workplace a source of pride. We believein: Transparency--a commitment that the business is managed along transparent lines.Fairness&mdashø all stakeholders in the Company, but especially to minority shareholders.Disclosure--of all relevant financial and non-financial information in an easily understoodmanner. Supervision--of the Company's activities by a professionally competent and independent board of directors.
Key Dates:
Bajaj Auto is founded.
Rahul Bajaj becomes the Indian licensee for Vespa scooters.
Technical collaboration with Piaggio ends.
Work begins on a second plant.
Bajaj plans to build its third plant to meet demand.
Thousands of workers are laid off to cut costs.
Company History:
Bajaj Auto Limited is India's largest manufacturer of scooters and motorcycles. The companygenerally has lagged behind its Japanese rivals in technology, but has invested heavily to catchup. Its strong suit is high-volume production; it is the lowest-cost scooter maker in the world.Although publicly owned, the company has been controlled by the Bajaj family since itsfounding.
 The Bajaj Group was formed in the first days of India's independence from Britain. Its founder,Jamnalal Bajaj, had been a follower of Mahatma Gandhi, who reportedly referred to him as afifth son. 'Whenever I spoke of wealthy men becoming the trustees of their wealth for thecommon good I always had this merchant prince principally in mind,' said the Mahatma after Jamnalal's death.Jamnalal Bajaj was succeeded by his eldest son, 27-year-old Kamalnayan, in 1942. Kamalnayan,however, was preoccupied with India's struggle for independence. After this was achieved, in1947, Kamalnayan consolidated and diversified the group, branching into cement, ayurvedicmedicines, electrical equipment, and appliances, as well as scooters.The precursor to Bajaj Auto had been formed on November 29, 1945 as M/s Bachraj TradingLtd. It began selling imported two- and three-wheeled vehicles in 1948 and obtained a
manufacturing license from the government 11 years later. The next year, 1960, Bajaj Auto became a public limited company.Rahul Bajaj reportedly adored the famous Vespa scooters made by Piaggio of Italy. In 1960, atthe age of 22, he became the Indian licensee for the make; Bajaj Auto began producing its firsttwo-wheelers the next year.Rahul Bajaj became the group's chief executive officer in 1968 after first picking up an MBA atHarvard. He lived next to the factory in Pune, an industrial city three hours' drive from Bombay.The company had an annual turnover of Rs 72 million at the time. By 1970, the company had produced 100,000 vehicles. The oil crisis soon drove cars off the roads in favor of two-wheelers,much cheaper to buy and many times more fuel-efficient.A number of new models were introduced in the 1970s, including the three-wheeler goods carrier and Bajaj Chetak early in the decade and the Bajaj Super and three-wheeled, rear engineAutorickshaw in 1976 and 1977. Bajaj Auto produced 100,000 vehicles in the 1976-77 fiscalyear alone.The technical collaboration agreement with Piaggio of Italy expired in 1977. Afterward, Piaggio,maker of the Vespa brand of scooters, filed patent infringement suits to block Bajaj scooter salesin the United States, United Kingdom, West Germany, and Hong Kong. Bajaj's scooter exports plummeted from Rs 133.2 million in 1980-81 to Rs 52 million ($5.4 million) in 1981-82,although total revenues rose five percent to Rs 1.16 billion. Pretax profits were cut in half, to Rs63 million.
New Competition in the 1980s
 Japanese and Italian scooter companies began entering the Indian market in the early 1980s.Although some boasted superior technology and flashier brands, Bajaj Auto had built up severaladvantages in the previous decades. Its customers liked the durability of the product and theready availability of maintenance; the company's distributors permeated the country.The Bajaj M-50 debuted in 1981. The new fuel-efficient, 50cc motorcycle was immediatelysuccessful, and the company aimed to be able to make 60,000 of them a year by 1985. Capacitywas the most important constraint for the Indian motorcycle industry. Although the country'stotal production rose from 262,000 vehicles in 1976 to 600,000 in 1982, companies like rivalLohia Machines had difficulty meeting demand. Bajaj Auto's advance orders for one of its newmini-motorcycles amounted to $57 million. Work on a new plant at Waluj, Aurangabadcommenced in January 1984.The 1986-87 fiscal year saw the introduction of the Bajaj M-80 and the Kawasaki Bajaj KB100motorcycles. The company was making 500,000 vehicles a year at this point.Although Rahul Bajaj credited much of his company's success with its focus on one type of  product, he did attempt to diversify into tractor-trailers. In 1987 his attempt to buy control of Ahsok Leyland failed.The Bajaj Sunny was launched in 1990; the Kawasaki Bajaj 4S Champion followed a year later.About this time, the Indian government was initiating a program of market liberalization, doingaway with the old 'license raj' system, which limited the amount of investment any one companycould make in a particular industry.A possible joint venture with Piaggio was discussed in 1993 but aborted. Rahul Bajaj told the
 Financial Times
that his company was too large to be considered a potential collaborator byJapanese firms. It was hoping to increase its exports, which then amounted to just five percent of 

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