BAJAJ AUTO LTD.

Poorva Oberoi MBA- N

HISTORY OF BAJAJ AUTO LTD.

BAL was initially started by a Rajasthani merchant. It came into existence on November 29, 1945 as M/S Bachraj Trading corporation pvt. ltd. It started off by selling imported two and three wheelers in India. This organization obtained a manufacturing license from the govt. in 1960.

PLANT LOCATIONS IN INDIA

Waluj - Maharashtra Chakan - Maharashtra Pant Nagar Uttaranchal

Site location of the plant visited: MIDC, Plot No A1, Mahalunge Village, Chakan, Pune- 410501.

PRODUCTS
Bajaj Discover 135 DTS-i Bajaj Pulsar 150 DTSi Bajaj Pulsar 180 DTSi Bajaj Pulsar 200 DTSi Bajaj Pulsar 220 DTSi Bajaj Avenger 200 DTS-i

OVERVIEW OF THE PLANT

Emerged in the Automobile Industry in 1960 with a two wheeler vehicle called VESPA Under license of Piaggio of Italy. Presently a manufacturer of 2 wheelers namely Pulsar, Avenger and Discover. Won several awards for quality delivery and excellent service. Automated Guided Vehicles(AGV) are used along with a manpower of 1000 employees. There is no formation of trade unions.

Pulsar DTS-i boomed in the market in 2001. Its 150cc, 180cc, 200cc, 220cc have done wonders in their market segment. 90% of the manufacturing components are from vendors while some spare parts are manufactured by Bajaj Auto itself. Excellent infrastructure and various leisure facilities are available for the employees.

PRODUCTION UNIT

Production unit has been categorized as engine assembly unit and vehicle assembly unit. ENGINE ASSEMBLY UNIT: spare parts are tested and the engine is assembled. All parts assembled are made of aluminium. VEHICLE ASSEMBLY UNIT: The parts assembled in the Engine assembly unit are assembled to form the bike here. The plant has a total of 3 assembly conveyors and produces 6 models.

ORGANIZATIONAL STRUCTURE:

MANAGEMENT TEAM

MANAGEMENT

Rahul Bajaj Madhur Bajaj Rajiv Bajaj Sanjiv Bajaj Pradeep Shrivastava Rakesh Sharma R C Maheshwari S Sridhar Abraham Joseph Eric Vas C P Tripathi Kevin Dsa

Chairman Vice Chairman Managing Director Executive Director President (Engineering) CEO (International Business) CEO (Commercial Vehicles) CEO (Two Wheelers) President(R&D) President (New Projects) Vice President (Corporate) Vice President (Finance)

MANUFACTURING PROCESS
Apart from the engine assembly unit and vehicle assembly unit, the plant has a paint shop where the parts are painted. Simultaneously in the engine assembly room, these painted parts are assembled along with parts procured from the vendors. The engines are assembled on a conveyer belt with each individual doing a specific function throughout.

These engines are then transported to the vehicle assembly room through overhead conveyers. Lastly in the vehicle assembly all parts namely engine, tyres and the main body known as CHASSIS along with a few other parts are assembled. In the end, a testing is done to ensure functioning of all parts and keeping a check on the emission levels as specified by the Indian Govt.

POLICIES & STRATEGY FOLLOWED

BAL follows the TPM and SHE(safety, occupational health and environmental) policies. BAL is also moving towards the FMCG business model. It will set up separate sales channels for every segment of its business and customers. BAL believes in CASH IS STRENGTH.

HUMAN RESOURCE ACQUISITION

BAL is an equal opportunity employer. Selection is based on individual merit. It has both campus recruitments and lateral hiring. On- campus BAL is a preferred employer for engineering and post graduate management institutions. Lateral hiring brings in various organizational cultures leading to diverse perspectives.

BALANCE SHEET- 2009

Total liabilities Total assets SOURCES OF FUNDS: Paid-up capital Reserves and surplus Secured loans Unsecured loans Defer red Tax Adjustments 34,438,851 34,438,851 1,446,835 17,250,207 15,699,927 41,882 34,438,851

APPLICATION OF FUNDS: Net Fixed Assets 15,480,873 Investments 18,085,192 Net Current Assets (1,122,846) Misc. ExpTechnical Know-how & Unamortised VRS Compensation 1,995,632 34,438,851

SWOT ANALYSIS
STRENGTHS: Highly experienced management. Product design and design capabilities. Extensive R&D focus. Widespread distribution network. High performance products across all categories. High export to domestic sales ratio. Great financial support network. High economies of scale.

WEAKNESSES: Hasnt employed the excess cash for long. Not a global player in spite of huge volumes. Not a globally recognizable brand (unlike the JV partner Kawasaki )

OPPORTUNITIES:

Double digit growth in the two wheeler market. Untapped market above 180 cc in motorcycles. More maturity and movement towards high end motorcycles. Growing world demand for entry level motorcycles especially in emerging markets.

THREATS: The market catches up any new competition in no time. Threat of cheap imported motorcycles from China.

RECOMMENDATIONS:
Focus on high margin products. Focus on fast growing motorcycle segment. Tap the export market more efficiently. Target young age group more effectively.

THANK YOU!!