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Principals of ManagementProject

Sunil Jaiswal - 9819212154 Masters in Marketing Management

Overview
About Auto Industry Bajaj Auto Ltd History of Bajaj Sales/Income Statistics Achievements & Awards Management Structure Vision, Mission, Values & Goal Management Policy & Belief Corporate Social Responsibility SWOT Analysis

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

RE600

Passenger Carriers

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

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 1948 1959 1960 1970 1971 1972 1975 1976 1977 1981 1984 1985 1986 1990 Bajaj Auto comes into existence as M/s Bachraj Trading Corporation Private Limited. Sales in India commence by importing two- and three-wheelers. Bajaj Auto obtains licence from the Government of India to manufacture two- and three-wheelers. Bajaj Auto becomes a public limited company. Bhoomi Poojan of Akurdi Plant. Bajaj Auto rolls out its 100,000th vehicle. The three-wheeler goods carrier is introduced. The Bajaj Chetak is introduced. BAL & Maharashtra Scooters Ltd. joint venture The Bajaj Super is introduced The Rear Engine Autorickshaw is introduced. Bajaj Auto achieves production and sales of 100,000 vehicles in a single financial year. The Bajaj M-50 is introduced. Foundation stone laid for the new Plant at Waluj, Aurangabad. 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. The Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles are introduced. 500,000 vehicles produced and sold in a single financial year. The Bajaj Sunny is introduced.

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Achievements
1991 1994 1995 1997 1998 June July October 1999 2000 2001 November January 2003 October October July February 2004 October August May January 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. Kawasaki Bajaj Caliber rolls out of Waluj. 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. 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. Bajaj Auto launched its Caliber115 "Hoodibabaa!" in the executive motorcycle segment.

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

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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 Ninja Award Bike of the Year Award Body IMOTY

Pulsar 135LS
Discover DTS-Si

Bike of the Year

100cc Bike of the Year

ET NOW - ZigWheels
ET NOW - ZigWheels

Pulsar 135LS
Ninja

150cc Bike of the Year

250cc Bike of the Year

ET NOW - ZigWheels
ET NOW - ZigWheels

Pulsar 135LS 4-V

Discover DTS-Si Ninja

Technology of the Year

Most Value for Money-Bike of the Year Motorcycle of the Year - Bike upto 250 cc

ET NOW - ZigWheels
ET NOW - ZigWheels NDTV Profit - Car & Bike NDTV Profit - Car & Bike

Bajaj Discover DTS- Motorcycle of the Year - Bike upto 125 cc Si

Ninja
Bajaj Discover And Pulsar

Two Wheeler of the Year

Best Integrated Campaign - Two wheelers

NDTV Profit - Car & Bike

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: 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.

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.

Growing world demand for entry-level motorcycles especially in emerging markets.

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Thank You

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