OPERATION WORKOUT

OUTSOURCING
AT
BAJAJ AUTO LTD.

GUIDED BY- MS SWAPNA

 What Is Outsourcing ?

Contracting with a vendor to provide a service

rather than providing it yourself.

•Widespread in the corporate sector.

•Functions related to IT
•Business Processes impacting IT.
•Purchase of an externally produced good or
service (often previously internally produced)
 Outsourcing: Why To Do It?
• Focus on Core Competencies
– Production, sales, finance/accounting
• Realization of Greater Economies (Lower
Costs)
– Vendors argue they can recapture scale
because they specialize in ISO and have lower
costs because of volume discounts, sharing of
resources and expertise, etc.
– Savings are partly passed on to customers
(theoretically, at least!)
 Possible Reasons To Outsource

•Higher quality service •May not have been able to

•Expertise / experience
•More cost effective or efficient
(more up to date and
sophisticated technologies, for
instance)
•More qualified personnel
(with career track)
successfully manage function
•Operating expense may be less
•Limited or no capital
investment
•Less attention is required
•Shifts some accountability
What’s Being Outsourced?
What are the opportunities for outsourcing?

Endowment Management
Food Services
Legal Services
Payroll
Pension Administration
Security
Telecommunications
Vending Services
 BAJAJ AUTO LTD.
2ND Largest manufacturer in Two wheelers in
India
 BAJAJ
Is An Assembling Industry.

It is not possible for them to manufacture

each and every Part in the company
itself so they have to out source
 Bajaj at
Waluj Plant

Two wheelers
Three wheelers
Bajaj CT 100
Auto Rikshaw -CNG
Bajaj Platina
Auto Rikshaw -LPG
Bajaj Wind
Percentage Of Outsourcing Carried Out At
BAJAJ AUTO

11%

Outsourcing
Offshoring
89%
MFG inhouse
How is outsourcing helping the industry?

Let’s take a short view.

 Direct Vendors
•Varroc Engineering Pvt Ltd.
•Badve Engineering Pvt Ltd.
•Laxmi Metals
•Metalman Pune
•Dhanesh Engineerings
•Aurangabad Electricals Ltd
•Dhoot Teransmission Pvt Ltd
•Endurance Systems Pvt Ltd
•Rucha Engineering
•Sanjeev Auto Pvt Ltd
•MRF Tyres
•Lumax Bulbs
•Minda Components
 Varroc Engineering Pvt Ltd
• Electrical parts
• Plastic components

Badve Engineering Pvt Ltd.

• Muffler
• Chassis Metalman – Pune
• Chassis
Laxmi Metals
• Muffler
• Chassis
Laxmi Pressings MINDA
•Steel Components
•Engine Related Parts Switches
•All switches
assembly

LUMAX BULBS
•Head light Bulb assembly
•Breaklight Bulb assembly

Dhoot Transmission Pvt.

Ltd.
•All type of wiring harness
•All electrical wirings
Aurangabad Electricals Ltd.
•Magnatos
•PCB for switches
•Regulator for battery charging

MRF, TVS, DUNLOPE

•Tyres

Endurance Systems
•Clutch plate assembly
•Front shock absorbers
•Rear shock absorbers
•Disc Break
Rucha Engineerings Pvt. Ltd.
•Sheet metal components
•Petrol Tank components

Sanjeev Auto Pvt. Ltd

•Machining Components

Tokisaki Japan
•Steel sheet metals
•Steel engine components
45
40
35
30
25
20
15
10
5
0
AEL Varroc ESPL Badve Dhoot Lumax
PRESENTED BY

Niranjan Chaitanya Santosh Mandal

Vaishali Miniyar Prachi Kothavale
Poonam Khabiya Sandeep Khandelwal
Sarabjit Kaur Amit Kulkarni
Aditya Laddha Divya Nair
Deepak Modi Harshal Khadkikar