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Bajaj Auto Group No 10
Bajaj Auto Group No 10
Stretches over a wide range of industries World's fourth largest two- and threewheeler manufacturer The turnover of around INR. 120 billion
Made 350,000 vehicles in 2006, In 2007 came down to 50,000 Gets no tax benefits in Akurdi Lying unused with labour sitting idle Several rounds of VRS implemented but not successful in significantly reducing manpower All new vehicle production either happening at Chakan, Aurangabad and Pantnagar
New plant located at Pantnagar, Uttaranchal Planned capacity of one million motorcycles per annum Total area of 65 acres and the balance 155 acres allocated to the vendor cluster These cluster suppliers meets 75 per cent of the component requirement Lowest cost production but highest global quality standards such as E-kanban
Over all effect of new plant was increase in total sales and profit After 2007 there was a sharp decline due to the high interest rates (Inflation)
Strategy is nothing but specialisation Providing the best of the class models at competitive prices Regularly update the low price bikes with the latest features like disk-brakes, anti-skid technology and dual suspension, etc Bajaj Auto's entire product portfolio, from the entry-level to the premium, is being sold by the same dealers
Expected capacity of production is 1.5 million to 1.8 million units Produces Platina and XCD, two variants each Initial investment made by Bajaj at Pantnagar was 75 crores Tax Rebates under CIP Favorable automobile market Improved its market share from 27% in H1 2007 to 31% in H1 2009