A Project Report

On

BAJAJ AUTO LIMITED

Submitted in Fulfilment of

Business History Project

In

Master in Business Administration

Prepared By:
Tej Vardhan : (17BSPHH01C1177)

Wassiq Ansari : (17BSPHH01C1261)

Sakshi Dabas: (17BSPHH01C0888)

Rohit Narswani : (17BSPHH01C0856)

Chetan Raja : (17BSPHH01C0308)

Guided By:
Prof. Shridharan Lakshmanan 
Operation Department
ICFAI Business School, Hyderabad
2017-18

TABLE OF CONTENTS

Sl no. Topic Page

no.
1 Executive summary 03
2 The beginning 05
3 About the founders 07
4 The growth 09
5 The business group and the industry 15
6 The business group and the society 21
7 Coping up with Changes 23
8 Major events 26
9 Time line of events 31
10 Exhibits 36

CHAPTER 01: Executive Summary

Bajaj Auto Ltd is one of the leading two & three wheeler manufacturers in India.
The company is well known for their R&D, product development, process
engineering and low-cost manufacturing skills. The company is the largest
exported of two and three-wheelers in the country with exports forming 18% of its
total sales. The company has two subsidiaries, namely Bajaj Auto International
Holdings BV and PT Bajaj Indonesia.
The company was incorporated on April 30, 2007 as a wholly owned subsidiary of
erstwhile Bajaj Auto Ltd (the holding company) with the name Bajaj Investment &
Holding Ltd. The company received the certificate of commencement of business
on May 7, 2007. The holding company operated in the segments, such as
automotive, insurance and investment, and others. Considering the growth
opportunities in the auto, wind-energy, insurance and finance sectors, the holding
company de-merged their activities into three separate entities, each of which can
focus on their core businesses and strengthen competencies.
The auto business of the holding company along with all assets and liabilities
pertaining thereto including investments in PT Bajaj Auto Indonesia and in a few
vendor companies transferred to Bajaj Investment & Holding Ltd. In addition a
total of Rs 15,000 million in cash and cash equivalents also transferred to Bajaj
Investment & Holding Ltd. As the part of the scheme, Bajaj Holdings and
Investment Ltd were renamed as Bajaj Auto Ltd. The appointed date of this de-
merger was closing hours of business on March 31, 2007.
In April 9, 2007, the company inaugurated their green field plant at Pantnagar in
Uttarakhand. In the first year of operations, the plant produced over 275,000
vehicles. The companys vehicle assembly plant at Akurdi was shut down from
September 3, 2007 due to higher cost of production.
In November 2007, Bajaj Auto International Holdings BV, a wholly owned
subsidiary company acquired 14.51% equity stake in KTM Power Sports AG of
Austria, Europes second largest sport motorcycle manufacturer for Rs 345 crore.
During the year 2007-08, the company launched XCD 125 DTS-Si and the Three-
wheeler Direct Injected auto rickshaw. The Chakan plant completed the cumulative
production of over 2 million Pulsar.
During the year 2009-10, the company expanded the production capacity of
Motorised Two & Three Wheelers by 300,000 Nos to 4,260,000 Nos. The
company launched Pulsar 220 F, Pulsar 180 UG, Pulsar 150 UG, Pulsar 135 LS
and Discover DTS-si in the market.
During the year 2010-11, the company expanded the production capacity of
Motorised Two & Three Wheelers by 780,000 Nos to 5,040,000 Nos. The
company launched Avenger 220 DTS-i, KTM Duke 125, Discover 150 and
Discover 125 in the market.
The company plans to maintain the capacity of two and three-wheelers at the
current level of 5,040,000 numbers per annum during the year ending 31 March
2012. The 4 wheel vehicle development work is under progress and commercial
launch of the first product from this platform is scheduled for 2012.
In 2012, Bajaj Auto tied up with Japans Kawasaki in Indonesia. In 2013, the
Company has introduced another variant of premium motorcycles under the Bajaj-
KTM joint venture namely Duke 390cc for a price of Rs 1.83 lakh. The company
also received CII Design Excellence Award
In 2014, Bajaj Auto bagged order in Sri Lanka -Peoples Choice Bike of the Year -
CNBC TV18 Overdrive Awards. The Company has also received Bike of the Year
BBC Topgear Awards.
In 2015, Bajaj Auto has introduced the all-new Platina electric start 100 cc bike to
the long-distance commuter.

CHAPTER 02: The Beginning

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
manufacturer and three wheelers manufacturer), home appliances, lighting, iron
and steel, insurance, travel and finance. The group's flagship company, Bajaj Auto,
is ranked as the world's fourth largest three and two wheeler manufacturer and the
Bajaj brand is well-known across several countries in Latin America, Africa,
Middle East, South and South East Asia. Founded in 1926, at the height of India's
movement for independence from the British, the group has an illustrious history.
The integrity, dedication, resourcefulness and determination to succeed which are
characteristic of the group today, are often traced back to its birth during those
days of relentless devotion to a common cause. Jamnalal Bajaj, founder of the
group, was a close confidant and disciple of Mahatma Gandhi. In fact, Gandhiji
had adopted him as his son.
This close relationship and his deep involvement in the independence movement
did not leave Jamnalal Bajaj with much time to spend on his newly launched
business venture. We are celebrating 125th Birth anniversary of Shri. Jamnalal
Bajaj on 4th of November 2014.
His son, Kamalnayan Bajaj, then 27, took over the reigns of business in 1942. He
too was close to Gandhiji and it was only after Independence in 1947, that he was
able to give his full attention to the business. Kamalnayan Bajaj not only
consolidated the group, but also diversified into various manufacturing activities.
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. He is one of India’s most
distinguished business leaders, bike manufacturer india and internationally
respected for his business acumen and entrepreneurial spirit.

Bajaj Auto Limited is an Indian automobile manufacturing company. It

manufactures two and three-wheeler machines. It manufactures and sells
motorcycles, scooters and auto rickshaws. Bajaj Auto Limited is a part of Bajaj
Group of industries. The Bajaj Auto was founded by Jamnalal Bajaj in Rajasthan
in the year 1940s. It has its plants in Mumbai, Pune, Chakan, Waluj, Pantnagar in
Uttarakhand. Its oldest plant was in Akurdi(Pune) which is know transformed into
the R&D center.
Bajaj Auto is the world’s 6th largest motorcycles manufacturing company and the
2nd largest in India. It is the world largest three-wheeler manufacturer. It gave a
start to the manufacturing of scooters from getting license from Vespa. The most
popular scooter by Bajaj was the Chetak scooter. This scooter had a waiting period
of about a year, and its production lasted for about 34 years. By around 1990’s
Bajaj Auto started focusing more on motorcycles since the market trend was
shifting. It also came as a surprise to all when it announced that the company will
withdraw from scooter manufacturing since the scooter had created the goodwill
for Bajaj Auto Limited. Saffire was the last scooter produced by Bajaj. It then
mainly focused on motorcycles and Bajaj Boxer and Bajaj discover were its
commuter brand in the country and the sales of this motorcycles rised very fast.
Then it came with Bajaj Avenger which still remains the most Affordable cruiser
in India. But it was mainly because of Bajaj Pulsar the name of Bajaj came into
existence and cemented its position in the motorcycle segment in India. It was
positioned as the performance bike-maker in Indian market. The main feature of
the bikes where because of its value for money without compromising on its
features, power, technology. The pulsar range of Bajaj motorcycles has grown a lot
and at a steady pace with many iterations and a 400cc Pulsar version in a power
cruiser form is launched in the market in August,2016 in the form of Bajaj Pulsar
CS400.
Bajaj currently sells its products through 2 formats, 1. Bajaj showrooms which
sells all Bajaj bikes.2. Pro-biking showrooms which sells bikes of KTM and
Kawasaki.
On May 2015, its market capitalization was ₹640 Billion (US $9.9 Billion),
making it the India’s 23rd largest publicly traded company by market value. The
Forbes Global 2000 list for the year 2012 ranked Bajaj Auto at 1,416 Rank.

CHAPTER 03: About the Founders

Jamnalal Bajaj (1889–1942)

Founded by the freedom fighter, philanthropist and close confidante of Mahatma
Gandhi Jamanalal Bajaj, the Bajaj Group is one of the most respected and
renowned business houses of India. Started around eighty years back with a sugar
factory in Lakhimpur Kheri of Uttar Pradesh, the group has since diversified into a
wide variety of business areas. The group's first sugar plant was one among only
30 sugar mills that pioneered the establishment of the sugar industry in India.
Today, Bajaj Hindusthan Sugar Ltd is Asia's Number One Sugar company and
among the top four globally. In addition, the Group includes Bajaj Corp Ltd, a
recently setup, Bajaj Energy Limited, Lalitpur Power Generation Company Ltd.
and Bajaj Infrastructure Development Co. Ltd.
The Bajaj Group is a leading presence with diversified interest in the sugar and
growing Infrastructure sector including Power, Coal mining and Real Estate;
FMCG, and Ethanol. Bajaj Hindusthan Sugar Limited, the Group’s flagship
company, was set up in November 1931.
Kamalnayan Bajaj (1915–1972)
Kamalnayan Bajaj the eldest son of Jamanalal Bajaj, after completing his
education from University of Cambridge, England, returned to India to assist his
father both in business and in social service. Kamalnayan Bajaj also a man of strict
principles, earmarked a large portion of the income from his family business for
public causes and social service programs. He always had a sense of a larger social
mission, transcending the dictates of business and the bottom line.
Every new business venture that Kamalnayan got into, testified to his business
acumen. With foresight and a spirit of zestful enterprise, Kamalnayan acquired
ailing industrial units and then turned them around. He went on to expand the
business by branching into manufacture of scooter, three-wheeler, cement, alloy
casting and electricals. In 1954, Kamalnayan took over active management of the
Bajaj Group companies.
Ramkrishna Bajaj (1924–1994)
Ramkrishna Bajaj, the younger son of Jamanalal, took over after the death of his
elder brother Kamalnayan Bajaj in 1972. In addition to shouldering business
responsibilities, Ramkrishna’s energies were largely directed towards the social
service and social welfare programs of the Bajaj Group. He was of the firm
conviction that he could make an impactful and meaningful contribution to the
community through social work.
Ramkrishna had a flair and panache for working with youth. He was elected as the
Chairman of World Assembly for Youth (India) in 1961. He also held the office of
the Managing Trustee of the Indian Youth Centres Trust, which conceived and
created the Vishwa Yuvak Kendra in 1968, a youth development organization.
Rahul Bajaj(1938 - Present)
Rahul Bajaj, the chairman and managing director of the Bajaj group is the
grandson of Jamnalal Bajaj. He completed his schooling from Cathedral, a school
in Bombay. Then he further pursued his studies from St Stephen's College, Delhi,
Government Law College, Mumbai and Harvard University, USA. He took over
control of the Bajaj Group in 1965 and successfully established one of India's
largest conglomerates.

CHAPTER 04: The growth

Exit from scooters 

Let us take bit of a flashback into the 70's and imagine a world in B&W. Bajaj
introduced its first indigenous scooter brand - Chetak. Its practicality and
reasonable price made it a blockbuster product for the company. Bajaj's name
became synonymous with scooters, just like Colgate stood for toothpaste. In the
80's the company spawned few more brands like Priya, Super etc. and the brand
slogan 'Humara Bajaj' was ubiquitous. In the absence of a formidable competition,
the company had a near monopoly in two-wheelers.

HeroHonda's-entry-in-1984
HH started offering motorcycles to the Indian customers. Share of motorcycles
among two wheelers increased gradually. Bajaj kept its fingers crossed on the
scooter segment. 

Entry of Honda Motorcycles and Scooters India in 2001

HMSI launched Activa gearless scooter which quickly became a success because
of its easy handling, electric start, refined engine and distinct looks. Customers
started migrating towards Honda and Bajaj's geared scooters began to appear
ancient. Undisputed leadership often leads to indifference and ignorance
(remember Kodak?). Bajaj went into a dormant state and failed to wake up to
changing market dynamics until it was too late. It tied up with Kawasaki to enter
into motorcycles in 1986 but found itself lagging behind. The iconic Chetak ran on
ventilator support and was killed in 2005.
In a last minute attempt to salvage volumes, Bajaj came up with its gearless scooter
'Kristal' in 2006 which failed miserably. Once a dominating force, their market
share fell significantly by 2009.  MD Rajiv Bajaj decided to vacate the scooter
segment citing focus on motorcycles. This is where we feel the company left the
mine just before striking gold. Increased acceptance of modern gearless scooters
among all age groups led to a phenomenal growth of this segment. Share of
scooters has increased from 14 per cent in FY08 to about 25 per cent in FY14 and
the absence of Bajaj served the growth pie in a platter to Honda, that too for free!
The idea to completely back off from scooters was not the ideal one because Bajaj
had an extremely strong image of a scooter manufacturer with a high brand recall.
'Humara Bajaj' jingle still resonated with people. That image had to be shed and
converted to Bajaj as a motorcycle maker, which was extremely tough even after
spending truckloads of money on promotion. A new manufacturing plant along
with R&D and product development facilities had to be established, which meant
spending of more money.
Bajaj's dealers which were used to sell scooters now had to be re-trained to sell
motorcycles. Also, the distribution network had to be modified. Add few more
truckloads of money. Cost of lost opportunity. Probably worth more truckloads of
money than the above three combined. If Bajaj stayed and captured even 15 per
cent of the market, it would have earned more volumes than it currently gets from
Platina.
Absence from scooter segment will continue to hurt Bajaj as scooters are likely to
grow faster than motorcycles in the years to come.

Entry-into-Motorcycles

Bajaj's motorcycle journey began in 1986 with economy bike KB100 in

collaboration with Kawasaki of Japan. The bike stayed in production for 10 years
and spawned several variants. It was replaced with Boxer in 1997 which was
further succeeded by CT100 in 2004.
Executive commuter bike Caliber was launched in 1998 and managed 1 lakh units
within 12 months. It got succeeded by Wind 125 standard street bike in in 2003.
This bike was rebadged within a year as Discover for the 125cc segment and the
100cc version was launched as Platina in 2006.
Bajaj entered the Premium bike segment with Pulsar and Eliminator in 2001. The
Pulsar brand turned out to be a huge success for the company. Tens of design
changes and hundreds of variants later it still continues. Eliminator was eliminated
in 2005 and replaced with Avenger in 2005.
Bajaj also has a partnership with Austrian manufacturer KTM in which it also
holds a 48 per cent stake. The KTM models available in India are Duke 200, Duke
390, RC200 and RC390. Next we break down Bajaj's performance in each segment
and check if there is a devil in the details.

Motorcycles-(75-110cc) 

This is the segment which brings the highest volumes to the motorcycle market.
Even a few percentage points of market share would translate into numbers in 5
digits. Keeping that in mind, Bajaj lost 1.87 per cent of its market share in 2014,
even though the segment witnessed a decent growth of 4.44 per cent.
The company's range of Discover 100/100 M and Platina 100/ 100 ES finds itself
hammered by market leader Hero Motocorp's onslaught through Splendor/ Passion/
HF Deluxe/ HF Dawn range of motorcycles, which sell almost 4 times in volumes.
Clearly Bajaj falls short of offerings here and needs to introduce fresh products if it
wants to capture a larger pie of this segment.
The exports however show a complete role reversal. Bajaj effectively dominates
the market more or less holding on to its share of almost 74 per cent over the past
three years. The Boxer and CT 100 brands of motorcycles, which are exclusively
made for exports have been well received in the foreign markets. In fact, Boxer is
the leading brand in Africa among all competitors. The company's exports grew
3.26 per cent in FY14 while the total exports in the segment grew by 4.43 per cent.

Motorcycles-(110-125cc)

The fall in Bajaj's market share in this segment can be compared to the fall in crude
oil prices over the past one year, both have nearly halved. Bajaj lost 12.35 per cent
of its market share in 2014, while the segment grew a miniscule 0.39 per cent over
the previous year. Whatever share of pie was lost by Bajaj seems to have been
equally distributed between Hero and Honda. This drastic performance of the
company in a segment where it held one-third of the market needs to be probed
deeper. The Discover brand has been losing its significance despite having given
several product updates. What Bajaj has done is that they have extended the brand
in both the upper 150cc segment and the lower 100c segment along with tens of
variants. Two things could have happened here: Brand Dilution - presence in three
different segments confused customers what Discover actually stands for, so they
migrate to the competitors.

Cannibalization - A price sensitive buyer goes for the lower segment for more
value for money and a performance seeking buyer opts for the upper segment
rendering the middle segment of no consequence. The picture was not that bad in
the exports where Bajaj lost 2.63 per cent market share over FY13 though there
was an increase in the absolute numbers by 12.11 per cent over the previous year.
The company holds 56.49 per cent of the exports in this segment. TVS and Suzuki,
though exporting much lower numbers are steadily increasing their share.

Motorcycles (125-150cc)
This segment is yet another headache for Bajaj and for the industry as a whole. The
segment volumes have shrunk by 20.67 per cent over the past two years while that
for Bajaj have declined even faster at 36.76 per cent. As a result, Bajaj's market
share has dwindled by a significant 10.42 per cent to land at 40.94 per cent.
A sigh of relief for Bajaj is that they still hold the leadership position in this
segment and are fairly ahead of their closest competitor Honda which holds 26.67
per cent share. However, if this downward trend continues for another year their
leadership position may be well within arm's reach of Honda.
The Pulsar 150 has been Bajaj's star product since its inception and its
'performance' bike image has clicked with the Indian customers. However, the
company has given it the same treatment as the Discover. Pulsar now comes in 5
different engine options - 135/150/180/200/220 cc.
Bajaj has historically followed the strategy of putting more focus on the higher
engine size segments. The company has also launched the Discover 150cc in 2014
to reinforce their market presence. Though these segments contribute a lower
volume as compared to executive bikes, they are expected to grow significantly in
the long term as the customers move upmarket. If that happens, Bajaj might have a
competitive edge by having a stronger brand and a wider product portfolio.
The situation on the export side looks much worse than the domestic. The segment
returnedto almost the same volumes in 2014 as it had in 2012 but sadly Bajaj's did
not. Their volumes got eroded by 22.32 per cent. As a result, the share of exports
dwindled from 65.51 per cent in FY12 to 51.05 per cent at the end of FY14. The
volume eater for the company here is Yamaha Motors whose share increased from
20.79 per cent to 33.98 per cent over the two years. Here too, Bajaj's leadership
position is under grave danger and the panic button should have been pressed by
now. 

Motorcycles (150-200cc)
This segment has only two players fighting with each other. Bajaj offers the Pulsar
180 and 200NS along with KTM Duke 200 and RC 200 while TVS's Apache RTR
is their lone fighter. Contrary to expection, this lone fighter completely demolishes
the comparatively fresh opposition single handedly. In FY14, TVS snatched away
10.20 per cent market share from Bajaj despite the product onslaught by the latter.
This being a more premium segment with major customers being the urban youth,
the importance of brand is significant. Keeping that in mind, having a strong
domestic brand like Pulsar and a global brand like KTM has not helped Bajaj
salvage its volumes.
On the other hand, exports in this segment have seen stellar growth for the
company. Over the past two years Bajaj's volumes have grown by 171%, much
faster than the overall export growth of 72 per cent. Much of this success is
credited to new model launches namely Pulsar 200NS and KTM RC200.

Motorcycles (200-250cc)
This segment is a three sided battle among Pulsar & Avenger 220 from Bajaj,
Karizma from Hero and CBR 250R from Honda, all of which are strong and
popular brands. However, it's Bajaj which scores a convincing win over the others.
Despite the segment volumes declining by 6.34 per cent since FY12, Bajaj has
increased its market share from 57.29 to 67.87 percent. In absolute terms, out of
137454 units sold in 2014, 93290 units belonged to Bajaj. Once a marginal entity,
the Avenger has now caught the fancy of urban Indians who want to ride cruisers.
In FY14, the company sold about 41,000 Avengers and its demand has been
increasing within a niche section of customers. Bajaj commands a major share of
the exports in this segment and represented 78.63 per cent of the volumes in FY14.
However, being an upper segment the volumes are comparatively low. On top of
that, export volumes of the segment have declined by 56.12 per cent and that of
Bajaj have gone down by 64.09 per cent in the span of two years.

Motorcycles (350-500cc)
Bajaj is a recent entrant in this segment with the KTM RC390 launch in 2014. The
good news here is that in the first year itself the bike has managed to capture
15.85% of the market and it is expected to increase more by this year end. With its
trademark orange frame and alloy wheels, the KTM's have become quite a rage
among the youth in urban India. The rest of the segment belongs to the Royal
Enfield heavyweights. RC390 provides a sports bike body style in this segment
which otherwise has only street and cruiser bikes, hence offering a new proposition
to attract buyers. Bajaj has exported more KTM's than it has sold in the domestic
market and it has led to more than four-fold increase in the export volumes of this
segment. 

Commercial vehicles - three wheelers

Bajaj is the world's largest producer and India's largest exporter of three wheelers.
The company's brand RE (which stand for Rear Engine) range has three wheelers
running on diesel, alternative and hybrid power. In FY14, Bajaj held 39 per cent
share in the domestic market but sales numbers declined. The drop can be
attributed to sluggish economy and lower issue of permits by transport authorities.
The competition from Piaggio and Mahindra is also increasing in this space.
Numbers did grow in exports but slower than the overall market.

CHAPTER 05: The Business group and the Industry

Bajaj Group companies:

Bajaj Auto Ltd. – Manufacturers of Scooters, Motorcycles and Three-wheeler

vehicles and spare parts.
Bajaj Finance Ltd. – Deals in financial services including hire purchase, financing
& leasing.
Bajaj Finserv Ltd – Financial Services.
Bajaj Holdings & Investment Ltd. – Investment Company focusing on new
business opportunities.
Mukand Ltd. – Manufacturers of stainless, alloy and special steels including
carbon and alloy steels.
Bajaj Electricals Ltd. - Manufacturers of electric fans, high masts, lattice closed
towers and poles.
Bajaj Ventures Ltd. – involved in manufacturing and trading of power tools and
manufacturing of housewares and parts.
Maharashtra Scooters Ltd. k- Manufacturers of Scooters.
Bajaj Allianz General Insurance Company Ltd. – General insurance business.
Bajaj Allianz Life Insurance Co Ltd. – Life insurance business.
Bajaj Financial Solutions Ltd. – Distribution of financial products and services.
Bajaj Allianz Financial Distributors]] Ltd. – Distribution of financial products.
Bajaj Auto Holdings Ltd. – Investment Company.
PT Bajaj Auto Indonesia (PTBAI) - Bajaj Auto venture in Indonesia.
Bajaj Auto International Holdings BV – Bajaj Auto venture in Netherlands.
Hind Lamps Ltd. – Manufactures GLS, fluorescent, miniature lamps and major
components, such as glass shells, miniature and aluminum caps, lead glass.
Mukand Engineers Ltd. – Construction, fabrication and erection of industrial and
infrastructural projects and infotech business.
Mukand International Ltd. – Trading in metals, steel and ferro alloys.
Bajaj Sevashram Pvt. Ltd. – Investment activities.
Jamnalal Sons Pvt. Ltd. – Investment and finance company.
Rahul Securities Pvt. Ltd.
Shekhar Holdings Pvt. Ltd.
Madhur Securities Pvt. Ltd.
Niraj Holdings Pvt. Ltd.
Rupa Equities Pvt. Ltd.
Kamalnayan Investments & Trading Pvt. Ltd.
Sanraj Nayan Investments Pvt. Ltd.
Hercules Hoists Ltd. – Manufactures ‘INDEF’ brand materials handling equipment
such as triple spur gear chain pulley blocks, chain electric hoists and wire rope.
Hind Musafir Agency Ltd. – Travel agency.
Bajaj International Pvt. Ltd. – Export electric fans, GLS lamps, fluorescent tubes,
light fittings, etc.
Bachhraj Factories Pvt. Ltd. – Ginning and pressing of cotton bales.
Baroda Industries Pvt. Ltd. – Investment Company.
Jeewan Ltd. – Investment company
Bachhraj & Co. Pvt. Ltd. – Investment Company.
The Hindusthan Housing Co. Ltd. – Services Company.
Hospet Steels Ltd. – Steel plant consisting of Iron Making Division, Steel Making
Division and Rolling Mill Division.

MARKETING STRATEGIES OF BAJAJ AUTO

From the last decade the Bajaj has changed its image, earlier it was known for
producing scooter now Bajaj is focusing on manufacturing a two wheeler bike. Its
number has increased in last decade after targeting the motorcycle segment. In
1959 Bajaj obtain license from the Govt. of India to manufacture 2 –wheeler and 3-
wheeler and in 1960 in went public. In the year 1977 Bajaj managed to produce
and sell 100000 vehicles globally during that financial year. In the year 1986 Bajaj
managed to produce and sell 500000 vehicles globally.
MARKET SEGMENTATION, TARGETING AND POSITIONING
SEGMENTATION
Before the Bajaj pulsar came to the Indian market Bajaj was known for
manufacturing scooter, various attempt was failed because of hero Honda legacy.
It was strategic move by Bajaj when it introduced the Bajaj pulsar 150cc against
CBZ 150 cc.
Pulsar proved to be one of the most successful two wheeler bike and became the
threat for the hero Honda rule in the Indian market
Bajaj has segmented its bike category
From 100 CC To 125 CC bike – Lower And Lower Middle Class family.
From 125 CC To 150 CC bike – Middle and Upper Middle Class family.
From 150 CC To 220 CC bike – Upper Middle and Upper Class family.

TARGETING
Bajaj did the right move by targeting the youth of the India as in India 65 % of the
population is from 18-35.
Pulsar was the Bajaj first bike without Kawasaki label on it.
The bike was mainly targeting the male segment and known for its macho look.

Bajaj has positioned Pulsar in the “high style and high price “category along with
the hero Honda Karizma, hero Honda CBZ, Royal Enfield.
Bajaj also positioned CT 100 in the “low style and low price “category along with
Herohonda Splender , TVS star city.

BRANDING
BRAND POSITIONING
Pulsar
Discover

Rebranding from Hamara Bajaj to Distinctly Ahead

Hamara Inspiring Distinctly

Bajaj Confidence Ahead

Earlier Bajaj used “B” logo in a hexagon that was known for” Hamara Bajaj” was
replaced with a more attracting, stylish, vibrant, dynamic look moving from the
lower caps to upper caps which symbolize the
rejuvenated Bajaj auto ltd.
The change in the logo was the ongoing
change Bajaj has transformed its facilities like
manufacturing process, service and distribution
network, created its benchmark in research and
development activities. When customer has
changed in terms of quality and style then change
in the identity became the necessary change for
the Bajaj to invite the paradigm shift in the consumer’s perception regarding the
company.
Bajaj pulsar joined hands with MTV India in the year 2009 in order to launch
pulsar MTV stunt mania which was India’s first ever bike stunt reality show.
The main intention of the Bajaj to target the youth of the India and MTV being the
youth centric for the excellent choice.

ADVERTISING STRATEGY
Bajaj is known for its outstanding ads because they don’t use the brand
ambassadors in their ads which help the company to save lots of cost. Bajaj used
punch line like “Naye Bharat kin aye Tasveer “ added great value to its two –
wheeler product.

Bajaj Group believes that the true and full measure of growth, success and progress
lies beyond balance sheets or conventional economic indices. It is best reflected in
the difference that business and industry make to the lives of people.
Through its social investments, Bajaj Group addresses the needs of communities
residing in the vicinity of its facilities, taking sustainable initiatives in the areas of
health, education, environment conservation, infrastructure and community
development, and response to natural calamities. For society, however, Bajaj is
more than a corporate identity. It is a catalyst for social empowerment. It is the
reason behind the smiles that light up a million faces.Its goodwill resonates in the
two simple words that live in the collective consciousness of Indians Hamara
Bajaj.
The Corporate Social Responsibility (CSR) activities of Bajaj Group are guided by
the vision and philosophy of its Founder, late Shri Jamnalal Bajaj, who embodied
the concept of Trusteeship in business and common good, and laid the foundation
for ethical, value-based and transparent functioning.
EDUCATION:
The two flagship projects for Bajaj Auto have been the Bajaj Education
Initiative (BEI) and the e-Learning Project. The BEI covers 76 low cost schools
(a mix of private and government schools) in Pimpri-Chinchwad area of Pune, and
supports them with infrastructure development and capacity building. The e-
Learning project has reached more than 1550 schools till date- covering
Maharashtra and Rajasthan. Both of these are implemented by Jankidevi Bajaj
Gram Vikas Sanstha, our own NGO.
In addition Bajaj Auto has supported school infrastructure development, vocational
training for entrepreneurship, teach-to-lead as well as scholarships for meritorious
students.
Bajaj Auto is also supporting Bhartiya Yuva Shakti Trust (BYST) in training
25000 young persons in Aurangabad and Wardha to create 1000 entrepreneurs in 5
years. Over 177 entrepreneurs have been created in first 2 years of the project.

WOMEN’S EMPOWERMENT & SELF RELIANCE:

Bajaj Auto has supported IISER, one of India’s leading research institutes, in
constructing a dedicated Hall of residence for Women Research Scholars. Bajaj
Auto has continued to support the Banasthali Vidyapeeth (a women’s university) in
setting up a Hostel and a Bajaj center for Automation and Bajaj Law School.
Bajaj Auto also supports the Kailash Satyarthi Children’s Foundation in its work
on holistic development and empowerment of children.
SUPPORTING ARMED FORCES & VETERANS:
Bajaj Auto has contributed Rs 1 Crore to the Armed Forces Flag Day Fund.
RURAL DEVELOPMENT & OTHER PROJECTS:
Bajaj Auto has supported Sevagram Pratishthan at Wardha for renovation of Bapu
Kutir and associated buildings. Bajaj Auto has also initiated a partnership with
Raja Dinker Kelkar Museum at Pune for renovation of the museum.
Other supported organisations include Social Work Research Center - Barefoot
College(Tilonia), Development Initiative for Self-Help and Awakening – DISHA
(Pune), Chinmaya Organization for Rural Development (New Delhi), Prafulla
Dahanukar Arts Foundation (Mumbai) etc.
Bajaj Auto Has also supported Paraplegic Rehabilitation Center at Khadaki, Pune,
with 20 State of the Art wheelchairs.

CHAPTER 06: Coping with Changes

Bajaj Auto is the flagship company of the Bajaj Group of Companies. Bajaj Auto
Limited (BAL) is currently India's second largest two wheeler and three wheeler
manufacturer. The core competency of Bajaj Auto Ltd is its technology and
innovation. Both DTS-i (Digital Twin Spark Ignition) and DTS-Fi (Digital Twin
Spark Fuel Ignition) are technological breakthroughs by Bajaj. BAL is also a
pioneer in product innovation having introduced technologies such as ExhausTEC
(Exhaust Torque Expansion Chamber), LED Tail Lamps, LCD Display, SNS,
Spare parts (Tubeless tyres, rear disc brakes), Black colour scheme etc.
Thus we observe that BAL which used to be a Defender in 1970-1990 through
Bajaj Chetak radically moved towards becoming an Analyzer (1990-1997) by
focussing on bike segments and has now become a Prospector (1997-date) with
several patents in its kitty and new bike launches every year. Therefore, for a
follower to move on and become a market leader it is essential that it focus on
innovation and consumer demand.
The re-branding exercise gone haywire
In the beginning of 2011, Bajaj decided to withdraw its family name from its
products and develop individual brands having their own identity. The rationale
behind this was since Bajaj group diversified into areas like electrical, finance etc,
having the family name would confuse the buyer what they actually stand for. So
basically, Bajaj had restructured itself from a branded house (many products under
an umbrella brand) to a house of brands (separate brands owned by a parent). For
exampleVolkswagen is a house of brands - Audi, Bentley, Lamborghini function
separately and do not carry VW badge anywhere. Though aimed at reducing
confusion the exercise seems to have created just that. The brands now functioning
independently are poaching into each other's territory. Discover has stepped into
Platina's segment, Pulsar has model in KTM's space etc. These overlaps create
misunderstandings in terms of positioning resulting in diluted brands and
cannibalization of sales. Bajaj has seen its market share decline since then.

Bajaj Auto has partnered iconic British motorcycle brand Triumph to produce mid-
capacity bikes for the Indian and overseas markets.
 
Engineers from Bajaj Auto and Triumph Motorcycles have been working on the
new motorcycles at the former’s Chakan plant for some months. The no-equity
partnership will develop a range of mid-capacity 250-750cc motorcycles.
 
Focus on Gearless Scooters
The market share of gearless scooters is increasing at a healthy rate. Bajaj is
virtually absent in this range that caters to the needs of women and families.
Presently Honda, Hero Honda and TVS are big players in this segment.
Entry into Four Wheeler Segment
Bajaj has entered into a joint venture with Renault-Nissan in the development of a
small car priced at $30004. This is a significant move because it directly competes
with Tata NANO. Bajaj has also displayed its small car prototype in the recently
held auto expo. It promises double the mileage as compared to any car in the
economy segment and is also considering the option of introducing Diesel and
LPG variants. The four wheeler segment will also be able to hedge any risk that
might arise because of the two wheeler industry and would profit from retaining
consumers switching from two wheelers.
Scaling Up Service Centers
BAL needs to scale up its service centers both in numbers and in capacity. Keeping
in line with its growth target for the next 5 years, its service centers should not only
cater to two wheelers but should also be upgraded to cater to the needs of four
wheelers that Bajaj plans to launch.
Focus on Easy Credit Lending
In the present economical crisis, Bajaj can utilize its subsidiary, Bajaj insurance in
coming up with schemes that will help consumers buy two wheelers on friendly
terms.
Investment in Research and Development
We have already identified that the core competency of Bajaj is its R&D and
investment in technology. In order to increase market share and become the market
leader, Bajaj needs to invest heavily in R&D. They have to introduce efficient and
powerful bikes as well as develop alternate energy vehicles.

Focus on Exports and Global Market

Bajaj Electricals has already setup a manufacturing unit in China. As set up cost
and export costs are extremely cheap in China, we recommend the same strategy
for BAL. By doing so, Bajaj can utilize low cost exports.
Bajaj is not yet a global name. Considering the fact that it is one of the oldest
two wheeler companies and is doing very well in India, it should definitely
target global markets. A movement is seen in this direction since it is focusing
on the British cult bike company, Triumph as its target takeover. Triumph, given
its niche positioning, cult brand image and strong product line-up, is an
attractive target for the Pune based firm.
Disbanding of Dedicated Sales Force for each Product
Because of the differentiation in the products that Bajaj currently possesses and
is expected to launch in the near future we recommend Bajaj to discontinue its
current strategy of dedicated sales force for each product line. This would
eventually achieve synergies in selling thereby leading to a reduction in costs.
CHAPTER 07: Major Events
2001-2002:

Product Award

Bajaj Eliminator Most Exciting Bike of the Year 2001

Bajaj Eliminator Bike of the Year 2002

Bajaj Pulsar Most Exciting Bike of the Year 2002

 Product Award

Bajaj Pulsar Bike of the Year 2002

2002-2003:

Product Award

Bajaj Pulsar Bike of the Year 2003

Bajaj Pulsar Motorcycle Total Customer Satisfaction Study 2003

Bajaj Boxer AT BBC World Wheels Award for Best Two Wheeler under 
KTEC Rs 30,000

Bajaj Pulsar 150 BBC World Wheels Award for Best Two Wheeler between 
DTS-i Rs 45,000 to Rs 55,000

Bajaj Pulsar 180 BBC World Wheels Award for Best Two Wheeler between Rs
DTS-i 55,000 to Rs 70,000

Bajaj Pulsar 180 BBC World Wheels Viewers Choice Two Wheeler of the 
DTS-i Year 2003

2003-2004:
 Product Award

Bajaj Wind 125 Bike of the Year 2004

Bajaj Wind 125 Two Wheeler of the Year 2004

Bajaj Pulsar DTS-i Bike of the Year 2004

DTS-i Technology Auto Tech of the Year 2004

2004-2005:

Product Award

Bajaj Pulsar DTSi TNS Automotive Total Customer Satisfaction.

Bajaj Discover DTS-i Bike of the Year.

Bajaj Discover DTS-i Indigenous Design of the Year.

2005-2006:

Bajaj CT 100 Motorcycle Total Customer Satisfaction Study 2005.

Bajaj Discover DTS-i Indigenous design of the year 2005.

Bajaj Discover DTS-i Bike of the year 2005.

2006-2007:

Pulsar DTS-Fi Bike of the year.

Platina 100cc Bike of the Year.

2007-2008:

Pulsar Ranked First in 'TOP 30 AUTOMOBILE BRANDS OF INDIA.'

Bajaj Auto, Waluj First prize for category "Productivity Thru Quality".

Mr. Rajiv Bajaj Rashtrabhusan Award.

Mr. Rahul Bajaj Lakshya Business Visionary Award.

2008-2009:

Discover DTS-Si 100cc Bike of the Year.  

Pulsar 135LS 150cc Bike of the Year.  

Kawasaki Ninja 250cc Bike of the Year.  

Pulsar 135LS 4-V Technology of the Year.  

Discover DTS-Si Most Value for Money-Bike of the Year.  

Kawasaki Ninja Motorcycle of the Year - Bike upto 250 cc.

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

Kawasaki Ninja Two Wheeler of the Year.  

Bajaj Discover And Pulsar Best Integrated Campaign - Two wheelers.  

Kawasaki Ninja Bike of the Year.

Bajaj Discover Best StoryBoard Commercial.  

 Bajaj Discover Best TV Commercial.

Kawasaki Ninja Bike of the Year 2009.

2009-2010:

Kawasaki Ninja Bike of the Year.

Pulsar 135LS Bike of the Year.

Discover DTS-Si 100cc Bike of the Year.

2010-2013:

Pulsar 200 NS NDTV Car & Bike Two wheeler of the Year.

Pulsar 200 NS NDTV Car & Bike Motorcycle of the year upto 250cc

Pulsar 200 NS NDTV Car & Bike Automotive Design of the Year

2013-2016:
 Publication/TV Channel Awards for BAL

Autocar/ Times Now RS 200- Reader's Choice bike of the year

BBC TopGear RS 200- Reader's Choice bike of the year

CHAPTER 8: Timeline of Events

2009 (JANUARY):
Bajaj Pulsar 150 & Pulsar 180 upgrade launched.

2008 (AUGUST JULY JUNE):

Bajaj Platina 125 DTS-Si launched.

2007 (JUNE AUGUST JULY JUNE APRIL FEBRUARY JANUARY):

RE GDi autorickshaw launched.

20
2006 (APRIL):
APRI Bajaj Platina launched.
 20
 2005(JUNE FEBRUARY):)
 Bajaj Discover launched

20 2004(AUGUSTMAYJANUARY):
Bajaj Discover DTS-i launched.

20 2003(OCTOBER JULY FEBRUARY):

Bajaj Pulsar DTS-i is launched.

20 2001(JANUARY):
Bajaj Auto launches its latest offering in the premium bike segment 'Pulsar'.
20
2000:
2000 The Bajaj Saffire is introduced.
1999:
1999 Caliber motorcycle notches up 100,000 sales in record time of 12 months.
19
1998(JUNE JULY OCTOBER):
Production commences at Chakan plant.
19
1997:
1997 The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw are introduced.

19 1995:
Bajaj Auto is 50. Agreements signed with Kubota of Japan for the
development of diesel engines for three-wheelers 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.
19 1994:
1994 The Bajaj Classic is introduced.

19 1991:
1991 The Kawasaki Bajaj 4S Champion is introduced.

19 1990:
1990 The Bajaj Sunny is introduced.

1986:
The Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles are introduced.
500,000 vehicles produced and sold in a single financial year.
1985:
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.
1984:
JFoundation stone laid for the new Plant at Waluj, Aurangabad.

1981:
The Bajaj M-50 is introduced.

1977:
 The Rear Engine Autorickshaw is introduced. Bajaj Auto achieves production and
sales of 100,000 vehicles in a single financial year.

1976:
The Bajaj Super is introduced.

1975:
BAL & Maharashtra Scooters Ltd. joint venture.

1972:
The Bajaj Chetak is introduced.
1971:
The three-wheeler goods carrier is introduced.

1970:
1Bajaj Auto rolls out its 100,000th vehicle.

1960:
1Bajaj Auto becomes a public limited company.Bhoomi Poojan of Akurdi Plant.

1959:
1Bajaj Auto obtains licence from the Government of India to manufacture two-
and three-wheelers.

1948:
1Sales in India commence by importing two- and three-wheelers.
1945:
Bajaj Auto comes into existence asM/s Bachraj Trading Corporation Private
Limited.

CHAPTER 09: Exhibits:

CHAPTER 10: References

1. Automobile India, ‘Two Wheelers in

India’, http://automobiles.indiabizclub.com/info/automobile_types/two_wh
eelers. Last accessed on December 07, 2008.
2. International Business Times, ‘India to witness highest average salary
hike in Asia-Pacific: Hewitt
survey’, http://in.ibtimes.com/articles/20080220/india-salary-hewitt-
associates-human-resources_all.htm. Last accessed on March 20, 2008.
3. Economic Times, 'Two Wheeler Industry- Facing a
crisis?', http://economictimes.indiatimes.com/articleshow/msid-
2461907,prtpage-1.cms. Last accessed on March 20, 2008.
4. International Business Times, ‘Bajaj Auto Renault - Nissan team up to
rival Tata’s small car
Nano’, http://in.ibtimes.com/articles/20080512/bajaj-auto-renault-nissan-
tata-small-car-nano_all.htm. Last accessed on March 20, 2008.
5. Automobile India, ‘Overview of Two Wheelers’,
2007, http://www.automobileindia.com/two-wheelers/overview.html. Last
accessed on March 20, 2008.
6. Bajaj Annual Report, 2006-
2007, http://www.bajajauto.com/1024/download/annualreport06-07/Balance
%20sheet_P&L.pdf. Last accessed on March 5, 2008.
7. S. Muralidhar, 'Chinese Checker', The Hindu Business Line , Feb 26,
2006, http://www.thehindubusinessline.com/iw/2006/02/26/stories/200602260
1801500.htm. Last accessed on March 10, 2008.
8. Neha Kaushik, 'Ungeared for growth', The Hindu Business Line , Feb 9,
2006, http://www.thehindubusinessline.com/catalyst/2006/02/09/stories/20060
20900030100.htm. Last accessed on March 10, 2008.
9. India Today, 2001, 'Fierce Fight', Sep 10, 2001, http://www.india-
today.com/itoday/20010910/business2.html. Last accessed on March 20, 2008.
10.  "Bajaj Auto Quarterly Results". Retrieved 23 July 2016.
11.  "Archived copy" (PDF). Archived from the original (PDF) on 12 April
2015. Retrieved 2015-07-03.
12.  "Company Profile - Bajaj Auto". Equitylion. Retrieved 20 June 2017.
13.   Bajaj Auto at Forbes". Forbes. 31 May 2013. Retrieved 27 October 2013.
14. "News Article". Reuters. 17 May 2012. Retrieved 22 May 2012.
15. "India is the largest three-wheeler industry globally". Deccan Chronicle. 15
March 2016. Retrieved 15 December 2016. The top-three players such as
market leader Bajaj Auto, second largest manufacturer Piaggio and
Mahindra and Mahindra […].
16. "Table 4-12: Top '50' Companies by Market Capitalisation as on March 31,
2013". NSE India. 31 March 2013. Retrieved 27 October 2013.
17.  Achievements 1945-1959". Bajaj Auto. Archived from the original on 29
October 2013. Retrieved 27 October 2013.
18.   Achievements 1960-1991". Bajaj Auto. Archived from the original on 29
October 2013. Retrieved 27 October 2013.
19. "Achievements 1992-2009". Bajaj Auto. Archived from the original on 17
October 2013. Retrieved 27 October 2013.
20.  Sirkin, Harold L; James W. Hemerling, and Arindam K. Bhattacharya (11
June 2008). GLOBALITY: Competing with Everyone from Everywhere for
Everything. Archived 23 September 2008 at the Wayback Machine. New
York: Business Plus, 304. ISBN 0-446-17829-2.
21. "How green is my low-cost car? India revs up debate". ENN. 19 June 2008.
Retrieved 24 November 2010.
22.  "Bajaj small car may cost Rs 1.1 lakh – News – Zigwheels".
Timesofindia.zigwheels.com. Archived from the original on 30 May 2010.
Retrieved 24 November 2010.
23.  Bajaj Auto unveils small car RE 60 in partnership with Nissan and
Renault". The Times of India. 3 January 2012. Retrieved 3 January 2012.
24. Saxen, Ruchita (3 January 2012). "Bajaj Auto launches low cost car RE 60,
promises 40 km per litre". New Delhi Television. Retrieved 3 January 2012.
25.  Bajaj Tempo will now be Force Motors". The Times of India. Bennett,
Coleman & Co. Ltd. 24 February 2005. Retrieved 20 September 2013.
26.  It's official: Bajaj Tempo is now Force Motors". The Economic Times.
Bennett, Coleman & Co. Ltd. 12 May 2005. Retrieved 20 September 2013.
27.  Bajaj Auto picks up 14.5% in European bike co KTM". The Economic
Times. Retrieved 8 June 2016.
28.  Iyer, Satyanarayan (25 March 2017). "Bajaj Auto ends its partnership with
Kawasaki in India". Times of India.
29.  Bajaj Auto demerger complete". The Economic Times. 25 May 2008.
Retrieved 21 May2009.
30. "Demerger News". Bajaj Auto. Archived from the original on 22 October
2013. Retrieved 27 October 2013.
31.  Scripwise Weightages in S&P BSE SENSEX". BSE India. Retrieved 27
October 2013.
32. Download List of CNX Nifty stocks (.csv)". NSE India. Retrieved 27
October 2013.
33. "Shareholding Pattern".
34.  Business Responsibility Report 2012-13" (PDF). Bajaj Auto. Archived
from the original (PDF) on 29 October 2013. Retrieved 27 October 2013.
35.  Rahul Bajaj at Forbes". Forbes. Retrieved 27 October 2013.
36.  Awards and accolades 2010-2011". Bajaj Auto. Archived from the
original on 29 October 2013. Retrieved 27 October 2013.
37.  "Awards and accolades 2007-2008". Bajaj Auto. Archived from the
original on 29 October 2013. Retrieved 27 October 2013.
38.  "Bajaj Auto wins TPM Excellence Award 2006". MoneyControl.com. 7
February 2007. Retrieved 27 October 2013.
39.  "Awards and accolades 2005-2006". Bajaj Auto. Archived from the
original on 29 October 2013. Retrieved 27 October 2013.
40.  "Awards and accolades 2003-2004". Bajaj Auto. Archived from the
original on 29 October 2013. Retrieved 27 October 2013.
41.  "Awards and accolades 2002-2003". Bajaj Auto. Archived from the
original on 29 October 2013. Retrieved 27 October 2013.