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Bajaj Auto Ltd.

Company Profile
Publication Date: 25 Feb 2011

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Bajaj Auto Ltd.

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Bajaj Auto Ltd. © Datamonitor

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...........5 History...................................................................................................................................................................................................................................................26 Locations and Subsidiaries............9 Major Products and Services...............................................................................................................................................................18 SWOT Analysis....................25 Company View...........................................................................17 Revenue Analysis...................................................................................................8 Key Employee Biographies............................4 Key Facts...............28 Bajaj Auto Ltd......................................19 Top Competitors.........................................................................................................................................................Bajaj Auto Ltd...................................................4 Business Description.............................................................................................................................. © Datamonitor Page 3 ................. TABLE OF CONTENTS TABLE OF CONTENTS Company Overview.................................6 Key Employees................................................................

Bajaj Auto Ltd. an India-based company.566.com Revenue / turnover 120.539.9 million ($117. KEY FACTS Head Office Bajaj Auto Ltd.3 million ($562.5 million) in FY2010. India.The net profit was INR15. The company operates in India and is headquartered in Pune.6 million ($2. Akurdi Pune 411 035 IND 91 20 2747 2851 Phone Fax Web Address http://www. motorcycles.7% over FY2009. © Datamonitor Page 4 . Company Overview COMPANY OVERVIEW Bajaj Auto.The operating profit of the company was INR25.9 million) in FY2009. compared to a net profit of INR5.357.012 million ($242. compared to an operating profit of INR11.2 million) in FY2009.4 million) in FY2010.5 million) in the financial year ended March 2010 (FY2010).431.966.972.2 million ($351.bajajauto. an increase of 36. is a manufacturer and marketer of two and three wheeled vehicles which include scooters.5 (INR Mn) Financial Year End Bombay Stock Exchange Ticker National Stock Exchange of India Ticker March 532977 BAJAJ-AUTO Bajaj Auto Ltd. passenger carriers and goods carriers. The company recorded revenues of INR115.

707 passenger carriers and 9. Bajaj Auto manufactures goods carrier and passenger carrier three-wheelers. Bajaj Auto manufactures scooters under the brand. a 100% Netherlands based subsidiary.887 units of three wheelers. The company has a technical tie-up with Kawasaki Heavy Industries. the company sold over 2.The company manufactures motorcycles such as the Pulsar range (150 cc. The company manufactures a range of passenger carriers which include: 2-stroke (2S). The company has three manufacturing plants in India including Pantnagar in Uttarakhand (manufactures Platina. Africa.002 units in FY2010 including 726. Japan to produce a range of two-wheelers in India. 4-stroke (4S).115 units of two wheelers and 164. The company operates through two business segments: automotive and investment.5 million motorcycles worldwide including 1. 4S liquefied petroleum gas type and 4S diesel type vehicles. GC Max CNG and RE 600. the company exported a total of 891.8 million units in India. and PT Bajaj Indonesia which assembles and markets Pulsars in Indonesia. In the same year. Chakan in Pune (Pulsar. The company has a network of more than 600 dealers and over 1. South and South East Asia. Bajaj Auto launched KB100. The company focuses on two-wheelers and three-wheelers in automotive segment. Its passenger carrier brands include Mega Max. Platina. Business Description BUSINESS DESCRIPTION Bajaj Auto is a manufacturer of two-wheelers and three-wheelers scooters. The company's subsidiaries include: Bajaj Auto International Holdings. In FY2010. 4S Champion. the 220 cc Avenger DTS-i (Digital Twin Spark) and a 250 cc Kawasaki Ninja 250R (in collaboration with Kawasaki Heavy Industries) under the performance segment. The company manufactures and markets scooters. Platina 125. executive segment. passenger carriers and goods carriers. the company manufactures 125 cc motorcycles including Discover DTS-i 135 and the XCD 125 DTS-Si (Swirl Induction). 180 cc. the 100 cc Platina motorcycles.100 authorized service centers spread across India. and performance segment. RE 25. Discover and Pulsar 135). KB RTZ. RE 45.Bajaj Auto Ltd. In three-wheelers. KB125. 4S. motorcycles. Wind125 and Kawasaki Bajaj Eliminator. Boxer. 200 cc and the recently launched 220 cc). Discover and three-wheelers). The Bajaj brand is well-known across several countries in Latin America.230 goods carriers. Under the executive segment. RE Diesel and RE GDI. Bajaj Auto classifies motorcycles into three segments: entry segment.937 three-wheelers including 331. Caliber115. 4S compressed natural gas type. Since the tie-up. Kristal. Further. Bajaj Auto Ltd. the company sold 340. Caliber. the company manufactures motorcycles and scooters. and under the entry level segment. Avenger and Discover) and Waluj in Aurangabad (manufactures Boxer. Middle East. It also trades spare parts and accessories. The company’s goods carrier brands include GC Max Diesel. In two-wheelers. © Datamonitor Page 5 .

and Bajaj Kristal DTS-i in 2007. Bajaj Auto became a public limited company in 1960. Bajaj Auto. Bajaj Holdings and Investment (an investment company). It launched Bajaj Discover. in 1971. Bajaj Auto obtained license from the Government of India to manufacture two and three wheelers. The company introduced three-wheeler goods carrier. Uttarakhand. Bajaj Auto received patent for its invention multi-spring vehicle shock absorber used in its motorcycles. In the following year. In 2008. Bajaj Auto launched 200 cc Pulsar DTS-i. it introduced Bajaj Chetak. in 2005. In the same year. and Bajaj Wave DTS-i. © Datamonitor Page 6 . the company signed agreements with Kubota. Bajaj Auto launched Bajaj CT100 and Bajaj Discover DTS-i. manufacture and market the car code-named ULC (ultra low cost) with wholesale price range starting from $2. and Bajaj Finserv (wind power and financial services company). Later in the year. and with Tokyo Research and Development for gearless Scooter and moped development. Bajaj Auto established the Waluj production plant in Aurangabad. The joint-venture company was 50% owned by Bajaj Auto. the company started the production of its bikes in China for exports to Nigeria. in 1959. In the following year. Bajaj Auto Ltd. Bajaj Auto acquired its first stake in Austrian power bike maker KTM Power Sports in 2009. the company started a new plant at Pantnagar. In the following year. In the same year. 25% by Renault and 25% by Nissan. Japan to produce a range of two-wheelers in India. it launched Bajaj Platina. the company entered into the technical tie-up with Kawasaki Heavy Industries. in 2003.500. History HISTORY Bajaj Auto was established as M/s Bachraj Trading in 1945. Pulsar 150cc and 180cc sports styled bikes. Bajaj Auto launched Bajaj Wind 125. In 1995. The company introduced Bajaj Saffire in 2000. In the following year. Renault and Nissan formed a joint-venture company to develop. Japan for the development of diesel engines for three-wheelers. in 1985. the company's started importing two and three wheelers in India. Bajaj Avenger DTS-i. The company formed a joint venture with Maharashtra Scooters in 1975. In 1948. In the following year. a 125cc motor bike. Bajaj Auto commenced the production at Chakan plant.Bajaj Auto Ltd. Bajaj Auto launched its 'XCD 125 DTS-Si'. In 1999. Subsequently. Bajaj Auto launched Eliminator and Pulsar bikes. In addition. the company demerged to form three separate entities: Bajaj Auto (automobiles).

In the same year. KHI started a unit at its partner Bajaj Auto's Chakan plant in Pune. Japan's Kawasaki Heavy Industries (KHI). In May 2010. to assemble. Bajaj Auto unveiled its new range of 'RE' passenger vehicles.7%. Bajaj Auto increased its stake in European motorcycle manufacturer KTM Power Sports to 35. Bajaj Auto introduced the new Platina 125. Bajaj Auto launched 250cc motorcycle Kawasaki Ninja and the Pulsar 135 LS (light sport). import and sell its motorcycles in the country. In the same month. KTM Power Sports launched the serial production of motorcycles in the range of 125cc and 350cc in cooperation with Bajaj Auto. History Further in 2009. India. In June 2010.Bajaj Auto Ltd. set up its subsidiary named India Kawasaki Motors. In April 2010. © Datamonitor Page 7 . in India. In the following month. the new Pulsar 220cc model. the company launched the fastest bike made in India. a heavy duty bike in March 2010. Bajaj Auto Ltd.

Balaji Rao J. Human Resources Vice President.H. Srinivas Kevin P D'sa S. Commercial Vehicle Business President. © Datamonitor Page 8 . Finance Senior Vice President. Retail Finance President. Godrej S. Khan Suman Kirloskar Naresh Chandra Nanoo Pamnani Manish Kejriwal P. Podar Shekhar Bajaj D. Hingorani C.P. Business Development and Assurance Vice President. Research and Development President. Key Employees KEY EMPLOYEES Name Rahul Bajaj Madhur Bajaj Rajiv Bajaj Sanjiv Bajaj D.S. Motorcycle Business President.J. Sridhar R. International Business President. Ravikumar Amrut Rath N. Maheshwari Rakesh Sharma Eric Vas K. Murari Niraj Bajaj Pradeep Shrivastava Abraham Joseph S. Commercial Vice President. Tripathi Job Title Chairman and Chief Executive Officer Vice Chairman Managing Director Executive Director Director Director Director Director Director Director Director Director Director Director Director Director Chief Operating Officer President. Corporate Social Responsibility Board Executive Board Executive Board Executive Board Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Senior Management Senior Management Senior Management Senior Management Senior Management Senior Management Senior Management Senior Management Senior Management Senior Management Senior Management Senior Management Compensation 61121055 INR 41595959 INR 34888610 INR 9363577 INR 350000 INR 350000 INR 320000 INR 910000 INR 910000 INR 350000 INR 910000 INR 630000 INR 350000 INR 280000 INR 350000 INR Bajaj Auto Ltd. New Projects President.C.H.Bajaj Auto Ltd. Mehta Kantikumar R.N.

He is also a former President at Mahratta Chamber of Commerce. From 1993 to 2000. Bajaj is the Chairman at Bajaj Auto. He was an Officer on Special Duty of the company from 1990 to 1993. Bajaj Electricals and Bajaj Auto Finance. Mr. Mr. and a Member at Harvard Business School's (India) Research Centre & India Advisory Board and the International Advisory Committee of NYSE Euronext. Bajaj is the Chairman at Maharashtra Scooters.Bajaj Auto Ltd. Mr. Bajaj Auto Holdings. Bajaj was the General Manager of Products and Vice President of Products at the company. Sanjiv Bajaj Bajaj Auto Ltd. He serves as a Director at Bajaj Holdings & Investment. He served as the President at Society of Indian Automobile Manufacturers. Bajaj has been the Managing Director at Bajaj Auto since 2005. He also serves as the Chairman at Bajaj Auto Finance. Industry and Agriculture. and was the President and Joint Managing Director at the company from 2000 to 2005. Mr. Bajaj Allianz Life Insurance. Rajiv Bajaj Board: Executive Board Job Title: Managing Director Since: 2005 Mr. © Datamonitor Page 9 . He serves as a Director at Bajaj Auto Finance and Bajaj Auto Holdings. Bajaj was the President of Confederation of Indian Industry from 1979 to 1980. Bajaj Allianz General Insurance. Madhur Bajaj Board: Executive Board Job Title: Vice Chairman Since: 2001 Age: 58 Mr. Bajaj is the Vice Chairman at Bajaj Auto. Bajaj Holdings & Investment and Bajaj Finserv. Key Employee Biographies KEY EMPLOYEE BIOGRAPHIES Rahul Bajaj Board: Executive Board Job Title: Chairman and Chief Executive Officer Since: 1968 Age: 72 Mr. Bajaj Finserv. and the Chairman at the Confederation of Indian Industry (Western Region). Bajaj serves as a Member. and 1999 to 2000. Executive Board at Indian School of Business.

Kantikumar R. finance and investment.S. New Delhi for three years. Mehta Board: Non Executive Board Job Title: Director Since: 1998 Age: 74 Mr. Mumbai Textile Research Association for two years. Mehta is a fellow Member at both the Institute of Chartered Accountants of India and the Institute of Company Secretaries of India. Mr. Shekhar Bajaj Bajaj Auto Ltd. Podar has been a Director at Bajaj Auto since 1983. Bajaj Allianz Life Insurance. Mehta has been a Director at Bajaj Auto since 1998. and The Indian Cotton Mills' Federation for two years. All India Organisation of Employers for two years. Bajaj was the Head of International Business at Bajaj Auto from 2004 to 2007. and Member of the Senate of the University of Bombay for six years. He has been the President at the SAARC Chamber of Commerce and Industry with headquarters in Pakistan. Economic and Scientific Research Foundation. taxation. Mr. He has been the Managing Director at Bajaj FinServ since 2008. D. and Vice Chairman at the Kasturba Gandhi National Memorial Trust at Indore. Indian Council of Arbitration for one year. and Vice President at the Kasturba Health Society at Sewagram. He is the Joint Managing Trustee at the Saurashtra Trust. Bajaj Auto Finance and Maharashtra Scooters. He has been associated with the Bajaj Group of Companies since 1966 and has more than 30 years experience in corporate law. He serves as a Director at Bajaj Allianz General Insurance.Bajaj Auto Ltd. He served as the Chairman and President at the Federation of Indian Chambers of Commerce and Industry. in Maharashtra. Madhya Pradesh. Mr. Wardha. Bajaj is an Executive Director at Bajaj Auto. Podar also served as the Chairman and President at the Indian Merchants Chamber during its Platinum Jubilee Year. Podar Board: Non Executive Board Job Title: Director Since: 1983 Age: 75 Mr. Key Employee Biographies Board: Executive Board Job Title: Executive Director Since: 2004 Age: 41 Mr. Mr. which owns and publishes Gujarati language newspapers and magazines. © Datamonitor Page 10 . Mehta is an Honorary Joint Director at the Bharatiya Vidya Bhavan.

Mr.Bajaj Auto Ltd. He serves as a Director at 3M. Jindal Iron & Steel. He has been the Managing Director at Godrej & Boyce since 1991. India.J. Balaji Rao Board: Non Executive Board Job Title: Director Since: 1993 Age: 71 Mr. South East Asia Marine Engineering & Construction and Ennore Foundries. © Datamonitor Page 11 . Bajaj has been a Director at Bajaj Auto since 1995. He served as a Managing Director at the Infrastructure Development Finance. in Mumbai and was its CEO from 1974 to 1975. Graphite India. Godrej has been associated with the Confederation of Indian Industry and was its President from 1993 to 1994. Mr. a Member of governing body and the President at the Electric Lamp & Component Manufactures' Association of India. Bajaj has been the Chairman and Managing Director at Bajaj Electricals since 1994. the President and Member of Managing Committee at the Indian Merchants' Chamber. From 1969 to 1972. Key Employee Biographies Board: Non Executive Board Job Title: Director Since: 1995 Age: 62 Mr. J. the President at Council for Fair Business Practices. Godrej Agrovet. Godrej Board: Non Executive Board Job Title: Director Since: 1998 Age: 62 Mr. Bajaj was the Joint Managing Director at Bachhraj Factories. Mr. Prudential ICICI Trust.N. Udaipur in 1968. Mr. he was appointed as part-time Managing Director at the Mumbai-based Bajaj International and later its whole-time Managing Director. the CEO at the Industrial and Technical Consultancy Organisation of Tamil Nadu from 1981 to 1982. Rao was a Consultant to the National Development Bank of Sri Lanka in 1991. Godrej Consumer Products. He served as the President at Associated Chamber of Commerce and Industry of India. Bajaj Auto Ltd. Ashok Leyland. D. and a Member of the Executive Council at the Fan Makers Association of India. Godrej serves as a Director at 3D PLM Software Solutions. Godrej has been a Director at Bajaj Auto since 1998. and Vice Chairman and Managing Director at SCICI. He started his career as Resident Director at Bajaj Sevashram. In 1975. Mr. and Consultant to the Asian Development Bank from 1985 to 1986. an Executive Director at ICICI. Rao has been a Director at Bajaj Auto since 1993. He is also the former President of the Indian Machine Tool Manufacturers' Association and is the President of the World Wide Fund for Nature.

She is a Trustee at the Ravi Kirloskar Quality Prize Trust and the Sanjeevan Vidyalaya Trust. Godrej Sara Lee. Suman Kirloskar Board: Non Executive Board Job Title: Director Since: 2002 Age: 75 Ms. Naresh Chandra Board: Non Executive Board Job Title: Director Since: 2003 Age: 76 Mr. Secretary at Ministries of Water Resources. Kirloskar has been a Director at Bajaj Auto since 2002. Commonwealth Secretariat Adviser on Export Industrialisation and Policy in Colombo from 1981 to 1984. Interior and Justice from 1987 to 1990. and Chief Secretary. © Datamonitor Page 12 . Ms. Governor of the State of Gujarat. Chandra was the Senior Adviser to the Prime Minister of India in 1992. She is associated with the Mahila Seva Mandal. Godrej Tea and Godrej Upstream. and a Member at Indian Space Commission and the Indian Atomic Energy Commission from 1990 to 1992. Adviser to the Government of Jammu & Kashmir in 1986. He was an Ambassador of India to the US in 1996. and Empress Garden as the Chairperson. Kirloskar is also the Chairperson at Mahila Udyog. S. ITC Hotels. Godrej Industries.Bajaj Auto Ltd. Shipping Corporation of India and Birla Home Finance. Mr. Khan Board: Non Executive Board Job Title: Director Since: 1999 Age: 62 Mr. including as its Chairman and Managing Director for about five years until 1998. He serves as a Director at Infrastructure Development Finance.H. Indian Co-Chairman at the US-Technology Group. National Stock Exchange of India. He also served as the Cabinet Secretary in 1990. Bajaj Auto Ltd. Khan has been a Director at Bajaj Auto since 1999. and Member at the Indo-US Economic sub-committee. Key Employee Biographies Godrej Foods. Rajasthan. Khan served with IDBI for over 30 years in various capacities. Mr. Godrej Properties and Investments. Defence. he moved over to the Industrial Development Bank of India. He joined the Reserve Bank of India as a Probationary Officer in 1961 from where. in 1966. Chandra has been a Director at Bajaj Auto since 2003.

Lord Krishna Bank. He was also appointed as the Head of Operations and Technology for Citicorp's businesses in over 70 countries (based in London). Pamnani serves as a Director at Bajaj Auto. Pamnani was appointed as the CEO and Global Head of consumer banking at Citibank. Orbitech. Murari Board: Non Executive Board Job Title: Director Since: 2006 Age: 76 Mr. Key Employee Biographies Mr. and the Chairman. Associated Cement. Citicorp Maruti Finance. Mr. Pamnani serves as a Director at Citicorp Brokerage (India). Kejriwal was a Partner at McKinsey. he had worked at the World Bank in Washington. Mr. and Tata Consultancy Services. Mr. He is the Managing Director at Temasek Holdings Advisors India. © Datamonitor Page 13 . He was the hub Leader for McKinsey's Corporate Finance and Strategy practice in India. Media Content & Communications Services.Bajaj Auto Ltd. Murari retired as Secretary to the President Bajaj Auto Ltd. During his career as a Civil Servant. He also served as the Health Secretary. Mr. Mr. Murari held many distinguished positions. He is the Chairman at Citicorp Finance (India). Deputy Director of Census Operations. Chandra serves as a Director at Balrampur Chini Mills. Kejriwal was also the Co-Leader of McKinsey's Business Process Outsourcing and Offshoring practice and was on the Global Leadership Team of the private equity practice. Hindustan Motors. Government of Tamil Nadu. Murari has been a Director at Bajaj Auto since 2006. Kejriwal has been a Director at Bajaj Auto since 2004. Haldia Petrochemicals. Prior to McKinsey. P. India. Prior to that. and e-Serve International. He joined the Indian Administrative Service in which he served from 1957 to 1992. Commissioner for Commercial Taxes. Sub-Collector. Vedanta Resources (London). Nanoo Pamnani Board: Non Executive Board Job Title: Director Age: 65 Mr. Mr. including: Sub-Divisional and District Magistrate. DC and he had spent a short period with Goldman Sachs in Hong Kong. Manish Kejriwal Board: Non Executive Board Job Title: Director Since: 2004 Age: 42 Mr. Managing Director and a Director in State undertakings of Government of Tamil Nadu. Electrosteel Castings. in 1995.

the President at the Indian Steel Development Association. Bajaj held positions of General Manager (Marketing). and the Chairman at Indo-Russian Federation of joint business council.C. Bajaj has been a Director at Bajaj Auto since 2006. including as: the President at Alloy Steel Producers' Association of India. Pune. Maheshwari Board: Senior Management Job Title: President. and Executive Director. Bhopal. Joseph is a Mechanical Engineer from the National Institute of Technology. & PGDM from Indian Institute of Management (IIM). He started his career with Bajaj Auto (two years) and Bajaj Electricals (six months) before joining Mukand in 1983 as Senior Marketing Manager. Mr. He served with several industry organizations. Niraj Bajaj Board: Non Executive Board Job Title: Director Since: 2006 Age: 56 Mr. Key Employee Biographies of India in 1992. Research and Development Mr.Bajaj Auto Ltd. Federation of Indian Chambers of Commerce and Industry (FICCI). Abraham Joseph Board: Senior Management Job Title: President. Deputy CEO. Mr. R. He currently serves as an Adviser to the President. Commercial Vehicle Business Since: 2007 Bajaj Auto Ltd. Since then. New Projects at Bajaj Auto since 2009. Motorcycle Business Mr. S. He is a Mechanical Engineer from College of Engineering. © Datamonitor Page 14 . Vas has been the President. Bajaj currently serves as a Member of the Managing Committee of ASSOCHAM and Vice President of Indian Merchants' Chamber. Mr. Joseph has been the President. Research and Development at Bajaj Auto since 2007. Sridhar Board: Senior Management Job Title: President. Calcutta. He joined the company in 1989 and became General Manager of Research and Development in 2005.

Mr.Bajaj Auto Ltd. Mr. Ahmedabad. Mr. Kevin P D'sa Board: Senior Management Job Title: President. Delhi. Shrivastava obtained a graduate diploma in Production and Finance from IIM Bangalore in 1986. He holds a Post Graduate Diploma in Management from IIM. Marketing and Sales of Two Wheelers in 2005. Tripathi also served as the Vice President. Maheshwari has been the Chief Executive Officer. Shrivastava has been the President. Rakesh Sharma Board: Senior Management Job Title: President. Commercial Vehicles at Bajaj Auto since 2007. Engineering at Bajaj Auto in 2005. International Business at Bajaj Auto since 2007. Two Wheeler at Bajaj Auto since 2007. Kharagpur. Sharma has been the Chief Executive Officer. International Business Since: 2007 Mr. He is a Science graduate from Agra University. Corporate at Bajaj Auto since 2007. © Datamonitor Page 15 . Sridhar has been the Chief Executive Officer. Eric Vas Board: Senior Management Job Title: President. Pilani. New Projects Since: 2009 Mr. Retail Finance Since: 2009 Mr. Srinivas Board: Senior Management Job Title: President. He joined the company in 1996 as the Vice President (Waluj plant). Tripathi has been the Vice President. Mr. Sridhar also served as the Vice President. He joined the company in 2001 as the General Manager of Sales for Two Wheelers. Operations at Bajaj Auto in 2001. He holds an Engineering degree in Agriculture. Bajaj Auto Ltd. He joined the company in 1986. He is a Mechanical engineer from BITS. Key Employee Biographies Mr. Finance Mr. and holds a degree in Mechanical Engineering from the Indian Institute of Technology. Engineering at Bajaj Auto since 2007. K. Shrivastava served as the Vice President. He received a degree in Mechanical Engineering from Indian Institute of Technology.

D'sa serves as the Vice President. Sridhar has been the Company Secretary at Bajaj Auto since 2001. Corporate Social Responsibility Since: 2009 Mr. Hingorani has been the Vice President. Business Development and Assurance Mr. Finance at Bajaj Auto. Human Resources Since: 2009 Mr. Ravikumar Board: Senior Management Job Title: Senior Vice President. Mr. C. Sridhar is a Graduate in Commerce and Law. He joined the company in 1997 as the General Manager of Materials. D'sa holds a bachelor's degree in Commerce. Prior to joining the company. Bajaj Auto Ltd. and took over as the Vice President of Purchase in 1998.P. completed his CA in 1978 and ICWA in 1981. © Datamonitor Page 16 . Maharashtra Scooters. he served as the Controller of Finance and Company Secretary. Mr. Mr. a Bajaj Auto joint venture. He began his career with the company in 1978. Amrut Rath Board: Senior Management Job Title: Vice President.Bajaj Auto Ltd. Commercial at Bajaj Auto since 2006. Hingorani holds a degree in Mechanical Engineering from the Malaviya Regional Engineering College. Jaipur. Tripathi Board: Senior Management Job Title: Vice President. Key Employee Biographies S.

Bajaj Auto Ltd. Major Products and Services MAJOR PRODUCTS AND SERVICES Bajaj Auto. passenger carriers and goods carriers. motorcycles. The company's key products include the following: Motorcycles: Avenger 200 DTS-i Pulsar 135 LS Pulsar 220 DTS-i Pulsar 180 DTS-i Pulsar 150 DTS-i Discover 150 Discover 135 DTS-i Discover DTS-Si Platina 125 Platina 100 CC Ninja 250R Goods Carriers: GC Max Diesel GC Max CNG RE600 Passenger Carriers: RE 2S RE 2S CNG RE 2S LPG RE 4S RE 4S CNG RE 4S LPG RE Diesel RE GDI Mega Max Automotive accessories and spare parts Bajaj Auto Ltd. © Datamonitor Page 17 . an India-based company. is a manufacturer and marketer of two and three wheeled vehicles which include scooters.

accounted for 72. Revenue by geography India.Bajaj Auto Ltd. an increase of 36.7% of the total revenues in FY2010.6% over FY2009.9% over FY2009. the company's largest geographic market.5 million ($1. Revenue Analysis REVENUE ANALYSIS Overview Bajaj Auto recorded revenues of INR115. accounted for 72.3 million).225 million ($27 million) in FY2010.8% over FY2009.634.5 million ($2. India. Bajaj Auto Ltd. Revenues from rest of the world reached INR33.431. Rest of the world accounted for 27.6 million ($2. The investments segment recorded revenues of INR1. Bajaj Auto's largest geographical market. an increase of 35. Revenue by segment In FY2010. Bajaj Auto generates revenues through two business segments: automotive (99% of the total revenues in FY2010) and investments (1%).5 million) in FY2010. Revenues from India reached INR87.741.019 million ($726.947. Note: The amount includes other income. an increase of 24. an increase of 0. an increase of 39.5% over FY2009.4 million) in FY2010.934. © Datamonitor Page 18 . For FY2010.8 million) in FY2010.7% over FY2009.3% of the total revenues in FY2010.7% of the total revenues. the automotive segment recorded revenues of INR119.539.

000 units till date. Further. Africa. The company is the world's fourth largest two and three wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin America. South and South East Asia. In FY2010. Moreover. South and South East Asia.3% and in the domestic motorcycle sales. Bajaj Auto has a market share of 24. The company has a strong market share in India. In addition. SWOT Analysis SWOT ANALYSIS Bajaj Auto. and industry consolidation could force the company to reduce prices.Bajaj Auto Ltd. with a domestic market share in excess of 45%. The company increased its market share in entry segment in the recent past with the launch of Discover 100 cc in August 2009. Middle East. motorcycles. passenger carriers and goods carriers. Bajaj Auto is the leading three wheeler Bajaj Auto Ltd. which sold more than 500. an India-based company. The company’s three wheeler exports accounted almost 50% of total three wheeler sales. it has 31% market share in the performance bike segment. Africa. In addition. During FY2010. Strengths Strong market share Brand recognition Strong focus on research and development Robust financial performance Opportunities Growing Indian automobile market Global alliance with KTM and Kawasaki Introduction of new models to expand product offerings Weaknesses Lack of scale compared to peers Threats Intense competition in the two wheeler market Extensive environmental regulations Rising raw material prices Strengths Strong market share Bajaj Auto is the world's fourth largest two and three wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin America. Bajaj Auto is India’s largest exporter of two and three-wheelers. © Datamonitor Page 19 . the Discover 100 increased the company's market share to 24% in FY2010 hurting its primary competitor Hero Honda whose market share was down from 83% to 68% during the last 12 months. is a manufacturer and marketer of two and three wheeled vehicles which include scooters. intense competition from global and regional vehicle manufacturers. the company’s exports accounted 28% of its total revenues. which could strain its margins. However. It also dominates the executive segment. Middle East. Strong market share enables the company to gain more business and increase the investor's confidence.

Pulsar 150 UG. The repositioning of its brands has helped the company cater to the segment between executive and premium bikes and also the entry and executive bikes. It focuses on motorcycles in the two-wheeler and three-wheeler segment. Moreover. Bajaj Auto manufactures motorcycles such as the Pulsar range (150 cc. Kristal. The company continues to focus on expanding its design & testing teams.The company's extensive range of products and well established brands covering the diverse spectrum of the automotive market strengthens it's the reach and market position. Strong market share enables the company to gain more business and increase the investor's confidence. the 100 cc Platina motorcycles. 200 cc and the new 220 cc) and the Avenger DTS-i (Digital Twin Spark) which are categorized under the performance segment. SWOT Analysis player in India. bikes such as the Discover 100 and 150cc and the new Pulsar 135. it enjoys a market share of 63. © Datamonitor Page 20 .1%. prototyping and testing. 4-stroke (4S).6 million ($29. Brand recognition The company manufactures and markets scooters. Bajaj Auto Ltd. motorcycles.347. which stood at 1. which has enabled it to make the new generation products and technologies such as 4 valves DTS-i engine. the executive segment which includes 125 cc motorcycles including Discover DTS-i 135 and the XCD 125 DTS-Si (Swirl Induction). The company's research and development (R&D) efforts are directed at developing new products and processes and improving the capabilities of existing products. Pulsar 135 LS and Discover DTS-si. 4S compressed natural gas type. 180 cc. twin plug ignition and swirl motion. In the passenger vehicle segment.6 million) on R&D in FY2010. 150. 4S liquefied petroleum gas type and 4S diesel type. which demonstrated the technical prowess of the company.6%. Moreover. The company has made substantial investments in R&D facilities resulting in enhancement of its infrastructure for design.5% and in goods carriers segment. with market share of 55. R&D has enhanced its internal competencies by installing advanced machines in proto shop and introduction of special equipments in testing areas. The company manufactures scooters under the brand. 180 and 220 cc have helped the company's domestic two-wheeler sales grow by a robust 45% for the nine months ended December 2010. Bajaj Auto manufactures a range of passenger carriers which include: 2-stroke (2S).Bajaj Auto Ltd. it has a market share of 10. its adoption of a brand-centric strategy. Bajaj Auto spent INR1. Such focus on R&D has helped the company in incorporating newer features to its existing range of products and also in bringing out latest technologies in the varied areas. Many important products. Strong focus on research and development Bajaj Auto is one of the leaders in developing innovative technology and energy-efficient solutions to its products marketed worldwide. were launched in FY2010 including Pulsar 220 F. focusing on the differentiation and positioning of the Discover and Pulsar brands has reflected on the company's robust volumes. The company has well established brands in each of these vehicle segments. The three-wheelers segment manufactures goods carrier and passenger carrier three-wheelers. passenger carriers and goods carriers. Pulsar 180 UG.2% of the total sales. and the entry level vehicle segment.

The increase was due to a significant rise in the unit sales of motorcycles.338. Robust financial performance increases the customer confidence in the company’s products and helps it to increase its brand image in the market.972. Lack of scale also reduces the bargaining power of Bajaj Auto.4 million) in FY2010.153.3 million ($562. For instance. © Datamonitor Page 21 .4 million).966.1 million) in FY2010 compared to INR7.367.1 million ($1.9 million) in FY2009. Bajaj Auto.966. From 55% pre-tax return on operating capital employed in FY2009. It has also enabled the company to develop innovative products. Many of its competitors.966. In FY2010. such as Yamaha Motor and Hero Honda Motors are much larger in size in terms of revenues. the company’s profits also increased in FY2010.012 million ($242. Similarly. the company had a robust cash position in FY2010.Bajaj Auto Ltd.9 million ($117. recorded revenues of INR120. The company recorded INR34. SWOT Analysis The company's strong focus on innovations has allowed it to uphold the technological leadership in most of its product segments. compared to an operating profit of INR11. compared to a net profit of INR5. it lacks favorable scale of operations in comparison to its competitors.1 million) in FY2009 to INR120.691. Robust financial performance Bajaj Auto has seen a significant increase in its financials over the previous year. the company’s revenues increased more than 35% from INR89.5 million ($2. Further. Yamaha Motor recorded revenues of JPY1.3 million ($161. an increase of 31.344 million) for the year ended December 2009.3 million) in FY2010.806.7 million) in FY2010.661.566.4% compared to the previous year.357. the ratio increased to 253% for 2009-10. Weaknesses Lack of scale compared to peers Although Bajaj Auto has a strong brand image. Opportunities Bajaj Auto Ltd.2 million) in FY2009.5 million ($2. significantly higher than Bajaj Auto.3 million) in FY2010.7% in FY2010. The growth was primarily due to higher unit sales.5 million motorcycles worldwide.661. The company's small scale of operations could turn out to be a disadvantage in the fiercely competitive market.2 million ($3. leading to strong sales. the company sold more than 2. Moreover. the company has seen a significant increase in its return on operating capital. In domestic market. the company’s sales increased by 39. Hero Honda Motors recorded revenues of INR167.The net profit was INR15.5 million) in FY2010.642 million (approximately $12. The company recorded an operating profit of INR25. in contrast.370 million ($756. Similarly.2 million ($351.

This enhances the product capability of Bajaj Auto products and helps it to serve its customers more efficiently. The SIAM has forecasted 16-18% growth in two wheeler market and 30-32% for scooters market in India for 2010-11. Bajaj Auto launched 250cc motorcycle Kawasaki Ninja and the Pulsar 135 LS (light sport). fueled by government stimulus packages.7% growth in sales in the year 2009-10 making FY2010 one of the best years for the sector. Further. in India. Latin America. In addition. © Datamonitor Page 22 . In the domestic market. KTM Power Sports started the production of motorcycles in the range of 125cc and 350cc in cooperation with Bajaj Auto. The first of the co-developed products named KTM Duke 125 is expected to be launched in European markets by the first half of 2011.2% surge. in FY2010. Bajaj Auto Ltd. In the same month. to assemble. import and sell its motorcycles in the country. This global motorcycle alliance would combine the R&D and global distribution strengths of the three companies. KTM would implement the manufacturing cost structure model from KHI and Bajaj Auto would broaden its existing partnership with Kawasaki. India.000 units in 2010-11. During the same period. Bajaj Auto currently has a 38. The growing demand for two wheelers represents an opportunity for Bajaj to capitalize on this market and expand its revenues and profits. The move will result in cost–effective manufacturing processes for engines. sport and cruiser models primarily in the 250 cc class or greater in FY2010 and planned to sell around 1. the company launched the new Pulsar 220cc model.Bajaj Auto Ltd. IKM released several supersport.The two-wheelers market witnessed a 28. In this context. According to Society of Indian Automobile Manufacturers (SIAM). which recorded a 42% growth. the country's automobile industry has reported a whopping 32. the company’s own brand-bikes are the market leaders in countries like Philippines and Colombia while being sold through the Japanese company’s network. the sales were driven by car and the two-wheelers. as well as a global distribution and marketing programs. KHI started a unit at its partner Bajaj Auto's Chakan plant in Pune. This encouraging trend in the industry has also made India the second fastest growing market in the world following China. better demand and lower loan interest rates. platforms and components. For instance. SWOT Analysis Growing Indian automobile market The Indian two wheeler market has witnessed a strong growth in the recent past and the trend is likely to continue in the future. KHI set up its subsidiary named India Kawasaki Motors. Similarly. KTM also planned to launch its products in India during the second half of 2012. Global alliance with KTM and Kawasaki Bajaj Auto is planning a global alliance with KTM of Austria and Kawasaki Heavy Industries (KHI) of Japan. Bajaj Auto already uses KHI network in South East Asia. in April 2010. which specializes in manufacturing stylish street and off-road bikes. in June 2010. Hence.1% stake in KTM. Introduction of new models to expand product offerings Bajaj Auto introduced various new and improved models in order to expand its product offerings. the alliance helps three companies to use developed platforms to create different products suitable to their strategy and brand.

Extensive environmental regulations The company is subjected to extensive governmental regulations regarding vehicle emission levels. In the Indian two wheeler market. Such product launches would increase the company's reach and the market share which in-turn would boost its revenues and profitability. carbon monoxide (CO).Yamaha launched the YBR 110 in January 2010. and. Honda Motorcycle & Scooter India (MMSI) launched the 110-cc CB Twister. In addition. The two wheeler industry is also characterized by frequent new product launches in 2009 and 2010. particulate matter (PM). © Datamonitor Page 23 . Moreover. sulfur oxides (SOx)) by motor vehicles and other equipment. SWOT Analysis Furthermore. Bajaj Auto is working on the re-designing of the 'Lite' range of its four-wheeler vehicles. a heavy duty bike. These regulations are likely to become more stringent in the near future. intense competition and pricing pressure may impact Bajaj Auto's market share and profit margins. hydrocarbons (HC). competition is stiff with around 10 players (including Hero Honda) competing for significant market shares. Bajaj Auto introduced the new Platina 125. marking its foray into the mass segment. safety and levels of pollutants generated by its production facilities. Therefore. It also plans to relaunch its other 100-cc bikes later this year. Competition is expected to intensify with the focus on technology and price. BS emissions standards regulate the output of air pollutants (such as nitrogen oxides (NOx). The players include global giants like Suzuki and Yamaha as well as Indian players like Bajaj Auto and TVS Motor. Bajaj Auto unveiled their new range of 'RE' passenger vehicles.TVS Motors recently launched the 110-cc Jive. More stringent vehicle emission regulations in the future may lead to significant compliance costs for Bajaj Auto. which are more stringent than the previous norms. The company also plans to introduce new models to capture the deluxe commuter segment. Rising raw material prices Bajaj Auto Ltd. an auto-clutch bike aimed at urban commuters who constantly juggle in heavy traffic. soot.Bajaj Auto Ltd. The cargo version is expected to be launched in 2011. During the same period. Threats Intense competition in the two wheeler market The two wheeler market in India is highly competitive with fuel efficiency and price being crucial considerations for success. India implemented the Bharat Stage (BS) 2 norms throughout the country in 2005 and BS 3 norms from October 2010. in May 2010. both in the passenger and cargo segments. and takes the form of reductions in direct sales prices. The emission norms that are in force for two-wheelers and three-wheelers are more stringent than the Euro II norms. noise. The extent of pricing reductions varies from year to year.

© Datamonitor Page 24 . Steel prices are significantly rising over the last few years.670 per tonne in December 2010. passenger carriers and goods carriers. the global composite carbon steel price consistently increased from $653 per tonne in January 2010 to $736 per tonne in December 2010. SWOT Analysis Baja Auto manufactures two and three wheeled vehicles which include scooters. motorcycles. tyres and tubes. ferrous metals. Bajaj Auto Ltd. For instance. Further. and further increased to $3. the global composite stainless steel price increased from $2. which are purchased from several suppliers.749 per tonne in January 2011. and non–ferrous materials. The steel prices are forecasted to further increase in 2011. it increased to $813 per tonne in January 2011. Consistent increase in the raw material price would increase the operating costs of the company which in turn impact its profitability. Similarly.Bajaj Auto Ltd.912 per tonne in January 2010 to $3. The principal raw materials consumed by Bajaj Auto are steel.

Honda Motorcycle & Scooter India (Private) Ltd. Bajaj Auto Ltd.p. Ltd. Piaggio & C. Yamaha Motor Co. Inc.A. Harley-Davidson. Hero Honda Motors Limited TVS Motor Company Ltd Mahindra & Mahindra. © Datamonitor Page 25 .Bajaj Auto Ltd. S. Top Competitors TOP COMPETITORS The following companies are the major competitors of Bajaj Auto Ltd. Ltd..

Net sales and other operating income grew by 35% to over Rs. Bajaj Auto’s superior performance suggests that it has been more than just leveraging market growth. I believe that 2009-10 saw a near perfect alignment between the power of the brands – the front-end – and production efficiency. or the back-end. was affected. and when we could expect better fortunes for the Country’s automotive industry. it is the second highest growth rate among all major countries in the world. exports. . Dear Shareholder.Your Company’s operating EBITDA grew by 116% to almost Rs. depreciation and amortization (EBITDA) was 21. your Company has been working at developing a brand-centered strategy especially of its two key brands. Operating earnings before interest.5% GDP growth for 2009-10. What was it? For the last few years. which increased in volume by 24% in 2009-10. taxes. Your Company did better. is given below. Even more impressive. here are a few key numbers: . lower than the 9% plus growth that we were getting accustomed to for three consecutive years up to 2007-08. Even so. Most of the financial details are in the chapter on Management Discussion and Analysis. It is. of course. I agree with the managing director and his team that it is this alignment which has resulted in your Company growing faster than the market and earning the highest profit rate in the industry. at the time I wasn’t sure when we might come out of the lower growth phase. Company View COMPANY VIEW A statement by Rahul Bajaj. The statement has been taken from the company’s annual report for FY2010. It looks as if India will achieve somewhere between 7. When I wrote to you last year. and grew by more than 31%. We have witnessed excellent growth in the two-wheeler market. too.7% of net sales and other operating income.5 million motorcycles.26 billion. I have been surprised at the speed of the turnaround. Quite frankly. © Datamonitor Page 26 .2% and 7. Bajaj Auto Ltd. Yet. quality. is the significant uptick in demand for two-wheelers. India. profits and margins. the Discover and the Pulsar.Bajaj Auto Ltd. 2009-10 has been a record year for Bajaj Auto in terms of highest ever sales. we were amidst the worst global economic and financial crisis since the Great Depression of the 1930s. Chairman at Bajaj Auto Ltd.119 billion. three-wheelers as well as passenger vehicles. It sold over 2. costs and logistics.

In that letter. I expect 2010-11 will see us exporting over 1 million two. Your Managing Director often says that while products may generate market share. it is about gaining share through better quality and branding – thus having the customer willing to pay higher prices for better value. We are clearly getting there. . and higher profits and return on both capital employed and shareholder wealth. I had exhorted your Company to ‘mobilize India’ – and sell 4 million motorcycles by 2010. © Datamonitor Page 27 .17 billion. I went back to the one written in Bajaj Auto’s annual report of 2005-06.11 billion. I am increasingly tending to agree with him. more R&D successes.Bajaj Auto Ltd. pervasive brand loyalty and pull.5% GDP growth.7 billion. I am asking the management to make the vision of selling 4 million motorcycles come good by 31 March 2011.000 motorcycles and almost 165. As India regains its growth momentum in 2010-11 and generates something in the neighborhood of 8. Exports has again done well this year. It was also an excellent year: sales were up by almost 31% to a high of Rs. Your Company’s performance has not been about ‘buying’ market share through various pricing deals. And I would like you to join me and the rest of your Board of Directors to congratulate your Company’s managing director. 2009-10 saw Bajaj Auto export over 725.000 three-wheelers. Company View . may Bajaj Auto.and three-wheelers. It has. And to you for being our support through thick as well as thin. Since I’m known for speaking my mind.Profit after tax (PAT) grew by 160% to Rs. as it had in the last.23 billion.13. especially in hard times. What pleases me is that Bajaj Auto is leveraging its key brands to maximize profits. and PAT had grown by 44% to cross Rs. brands provide pricing power and create higher profits.85 billion. May India prosper. And with it. and was over 19% of net sales and other operating income.Operating profit before tax (PBT) grew by 170% to almost Rs. 2009-10 saw Bajaj Auto sell over 2. I am delighted with the performance. I believe that we should see yet another excellent year for Bajaj Auto: greater sales. and his team for delivering such excellent results. My thanks to all employees of Bajaj Auto for their unstinting support. While writing this letter. Instead. Rajiv Bajaj.5 million motorcycles. Bajaj Auto Ltd. the operating EBITDA margin was at 17. I had also asked your Company to ‘globalize India’ by rapidly enhancing Bajaj Auto’s international footprint.9%. EBITDA had increased by 47% to Rs.

Bajaj Auto Ltd.com Other Locations and Subsidiaries Bajaj Auto . © Datamonitor Page 28 .Waluj plant Bajaj Nagar Waluj Aurangabad 431 136 Maharashtra IND Bajaj Auto .Pantnagar plant Plot No 2 Sectoe 10 Phase II E Pantnagar.Chakan Plant MIDC Plot No A1 Mahalunge Village Chakan 410 501 Pune Maharashtra IND Bajaj Auto International Holdings BV NLD Bajaj Auto Ltd. Akurdi Pune 411 035 IND P:91 20 2747 2851 http://www. Locations and Subsidiaries LOCATIONS AND SUBSIDIARIES Head Office Bajaj Auto Ltd.bajajauto. Sidcul Rudrapur District Udhamsingh Nagar Uttranchal IND Bajaj Auto .

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