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Publication Date: 25 Feb 2011
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Bajaj Auto Ltd.
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Bajaj Auto Ltd. © Datamonitor
.......................9 Major Products and Services...........................................................................................................25 Company View................Bajaj Auto Ltd....4 Business Description..................................................................................................................6 Key Employees.......................... TABLE OF CONTENTS TABLE OF CONTENTS Company Overview..................................................28 Bajaj Auto Ltd................................4 Key Facts..........................................................................................................................................................................................19 Top Competitors.....8 Key Employee Biographies.......................................................................................................................................................................................... © Datamonitor Page 3 ..........................................................................................................................................................26 Locations and Subsidiaries................................................................................5 History..........................................................................18 SWOT Analysis...............................................................17 Revenue Analysis........................
5 million) in the financial year ended March 2010 (FY2010). compared to an operating profit of INR11. India.012 million ($242. © Datamonitor Page 4 . The company operates in India and is headquartered in Pune. an increase of 36. The company recorded revenues of INR115.566.9 million) in FY2009.The net profit was INR15.5 million) in FY2010.com Revenue / turnover 120.The operating profit of the company was INR25. KEY FACTS Head Office Bajaj Auto Ltd. motorcycles. an India-based company.357.3 million ($562.972.bajajauto.2 million) in FY2009.5 (INR Mn) Financial Year End Bombay Stock Exchange Ticker National Stock Exchange of India Ticker March 532977 BAJAJ-AUTO Bajaj Auto Ltd.431.6 million ($2.9 million ($117.966.4 million) in FY2010. is a manufacturer and marketer of two and three wheeled vehicles which include scooters. passenger carriers and goods carriers. Akurdi Pune 411 035 IND 91 20 2747 2851 Phone Fax Web Address http://www.7% over FY2009. Company Overview COMPANY OVERVIEW Bajaj Auto.Bajaj Auto Ltd. compared to a net profit of INR5.2 million ($351.539.
KB125. The company focuses on two-wheelers and three-wheelers in automotive segment.8 million units in India. In the same year.707 passenger carriers and 9. 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. 180 cc. Boxer. RE 25. Japan to produce a range of two-wheelers in India. Business Description BUSINESS DESCRIPTION Bajaj Auto is a manufacturer of two-wheelers and three-wheelers scooters. The company’s goods carrier brands include GC Max Diesel. the company sold over 2. RE Diesel and RE GDI. Its passenger carrier brands include Mega Max. GC Max CNG and RE 600. Bajaj Auto manufactures scooters under the brand.887 units of three wheelers.100 authorized service centers spread across India. Avenger and Discover) and Waluj in Aurangabad (manufactures Boxer. The company's subsidiaries include: Bajaj Auto International Holdings. 4-stroke (4S). executive segment. RE 45. In FY2010. It also trades spare parts and accessories. The company has a technical tie-up with Kawasaki Heavy Industries. The Bajaj brand is well-known across several countries in Latin America. 4S. and performance segment. The company operates through two business segments: automotive and investment. The company manufactures and markets scooters. Bajaj Auto Ltd. and PT Bajaj Indonesia which assembles and markets Pulsars in Indonesia.5 million motorcycles worldwide including 1. the 100 cc Platina motorcycles. Bajaj Auto manufactures goods carrier and passenger carrier three-wheelers. Bajaj Auto launched KB100. KB RTZ. Since the tie-up. passenger carriers and goods carriers. Discover and three-wheelers). Platina. 4S liquefied petroleum gas type and 4S diesel type vehicles. The company has a network of more than 600 dealers and over 1. Wind125 and Kawasaki Bajaj Eliminator. In three-wheelers.Bajaj Auto Ltd. the company sold 340. Caliber. © Datamonitor Page 5 . Chakan in Pune (Pulsar. the company manufactures motorcycles and scooters. In two-wheelers. Kristal. Discover and Pulsar 135). Caliber115. South and South East Asia. The company has three manufacturing plants in India including Pantnagar in Uttarakhand (manufactures Platina. a 100% Netherlands based subsidiary. Platina 125.115 units of two wheelers and 164. and under the entry level segment. the company manufactures 125 cc motorcycles including Discover DTS-i 135 and the XCD 125 DTS-Si (Swirl Induction).937 three-wheelers including 331.002 units in FY2010 including 726. Further. 4S compressed natural gas type. The company manufactures a range of passenger carriers which include: 2-stroke (2S). Bajaj Auto classifies motorcycles into three segments: entry segment. 4S Champion.The company manufactures motorcycles such as the Pulsar range (150 cc. motorcycles. Under the executive segment. Africa. the company exported a total of 891. Middle East.230 goods carriers. 200 cc and the recently launched 220 cc).
Bajaj Auto established the Waluj production plant in Aurangabad. In the following year. The joint-venture company was 50% owned by Bajaj Auto. in 1971. In the following year.Bajaj Auto Ltd. Bajaj Auto received patent for its invention multi-spring vehicle shock absorber used in its motorcycles. in 2005. The company introduced three-wheeler goods carrier.500. and Bajaj Kristal DTS-i in 2007. Bajaj Avenger DTS-i. Bajaj Auto obtained license from the Government of India to manufacture two and three wheelers. Bajaj Auto commenced the production at Chakan plant. In the following year. Bajaj Auto launched Bajaj Wind 125. it introduced Bajaj Chetak. and Bajaj Wave DTS-i. it launched Bajaj Platina. and Bajaj Finserv (wind power and financial services company). Bajaj Auto launched 200 cc Pulsar DTS-i. In 1948. © Datamonitor Page 6 . manufacture and market the car code-named ULC (ultra low cost) with wholesale price range starting from $2. 25% by Renault and 25% by Nissan. the company started the production of its bikes in China for exports to Nigeria. Bajaj Auto launched Bajaj CT100 and Bajaj Discover DTS-i. In 1999. the company started a new plant at Pantnagar. in 2003. in 1985. Bajaj Auto became a public limited company in 1960. the company's started importing two and three wheelers in India. In addition. It launched Bajaj Discover. In 1995. In 2008. Uttarakhand. Renault and Nissan formed a joint-venture company to develop. Bajaj Auto Ltd. The company formed a joint venture with Maharashtra Scooters in 1975. Subsequently. the company demerged to form three separate entities: Bajaj Auto (automobiles). Bajaj Auto launched its 'XCD 125 DTS-Si'. Pulsar 150cc and 180cc sports styled bikes. The company introduced Bajaj Saffire in 2000. In the following year. a 125cc motor bike. Bajaj Auto launched Eliminator and Pulsar bikes. Bajaj Holdings and Investment (an investment company). In the same year. History HISTORY Bajaj Auto was established as M/s Bachraj Trading in 1945. In the following year. and with Tokyo Research and Development for gearless Scooter and moped development. the company signed agreements with Kubota. Japan to produce a range of two-wheelers in India. Japan for the development of diesel engines for three-wheelers. Later in the year. In the same year. the company entered into the technical tie-up with Kawasaki Heavy Industries. Bajaj Auto acquired its first stake in Austrian power bike maker KTM Power Sports in 2009. Bajaj Auto. in 1959.
© Datamonitor Page 7 . Bajaj Auto increased its stake in European motorcycle manufacturer KTM Power Sports to 35. in India. In June 2010. In the same month. Bajaj Auto Ltd. In April 2010. History Further in 2009. KHI started a unit at its partner Bajaj Auto's Chakan plant in Pune. Japan's Kawasaki Heavy Industries (KHI). set up its subsidiary named India Kawasaki Motors. In May 2010. In the following month. Bajaj Auto introduced the new Platina 125. Bajaj Auto unveiled its new range of 'RE' passenger vehicles.Bajaj Auto Ltd. India. the company launched the fastest bike made in India.7%. the new Pulsar 220cc model. import and sell its motorcycles in the country. In the same year. to assemble. Bajaj Auto launched 250cc motorcycle Kawasaki Ninja and the Pulsar 135 LS (light sport). KTM Power Sports launched the serial production of motorcycles in the range of 125cc and 350cc in cooperation with Bajaj Auto. a heavy duty bike in March 2010.
Murari Niraj Bajaj Pradeep Shrivastava Abraham Joseph S. Commercial Vehicle Business President.Bajaj Auto Ltd. Balaji Rao J. Business Development and Assurance Vice President. Godrej S. International Business President. Podar Shekhar Bajaj D.H. 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. Human Resources Vice President. Retail Finance President. © Datamonitor Page 8 .N.S.P. Mehta Kantikumar R. Research and Development President. Motorcycle Business President. Sridhar R. 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. Commercial Vice President. Ravikumar Amrut Rath N. Srinivas Kevin P D'sa S.J. Finance Senior Vice President.C. New Projects President. Maheshwari Rakesh Sharma Eric Vas K. Khan Suman Kirloskar Naresh Chandra Nanoo Pamnani Manish Kejriwal P. Key Employees KEY EMPLOYEES Name Rahul Bajaj Madhur Bajaj Rajiv Bajaj Sanjiv Bajaj D.H. Hingorani C.
Madhur Bajaj Board: Executive Board Job Title: Vice Chairman Since: 2001 Age: 58 Mr. Mr. He is also a former President at Mahratta Chamber of Commerce. Sanjiv Bajaj Bajaj Auto Ltd. Bajaj Electricals and Bajaj Auto Finance. Bajaj Auto Holdings. Bajaj was the General Manager of Products and Vice President of Products at the company. He also serves as the Chairman at Bajaj Auto Finance. Bajaj is the Vice Chairman at Bajaj Auto. Industry and Agriculture. He was an Officer on Special Duty of the company from 1990 to 1993. Key Employee Biographies KEY EMPLOYEE BIOGRAPHIES Rahul Bajaj Board: Executive Board Job Title: Chairman and Chief Executive Officer Since: 1968 Age: 72 Mr. Rajiv Bajaj Board: Executive Board Job Title: Managing Director Since: 2005 Mr. © Datamonitor Page 9 .Bajaj Auto Ltd. 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 serves as a Member. and the Chairman at the Confederation of Indian Industry (Western Region). He serves as a Director at Bajaj Auto Finance and Bajaj Auto Holdings. He served as the President at Society of Indian Automobile Manufacturers. Bajaj was the President of Confederation of Indian Industry from 1979 to 1980. Mr. and was the President and Joint Managing Director at the company from 2000 to 2005. Bajaj is the Chairman at Maharashtra Scooters. Bajaj Holdings & Investment and Bajaj Finserv. Bajaj is the Chairman at Bajaj Auto. Bajaj Finserv. Bajaj Allianz Life Insurance. Bajaj has been the Managing Director at Bajaj Auto since 2005. From 1993 to 2000. He serves as a Director at Bajaj Holdings & Investment. Bajaj Allianz General Insurance. Executive Board at Indian School of Business. and 1999 to 2000.
Mehta is an Honorary Joint Director at the Bharatiya Vidya Bhavan.Bajaj Auto Ltd. Kantikumar R. Podar also served as the Chairman and President at the Indian Merchants Chamber during its Platinum Jubilee Year. and Member of the Senate of the University of Bombay for six years. Wardha. He has been the President at the SAARC Chamber of Commerce and Industry with headquarters in Pakistan. and Vice President at the Kasturba Health Society at Sewagram. Mr. Key Employee Biographies Board: Executive Board Job Title: Executive Director Since: 2004 Age: 41 Mr. He has been associated with the Bajaj Group of Companies since 1966 and has more than 30 years experience in corporate law. Mr. He serves as a Director at Bajaj Allianz General Insurance. Bajaj Auto Finance and Maharashtra Scooters. Podar has been a Director at Bajaj Auto since 1983. Mr. and Vice Chairman at the Kasturba Gandhi National Memorial Trust at Indore. Bajaj was the Head of International Business at Bajaj Auto from 2004 to 2007. He served as the Chairman and President at the Federation of Indian Chambers of Commerce and Industry. Bajaj is an Executive Director at Bajaj Auto. He has been the Managing Director at Bajaj FinServ since 2008. finance and investment. New Delhi for three years. Madhya Pradesh. Mr. Mehta Board: Non Executive Board Job Title: Director Since: 1998 Age: 74 Mr. D. Economic and Scientific Research Foundation. Mehta is a fellow Member at both the Institute of Chartered Accountants of India and the Institute of Company Secretaries of India. and The Indian Cotton Mills' Federation for two years. He is the Joint Managing Trustee at the Saurashtra Trust. Indian Council of Arbitration for one year. All India Organisation of Employers for two years. in Maharashtra. © Datamonitor Page 10 . Bajaj Allianz Life Insurance. Shekhar Bajaj Bajaj Auto Ltd. which owns and publishes Gujarati language newspapers and magazines. Mumbai Textile Research Association for two years. Podar Board: Non Executive Board Job Title: Director Since: 1983 Age: 75 Mr. taxation. Mehta has been a Director at Bajaj Auto since 1998.S.
Godrej serves as a Director at 3D PLM Software Solutions. Godrej has been a Director at Bajaj Auto since 1998. a Member of governing body and the President at the Electric Lamp & Component Manufactures' Association of India. He is also the former President of the Indian Machine Tool Manufacturers' Association and is the President of the World Wide Fund for Nature. Mr. and Vice Chairman and Managing Director at SCICI. In 1975. © Datamonitor Page 11 .J. He served as a Managing Director at the Infrastructure Development Finance. in Mumbai and was its CEO from 1974 to 1975. Balaji Rao Board: Non Executive Board Job Title: Director Since: 1993 Age: 71 Mr. Mr. the CEO at the Industrial and Technical Consultancy Organisation of Tamil Nadu from 1981 to 1982.N. he was appointed as part-time Managing Director at the Mumbai-based Bajaj International and later its whole-time Managing Director. Rao has been a Director at Bajaj Auto since 1993. the President at Council for Fair Business Practices. Godrej Consumer Products. and Consultant to the Asian Development Bank from 1985 to 1986. Bajaj Auto Ltd. He started his career as Resident Director at Bajaj Sevashram. Godrej has been associated with the Confederation of Indian Industry and was its President from 1993 to 1994. He serves as a Director at 3M. He served as the President at Associated Chamber of Commerce and Industry of India. an Executive Director at ICICI. From 1969 to 1972.Bajaj Auto Ltd. Godrej Board: Non Executive Board Job Title: Director Since: 1998 Age: 62 Mr. Graphite India. J. Rao was a Consultant to the National Development Bank of Sri Lanka in 1991. Bajaj was the Joint Managing Director at Bachhraj Factories. and a Member of the Executive Council at the Fan Makers Association of India. South East Asia Marine Engineering & Construction and Ennore Foundries. Prudential ICICI Trust. Bajaj has been the Chairman and Managing Director at Bajaj Electricals since 1994. He has been the Managing Director at Godrej & Boyce since 1991. Mr. Udaipur in 1968. Ashok Leyland. Mr. Key Employee Biographies Board: Non Executive Board Job Title: Director Since: 1995 Age: 62 Mr. the President and Member of Managing Committee at the Indian Merchants' Chamber. Jindal Iron & Steel. Godrej Agrovet. D. Mr. India. Bajaj has been a Director at Bajaj Auto since 1995.
ITC Hotels. © Datamonitor Page 12 . Chandra has been a Director at Bajaj Auto since 2003. Khan served with IDBI for over 30 years in various capacities. Key Employee Biographies Godrej Foods. Rajasthan. She is a Trustee at the Ravi Kirloskar Quality Prize Trust and the Sanjeevan Vidyalaya Trust. Godrej Sara Lee. Indian Co-Chairman at the US-Technology Group. in 1966. and Chief Secretary.H. He was an Ambassador of India to the US in 1996. including as its Chairman and Managing Director for about five years until 1998. National Stock Exchange of India. and Member at the Indo-US Economic sub-committee. Khan Board: Non Executive Board Job Title: Director Since: 1999 Age: 62 Mr. Secretary at Ministries of Water Resources. Bajaj Auto Ltd. S. Defence. Khan has been a Director at Bajaj Auto since 1999. She is associated with the Mahila Seva Mandal. Godrej Properties and Investments. and a Member at Indian Space Commission and the Indian Atomic Energy Commission from 1990 to 1992. Chandra was the Senior Adviser to the Prime Minister of India in 1992. Naresh Chandra Board: Non Executive Board Job Title: Director Since: 2003 Age: 76 Mr. Mr. Commonwealth Secretariat Adviser on Export Industrialisation and Policy in Colombo from 1981 to 1984. Kirloskar has been a Director at Bajaj Auto since 2002. He serves as a Director at Infrastructure Development Finance. Ms. Suman Kirloskar Board: Non Executive Board Job Title: Director Since: 2002 Age: 75 Ms. Governor of the State of Gujarat. he moved over to the Industrial Development Bank of India. Interior and Justice from 1987 to 1990. Kirloskar is also the Chairperson at Mahila Udyog. and Empress Garden as the Chairperson. He also served as the Cabinet Secretary in 1990. Adviser to the Government of Jammu & Kashmir in 1986. Mr. Godrej Tea and Godrej Upstream. Shipping Corporation of India and Birla Home Finance. He joined the Reserve Bank of India as a Probationary Officer in 1961 from where. Godrej Industries.Bajaj Auto Ltd.
Chandra serves as a Director at Balrampur Chini Mills. He is the Chairman at Citicorp Finance (India). Prior to McKinsey. He is the Managing Director at Temasek Holdings Advisors India. Mr. Manish Kejriwal Board: Non Executive Board Job Title: Director Since: 2004 Age: 42 Mr. Haldia Petrochemicals. Orbitech. He also served as the Health Secretary. he had worked at the World Bank in Washington. Pamnani serves as a Director at Citicorp Brokerage (India). During his career as a Civil Servant. including: Sub-Divisional and District Magistrate. He was the hub Leader for McKinsey's Corporate Finance and Strategy practice in India. He joined the Indian Administrative Service in which he served from 1957 to 1992. He was also appointed as the Head of Operations and Technology for Citicorp's businesses in over 70 countries (based in London). Mr. Murari retired as Secretary to the President Bajaj Auto Ltd. © Datamonitor Page 13 . Nanoo Pamnani Board: Non Executive Board Job Title: Director Age: 65 Mr. DC and he had spent a short period with Goldman Sachs in Hong Kong. and the Chairman. and e-Serve International. Pamnani was appointed as the CEO and Global Head of consumer banking at Citibank. Murari held many distinguished positions. Kejriwal has been a Director at Bajaj Auto since 2004. Sub-Collector. P. Lord Krishna Bank. Managing Director and a Director in State undertakings of Government of Tamil Nadu. Media Content & Communications Services. Mr. in 1995. Electrosteel Castings. Kejriwal was a Partner at McKinsey. Government of Tamil Nadu. Murari Board: Non Executive Board Job Title: Director Since: 2006 Age: 76 Mr. Key Employee Biographies Mr. Deputy Director of Census Operations. Associated Cement.Bajaj Auto Ltd. Citicorp Maruti Finance. Pamnani serves as a Director at Bajaj Auto. Mr. Commissioner for Commercial Taxes. Hindustan Motors. Murari has been a Director at Bajaj Auto since 2006. Mr. and Tata Consultancy Services. Mr. Prior to that. Vedanta Resources (London). India. 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.
Research and Development Mr. Niraj Bajaj Board: Non Executive Board Job Title: Director Since: 2006 Age: 56 Mr. Pune. the President at the Indian Steel Development Association. © Datamonitor Page 14 . Commercial Vehicle Business Since: 2007 Bajaj Auto Ltd. Bajaj held positions of General Manager (Marketing). Bajaj has been a Director at Bajaj Auto since 2006. R. Motorcycle Business Mr.Bajaj Auto Ltd. Mr. and the Chairman at Indo-Russian Federation of joint business council. including as: the President at Alloy Steel Producers' Association of India.C. New Projects at Bajaj Auto since 2009. Vas has been the President. He currently serves as an Adviser to the President. Joseph has been the President. Mr. & PGDM from Indian Institute of Management (IIM). He joined the company in 1989 and became General Manager of Research and Development in 2005. Abraham Joseph Board: Senior Management Job Title: President. He is a Mechanical Engineer from College of Engineering. Joseph is a Mechanical Engineer from the National Institute of Technology. S. He served with several industry organizations. Maheshwari Board: Senior Management Job Title: President. Deputy CEO. Research and Development at Bajaj Auto since 2007. and Executive Director. Sridhar Board: Senior Management Job Title: President. Mr. Federation of Indian Chambers of Commerce and Industry (FICCI). Bhopal. He started his career with Bajaj Auto (two years) and Bajaj Electricals (six months) before joining Mukand in 1983 as Senior Marketing Manager. Key Employee Biographies of India in 1992. Calcutta. Since then. Bajaj currently serves as a Member of the Managing Committee of ASSOCHAM and Vice President of Indian Merchants' Chamber.
Pilani. He is a Mechanical engineer from BITS. Bajaj Auto Ltd. Corporate at Bajaj Auto since 2007. He joined the company in 1986. Tripathi has been the Vice President. International Business at Bajaj Auto since 2007.Bajaj Auto Ltd. Mr. Kevin P D'sa Board: Senior Management Job Title: President. Sridhar also served as the Vice President. Ahmedabad. He is a Science graduate from Agra University. Two Wheeler at Bajaj Auto since 2007. New Projects Since: 2009 Mr. Commercial Vehicles at Bajaj Auto since 2007. Marketing and Sales of Two Wheelers in 2005. Retail Finance Since: 2009 Mr. Rakesh Sharma Board: Senior Management Job Title: President. International Business Since: 2007 Mr. Delhi. He joined the company in 2001 as the General Manager of Sales for Two Wheelers. Eric Vas Board: Senior Management Job Title: President. © Datamonitor Page 15 . Engineering at Bajaj Auto in 2005. Mr. He joined the company in 1996 as the Vice President (Waluj plant). He received a degree in Mechanical Engineering from Indian Institute of Technology. Sridhar has been the Chief Executive Officer. Mr. and holds a degree in Mechanical Engineering from the Indian Institute of Technology. Kharagpur. Sharma has been the Chief Executive Officer. Shrivastava has been the President. He holds an Engineering degree in Agriculture. Shrivastava obtained a graduate diploma in Production and Finance from IIM Bangalore in 1986. He holds a Post Graduate Diploma in Management from IIM. Mr. Operations at Bajaj Auto in 2001. Tripathi also served as the Vice President. Finance Mr. Key Employee Biographies Mr. Maheshwari has been the Chief Executive Officer. Shrivastava served as the Vice President. Srinivas Board: Senior Management Job Title: President. K. Engineering at Bajaj Auto since 2007.
Amrut Rath Board: Senior Management Job Title: Vice President. Maharashtra Scooters. Mr. Corporate Social Responsibility Since: 2009 Mr. a Bajaj Auto joint venture. Hingorani has been the Vice President. completed his CA in 1978 and ICWA in 1981. Mr. D'sa holds a bachelor's degree in Commerce. Prior to joining the company. Tripathi Board: Senior Management Job Title: Vice President. Hingorani holds a degree in Mechanical Engineering from the Malaviya Regional Engineering College.P. Jaipur. Ravikumar Board: Senior Management Job Title: Senior Vice President. Sridhar has been the Company Secretary at Bajaj Auto since 2001. He joined the company in 1997 as the General Manager of Materials. and took over as the Vice President of Purchase in 1998. Bajaj Auto Ltd. C. Business Development and Assurance Mr. he served as the Controller of Finance and Company Secretary. He began his career with the company in 1978. Sridhar is a Graduate in Commerce and Law. D'sa serves as the Vice President. © Datamonitor Page 16 . Key Employee Biographies S. Commercial at Bajaj Auto since 2006. Finance at Bajaj Auto. Mr. Human Resources Since: 2009 Mr.Bajaj Auto Ltd.
an India-based company. is a manufacturer and marketer of two and three wheeled vehicles which include scooters.Bajaj Auto Ltd. Major Products and Services MAJOR PRODUCTS AND SERVICES Bajaj Auto. © Datamonitor Page 17 . passenger carriers and goods carriers. 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. motorcycles.
Bajaj Auto's largest geographical market.7% over FY2009.8% over FY2009.634. accounted for 72.431.019 million ($726.3 million). Note: The amount includes other income.225 million ($27 million) in FY2010.934. Revenue by segment In FY2010. Revenues from rest of the world reached INR33.8 million) in FY2010.539.5 million ($2. an increase of 39. an increase of 36. © Datamonitor Page 18 . Revenue by geography India.3% of the total revenues in FY2010. an increase of 24.5 million) in FY2010. an increase of 0.Bajaj Auto Ltd. an increase of 35.7% of the total revenues in FY2010.7% of the total revenues. the company's largest geographic market. Rest of the world accounted for 27. Revenue Analysis REVENUE ANALYSIS Overview Bajaj Auto recorded revenues of INR115. accounted for 72.6 million ($2. India. Bajaj Auto generates revenues through two business segments: automotive (99% of the total revenues in FY2010) and investments (1%). Bajaj Auto Ltd.741. the automotive segment recorded revenues of INR119.5 million ($1.5% over FY2009.9% over FY2009.4 million) in FY2010. For FY2010. Revenues from India reached INR87.6% over FY2009. The investments segment recorded revenues of INR1.947.
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. passenger carriers and goods carriers. the company’s exports accounted 28% of its total revenues. South and South East Asia. Moreover. intense competition from global and regional vehicle manufacturers. Bajaj Auto is the leading three wheeler Bajaj Auto Ltd.000 units till date. South and South East Asia. 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. In addition. Bajaj Auto is India’s largest exporter of two and three-wheelers. Middle East. it has 31% market share in the performance bike segment. Africa.Bajaj Auto Ltd. It also dominates the executive segment. which sold more than 500. Bajaj Auto has a market share of 24. SWOT Analysis SWOT ANALYSIS Bajaj Auto. Further. 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. Africa. The company has a strong market share in India. Middle East. During FY2010. In addition. © Datamonitor Page 19 . which could strain its margins. Strong market share enables the company to gain more business and increase the investor's confidence.3% and in the domestic motorcycle sales. The company’s three wheeler exports accounted almost 50% of total three wheeler sales. The company increased its market share in entry segment in the recent past with the launch of Discover 100 cc in August 2009. with a domestic market share in excess of 45%. is a manufacturer and marketer of two and three wheeled vehicles which include scooters. motorcycles. and industry consolidation could force the company to reduce prices. However. In FY2010. an India-based company.
Brand recognition The company manufactures and markets scooters. were launched in FY2010 including Pulsar 220 F. Pulsar 135 LS and Discover DTS-si. Moreover. which stood at 1. In the passenger vehicle segment. 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. and the entry level vehicle segment.2% of the total sales. passenger carriers and goods carriers.6 million ($29. Pulsar 150 UG. prototyping and testing. The company continues to focus on expanding its design & testing teams. 180 cc.Bajaj Auto Ltd. motorcycles. © Datamonitor Page 20 . Bajaj Auto Ltd. it has a market share of 10. Pulsar 180 UG. Many important products. It focuses on motorcycles in the two-wheeler and three-wheeler segment. 4S liquefied petroleum gas type and 4S diesel type. it enjoys a market share of 63. bikes such as the Discover 100 and 150cc and the new Pulsar 135. which has enabled it to make the new generation products and technologies such as 4 valves DTS-i engine. The company has well established brands in each of these vehicle segments. twin plug ignition and swirl motion. with market share of 55.5% and in goods carriers segment. The company's research and development (R&D) efforts are directed at developing new products and processes and improving the capabilities of existing products. 150.347. 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. Kristal. 4-stroke (4S).6 million) on R&D in FY2010. Moreover. R&D has enhanced its internal competencies by installing advanced machines in proto shop and introduction of special equipments in testing areas. Bajaj Auto spent INR1. Strong market share enables the company to gain more business and increase the investor's confidence. SWOT Analysis player in India. The company manufactures scooters under the brand. 4S compressed natural gas type.1%.6%. Bajaj Auto manufactures motorcycles such as the Pulsar range (150 cc. 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. the executive segment which includes 125 cc motorcycles including Discover DTS-i 135 and the XCD 125 DTS-Si (Swirl Induction). the 100 cc Platina motorcycles. its adoption of a brand-centric strategy. The company has made substantial investments in R&D facilities resulting in enhancement of its infrastructure for design. 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. The three-wheelers segment manufactures goods carrier and passenger carrier three-wheelers.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. Bajaj Auto manufactures a range of passenger carriers which include: 2-stroke (2S). focusing on the differentiation and positioning of the Discover and Pulsar brands has reflected on the company's robust volumes. 200 cc and the new 220 cc) and the Avenger DTS-i (Digital Twin Spark) which are categorized under the performance segment. which demonstrated the technical prowess of the company.
2 million ($3.4 million). In FY2010.7% in FY2010.9 million ($117.Bajaj Auto Ltd. Weaknesses Lack of scale compared to peers Although Bajaj Auto has a strong brand image.661. the company’s revenues increased more than 35% from INR89. In domestic market.357.012 million ($242. Robust financial performance increases the customer confidence in the company’s products and helps it to increase its brand image in the market.2 million ($351.5 million ($2.The net profit was INR15. Robust financial performance Bajaj Auto has seen a significant increase in its financials over the previous year.3 million ($562. Lack of scale also reduces the bargaining power of Bajaj Auto.5 million) in FY2010. For instance. Moreover.642 million (approximately $12. recorded revenues of INR120. Many of its competitors. It has also enabled the company to develop innovative products.338. The increase was due to a significant rise in the unit sales of motorcycles. the company’s profits also increased in FY2010. The company's small scale of operations could turn out to be a disadvantage in the fiercely competitive market.7 million) in FY2010. leading to strong sales. The company recorded an operating profit of INR25.966. © Datamonitor Page 21 .691. compared to a net profit of INR5.344 million) for the year ended December 2009. From 55% pre-tax return on operating capital employed in FY2009.966. such as Yamaha Motor and Hero Honda Motors are much larger in size in terms of revenues.1 million) in FY2010 compared to INR7. in contrast. the ratio increased to 253% for 2009-10.566.5 million motorcycles worldwide.806. an increase of 31. it lacks favorable scale of operations in comparison to its competitors.9 million) in FY2009.3 million) in FY2010.5 million ($2. the company’s sales increased by 39. compared to an operating profit of INR11.370 million ($756.153. Bajaj Auto. the company has seen a significant increase in its return on operating capital. The growth was primarily due to higher unit sales. Similarly. significantly higher than Bajaj Auto. Yamaha Motor recorded revenues of JPY1.1 million) in FY2009 to INR120.367. the company had a robust cash position in FY2010.4 million) in FY2010.4% compared to the previous year. Opportunities Bajaj Auto Ltd. SWOT Analysis The company's strong focus on innovations has allowed it to uphold the technological leadership in most of its product segments. Further. Similarly.661. the company sold more than 2. The company recorded INR34.1 million ($1.3 million) in FY2010.972. Hero Honda Motors recorded revenues of INR167.2 million) in FY2009.3 million ($161.966.
the alliance helps three companies to use developed platforms to create different products suitable to their strategy and brand. This global motorcycle alliance would combine the R&D and global distribution strengths of the three companies.7% growth in sales in the year 2009-10 making FY2010 one of the best years for the sector. KTM Power Sports started the production of motorcycles in the range of 125cc and 350cc in cooperation with Bajaj Auto. better demand and lower loan interest rates. KHI set up its subsidiary named India Kawasaki Motors. This enhances the product capability of Bajaj Auto products and helps it to serve its customers more efficiently. to assemble.Bajaj Auto Ltd. Bajaj Auto Ltd. in India. For instance. in June 2010. the sales were driven by car and the two-wheelers. KTM also planned to launch its products in India during the second half of 2012. the company launched the new Pulsar 220cc model.The two-wheelers market witnessed a 28. import and sell its motorcycles in the country. sport and cruiser models primarily in the 250 cc class or greater in FY2010 and planned to sell around 1. In this context. which specializes in manufacturing stylish street and off-road bikes. The SIAM has forecasted 16-18% growth in two wheeler market and 30-32% for scooters market in India for 2010-11. which recorded a 42% growth. KTM would implement the manufacturing cost structure model from KHI and Bajaj Auto would broaden its existing partnership with Kawasaki.000 units in 2010-11. fueled by government stimulus packages. In addition. The move will result in cost–effective manufacturing processes for engines. According to Society of Indian Automobile Manufacturers (SIAM). Bajaj Auto already uses KHI network in South East Asia. In the same month. in FY2010. platforms and components. the country's automobile industry has reported a whopping 32. This encouraging trend in the industry has also made India the second fastest growing market in the world following China. The growing demand for two wheelers represents an opportunity for Bajaj to capitalize on this market and expand its revenues and profits. Introduction of new models to expand product offerings Bajaj Auto introduced various new and improved models in order to expand its product offerings. 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. KHI started a unit at its partner Bajaj Auto's Chakan plant in Pune. India. Latin America. 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. Global alliance with KTM and Kawasaki Bajaj Auto is planning a global alliance with KTM of Austria and Kawasaki Heavy Industries (KHI) of Japan. 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. During the same period. Further. Similarly. In the domestic market.2% surge. © Datamonitor Page 22 . as well as a global distribution and marketing programs. Bajaj Auto currently has a 38.1% stake in KTM. Bajaj Auto launched 250cc motorcycle Kawasaki Ninja and the Pulsar 135 LS (light sport). in April 2010. Hence. IKM released several supersport.
In addition. Bajaj Auto is working on the re-designing of the 'Lite' range of its four-wheeler vehicles. competition is stiff with around 10 players (including Hero Honda) competing for significant market shares. 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. and takes the form of reductions in direct sales prices. The extent of pricing reductions varies from year to year. safety and levels of pollutants generated by its production facilities. marking its foray into the mass segment. The two wheeler industry is also characterized by frequent new product launches in 2009 and 2010. Bajaj Auto introduced the new Platina 125.Bajaj Auto Ltd. an auto-clutch bike aimed at urban commuters who constantly juggle in heavy traffic. particulate matter (PM). hydrocarbons (HC). both in the passenger and cargo segments. and.TVS Motors recently launched the 110-cc Jive. India implemented the Bharat Stage (BS) 2 norms throughout the country in 2005 and BS 3 norms from October 2010. The emission norms that are in force for two-wheelers and three-wheelers are more stringent than the Euro II norms. Such product launches would increase the company's reach and the market share which in-turn would boost its revenues and profitability. BS emissions standards regulate the output of air pollutants (such as nitrogen oxides (NOx). Bajaj Auto unveiled their new range of 'RE' passenger vehicles. in May 2010. 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. Therefore. It also plans to relaunch its other 100-cc bikes later this year. noise. Competition is expected to intensify with the focus on technology and price. The players include global giants like Suzuki and Yamaha as well as Indian players like Bajaj Auto and TVS Motor. a heavy duty bike. The cargo version is expected to be launched in 2011. More stringent vehicle emission regulations in the future may lead to significant compliance costs for Bajaj Auto. In the Indian two wheeler market. During the same period. Honda Motorcycle & Scooter India (MMSI) launched the 110-cc CB Twister. The company also plans to introduce new models to capture the deluxe commuter segment. soot. SWOT Analysis Furthermore. which are more stringent than the previous norms. sulfur oxides (SOx)) by motor vehicles and other equipment. Moreover. © Datamonitor Page 23 .Yamaha launched the YBR 110 in January 2010. carbon monoxide (CO). Extensive environmental regulations The company is subjected to extensive governmental regulations regarding vehicle emission levels. Rising raw material prices Bajaj Auto Ltd.
Similarly. © Datamonitor Page 24 . Further. ferrous metals. The steel prices are forecasted to further increase in 2011. For instance. and further increased to $3. Steel prices are significantly rising over the last few years. it increased to $813 per tonne in January 2011. tyres and tubes. the global composite stainless steel price increased from $2. Consistent increase in the raw material price would increase the operating costs of the company which in turn impact its profitability. motorcycles. Bajaj Auto Ltd. which are purchased from several suppliers.749 per tonne in January 2011. passenger carriers and goods carriers.Bajaj Auto Ltd. 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.670 per tonne in December 2010. The principal raw materials consumed by Bajaj Auto are steel. and non–ferrous materials.912 per tonne in January 2010 to $3.
S.p.A.Bajaj Auto Ltd.. © Datamonitor Page 25 . Piaggio & C. Ltd. Honda Motorcycle & Scooter India (Private) Ltd. Top Competitors TOP COMPETITORS The following companies are the major competitors of Bajaj Auto Ltd. Hero Honda Motors Limited TVS Motor Company Ltd Mahindra & Mahindra. Ltd. Harley-Davidson. Bajaj Auto Ltd. Inc. Yamaha Motor Co.
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. When I wrote to you last year. Company View COMPANY VIEW A statement by Rahul Bajaj. and when we could expect better fortunes for the Country’s automotive industry. Yet. or the back-end.Net sales and other operating income grew by 35% to over Rs. was affected.5 million motorcycles.119 billion. at the time I wasn’t sure when we might come out of the lower growth phase. your Company has been working at developing a brand-centered strategy especially of its two key brands.Your Company’s operating EBITDA grew by 116% to almost Rs. Operating earnings before interest. which increased in volume by 24% in 2009-10. it is the second highest growth rate among all major countries in the world.2% and 7. Quite frankly.7% of net sales and other operating income. 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.26 billion. I believe that 2009-10 saw a near perfect alignment between the power of the brands – the front-end – and production efficiency. India. profits and margins. depreciation and amortization (EBITDA) was 21. is given below. Even more impressive.Bajaj Auto Ltd. 2009-10 has been a record year for Bajaj Auto in terms of highest ever sales. It sold over 2. three-wheelers as well as passenger vehicles. © Datamonitor Page 26 . exports. too.5% GDP growth for 2009-10. Bajaj Auto’s superior performance suggests that it has been more than just leveraging market growth. is the significant uptick in demand for two-wheelers. It is. costs and logistics. we were amidst the worst global economic and financial crisis since the Great Depression of the 1930s. Dear Shareholder. Bajaj Auto Ltd. I have been surprised at the speed of the turnaround. The statement has been taken from the company’s annual report for FY2010. What was it? For the last few years. quality. Chairman at Bajaj Auto Ltd. . Even so. Most of the financial details are in the chapter on Management Discussion and Analysis. and grew by more than 31%. the Discover and the Pulsar. Your Company did better. of course. We have witnessed excellent growth in the two-wheeler market. taxes. It looks as if India will achieve somewhere between 7.
And to you for being our support through thick as well as thin. more R&D successes. I am delighted with the performance. I expect 2010-11 will see us exporting over 1 million two. I went back to the one written in Bajaj Auto’s annual report of 2005-06.9%. I am asking the management to make the vision of selling 4 million motorcycles come good by 31 March 2011. May India prosper.Bajaj Auto Ltd. and his team for delivering such excellent results. Company View . . Instead. and higher profits and return on both capital employed and shareholder wealth. And I would like you to join me and the rest of your Board of Directors to congratulate your Company’s managing director. Your Managing Director often says that while products may generate market share.000 three-wheelers. and PAT had grown by 44% to cross Rs. I am increasingly tending to agree with him.7 billion.5% GDP growth.17 billion. especially in hard times. In that letter. © Datamonitor Page 27 .11 billion.85 billion.5 million motorcycles. My thanks to all employees of Bajaj Auto for their unstinting support. the operating EBITDA margin was at 17. And with it. 2009-10 saw Bajaj Auto export over 725. It has. pervasive brand loyalty and pull.and three-wheelers. 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. Rajiv Bajaj.000 motorcycles and almost 165.Operating profit before tax (PBT) grew by 170% to almost Rs. and was over 19% of net sales and other operating income. may Bajaj Auto. as it had in the last. I had exhorted your Company to ‘mobilize India’ – and sell 4 million motorcycles by 2010. 2009-10 saw Bajaj Auto sell over 2. Bajaj Auto Ltd. Exports has again done well this year. It was also an excellent year: sales were up by almost 31% to a high of Rs. EBITDA had increased by 47% to Rs. Since I’m known for speaking my mind.13. What pleases me is that Bajaj Auto is leveraging its key brands to maximize profits. Your Company’s performance has not been about ‘buying’ market share through various pricing deals. I had also asked your Company to ‘globalize India’ by rapidly enhancing Bajaj Auto’s international footprint. I believe that we should see yet another excellent year for Bajaj Auto: greater sales. As India regains its growth momentum in 2010-11 and generates something in the neighborhood of 8.23 billion. While writing this letter. brands provide pricing power and create higher profits.Profit after tax (PAT) grew by 160% to Rs.
Bajaj Auto Ltd.Waluj plant Bajaj Nagar Waluj Aurangabad 431 136 Maharashtra IND Bajaj Auto .Chakan Plant MIDC Plot No A1 Mahalunge Village Chakan 410 501 Pune Maharashtra IND Bajaj Auto International Holdings BV NLD Bajaj Auto Ltd.com Other Locations and Subsidiaries Bajaj Auto . Akurdi Pune 411 035 IND P:91 20 2747 2851 http://www.Pantnagar plant Plot No 2 Sectoe 10 Phase II E Pantnagar. Sidcul Rudrapur District Udhamsingh Nagar Uttranchal IND Bajaj Auto . © Datamonitor Page 28 .bajajauto. Locations and Subsidiaries LOCATIONS AND SUBSIDIARIES Head Office Bajaj Auto Ltd.
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