COMPANY HISTORY
HUMAN RESOURCE MANAGEMENT
PRODUCTION AND QUALITY CONTROL
RESEARCH AND DEVELOPMENT
BAjAj ECO SPIRIT
MARKETING STRATEGIES
FINANCIAL OVERVIEw
SwOT ANALYSIS
FUTURE GOALS
LOCAL COMMUNITY DEVELOPMENT
RECOGNITION
CONCLUSION
BIBLIOGRAPHY
On November 29, 1945 Bajaj Auto came into existence as M/s Bachraj Trading
Corporation Private Limited.
It started off by selling imported two- and three-wheelers in India.
In 1959, it obtained license from the Government of India to manufacture two- and
three-wheelers and it went public in 1960.
In 1970, it rolled out its 100,000th vehicle.
In 1977, the technical collaboration agreement with Piaggio of Italy expired
In 1977, it managed to produce and sell 100,000 vehicles in a single financial year.
In 1985, it started producing at Waluj in Aurangabad.
In 1986, it managed to produce and sell 500,000 vehicles in a single financial year.
Bajaj entered into a strategic tie-up with Kawasaki in late 1990s to enhance its
product line and knowledge up-gradation.
The world's 4th largest two- and three-wheeler company live their
brand by its values of Innovation, Perfection, and Speed. They are
distinctly ahead through excitement engineering.
Innovation is how they create the future. It is a value that provokes
them to reach beyond the obvious in pursuit of that which exceeds
the ordinary.
Perfection is how they set new standards.It is a value that exhibits
there determination to excel by endeavouring to establish new
benchmarks all the time.
Speed is how they convey clear conviction.It is a value that keeps
them sharply responsive, mirroring their commitment towards there
goals and processes.
CASTING &
FORGING
Crank
Case
Misc. Alu.
Casting
Misc nuts
& bolts
Sheet
plates
Buffing &
Heat treat.
Machining Machining Buffing
Cutting
to size
El. Plating
Pressing
Minor
ass.
Engine
testing
Final
assembly
paintin
g
Engine
ass.
Chassis
forming
Weld/buff
chassis
forming
Wheel
assembly
Dispatch
for sale
Ht. Trt. &
Grd.
Bought
out
comp.
Quality
test.
Trust builds
quality
Quality builds
satisfaction.
Satisfaction
builds
relationships
Relationships
builds trust
We believe
in…..
A Tradition of
Trust
Bajaj Auto has a huge, extensive and very well-
equipped Research and Development wing
geared to meet two critical organizational goals:
1.Development of exciting new products that
anticipate and meet emerging customer needs in
India and abroad
2.Development of eco-friendly automobile
technologies
The company has also been investing heavily in the
latest, sophisticated technologies to scale down
product development lifecycles and enhance
testing capabilities.
Bajaj Auto R&D also enjoys access to the
specialized expertise of leading international
design and automobile engineering companies
working in specific areas.
They are committed for continual improvement of safety,
occupational health & environment performance & compliance
with applicable safety, occupational health & environmental
legislations, regulations & other requirements.
1.Create a proactive SHE management system that addresses
significant safety, occupational health & environment aspects
related to activities, Products & services.
2.Minimize the generation of waste& conserve resources through
better technology & practices for prevention of pollution.
3.Identify potential risks/hazards & follow safe work practices by
using equipments, tools & personal protective equipments as
applicable.
4.Promote SHE awreness amongst all who work for & on behalf of
Bajaj Auto Ltd. & motivate them to fulfil our commitments.
They pledge towards creating & preserving a cleaner, healthier & safe
work environment.
Bajaj Auto Ltd.,
manufacturer of two and
three wheeler vehicles is
committed to prevention
of pollution, continual
improvement of our
environmental
performance and
compliance with all
applicable environment
legislation and
regulation.
Being the leading manufacturer of two & three wheelers
market BAL(Bajaj Auto Ltd.) has been providing the
best of the class models at competitive prices.
Most of the Bajaj models come loaded with the latest
features within the price band acceptable by the market.
They regularly update the low price bikes with the latest
features like disk-brakes, anti-skid technology and dual
suspension, etc.
BAL adopted different marketing strategies for different models,
few of them are discussed below: -
Kawasaki 4S - First attempt by bajaj to make a mark in the
motorcycle segment. The target customer was the father in the
family but the target audience of the commercial was the son in
the family. The time at which Kawasaki 4S was launched Hero
Honda was the market leader in fuel-efficient bikes and Yamaha
in the performance bikes.
The commercial of Kawasaki 4S had the punch line "Kyun
Hero" means "now what hero" which reflected the
aggressiveness in the marketing front by the company.
Caliber - The focus for the Caliber 115 was youth. And though
Bajaj made the bike look bigger and feel more powerful than its
predecessor its approach towards advertising is even more
radically different this time around. The teaser campaign and the
emphasis on the Caliber 115 being a `Hoodibabaa' bike placed it
as a trendy motorcycle for the college-goers and the 25 plus
executives both at the same time
Pulsar
Discover
Bajaj Auto's entire product portfolio, from the entry-level
to the premium, is being sold by the same dealers. The
restructuring will involve separate dealer networks
catering to the urban and rural markets as well as its
three-wheeler and premium bikes segments.
Bajaj Auto also plans to set-up an independent network
of dealers for the rural areas. The needs of financing,
selling, distribution and even after-sales service are
completely different in the rural areas and do not makes
sense for city dealers to control this.
Particulars August 2008 August 2007 Change %
MOTORCYCLES 175,274 167,483 5
TOTAL 2
WHEELERS
176,631 170,203 4
3 WHEELERS 24,324 25,504 (5)
TOTAL 2&3
WHEELERS
200,955 195,707 3
Exports out of the
above
71,105 56,452 26
Particulars April ~ August
2008
April ~ August
2007
Change %
MOTORCYCLES 902,743 821,406 10
TOTAL 2
WHEELERS
908,579 833,259 9
3 WHEELERS 106,175 119,929 (11)
TOTAL 2&3
WHEELERS
1,014,754 953,188 6
Exports out of the
above
337,075 259,974 30
Profit loss account
(
R
s
c
r
o
r
e
)
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Income:
Operating income 409.66 353.15 210.08 145.40 108.07
Expenses
Material consumed - - - - -
Manufacturing expenses - - - - -
Personnel expenses 50.25 32.30 20.55 12.62 9.40
Selling expenses 94.31 51.35 29.20 15.75 11.74
Adminstrative expenses 130.06 107.46 55.27 32.17 19.47
Expenses capitalised - - - - -
Cost of sales 274.62 191.11 105.02 60.54 40.62
Operating profit 135.05 162.04 105.06 84.86 67.46
Other recurring income 76.28 44.95 27.24 19.78 18.63
Adjusted PBDIT 211.33 206.99 132.30 104.63 86.09
Financial expenses 185.38 134.26 79.96 44.60 36.32
Depreciation 4.85 3.04 1.73 2.01 1.88
Other write offs - - - - -
Adjusted PBT 21.10 69.70 50.61 58.03 47.89
Tax charges 9.86 24.03 17.26 9.81 15.68
Adjusted PAT 11.24 45.66 33.35 48.22 32.21
Non recurring items 7.19 1.28 4.21 3.46 0.49
Other non cash adjustments 2.15 0.70 -16.48 4.27 5.87
Reported net profit 20.58 47.64 21.08 55.96 38.57
Earnigs before appropriation 20.58 47.64 21.08 55.96 38.57
Equity dividend 3.66 10.60 8.40 12.37 9.89
Preference dividend - - - - -
Dividend tax 0.62 1.80 1.18 1.73 1.27
Retained earnings 16.30 35.24 11.50 41.86 27.41
Share holding
pattern as on :
30/06/2008 31/03/2008 31/12/2007
Face value 10.00 10.00 10.00
No. Of Shares % Holding No. Of Shares % Holding No. Of Shares % Holding
Promoter's holding
Indian
Promoters
19075276 52.12 19043276 52.04 19043276 52.04
Sub total 19075276 52.12 19043276 52.04 19043276 52.04
Non promoter's holding
Institutional investors
Banks Fin. Inst.
and Insurance
700 - 700 - 700 -
FII's 7777394 21.25 7669407 20.96 7474752 20.43
Sub total 8540545 23.34 8423443 23.02 8018168 21.91
Other investors
Private
Corporate
Bodies
1043786 2.85 1017253 2.78 1109860 3.03
NRI's/OCB's/For
eign Others
3248015 8.88 3264705 8.92 3250514 8.88
Direcctors/Empl
oyees
- - 32000 0.09 32000 0.09
Others 544748 1.49 543212 1.48 644662 1.76
Sub total 4836549 13.22 4857170 13.27 5037036 13.76
General public 4143706 11.32 4272187 11.67 4497596 12.29
Grand total 36596076 100.00 36596076 100.00 36596076 100.00
Year Month Dividend (%)
2008 May 10
2007 May 30
2006 May 40
2005 May 75
2004 Jun 60
2003 May 45
2002 May 45
2001 Jun 30
It is defined as a set of systems, processes & principles
which ensure that a company is governed in the best
interest of all stake holders.
Bajaj Auto’s commitment to good corporate governance
practices predates the laws and mandates of the
Securities and Exchange Board of India (SEBI) and the
stock exchanges.
Transparency, fairness, disclosure and accountability
have been central to the working of the company, its
management and its board of directors.
The standing that the company enjoys in the corporate
world has as much to do with its reputation for integrity
and transparency as with its performance
Bajaj Auto set up its audit committee in 1987. Since then, the
company has been reviewing and making appropriate changes in the
composition and working of the committee from time to time to bring
about greater effectiveness and to comply with various requirements
under the Companies Act, 1956 as well as Clause 49 of the listing
agreement.
The current audit committee consists of the following directors:
S H Khan, Chairman
D J Balaji Rao
J N Godrej
Naresh Chandra
Nanoo Pamnani
StrengthS
Highly experienced management.
Extensive R & D focus.
Widespread distribution network.
High performance products across all categories.
WeAKneSSeS
Still has no established brand to match Hero Honda's Splendor in
commuter segment.
Not a global player in spite of huge volumes.
Not a globally recognizable brand (unlike the JV partner Kawasaki)
OPPUrtUnItIeS
Double-digit growth in two-wheeler market.
Untapped market above 180 cc in motorcycles.
The growing gearless trendy scooters and scooter market.
Growing world demand for entry-level motorcycles especially in
emerging markets
threAt
The competition catches-up any new innovation in no time.
Threat of cheap imported motorcycles from China.
Margins getting squeezed from both the directions (Price as well
as Cost)
TATA Ace is a serious competition for the three-wheeler cargo
segment.
Continuously launching
bikes with new
technologies like ‘Digital
Twin Spark - Swirl
induction’ (DTS-Si)
engine.
Along with Renault they
are ready to launch there
new concept car ‘Bajaj
lite’.
JAnKIdevI BAJAJ grAm vIKAS SAnSthA
Bajaj Auto’s Corporate Social Responsibility towards the rural poor is
carried out by a trust, Jankidevi Bajaj Gram Vikas Sanstha (JBGVS). This
trust was formed in 1987. JBGVS acts as a catalyst for development at the
grass root level in 44 villages around Bajaj Auto plants in Pune and
Aurangabad District.
A project on Rural Education and Information Network (REIN) is being
implemented in 27 villages of Maval Taluka. This project imparts non
formal education to non school going and poorly performing school going
children.
JBGVS assist BPL families to construct low cost houses under Indira
Awas Yojana. As also help repair school rooms, old structures and
construct cowsheds / mangers, community centers etc
JBGVS also conduct classes for
vocational training like tailoring,
bamboo craft, handicraft, making of
greeting cards, mats, paper bags
and assist computer training for
Maharashtra State-CIT
examination.
Samaj Seva Kendra was established
in 1975 by Bajaj Auto and is part of
JBGVS. SSK provides facilities for
social development of the residents
of Akurdi, Nigdi and adjoining
townships, with the aim of
improving their quality of life,
through skill development training,
hobby centre, nursery education,
health care, sports, music, dance
and cultural programmes
BAL look to continuously improve
there Products and services to
compete with global standards as
new technologies are introduced at
the blink of an eye.
BAL obsession with perfection has
been recognized by various
institutions such as Automotive
Publications like Overdrive, BBC
world wheel awards, CNBC
Autocar awards.
Almost all the new bikes
introduced by Bajaj in previous 5-6
years has been awarded with the
bike of the year award. It includes
bikes like Pulsar, Discover,
Eliminator & Platina
Bajaj is India’s largest automobile manufacturer.
They firmly believe in providing the customer “
VALUE FOR MONEY,FOR YEARS” through
there products & services.
Quality, safety & service has been given as much
considerations as productivity, cost & delivery