Company Profile

Presentation

Presentation OverviewCOMPANY 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

Company History

Bajaj History 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.

Human Resource

Management

Human Resource Concern 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.

Organisation Structure

Chairman & MD: Rahul Bajaj

Vice Chairman:Madhur Bajaj

Executive Director:

Sanjiv BajajTop: Rahul Bajaj

Left: Madhur Bajaj, Right: Sanjiv Bajaj

PRODUCTION & QUALITY CONTROLCASTING & 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

painting

Engine ass.

Chassis forming

Weld/buff chassis forming

Wheel assembly

Dispatch for sale

Ht. Trt. & Grd.

Bought out

comp.

Quality test.

PRODUCTS

Timeline of new releases

1971 - Three-wheeler goods carrier

1972 - Bajaj Chetak

1976 - Bajaj Super

1977 - Rear engine Autorickshaw

1981 - Bajaj M-50

1986 - Bajaj M-80, Kawasaki Bajaj KB100

1990 - Bajaj Sunny

1991 - Kawasaki Bajaj 4S Champion

1994 - Bajaj Classic

1995 - Bajaj Super Excel

Timeline of new releases 1997 - Kawasaki Bajaj Boxer, Rear Engine

Diesel Autorickshaw 1998 - Bajaj Caliber, Bajaj Legend, India's first

four-stroke scooter, Bajaj Spirit 2001 - Eliminator, Bajaj Pulsar 2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar 2004 - Bajaj CT 100, New Bajaj Chetak 4-

stroke, Bajaj Discover 2005 - Bajaj Wave, Bajaj Avenger 2006 - Bajaj Platina 2007 - Bajaj Pulsar-200(Oil Cooled), Bajaj

Kristal,Bajaj Pulsar 220 DTS-Fi, XCD 125 DTS-Si (Pronounced Exceed 125 DTS-Si)

QUALITY CONTROL

Trust builds qualityQuality builds

satisfaction.Satisfaction builds

relationships

Relationships builds trust We believe in….. A Tradition of

Trust

Research & Development

Research & Development 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.

Eco Spirit

Eco Spirit

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.

Environmental Policy

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.

Marketing Strategies 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.

Marketing StrategiesBAL 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

Marketing Strategies 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.

Marketing Strategies

Marketing Strategies

Sales

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

SalesParticulars April ~ August

2008April ~ August

2007Change %

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

Marketing Strategies

FINANCIAL OVERVIEW

Volatility

Profit loss account

(Rs

crore)

  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

Profit & loss account

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

Bodies1043786 2.85 1017253 2.78 1109860 3.03

NRI's/OCB's/Foreign Others

3248015 8.88 3264705 8.92 3250514 8.88

Direcctors/Employees

- - 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

Share holding

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

Dividend

Corporate Governance 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

Corporate Governance 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

SWOT AnalysisStrengthS 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)

SWOT AnalysisOPPURTUNITIES 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.  

FUTURE GOALS

FUTURE GOALS 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’.

Local Community Development

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

Local Community Development 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

RECOGNITIONS 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

Conclusion 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

BIBLIOGRAPHY

www.bajajauto.com

www.google.com

www.moneycontrol.com

www.wikipedia.com

Questions & Answers session

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