COMPANY HISTORY

Company Perspectives:

Our Philosophy: We approach our responsibilities with ambition and

resourcefulness. We organize ourselves for a transparent and harmonious

flow of work. We respect sound theory and encourage creative

experimentation. And we make our workplace a source of pride. We

believe in: Transparency a commitment that the business is managed

along transparent lines. Fairness & mdashø all stakeholders in the

Company, but especially to minority shareholders. Disclosure--of all

relevant financial and non-financial information in an easily

understood manner. Supervision--of the Company's activities

by a professionally competent and independent Board of Directors.

Key Dates:

1945: Bajaj Auto is founded.

1960: Rahul Bajaj becomes the Indian licensee for Vespa scooters.

1977: Technical collaboration with Piaggio ends.

1984: Work begins on a second plant.

1998: Bajaj plans to build its third plant to meet demand.

2000: Thousands of workers are laid off to cut costs.

Company History:

1

Bajaj Auto Limited is India's largest manufacturer of scooters and

motorcycles. The company generally has lagged behind its Japanese rivals in

technology, but has invested heavily to catch up. Its strong suit is high-

volume production; it is the lowest-cost scooter maker in the world.

Although publicly owned, the company has been controlled by the Bajaj

family since its founding.

Origins

The Bajaj Group was formed in the first days of India's independence from

Britain. Its founder, Jamnalal Bajaj, had been a follower of Mahatma

Gandhi, who reportedly referred to him as a fifth son. 'Whenever I spoke of

wealthy men becoming the trustees of their wealth for the common good I

always had this merchant prince principally in mind,' said the Mahatma after

Jamnalal's death.

Jamnalal Bajaj was succeeded by his eldest son, 27-year-old Kamalnayan, in

1942. Kamalnayan, however, was preoccupied with India's struggle for

independence. After this was achieved, in 1947, Kamalnayan consolidated

and diversified the group, branching into cement, ayurvedic medicines,

electrical equipment, and appliances, as well as scooters.

The precursor to Bajaj Auto had been formed on November 29, 1945 as M/s

Bachraj Trading Ltd. It began selling imported two- and three-wheeled

2

vehicles in 1948 and obtained a manufacturing license from the government

11 years later. The next year, 1960, Bajaj Auto became a public limited

company.

Rahul Bajaj reportedly adored the famous Vespa scooters made by Piaggio

of Italy. In 1960, at the age of 22, he became the Indian licensee for the

make; Bajaj Auto began producing its first two-wheelers the next year.

Rahul Bajaj became the group's chief executive officer in 1968 after first

picking up an MBA at Harvard. He lived next to the factory in Pune, an

industrial city three hours' drive from Bombay. The company had an annual

turnover of Rs 72 million at the time. By 1970, the company had produced

100,000 vehicles. The oil crisis soon drove cars off the roads in favor of

two-wheelers, much cheaper to buy and many times more fuel-efficient.

A number of new models were introduced in the 1970s, including the three-

wheeler goods carrier and Bajaj Chetak early in the decade and the Bajaj

Super and three-wheeled, rear engine Autorickshaw in 1976 and 1977. Bajaj

Auto produced 100,000 vehicles in the 1976-77 fiscal year alone.

The technical collaboration agreement with Piaggio of Italy expired in 1977.

Afterward, Piaggio, maker of the Vespa brand of scooters, filed patent

3

infringement suits to block Bajaj scooter sales in the United States, United

Kingdom, West Germany, and Hong Kong. Bajaj's scooter exports

plummeted from Rs 133.2 million in 1980-81 to Rs 52 million ($5.4 million)

in 1981-82, although total revenues rose five percent to Rs 1.16 billion.

Pretax profits were cut in half, to Rs 63 million.

New Competition in the 1980s

Japanese and Italian scooter companies began entering the Indian market in

the early 1980s. Although some boasted superior technology and flashier

brands, Bajaj Auto had built up several advantages in the previous decades.

Its customers liked the durability of the product and the ready availability of

maintenance; the company's distributors permeated the country.

The Bajaj M-50 debuted in 1981. The new fuel-efficient, 50cc motorcycle

was immediately successful, and the company aimed to be able to make

60,000 of them a year by 1985. Capacity was the most important constraint

for the Indian motorcycle industry. Although the country's total production

rose from 262,000 vehicles in 1976 to 600,000 in 1982, companies like rival

Lohia Machines had difficulty meeting demand. Bajaj Auto's advance orders

for one of its new mini-motorcycles amounted to $57 million. Work on a

new plant at Waluj, Aurangabad commenced in January 1984.

4

The 1986-87 fiscal year saw the introduction of the Bajaj M-80 and the

Kawasaki Bajaj KB100 motorcycles. The company was making 500,000

vehicles a year at this point.

Although Rahul Bajaj credited much of his company's success with its focus

on one type of product, he did attempt to diversify into tractor-trailers. In

1987 his attempt to buy control of Ahsok Leyland failed.

The Bajaj Sunny was launched in 1990; the Kawasaki Bajaj 4S Champion

followed a year later. About this time, the Indian government was initiating

a program of market liberalization, doing away with the old 'license raj'

system, which limited the amount of investment any one company could

make in a particular industry.

A possible joint venture with Piaggio was discussed in 1993 but aborted.

Rahul Bajaj told the Financial Times that his company was too large to be

considered a potential collaborator by Japanese firms. It was hoping to

increase its exports, which then amounted to just five percent of sales. The

company began by shipping a few thousand vehicles a year to neighboring

Sri Lanka and Bangladesh, but soon was reaching markets in Europe, Latin

America, Africa, and West Asia. Its domestic market share, barely less than

50 percent, was slowly slipping.

5

By 1994, Bajaj also was contemplating high-volume, low-cost car

manufacture. Several of Bajaj's rivals were looking at this market as well,

which was being rapidly liberalized by the Indian government.

Bajaj Auto produced one million vehicles in the 1994-95 fiscal year. The

company was the world's fourth largest manufacturer of two-wheelers,

behind Japan's Honda, Suzuki, and Kawasaki. New models included the

Bajaj Classic and the Bajaj Super Excel. Bajaj also signed development

agreements with two Japanese engineering firms, Kubota and Tokyo R & D.

Bajaj's most popular models cost about Rs 20,000. 'You just can't beat a

Bajaj,' stated the company's marketing slogan.

The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw were introduced

in 1997. The next year saw the debut of the Kawasaki Bajaj Caliber, the

Spirit, and the Legend, India's first four-stroke scooter. The Caliber sold

100,000 units in its first 12 months. Bajaj was planning to build its third

plant at a cost of Rs 4 billion ($111.6 million) to produce two new models,

one to be developed in collaboration with Cagiva of Italy.

6

New Tools in the 1990s

Still, intense competition was beginning to hurt sales at home and abroad

during the calendar year 1997. Bajaj's low-tech, low-cost cycles were not

faring as well as its rivals' higher-end offerings, particularly in high-powered

motorcycles, since poorer consumers were withstanding the worst of the

recession. The company invested in its new Pune plant in order to introduce

new models more quickly. The company spent Rs 7.5 billion ($185 million)

on advanced, computer-controlled machine tools. It would need new models

to comply with the more stringent emissions standards slated for 2000. Bajaj

began installing Rs 800 catalytic converters to its two-stroke scooter models

beginning in 1999.

Although its domestic market share continued to slip, falling to 40.5 percent,

Bajaj Auto's profits increased slightly at the end of the 1997-98 fiscal year.

In fact, Rahul Bajaj was able to boast, 'My competitors are doing well, but

my net profit is still more than the next four biggest companies combined.'

Hero Honda was perhaps Bajaj's most serious local threat; in fact, in the fall

of 1998, Honda Motor of Japan announced that it was withdrawing from this

joint venture.

Bajaj Auto had quadrupled its product design staff to 500. It also acquired

technology from its foreign partners, such as Kawasaki (motorcycles),

Kubota (diesel engines), and Cagiva (scooters). 'Honda's annual spend on R

& D is more than my turnover,' noted Ruhal Bajaj. His son, Sangiv Bajaj,

was working to improve the company's supply chain management. A

marketing executive was lured from TVS Suzuki to help push the new

cycles.

7

Several new designs and a dozen upgrades of existing scooters came out in

1998 and 1999. These, and a surge in consumer confidence, propelled Bajaj

to sales records, and it began to regain market share in the fast-growing

motorcycle segment. Sales of three-wheelers fell as some states, citing

traffic and pollution concerns, limited the number of permits issued for

them.

In late 1999, Rahul Bajaj made a bid to acquire ten percent of Piaggio for

$65 million. The Italian firm had exited a relationship with entrepreneur

Deepak Singhania and was looking to reenter the Indian market, possibly

through acquisition. Piaggio itself had been mostly bought out by a German

investment bank, Deutsche Morgan Grenfell (DMG), which was looking to

sell some shares after turning the company around. Bajaj attached several

conditions to his purchase of a minority share, including a seat on the board

and an exclusive Piaggio distributorship in India.

In late 2000, Maruti Udyog emerged as another possible acquisition target.

The Indian government was planning to sell its 50 percent stake in the

automaker, a joint venture with Suzuki of Japan. Bajaj had been approached

by several foreign car manufacturers in the past, including Chrysler

(subsequently DaimlerChrysler) in the mid-1990s.

8

Employment fell from about 23,000 in 1995-96 (the year Bajaj suffered a

two-month strike at its Waluj factory) to 17,000 in 1999-2000. The company

planned to lay off another 2,000 workers in the short term and another 3,000

in the following three to four years.

Principal Subsidiaries: Bajaj Auto Finance Ltd.; Bajaj Auto Holdings Ltd.;

Bajaj Electricals Ltd.; Bajaj Hindustan Ltd.; Maharashtra Scooters Ltd.;

Mukand Ltd.

Principal Competitors: Honda Motor Co., Ltd.; Suzuki Motor Corporation;

Piaggio SpA.

9

COMPANY PROFILE

Bajaj Auto Ltd. is the largest exporter of two and three wheelers. With

Kawasaki Heavy Industries of Japan, Bajaj manufactures state-of-the-art

range of two-wheelers. The brand, Pulsar is continually dominating the

Indian motorcycle market in the premium segment. Its Discover DTSi is also

a successful bike on Indian roads.

Quick Facts

Founder Jamnalal Bajaj

Year of Establishment 1926

Industry Automotive - Two & Three Wheelers

Business Group The Bajaj Group

Listings & its codesBSE - Code: 500490; NSE - Code:

BAJAJAUTO

Presence Distribution network covers 50 countries.

Dominant presence in Sri Lanka, Bangladesh,

Columbia, Guatemala, Peru, Egypt, Iran and

Indonesia.

Joint Venture Kawasaki Heavy Industries of Japan

Registered & Head

Office

Akurdi

Pune - 411035

India

Tel.: +(91)-(20)-27472851

10

Fax: +(91)-(20)-27473398

Works Akurdi, Pune 411035

Bajaj Nagar, Waluj Aurangabad

431136

Chakan Industrial Area, Chakan,

Pune 411501

E-mail rahulbajaj@bajajauto.co.in

Website www.bajajauto.com

Segment and Brands

Products Brands

Motorcycle

s

4S 4S Champion Bajaj Avenger

Bajaj CT 100 Bajaj Discover Bajaj Platina

Bajaj PulsarBajaj Pulsar

DTSiBajaj Sonic

Bajaj Wind

125 Bajaj XCD 125 Boxer

Caliber Caliber115Kawasaki Bajaj

Eliminator

KB RTZ KB100 KB125

Scooters Bajaj Chetak Bajaj Kristal Dtsi Bajaj Wave

11

Since 1986, there is a technical tie-up of Bajaj Auto Ltd. with Kawasaki

Heavy Industries of Japan to manufacture state-of-art range of latest two-

wheelers in India. The JV has already given the Indian market the KB series,

4S and 4S Champion, Boxer, the Caliber series, and Wind125.

Kawasaki Heavy Industries is a Fortune 500 company with a turnover of

USD 10 billion (Rs. 45,840 crore). It has crafted new technologies for more

than hundred years. The technologies of KHI have redefined space systems,

aircrafts, jet engines, ships, locomotive, energy plants, automation system,

construction machinery, and of course high reliability two-wheelers.

KHI has given the world its legendary series of 600-1200cc Ninja and 1600

Vulcan bikes. Straight from its design boards, the Kawasaki Bajaj

Eliminator, India's first real cruiser bike, redefines the pleasure of "biking"

in looks as well as performance.

The group’s flagship company, Bajaj Auto, is ranked as the world’s fourth

largest two- and three- wheeler manufacturer and the Bajaj brand is well-

known in over a dozen countries in Europe, Latin America, the US and Asia.

Founded in 1926, at the height of India's movement for independence from

the British, the group has an illustrious history. The integrity, dedication,

12

resourcefulness and determination to succeed which are characteristic of the

group today, are often traced back to its birth during those days of relentless

devotion to a common cause. Jamnalal Bajaj, founder of the group, was a

close confidant and disciple of Mahatma Gandhi. In fact, Gandhiji had

adopted him as his son. This close relationship and his deep

involvement in the independence movement did not leave Jamnalal Bajaj

with much time to spend on his newly launched business venture.

His son, Kamalnayan Bajaj, then 27, took over the reins of business in

1942. He too was close to Gandhiji and it was only after

Independence in 1947, that he was able to give his full attention

to the business. Kamalnayan Bajaj not only consolidated the

group, but also diversified into various manufacturing activities.

The present Chairman of the group, Rahul Bajaj, took charge of the

business in 1965. Under his leadership, the turnover of the Bajaj Auto

the flagship company has gone up from Rs.72 million to Rs.100.76

billion (USD 2.3 billion), its product portfolio has expanded from one to

and the brand has found a global market. He is one of

India’s most distinguished business leaders and internationally

respected for his business acumen and entrepreneurial spirit.

.

13

COMPANY FLASHBACK

'Inspiring Confidence,' the tagline, has build up confidence, through

excitement engineering, not only to domestic consumers but also

internationally. Established just eight decades back in 1926 by

Jamnalal Bajaj, the company has been vested with India's largest

exporter of two and three wheelers, 196,710 units in

2004-05, a great 26 per cent jump over the previous year.

Bajaj Auto Ltd. sales have increased by approximately 21 per cent in the

year 2004-05, which exceeds Rs 65.4 billion, a record in the history of the

company. The gross operating profit stands at Rs. 9.3 billion, again a record.

The profits after tax of the BAL are close to Rs. 7.7 billion, and the pre-tax

return on operating capital is at an impressive 80 per cent.

The strength of the company is its quality products, excellence in

engineering and design, and its ability to delight the customers. The Pulsar,

introduced in November 2004, is continually dominating the premium

segment of the motorcycle market, helping to maintain the market

superiority. Discover DTSi, one more successful bike on Indian roads, is in

the 'value' segment of the motorcycle market. It incorporates a high degree

14

of power with fuel efficiency of a 100 cc motorcycle.

BAL is committed to prevention of pollution, continual improvement of

environment performance and compliance with all environmental legislation

and regulations. They always believe in providing the customer 'value for

money' and keeps an special eye upon quality, safety, productivity, cost and

delivery.

Bajaj Auto is a major Indian automobile manufacturer. It is India's largest

and the world's 4th largest two- and three-wheeler maker. It is based in

Pune, Maharashtra, with plants in Akurdi and Chakan (near Pune),Waluj

(near Aurangabad) and Pantnagar in Uttaranchal. Bajaj Auto makes and

exports motorscooters, motorcycles and the auto rickshaw.

The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946

Over the last decade, the company has successfully changed its image from a

scooter manufacturer to a two wheeler manufacturer. Its product range

encompasses Scooterettes, Scooters and Motorcycles. Its real growth in

numbers has come in the last four years after successful introduction of a

few models in the motorcycle segment.

The company is headed by Rahul Bajaj who is worth more than US$1.5

billion

15

OBJECTIVES

THE MAIN OBJECTIVE TO STUDY THIS PROJECT IS TO KNOW

ABOUT THE DIFFERENT STRATEGIES OF BAJAJ LTD. THE

MAIN OBJECTIVES IN THE MIND:

o TO STUDY COMPANY PROFILE

o TO STUDY THE PRODUCTS OFFERED

o TO STUDY THE FINANCIAL POSITION OF BAJAJ

AUTOMOBILES

o TO STUDY THE DIFFERENT POLICIES

o TO STUDY THE PRICE RANGE OF DIFFERENT

PRODUCTS OF DIFFERENT COMPANIES.

16

RESEARCH METHODOLOGY

Research methodology defines what the activity of research is, how to

proceed, how to measure progress, and what constitutes success. AI

methodology is a jumbled mess. Different methodologies define distinct

schools which wage religious wars against each other.

Methods are tools. Use them; don't let them use you. Don't fall for slogans

that raise one above the others: ``AI research needs to be put on firm

foundations;'' ``Philosophers just talk. AI is about hacking;'' ``You have to

know what's computed before you ask how.'' To succeed at AI, you have to

be good at technical methods and you have to be suspicious of them. For

instance, you should be able to prove theorems and you should harbor

doubts about whether theorems prove anything.

Most good pieces of AI delicately balance several methodologies. For

example, you must walk a fine line between too much theory, possibly

irrelevant to any real problem, and voluminous implementation, which can

represent an incoherent munging of ad-hoc solutions. You are constantly

faced with research decisions that divide along a boundary between ``neat''

and ``scruffy.'' Should you take the time to formalize this problem to some

extent (so that, for example, you can prove its intractability), or should you

deal with it in its raw form, which ill-defined but closer to reality? Taking

17

the former approach leads (when successful) to a clear, certain result that

will usually be either boring or at least will not Address the Issues; the latter

approach runs the risk of turning into a bunch of hacks. Any one piece of

work, and any one person, should aim for a judicious balance, formalizing

subproblems that seem to cry for it while keeping honest to the Big Picture.

Some work is like science. You look at how people learn arithmetic, how the

brain works, how kangaroos hop, and try to figure it out and make a testable

theory. Some work is like engineering: you try to build a better problem

solver or shape-from algorithm. Some work is like mathematics: you play

with formalisms, try to understand their properties, hone them, prove things

about them. Some work is example-driven, trying to explain specific

phenomena. The best work combines all these and more.

Methodologies are social. Read how other people attacked similar problems,

and talk to people about how they proceeded in specific cases. Research

Methodology can be done by two methods

1. Primary Data

2. Secondary Data

18

DATA COLLECTION

Products

19

Two-wheelers

Ungeared - 100 cc

Motorcycles - 100 to 200 cc

Three-wheelers (both passenger and goods carriers)

175 cc Petrol / CNG / LPG Four Stroke

150 cc Petrol / CNG / LPG Two Stroke

416 cc Diesel

Bikes

20

21

22

Scooters

Three wheelers

1. Goods carriers

2. Passenger Carriers

23

24

25

Policies

26

27

Group Companies

28

Bajaj Auto is the flagship of the Bajaj group of companies. The group

comprises of 35 companies and was founded in the year 1926. The

companies in the group are:

Bajaj Auto Ltd. Mukand International Ltd.

Mukand Ltd. Mukand Engineers Ltd.

Bajaj Electricals Ltd. Mukand Global Finance Ltd.

Bajaj Hindustan Ltd. Bachhraj Factories Pvt. Ltd.

Maharashtra Scooters Ltd. Bajaj Consumer Care Ltd.

Bajaj Auto Finance Ltd. Bajaj Auto Holdings Ltd.

Hercules Hoists Ltd. Jamnalal Sons Pvt. Ltd.

Bajaj Sevashram Pvt Ltd. Bachhraj & Company Pvt. Ltd.

Hind Lamps Ltd. Jeevan Ltd.

Bajaj Ventures Ltd. The Hindustan Housing Co Ltd.

Bajaj International Pvt Ltd. Baroda Industries Pvt Ltd.

Hind Musafir Agency Pvt Ltd. Stainless India Ltd.

Bajaj Allianz General Insurance

Company Ltd.Bombay Forgings Ltd.

Bajaj Allianz Life Insurance

Company Ltd.

Bajaj Holdings & Investment

Limited

29

Bajaj Finserv Limited Bajaj Financial Solutions Limited

Bajaj Financial Solutions Ltd.Bajaj Allianz Financial

Distributors Ltd.

Sanraj Nayan Investments Pvt.

Ltd.P T Bajaj Auto Indonesia (PTBAI)

Bajaj Auto International Holdings

BV, Netherlands (BAIBHV).-

SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

        (Rs. In Lakhs)

 

QUARTER

ENDED

30.09.2008

(Unaudited)

QUARTER

ENDED

30.09.2007

(Unaudited)

HALF YEAR

ENDED

30.09.2008

(Unaudited)

HALF YEAR

ENDED

30.09.2007

(Unaudited)

YEAR

ENDED

31.03.2008

(Audited)

Segment

Revenue

         

Automotive 254843 236182 485919 447047 904617

Investment 2210 2595 5088 5928 12267

30

Total 257073 238777 491007 452975 916884

 

Segment

Profit/(Loss)

before Tax and

Interest

         

Automotive 24968 33351 48293 57425 101722

Investment 2210 2595 5088 5928 12267

Total 27178 35946 53381 63353 113989

Less: Interest 587 136 679 142 516

Total Profit

Before Tax

26591 35810 52702 63211 113473

 

Capital

Employed

         

Automotive 140014 148759 140014 148759 136867

Investment 171039 164960 171039 164960 190020

Unallocable (2842) (4965) (2842) (4965) (33596)

Total 308211 308754 308211 308754 293291

 

31

Sales in number for the year 2008

1st October 2008

ProductFor September

2008

Upto September

2008

For September

2007

Upto September

2007

Motorcycles 217,365 1,120,108 204,152 1,025,558

Other 2 Wheelers 1,129 6,965 2,056 13,909

Total 2 Wheelers 218,494 1,127,073 206,208 1,039,467

Three Wheelers 26,887 133,062 26,288 146,217

Grand Total 245,381 1,260,135 232,496 1,185,684

Product 2006-07 2007-08 Growth

32

Sales in numbers for the month of October 2008

1st November 2008

ProductFor October

2008

Upto October

2008

For October

2007

Upto October

2007

Motorcycles 163,850 1,283,958 248,307 1,273,865

Other 2

Wheelers1,627 8,592 1,868 15,777

Total 2

Wheelers165,477 1,292,550 250,175 1,289,642

Three Wheelers 26,363 159,425 28,001 174,218

Grand Total 191,840 1,451,975 278,176 1,463,860

33

S.W.O.T ANALYSIS OF BAJAJ

SWOT Analysis is a tool used for understanding an organization's strengths,

weaknesses, opportunities and threats.

The SWOT Analysis tool can be used in identifying an organization's

strengths (S) and weaknesses (W), and  examining the opportunities (O) and

threats (T) it is facing. The outcome from a SWOT Analysis enables

organizations to focus on strengths, minimize weaknesses, address threats,

and take the greatest possible advantage of opportunities available.

Strengths:

Our members value the professional designation.

We have a lower course fee structure than similar programs.

We provide good customer service.

Our instructors are highly-regarded in the profession.

We have a small staff and low overhead.

34

Weaknesses:

We are slow to make decisions and adapt to changes that affect the

profession.

The professional designation is rarely included as a condition of

employment.

We are overly dependent on key volunteers who developed and teach our

certification courses.

We do not have the resources to research the market and promote the

designation.

Opportunities:

Our business sector is expanding, with many future opportunities for

success

Our local council wants to encourage local businesses with work where

possible

Our competitors may be slow to adopt new technologies

Threats:

Will developments in technology change this market beyond our ability

to adapt?

A small change in focus of a large competitor might wipe out any market

position we achieve

35

INFRASTRUCTURE OF BAJAJ

 

Plants

Bajaj Auto's three plants at Akurdi, Waluj and Chakan in Maharashtra and one plant at pant

Nagar in Uttranchal, western India, produced 1,814,799 vehicles in 2004-05.

Akurdi Geared scooters, ungeared scooters, CT100 and Discover

Waluj Bajaj - Kawasaki range of motorcycles and three-wheelers

Chakan Bajaj motorcycles - Pulsar and Discover

Pant

NagarBajaj motorcycles – Platina

Plant Locations

Bajaj Auto plants are located at:

Mumbai - Pune Road, Akurdi, Pune 411 035

Bajaj Nagar, Waluj, Aurangabad 431 136

MIDC, Plot No A1, Mahalunge Village, Chakan 410 501 Dist. Pune

Plot No. 2, Sectoe 10 Phase -II - E, Pant Nagar, Sidcul, Rudrapur Dist.

Udhamsingh Nagar Uttranchal

 

36

MANAGEMENT PROFILE

Rahul Bajaj Chairman

Madhur Bajaj Vice Chairman

Rajiv Bajaj Managing Director

Sanjiv Bajaj Executive Director

Abraham Joseph Vice President (Research & Development)

Pradeep Shrivastava President (Engineering)

S Sridhar CEO (2WH)

R C Maheshwari CEO (Commercial Vehicles)

Rakesh Sharma CEO (International Business)

C P Tripathi Vice President (Corporate)

N H Hingorani Vice President (Commercial)

Kevin P D'sa Vice President (Finance)

S Ravikumar Vice President (Business Development)

K Srinivas Vice President (Human Resources)

J. Sridhar Company Secretary

HR BAJAJ

37

Recruitment Policy

Bajaj Auto is an equal opportunity employer. Selection is based strictly on

individual merit.

A large number of our recruits are fresh engineers and MBAs. Natural

attrition is usually taken care of by promotions and horizontal movements

within the organisation to provide career opportunities for our employees.

Occasionally, specific skill-sets may warrant lateral recruitment.

Entry level Recruitment

Engineers: We recruit Engineering Graduates from reputed institutes from

all over India. Bajaj Auto enjoys an excellent reputation with all National

Institutes of Technology (NITs) and is among the preferred employers for

on-campus recruitment. The selection process comprises a written test in

technical, analytical and logical reasoning, group discussion and personal

interview.

Management Graduates: We recruit management graduates from reputed

management institutes all over India. The selection procedure comprises a

written test in analytical and logical reasoning, group discussion and

personal interview.

All entry-level selections are made through on-campus recruitment only.

After recruitment, new entrants undergo a thorough induction-training

programme before their placement in the company. Departments are

38

allocated on the basis of the individual recruit’s aptitude and our

requirements. Usually, after completing two years of service they are

provided opportunities for job-rotation.

Work Culture

Our work culture supports and enhances our brand. The Bajaj brand signifies

excitement. Bajaj strives to inspire confidence through excitement

engineering. The culture is built on core values of learning, innovation,

perfection, speed and transparency. Facilitative leadership style helps in

developing leaders at all levels and establishes accountability.

Our Brand Values

We live our brand by its values of Innovation, Perfection, and Speed.

Bajaj will be distinctly ahead through excitement engineering.

Innovation is how we create the future. It is a value that provokes us to reach

beyond the obvious in pursuit of that which exceeds the ordinary.

Perfection

It is how we set new standards. It is a value that exhibits our determination

to excel by endeavouring to establish new benchmarks all the time.

39

Speed

Speed is how we convey clear conviction. It is a value that keeps us

sharply responsive, mirroring our commitment towards our goals and

processes.

Competency Building

Bajaj Auto has a very flat organisation structure with three management

levels. Each level represents a specific role and hence needs relevant

competencies. Competency building at Bajaj Auto is a combination of

development for current and future roles.

We cater to these needs by using interventions like development centres,

need-based training and job-rotation plans. We use different methods of

imparting training like lectures, group-discussions, role-plays, seminars,

outbound training, assignments and on-the-job tasks.

Compensation Philosophy

We strive to be amongst the top quartile in our compensation structure.

Competence and performance are the key drivers of our compensation

policy. A significant part of the compensation is in the form of variable pay

linked to the individual’s and the organisation’s performance.

FINDINGS

Highlights for 2007-08: Bajaj Auto stand-alone

• Net sales (net of excise duty) decreased by 6.8% to Rs.86.63 billion.

40

• Exports increased by 20.8% to Rs.20.48 billion.

• Motorcycle sales by volume was 2.14 million in 2007-08—a fall of 10%

over the previous year, versus overall market decline.

Motorcycles: Domestic

The two-wheeler market is dominated by motorcycles, accounting for over

81% of overall sales. Bajaj Auto, too, focuses on motorcycles

in the two-wheeler segment. As shown in Chart A, in 2007-08, the

industry’s overall sales of Twowheelers declined by 4.8% to 8.07 million

units. Motorcycles sales fell by 7.8% from 7.1 million units to 6.54 million

units.

With industry as a whole witnessing a fall in motorcycle sales, so too did

Bajaj Auto. Table 1 gives the data. The table also shows that while

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overall motorcycle sales fell by 7.8% in 2007-08 over the previous year,

Bajaj Auto’s sales declined further. In 2007-08, the Company sold 2.14

million motorcycles — which was 10.1% less than what

it sold in 2006-07. Consequently, Bajaj Auto’s share in the market fell by

0.8 percentage points, from 33.5% in 2006-07 to 32.7% in 2007-08.

The somewhat greater fall of the Company’s motorcycle sales vis-à-vis the

industry needs explaining.

SUGGESTIONS

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The company should concentrate more on sales and marketing

department so that more and more products can be sold out.

Advertisements should be the best method to advertise the products

and popular among the public.

Cheaper products (Motorcycles) should be introduced by the

company so that it can reach the middle class public.

Transparency should be made in between the product details and the

original product sold to the customers.

Company –customer ratio should be maintained.

Company should add more features in their products.

Company should launch bikes with less cost & best average.

Company should do modifications in their products

Basicallyin two wheelers.

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Company should increase its production .

Company should sell its products comparatively at a low price.

Company should improve its after sales services.

Company should offer more products to the customer in

Comparatively less time.

CONCLUSION

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Bajaj auto is a major Indian Automobile manufacturer. It is India's largest

and the world's 4th largest two- and three-wheeler maker. With kawasaki

heavy industries of japan, bajaj manufactures state-of-the-art range of two-

wheelers. The brand, pulsar is continually dominating the indian motorcycle

market in the premium segment. Its discover dtsi is also a successful bike on

indian roads.

BAL is committed to prevention of pollution, continual improvement of

environment performance and compliance with all environmental legislation

and regulations. They always believe in providing the customer 'value for

money' and keeps an special eye upon quality, safety, productivity, cost and

delivery. It incorporates a high degree of power with fuel efficiency of a 100

cc motorcycle.

In this project primary data is being used. The questionnaire is being filled

up by 25 persons & according to them bajaj is a good automobile industry &

should add more features in their products & increase their production so

that the company can satisfy their needs successfully.

So it is concluded that bajaj auto is a good automobile industry but should

do more to satisfy the wants of customers.

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The Bajaj Group is amongst the top 10 business houses

in India. Its footprint stretches over a wide range of industries,

spanning automobiles (two-wheelers and three-wheelers), home

appliances, lighting, iron and steel, insurance, travel and finance.

BIBLIOGRAPHY

Books:-

Marketing Management – By Philip Kotler

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Marketing Management- By C.B.Gupta

Magazines:-

Auto magazine

Over drive magazine

Business today

Websites:-

www.bajajauto.com

www.google.com

www.msn.com

Newspapers:-

Times of India

The Indian Express

ANNEXURE

Questionnaire

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Please put tick mark in the brackets or put number where ever is

necessary.

Name…………………………………………………….

Address ………………………………………………….

………………………………………………….

Age ………………………………….

Gender: Male ( ) Female( )

Total number of members in the family……………

No. of male members

………………………………………………………

How many members in your family have vehicles?

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………………………………………………………..

Monthly family income?

Below 50000 ( ) 50000-2 lakh ( )

lakh – 4 lakh ( ) Above 4 lakh ( )

1. Which bajaj vehicle do you prefer?

Two Wheeler ( ) Three Wheeler ( )

2. Which of our two wheeler vehicle do you like the most?

…………………………………………………………

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3. Which of our three wheeler vehicle do you like the most?

…………………………………………………………….

4. Do you like our vehicles

i Because there price is low ( )

ii Because you have a liking for them ( )

5. Do you feel that our vehicles cost too much?

Yes ( ) No ( )

6. Do you feel that we provide better services?

Yes ( ) No ( )

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7. Do you think that we satisfy your needs successfully?

Yes ( ) No ( )

8. Are you satisfy with the average in the vehicles?

Yes ( ) No ( )

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