lessons in excellence case
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bajaj autos market share
all segments 38.9 40.5 44.5 46.0 48.6 49.3 49.0 47.9 45.3 43.8 39.9 36.9
scooter 64.8 64.5 69.1 70.45 71.71 74.87 75.86 76.33 71.90 73.03 73.00 73.00
moter-cycles 26.9 27.8 31.1 29.47 30.53 28.38 28.99 26.94 26.23 21.15 21.00 20.50
moped 6.4 7.1 9.4 11.06 14.13 14.93 14.74 8.47 0.51 0.00 0.00 0.00
3-wheelers 83.6 82.1 84.4 87.12 94.12 96.29 91.28 87.24 88.73 88.86 89.00 87.00
source: AIAM, company annual reports
FY 97 FY 96 FY 95 FY 94 FY 93 FY 92 FY 91 FY 90 FY 89 FY 88FY 99 FY 98
leading 2- and 3- wheeler companies in India - FY 98
bajaj auto 1,333,798 35,132 4,626
escorts 191,868 12,830* 1,298*
hero honda 407,546 11,607 766
tvs suzuki 576,392 10,399 688
lml 308,456 7,538 203
kinetic honda 113,762 3,582 22
source: company reports, AIAM *combined balance sheet
sales - volume sales - RsMn PAT - RsMn
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r&d expenditure of major Indian 2-wheeler companies FY98
bajaj auto 241.3 0.9
tvs suzuki 154.5 1.5
hero honda 32.8 0.3
kinetic honda 32.8 0.3
source: company reports
% of Net sales
bajaj autos sales FY98
scooters 776,676 64.5
motorcycles 313,068 27.8
mopeds 51,938 7.1
3-wheelers 192,116 82.1
total 1,333,798 40.5
source: Bajaj Auto
units % of industry total
RsMn
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net profit margin FY98
13.4% 12.7% 10.1% 6.6% 2.7% 0.6%
net profit margin = net profit as % to salessource: business today, 7 september, 1998
EscortsHero Honda TVS Suzuki LML Kinetic HondaBajaj Auto
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dealer and servicing network of 2-wheeler manufacturers
Bajaj Auto 380 1,200
TVS Suzuki 300 500
LML 380 820
Hero Honda 350 160
source: Merrill Lynch
dealers service centres
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annual motorcycles growth rates (%)
-9 -12 24 39 24 21 16.5 24.7 25
source: DBS securities, Bajaj Auto
FY 92 FY 93 FY 94 FY 95 FY 96 FY 97 FY 98 FY 99 FY 2000E
Indian demand growth rate 2000E
projected 8% 25% 13% 25%
source: industry forecasts
motorcyclesscooter mopeds/scooterettes 3-wheelerssegment
annual scooter growth rates (%)
-15.4 -8.1 17 24 15.3 4.6 -4.5 3.3 8
source: Bajaj Auto
FY 92 FY 93 FY 94 FY 95 FY 96 FY 97 FY 98 FY 99 FY 2000E
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expected capacity expansion to 2000
FY 98 FY 00 FY 98 FY 00 FY 98 FY 00 FY 98 FY 00
Bajaj 135,000 135,000 1,050,000 1,320,000 525,000 840,000 225,000 270,000
TVS 300,000 300,000 80,000 260,000 240,000 400,000 - -
Hero Honda 500,000 700,000 - - - - - -
Kinetic Honda - - 175,000 175,000 - - - -
Escorts Yamaha 12,000 12,000 - - 210,000 450,000 - -
LML - - 400,000 600,000 - ?? - -
Kinetic Engineering 150,000 150,000 12,000 12,000 - ?? - -
Hero Motors 150,000 150,000 - - - - - -
Enfield - - - - 25,000 25,000 - -
Greaves - - - - - - ?? ??
figures in units ?? = unknownsource: industry estimates
mopeds/scooterettes scooters motorcycles 3-wheelers
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BACK
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income 39072 35041 34541 29320 22871
gross profit after interest but before depreciation and tax 8912 8327 7949 6688 5074
net profit 5528 4626 4400 4168 3096
net fixed assets 9218 6829 6039 5597 3346
gross fixed assets 18023 15725 13603 12183 9220
borrowed funds 3497 2582 2139 2051 2007
shareholders funds 27017 21182 17607 14083 10710
exports 1584 1408 1582 1895 1302
employee cost 2309 2198 1986 1727 1279
employee nos 18585 18589 21273 22891 19400
equity share data
sales per share (Rs) 327 293* 434 368 297~#
earnings per share (Rs) 46 39* 55 52 40~#
book value per share (Rs) 226 177* 221 177 135~
market price on BSE
high (Rs) 690 969 1121 876 1475
low (Rs) 483 474* 661 602 590~
dividend (%) 80 80* 100 100 80*
ratio
gross profit/sales (%) 22.81 23.77 23.01 22.81 22.18
net profit/net worth (%) 20.46 21.84 24.99 29.60 28.90
net worth/total assets (%) 59 58 59 57 57long term debt net worth (times) 0.11 0.11 0.11 0.12 0.14
(Rs million)* after 1:2 bonus issue ~ after 1:1 bonus issue and GDR issue # after GDR issuesource: Bajaj Auto Ltd Annual Report 1998-99
FY 99 FY 98 FY 97 FY 96 FY 95
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