Principals of Management-Project

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Sunil Jaiswal - 9819212154Masters in Marketing Management

•About Auto Industry

•Bajaj Auto Ltd

•History of Bajaj

•Sales/Income Statistics

•Achievements & Awards

Overview•Management

•Structure•Vision, Mission, Values & Goal

•Management Policy & Belief

•Corporate Social Responsibility

•SWOT Analysis

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Indian Auto Industry – at a Glace

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Automobile Industry in IndiaTwo wheelers

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Indian Domestic Industry (Dom+Export)

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Two Wheelers Manufacturers - Growth Factors

• The Gross Domestic Product has grown to 8%

• The average family income has increased

• The finance have become easier to access

• The reduction in taxes and duties

• Introduction of international standards in India

• The economic and fuel-efficient engines

• The teenager and the youth using more and more motorcycles

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Key Players in Market

• Hero Honda Motors India Limited• Bajaj Auto Ltd. (BAL)• TVS Motor Company• Honda Motorcycle Scooter India (P) Ltd.• Yamaha Motors India Pvt. Ltd.• Suzuki Motor Corporation• LML (India) Limited• Royal Enfield Motors India Limited

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Conclusion

Market Share

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Bajaj Auto – at a Glace

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Bajaj Auto – at a Glance

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BAJAJ AUTO

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• Founded in 1926• Bajaj Auto came into existence on November 29,1945 as M/s

Bachraj Trading Corporation Private Limited.

• It started off by selling imported two- and three-wheelers in India.

• In1959, it obtained license from the Government of India to manufacture two- and three-wheelers and it went public as Bajaj Auto Ltd (BAL) in1960.

• It started producing at Waluj in Aurangabad. In1986, it managed to produce and sell 500,000 vehicles in a single financial year.

• In1995, it rolled out its ten millionth vehicle and produced and sold 1 million vehicles in a year.

History

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• Bajaj has made a number of motorcycles, scooters and cars. Motorcycles in current production are the

▫XCD▫Platina▫Discover ▫Pulsar▫Avenger & ▫Ninja

• Cars include the Bajaj ULC ultra-low-cost car.

History

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• With the demerger of Bajaj Auto Ltd, following separate corporate entities came into existence in May’ 2008

▫ Bajaj Finserv Ltd (BFL),

▫ Bajaj Auto Ltd (BAL), and

▫ Bajaj Holdings and Investment Ltd (BHIL)

Demerger of Bajaj Auto Ltd.

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• Bajaj is present in over 50 countries all over the globe

• Dominant presence in Africa, Latin America and South Asia with increasing market share every year

• Market leader in motorcycles in Colombia, Central America, Sri Lanka, Bangladesh, Philippines, Nigeria, Uganda and Kenya

• 891,002 units exported in 2009-10, an increase of over 15 % over the previous year

• Largest exporter of three wheeled commercial vehicles in the world: 164,887 units exported in 2009-10, a rise of 19% over 2008-09

Bajaj Global

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Bajaj Global17

Bajaj Auto – Product Segmentations

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Bajaj Auto – Product Segmentations

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Bajaj Auto – Two Wheelers

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Two Wheeler Products

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Product Demonstration- Pulsar

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Product Demonstration- Discover & Platina

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Avenger 220 DTS-i

Product Demonstration- Avenger & Ninja

Ninja 250R

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Bajaj Auto - Commercial Vehicles

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Commercial Products

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Goods Carriers

Passenger Carriers

GC Max Diesel

GC Max CNG

RE600

RE 2S

Mega Max

RE 2S CNG

etc

etc

Product Demonstration- Commercial Vehicles

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Bajaj Auto – Low Cost Cars

•Launching Soon…

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•Launching Soon…

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The Company lives its brand by its values of Learning, Innovation, Perfection, Speed and Transparency. Bajaj will constantly inspire confidence through excitement engineering.

Learning : Learning is how we ensure proactivity.

Innovation : Innovation is how we create the future.

Perfection : Perfection is how we set new standards.

Speed: Speed is how we convey clear conviction

Transparency : Transparency is how we characterise ourselves

Brand Value

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USP of Bajaj Brands•Style •Technology•Pricing Strategy

Focus Values:•Innovation•Speed•Perfection

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Sales in Units

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Financial Results ( Rs. In crores ) 34

Performance by Major Companies

Two Wheeler

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Performance by Major Companies

Two Wheeler

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Performance by Major Companies

Two Wheeler

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Achievements1945

Bajaj Auto comes into existence as M/s Bachraj Trading Corporation Private Limited.

1948 Sales in India commence by importing two- and three-wheelers.

1959Bajaj Auto obtains licence from the Government of India to manufacture two- and three-wheelers.

1960 Bajaj Auto becomes a public limited company. Bhoomi Poojan of Akurdi Plant.

1970 Bajaj Auto rolls out its 100,000th vehicle.

1971 The three-wheeler goods carrier is introduced.

1972 The Bajaj Chetak is introduced.

1975 BAL & Maharashtra Scooters Ltd. joint venture

1976 The Bajaj Super is introduced

1977The Rear Engine Autorickshaw is introduced. Bajaj Auto achieves production and sales of 100,000 vehicles in a single financial year.

1981 The Bajaj M-50 is introduced.

1984 Foundation stone laid for the new Plant at Waluj, Aurangabad.

1985The Waluj plant inaugurated by the erstwhile President of India, Shri Giani Zail Singh. Production commences at Waluj, Aurangabad in a record time of 16 months.

1986The Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles are introduced. 500,000 vehicles produced and sold in a single financial year.

1990 The Bajaj Sunny is introduced.

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Achievements1991 The Kawasaki Bajaj 4S Champion is introduced. 1994 The Bajaj Classic is introduced.

1995

Bajaj Auto is 50. Agreements signed with Kubota of Japan for the development of diesel engines for three-wheelers and with Tokyo R&D for ungeared Scooter and moped development. The Bajaj Super Excel is introduced while Bajaj celebrates its ten millionth vehicle. One million vehicles were produced and sold in this financial year.

1997 The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw are introduced. 1998 Production commences at Chakan plant.

June Kawasaki Bajaj Caliber rolls out of Waluj.

July Legend, India's first four-stroke scooter rolls out of Akurdi.October Spirit launched. 1999 Caliber motorcycle notches up 100,000 sales in record time of 12 months. 2000 The Bajaj Saffire is introduced. 2001November Bajaj Auto launches its latest offering in the premium bike segment 'Pulsar'.January The Eliminator is launched. 2003October Bajaj Pulsar DTS-i is launched.October 107,115 Motorcycles sold in a month.July Bajaj Wind 125,The World Bike, is launched in India.

February Bajaj Auto launched its Caliber115 "Hoodibabaa!" in the executive motorcycle segment.

2004October Bajaj Discover DTS-i launchedAugust New Bajaj Chetak 4 stroke with Wonder Gear launchedMay Bajaj CT100 LaunchedJanuary Bajaj unveils new brand identity, dons new symbol, logo and brandline

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Achievements2005December Bajaj Discover launchedJune Bajaj Avenger DTS-i launchedFebruary Bajaj Wave DTS-i launched 2006April Bajaj Platina launched 2007December RE GDi autorickshaw launchedSeptemberBajaj XCD 125 DTS-Si launchedAugust DTS-Si engine launchedJuly Revamping of Organisational structureJune Bajaj Pulsar 220 DTS-Fi launchedApril New Bajaj Auto Plant at Pantnagar, UttarakhandFebruary 200 cc Pulsar DTS-i launchedJanuary Bajaj Kristal DTS-i launched 2008SeptemberBajaj Platina 125 DTS-Si launchedAugust Bajaj XCD 125 DTS-Si is largest selling 125cc motorcycleJuly Bajaj Discover 135 DTS-i Upgrade Launched.June Bajaj Pulsar 220 bags IMOTY award 2009April Bajaj Pulsar 150 & 180 upgrade launchedJanuary Bajaj XCD 135 DTS-Si launched

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Achievements• Discover 100 crosses 8 Lakh Bikes sold in just 1 year!

• Bajaj Auto gets Chinese patent for ExhausTec technology

• Kawasaki Ninja 250 R wins the coveted Indian Motorcycle of the Year (IMOTY) for 2009

• Pulsar 135LS crowned as 2009 ET-ZigWheels Bike of the year.

• Bajaj Auto launches much awaited Kawasaki Ninja 250R − Best 250cc motorcycle in the world

• A Quarter of Records for Bajaj Auto − highest ever turnover of 2909 crore, highest ever exports of 224334 vehicles and highest ever net profit of 403 crore.

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Awards & Recognitions

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Awards & RecognitionsProduct Award Award Body

Ninja Bike of the Year IMOTY

Pulsar 135LS Bike of the Year ET NOW - ZigWheels

Discover DTS-Si 100cc Bike of the Year ET NOW - ZigWheels

Pulsar 135LS 150cc Bike of the Year ET NOW - ZigWheels

Ninja 250cc Bike of the Year ET NOW - ZigWheels

Pulsar 135LS 4-V Technology of the Year ET NOW - ZigWheels

Discover DTS-Si Most Value for Money-Bike of the Year ET NOW - ZigWheels

Ninja Motorcycle of the Year - Bike upto 250 cc NDTV Profit - Car & Bike

Bajaj Discover DTS-Si

Motorcycle of the Year - Bike upto 125 cc NDTV Profit - Car & Bike

Ninja Two Wheeler of the Year NDTV Profit - Car & Bike

Bajaj Discover And Pulsar

Best Integrated Campaign - Two wheelers NDTV Profit - Car & Bike

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Management

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Conclusion

Management

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Mission, Vision, Objective & Goal

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Key Policies – April 2010

• BAL will continuously specialize in Motorcycle and commercial vehicle though its strategy of differentiations

• TO “Defend” its brands, BAL will continuously improve its core competencies in all its functions, as also across its supply chain, including its suppliers and dealers.

• BAL’s core competencies rest on its values of innovations, Perfections & supply.

• BAL has adopted TPM, The Prime Mover towards excellence, to build and to continuously improve its core competencies.

• TPM shall provide a holistic, structured and quantifiable methodology for deeper and wider continuous improvements in an integrated way aligned to BAL’s business vision.

• TPM ensures that individually and collectively, every employee of BAL and its business partners strive to keep BAL Distinctly Ahead.

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Bajaj Image

• 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.

• 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.

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Bajaj Image

• Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia.

• The integrity, dedication, resourcefulness and determination to succeed are the characteristic of the group today

• 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 INR.72 million to INR. 120 billion, its product portfolio has expanded and the brand has found a global market.

•  • Rahul Bajaj is one of India’s most distinguished business leaders and

internationally respected for his business acumen and entrepreneurial spirit.

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Corporate Social Responsibility (CSR)

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• Education ▫ Shiksha Mandal, Wardha▫ Jamnalal Bajaj Institute of Management Studies etc

• Health▫ Kamalnayan Bajaj Hospital – Aurangabad▫ Bajaj - YCM Hospital A.R.T. Centre for HIV/Aids – Pimpri▫ Jankidevi Bajaj Gram Vikas Sanstha etc

• Women Empowerment▫ Jankidevi Bajaj Gram Vikas Sanstha▫ IIMC Ladies' Wing Jankidevi Bajaj Puraskar for Rural

Entrepreneurship

Corporate Social Responsibility (CSR)

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Self Reliance Jamnalal Bajaj Seva Trust Institute of Gandhian Studies IMC Ramkrishna Bajaj National Quality Award Jankidevi Bajaj Gram Vikas Sanstha

Rural Development Distribution of solar-lantern & solar cookers Installation of bio-gas plants Deepening and widening of wells and drinking water scheme

Environment & Natural Resources Water conservation projects for improving agricultural productivity Construction of latrines Family size biogas plants

Corporate Social Responsibility (CSR)

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SWOT Analysis

Strengths:

• Highly experienced management• Product design and development capabilities• Extensive R & D focus• Widespread distribution network• High performance products across all categories• High export to domestic sales ratio• Great financial support network (For financing the

automobile)• High economies of scale • High economies of scope

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SWOT Analysis

Weaknesses:

• Hasn't employed the excess cash for long.

• Still has to establish a 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)

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SWOT AnalysisOpportunities:

• Double-digit growth in two-wheeler market.

• Untapped market above 180 cc in motorcycles.

• More maturity and movement towards higher-end motorcycles.

• The growing gearless trendy scooters and scoottee market.

• Growing world demand for entry-level motorcycles especially in emerging markets.

• It is also proposing to launch motorcycles from Austrian bike maker KTM, in which Bajaj Auto has over 25 per cent stake.

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SWOT AnalysisThreats:

• 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.

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SWOT Analysis

Strengths:• Highly experienced management• Product design and development capabilities• Extensive R & D focus• Widespread distribution network• High performance products across all categories• High export to domestic sales ratio• Great financial support network (For financing the

automobile)• High economies of scale• High economies of scope

Weaknesses:

• Hasn't employed the excess cash for long.

• Still has to establish a 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)

Opportunities:

• Double-digit growth in two-wheeler market.

•Untapped market above 180 cc in motorcycles.

•More maturity towards higher-end motorcycles.

•The growing gearless trendy scooters and scoottee market.

•Growing world demand for entry-level motorcycles especially in emerging markets.

Threats:

•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.

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Thank You

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