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BAJAJ AUTO LTD

Team Apple

Overall View

• Automobile Industry – Major Players (Two & Three Wheeler Segment)

- Bajaj Auto - Hero Honda - TVS Motor- Mahindra Scooters- LML - Kinetic Motor

Sales Turnover – March 2010

PAT – March 2010

Market Share – Percentage View

Market Share Capital – Year 2010

Bajaj Auto Ltd.

• November 29, 1945 – Came in to existence as M/s Bachraj Trading Corporation Private Limited.

• 1959 - License from the Government of India1960 – Public Company Limited

• 1977 - Produce and Sell 100,000 vehicles in a single financial year1986 - Produce and Sell 500,000 vehicles in a single financial year1995 - Produce and Sell 1 millionth vehicles in a single financial year

Bajaj Auto Ltd.

Porter’s 5 Force Model

Bargaining Power ofSuppliers

High Potential buyers

* Bargaining Power

Treat of substitutes

* Technological Change

Treat From the competitive rivalry•local players in 2/3 players

Competitors The main competitors would be the local and global players.* New Market Entrants.

Porter’s 5 Force Model

• “Set strategies to satisfy key stakeholders by improving critical business and aligning resources and organizing”.

• Stakeholders: • Stock holders, customers, Employees, Suppliers, Distributers.

• Processes: • Focusing on Core business processes – New product development, Sales

generation, Order fulfillment.

• Resources: • People, Materials, Machine, Information, Energy. It may be Owned, Leased and

Rented. Outsource for increased Quality & Cost reduction.

• Organization: • Companies Structures / Policies / Cultures – to change and adapt in this dynamic

market situation.

Key Success Factors

Critical Success Factors for Automobile Industry

• Widespread sales and services.

• One-stop easy solutions.

• Ability to enhance and vary product mix.

• Balance between outsource and in-house production.

• Efficient operations.

• Human resources.

Key Risk Factors

• Correlation with the economy

• Rising material prices

• Higher inflation and fuel prices

• Rise in interest rates

• Low availability of skilled resources

Group Profile• Jamnalal Bajaj eight decades back in 1926.

• India’s largest exporter of two and three wheelers where in the year in 2009-10 - market share of 23.2% in two wheeler segment.

• 'Inspiring Confidence,‘

• Has an illustrious history right from India’s movement of Independence from the British.

• Chairman of the group, Rahul Bajaj, 1965.

• Turnover from INR.72 million to INR. 120 billion - global market.

• India’s most distinguished business leaders & internationally respected for his business acumen and entrepreneurial spirit.

Company Profile• Major Indian automobile manufacturer - Rajasthani merchant.

• Plants in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttaranchal.

• Akurdi (Pune) - R&D centre.

• Motorscooters, motorcycles & the auto rickshaw.

• Changed image from a scooter manufacturer to a two wheeler manufacturer.

• Amongst the top 10 business houses in India.

• Into spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance.

• The group's flagship company - Bajaj Auto, ranked as the world's 4th largest two- and three- wheeler manufacturer.

• Latin America, Africa, Middle East, South and South East Asia.

Group of Companies

• 34 companies.• Major being :

– Bajaj Auto Ltd.– Bajaj Allianz LI Co. Ltd.– Bajaj Electricals Ltd.– Jamnalal Sons Pvt. Ltd.– Hospet Steels Ltd.

Management TeamRahul Bajaj Chairman

Madhur Bajaj Vice Chairman

Rajiv Bajaj Managing Director

Sanjiv Bajaj Executive Director

Pradeep Shrivastava Chief Operating Officer President (Research & Development)

Abraham Joseph President (Research & Development)

S Sridhar President (Motorcycle Business)

R C Maheshwari President (Commercial Vehicle Business)

Rakesh Sharma President (International Business)

Eric Vas President (New Projects)

K Srinivas President (Retail Finance)

Kevin P D'sa President (Finance)

S Ravikumar Senior Vice President (Business Development & Assurance)

Amrut Rath Vice President (Human Resources)

N H Hingorani Vice President (Commercial)

C P Tripathi Vice President (Corporate Social Responsibility)

Management TeamCompany Secretary

J. Sridhar Company Secretary

Board Of Directors – 16 (4+ 12 Directors)

Rahul Bajaj Chairman

Madhur Bajaj Vice Chairman

Rajiv Bajaj Managing Director

Sanjiv Bajaj Executive Director

Audit Committee – 4 (1+3 Members)

Remuneration & Nomination Committee – 4 (1+3 Members)

Shareholders’ & Investors’ Grievance Committee – 4 (1+3 Members)

Shri D.J. Balaji Rao Chairman

Shri D.J. Balaji Rao Chairman

Shri Nanoo Pamnani Chairman

Products/Plants

GC Max Diesel GC Max CNG RE600

PLANTS

Waluj (Maharashtra) – Two/Three Wheelers

Chakan (Maharashtra) – Two Wheelers

Pant Nagar (Uttranchal) – Two wheelers

GOODS CARRIERS

TWO WHEELERS

Products/Plants

RE 2S RE 2S CNG RE 2S LPG

RE 4S RE 4S CNG RE 4S LPG

RE Diesel RE GDI Mega Max

PASSENGER CARRIERS

Important CredentialsS.No. Product Award Award Body

1 Kawasaki Ninja Bike of the Year IMOTY

2 Pulsar 135LS Bike of the Year ET NOW - ZigWheels

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

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

5 Kawasaki Ninja 250cc Bike of the Year ET NOW - ZigWheels

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

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

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

9 Bajaj Discover DTS-Si Motorcycle of the Year - Bike upto 125 cc NDTV Profit - Car & Bike

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

11 Bajaj Discover And Pulsar Best Integrated Campaign - Two wheelers NDTV Profit - Car & Bike

12 Kawasaki Ninja Bike of the Year CNBC - Overdrive

13 Bajaj Discover Best Story Board Commercial CNBC - Overdrive

14 Pulsar135LS Bike of the Year 2010 UTV Bloomberg-AutoCar

15 Pulsar135LS Viewer's Choice of the Year UTV Bloomberg-AutoCar

16 Bajaj Discover Best TV Commercial Auto India

17 Kawasaki Ninja Bike of the Year 2010 BS Motoring

18 Bajaj Auto Best Advertising Auto India

19 Pulsar Silver Effie for Pulsar Mania Ad Effie

20 Bajaj Auto Most Trusted Brands - Auto Two Wheeler Brand Equity

21 Bajaj Auto Most Popular Two Wheelers Amongst Youth Global Youth Marketing Forum 2010

22 Bajaj Auto Chakan Plant - Super Platinum for Manufacturing Excellence ET - Frost & Sullivan

23 Bajaj Auto Waluj Plant -Best-In-Class Manufacturing Leadership Award - 2Wheeler Stars of the Industry Group

Why Bajaj Auto Ltd.

• Proud Indian MNC• Be at the forefront of Technological Innovation • World class manufacturing • “Grow with us”• Culture of Empowerment • Fair and Transparent Annual and Quarterly PMS • Amongst Top Quartile in Industry Compensation • Employee friendly work practices • Superior “Quality of Life”

“Bajaj Auto Ltd believes in building a Distinctly Ahead organization by developing competent and engaged employees”

Why Bajaj Auto Ltd.

TALENT ACQUISITION • A) Campus: Engineers/Graduates and Management/ Post Graduates• B) Lateral Hiring

LEARNING• A) Individual-Owned Learning – “I do it my way”• B) User friendly Learning Management Software• C) Idea Management and Knowledge sharing

WHISTLE BLOWER POLICY

Corporate Social Responsibility

Contd.

2009-10 - a record year for Bajaj Auto in terms of highest ever sales, exports, profits and margins. Exports rose by 15% to 891,002 units. Record sales of 2.85 million units – over 2.5 million motorcycles and 340,937 three-wheelers. Due to major brand-building effort in Africa for the Boxer.

Financial Performance

Financial Performance

Sales increased in 2010 due to launch of Bajaj Pulsar 150 & 180 (April’10) and Bajaj XCD 135 DTS-Si (Jan’11).

• Company Listings:-Domestic : BSE and NSE.– Earlier Pune and Delhi.

Global : GDR’s - LSE.

* EPS and P/E ratios – Bonus of 1:1 on 22nd July, 2010.– Market Cap– P/E Ratio– Face Value– Dividend

Financial Performance

EPS raised from 45 to 118 due to the huge increase in profit from 2009 to 2010

Financial Performance

Strengths * Highly experienced management.* Product design and development capabilities.* Extensive R & D focus.* Widespread distribution network. * High performance products - all categories.* High export to domestic sales ratio.* Great financial support network.* High economies of scale / scope.

ThreatsCompetition catches-up new innovation.Cheap imported motorcycles from China.Margins getting squeezed – both ways(Price as well as Cost)

WeaknessNot a global player.Not a globally recognizable brand –(unlike the JV partner Kawasaki)

OpportunitiesDouble-digit growth- two-wheeler market.Untapped market >180 cc motorcycles.More maturity & movement - higher-end.Growing gearless trendy scooters market.Growing world demand: entry-level motorcycles.

SWOT Analysis

Video

Questions Answers

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