Download - Bajaj Auto Ltd
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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
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Questions Answers
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