Bajaj auto ltd

Group One

Deepak Chaurasia

Sandeep Ram Vikas Tiwari Sanket Pore Sujit Verma Dinesh Yadav

Carry helmet before you start

INTRODUCTION OF BAJAJ AUTO LTD

Bajaj auto is the world’s 3rd largest manufacturer of the motorcycle and the 2nd largest in India

It stands next only to China & Japan in terms of the number of two wheelers producer & the sale of two wheelers respectively.

Bajaj auto began trading in imported Vespa scooter in 1948 meanwhile automobile product of India commence production of scooter in the country in the early 50’s

On 31st march 2013,its market capitalisation was INR 520 billion (us $ 9.57 billion), making it India's 23rd largest publicly treaded company by market value.

Bajaj auto is registered at BSE :532977 and NSE: Bajaj auto

FOUNDER AND BOARD OF DIRECTORS

Jamnalal BajajFounder Rahul Bajaj

Chairman

Sanjiv BajajManaging Director

Nanoo PamnaniVice Chairman

Naresh ChandraDirector

S.H.KhanDirectorD. J. Balaji Rao

Director

Madhur Bajaj Director

BAJAJ AUTO – PRODUCT SEGMENTATIONS

Two wheelers

Commercial Vehicles

Low Cost Cars

Milestone of Bajaj auto ltdyear Milestone1989 Start of Bajaj motors ltd

1995 Establishment of current location Bajaj motors ltd1998 Introduction of flexible manufacturing concept

2000Establishment of micromesh forgings backward integration(import substitute)

2004 Started export activity

2005Integrated management system certification from Germany

2006Establishment of ferrous casting, as backward integration, by April -2006

2007IMS certification for micromesh forging received established aluminium forging. Plant at pant nagar

2010 Plant at Haridwar for hhml 2011 New dedicated export for machining in Manesar 2012 New plant at bawal for forging

DETAILS OF INVENTORY(IN CR)

Raw materia

ls

• Ferrous metal (4.27)

• Non Ferrous meta l(1.21)

• Component (169.27)

• Type of tubes (19.87)

• Others (2.40)• Total (197.02)

Work in Progres

s

• Factory made components

• (26.56)

Finished good

• Vehicles (Manufactured) - 255.20

• Vehicles (Traded) -1.51

• Auto Spare Part(Manufactured) – 11.97

• Auto spare Part (Traded) – 126.13

• Total – 394.81

PlantsBajaj Auto's has in all three plants, two at Waluj and Chakan in Maharashtra and one plant at Pant Nagar in Uttaranchal, western India.WalujChakanPant Nagar Plant LocationsBajaj Auto plants are located at:

Bajaj Nagar, Waluj, Aurangabad 431 136MIDC, Plot No A1, Mahalunge Village, Chakan 410 501 Dist. PunePlot No. 2, Sector 10 Phase -II - E, Pant Nagar, Sidcul, Rudrapur Dist. Udhamsingh Nagar Uttaranchal

MANUFACTURING PROCESS

Raw material and

other component are arrived

at manufacturi

ng plantManufacturing being in the

weld dept. with

computer control

Small plastic resign pellets

are melted and injected into meld under

high pressure

The engine is mounted

in the painted frame

Painted part are sent via overhead

conveyors to the assemble

dept.

The Componen

t are painted in booth in

the Powder coating

Other component are fitted

in the motorcycle and sent down to

assemble dept.Wheels,br

eak,wiring cable and hundred

other part are

installedAt the end of

assemble line, Quality

inspector undertake a inspection of motorcycle

COMPONENT OF TWO WHEELER

MARKETING STRATEGY

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

HR STRATEGIES1. Primary focus on achieving of business and HR goals

and objectives. Stimulating dialogues among top executive to shape the HR strategy.

2. Aligning the reward system and the compensation strategy around general business goals to ensure the required performance of employee.

3. Running succession planning program for the entire organisation to ensure the smooth transition of know-how.

4. Constant redesign of HR process to allow employees to be creative and innovative, while sticking to general HR policies and procedures.

5. Designing training programs that ensure the development of the corporate culture.

AWARDS AND RECOGNITIONS

Product Award Award body

Ninja Bike of the year IMOTY

Pulsar 135 LS Bike of the year ET NOW –Zig Wheels

Discover DTS-Si 100cc Bike of the year ET NOW –Zig Wheels

Pulsar 135LS 150cc Bike of the year ET NOW –Zig Wheels

Ninja 250cc Bike of the year ET NOW –Zig Wheels

Pulsar 135LS 4-V Technology of the year ET NOW –Zig Wheels

Discover DTS - Si Most Value for money-Bike of the year

ET NOW –Zig Wheels

Ninja Motorcycle of the year- Bike up to 250cc

NDTV Profit-Car & Bike

Bajaj Discover DTS –Si

Motorcycle of the year – Bike up to 125cc

NDTV Profit-Car & Bike

Ninja Two wheeler of the year NDTV Profit-Car & Bike

Bajaj Discover & Pulsar

Best Integrated campaign – Two Wheeler

NDTV Profit-Car & Bike

FINANCIAL CALCULATION IN 2013-14

Total market Capital 69,262.89 CR

Total income 20,727 CR

Profit before tax 4684 CR

Profit after Tax 3243 CR

Total liabilities 14,747.60 CR

Current Investment 2,289.70 CR

Cash at Bank 495.48 CR

Gross sales 21,158.91 CR

Export over 1.5 million unit

Value of Export 6713 CR

MARGINAL COSTING (2014)

Total sales 20,727 CR

Cost of material consumed, Net of Expenses capitalised

13,812 Cr

Contribution cost 6915 Cr

Fixed cost

Store and tools cost 125 Cr

Employee cost 726 Cr

Factory and administrative cost

636 Cr

Sales and after sales expenses 744 Cr

Total Profit = Total sales – Total cost

20,727 - 16043 4684 Cr

P.V. RATIO,BEP AND MOS IN 2014

Margin of sales

Total sales – BEP 20727 -6687.65 = 14039.35

Break Even PointFixed cost/PV Ratio 2231/33.36% =

6687.65

Profit Volume RatioContribution

sales/salesx1006915/20727X100 =

33.36%

Stock Market AnalysisMarket price data

Monthly highs and lows of Bajaj Auto Ltd. share price (H) during 2013-14 vis-à-vis BSE Sensex

TWO WHEELERS MANUFACTURERS – GROWTH FACTORS

Two Wheelers industry has clocked a compound annual growth rate (CAGR) of 21.8% over the last three year.

Total size of 22-23 million unit. 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.

FUTURE GROWTH INDUSTRY

Above chart shows the two-wheeler industry’s sales (Domestic + Exports) over the last seven fiscal years. It shows the slackening of growth for motorcycles. In India, after growing at over 20% in FY2010 and FY2011, it fell to 11.9% in FY2012 and then plummeted to -0.1% in FY2013. Although there has been a slight increase in growth to 3.9% in FY2014, this has occurred not because of the introduction of superior products but significant sales promotion and pushing of excess stocks. Incidentally, since FY2000, this was the third worst year for the motorcycle industry as a whole.

Industry’s Sale of Two-Wheelers(in million units)

CONCLUSION

Focus on Gearless Scooters

Entry into Four Wheeler Segment

Scaling Up Service Centres

Focus on Easy Credit Lending

Investment in Research and Development

Focus on Exports and Global Market

Disbanding of Dedicated Sales Force for each Product

THANK YOU