HARISH.M(2B4-15)AMARNATH(2B4-21)RAKESH(2B4-25)AKHILESH(2B4-28)

ABOUT BAJAJ AUTO LTD.

Founder – Jamnalal Bajaj

Founded on year – 1945

Headquarters – Pune & Mumbai

Current Chairman – Rahul Bajaj

Revenue (2013) – Rs. 202.01 Billion

Employees – About 12000

Bajaj Auto is the world's third-largest manufacturer of motorcycles and the second-largest in India.

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

Bajaj has operations in 50 countries.

It target audience is every sector of society.

OUTLINE

LOCATION PRODUCT RANGE DEMAND FORECASTING LAYOUT INVENTORY MANAGEMENT CAPACITY MANAGEMENT COMPETITIVE ADVANTAGE

FACILITIES LOCATION

India Waluj ( near Aurangabad) Chakan and Akurdi (near Pune) Pant Nagar ( Uttarnchal)

AKURDI PUNE PLANT

Manufacturing locations Akurdi, Pune This is one of the oldest plant of bajaj auto ltd with production capacity of 0.6 million vehicles/ year. The plant has been closed in order to equip for four wheeler production

CHAKAN PUNE PLANT

Chakan Industrial Area, Chakan , Pune This is the biggest plant of bajaj auto Production Capacity of 1.2 million/ year . Product manufactured here are pulsar and avenger and commercial Ge series

WALUJ PLANT

Bajaj Nagar, Waluj Aurangabad This is second plant with production capacity of 0.86 million/ year. Products manufactured here are Kristal, XCD and platina and commerial GC series

Waluj is now the export hub of Bajaj Auto

The basic raw materials are steel and aluminium. Surface treatment processes like heat treatment, painting and electroplating are carried out in the factory.

PANTNAGAR PLANT

Pantnagar , Uttarakhand The most advanced plant of bajaj auto . It has Capacity of 0.9 million vehicles per year , product manufactured here are platina and XCD.

To maximize tax benefits available at Uttarakhand, the Company has shifted products like Discover and Pulsar 135 to Pantnagar

They outsource machinery and have four assembly lines which operate in two shifts with 950 manpower, manufacturing 6000 vehicles per day and targeting 1.5 Lakh vehicles per month. The efficiency of the plant is 96%.

PRODUCT RANGE

Motorcycles Bajaj Platina 100cc

Bajaj Platina 125 DTS-Si

Bajaj Discover 135 DTS-i

Bajaj XCD 125 DTS-Si

Bajaj XCD 135 DTS-Si

Bajaj Pulsar 135 DTSi

Bajaj Pulsar 150 DTSi

Bajaj Pulsar 180 DTSi

Bajaj Pulsar 200 DTSi

Bajaj Pulsar 220 DTS-Fi

Bajaj Pulsar 220 DTSi

Bajaj Avenger 220 DTS-i

Bajaj Pulsar 200 NS

Cont.

Cars Bajaj Lite concept Bajaj RE60 - the Tata Nano competitor.

Discontinued models Bajaj Chetak Bajaj Cub Bajaj Super Bajaj Saffire Bajaj Wave Kawasaki Eliminator EL-175 Bajaj Kawasaki Wind 125 Bajaj Kawasaki 4s Champion Bajaj Kawasaki KB 100 RTZ Bajaj Boxer Bajaj Caliber Bajaj Wind

DEMAND FORECASTING

Two- wheeler sales in the country have boomed in the recent years and the annual sales of motorcycles in India crossed the 10 million mark in 2010. The low penetration of two-wheelers in the country 31 two-wheelers per 1000 citizens (2004) changed rapidly over the time. Overall the industry sales of two-wheelers have grown by 15% from 6.57 million in 2004/2005 to 7.57 million in 2005/2006. The buoyant Indian economy with a growth rate of around 8% per annum is further expected to fuel the growth of two wheelers in the country.

The major factors that determine the demand in the automobile industry are affordability, product innovation, style, looks and power and fuel efficiency. Rapidly growing middle class and the change in life style of Indians has lead to a huge demand in India for performance vehicles like the Bajaj Pulsar 180. Statistics shows a steady upward trend in domestic as well as exports passenger vehicle sales

PeriodMonth of

2011 Demand

Exponential Smoothing Forecast for Month of 2012

1 Jan 1264 #N/A

2 Feb 1463 1264

3 Mar 1211 1403.3

4 Apr 1743 1268.69

5 May 1467 1600.707

6 June 1584 1507.1121

7 July 1467 1560.93363

The Bajaj Pulsar demand for the year 2012 is going to be forecasted using the Exponential Smoothing Forecasting Model. Exponential Smoothing Forecasting Model is a weighted moving average in which the forecast for the next period’s demand is the current period’s forecast adjusted by a fraction of the difference between the current period’s actual demand and its forecast.

PLANT LAYOUT

ASSEMBLY LINE LAYOUT

Bajaj Auto Ltd. have modern and technologically advance machines and state of the art assembly lines. These machineries are arranged in operation department systematically.

The production process is step by step, the raw material move from one line to another line systematically

Assembly line technology is for facilities that produce a narrow range of standardized products

INVENTORY MANGEMENT

Bajaj auto maintains seven days inventory . Demand Estimations are based on Panel Regression, which takes into account both time series and cross section variation in data .

All the Mediators are connected with each other through IT linkage to know exact status of delivery of goods

With operations spanning to such vast geographies, managing a value chain globally becomes more and more complex.

In countries where Bajaj perceives a strong market potential, they establish a tie up with one major industrial establishment eager to invest in the project.

This investment may include setting up strategic manufacturing or assembly units, apart from a well-established nation-wide network for marketing , distribution and after sales services.

These investors who form alliances with Bajaj Auto are termed as “Business Partners”. Bajaj Auto offers a number of services to its business partners

INVENTORY MANAGEMENT

They include:

Training in sales, service and spare parts management based on the Bajaj distribution system

Active support for setting up manufacturing facilities overseas including transfer of technical know-how

Assistance in setting up an assembly plant for assembly of vehicles from complete knocked down (CKD) kits

Selecting of machinery and equipment and training of technical personnel, all in a phased manner as required by the regulations in the recipient country

Active support in setting nation-wide dealer network, also involving identification and recommending suitable partner who would assist the distributor in Business growth

CAPACITY MANAGEMENT

Akurdi, Pune, 411035 This is one of the oldest plants of bajaj auto ltd with production capacity of 0.6 million vehicles/ year. The plant has been closed in order to equip for four wheeler production

Bajaj Nagar, Waluj Aurangabad 431136 This is second plant with production capacity of 0.86 million/ year. Products manufactured here are Kristal, XCD and platina and commercial GC series.

CAPACITY MANAGEMENT

Chakan Industrial Area, Chakan , Pune 411501

This is the biggest plant of Bajaj auto Production Capacity of 1.2 million/ year , Product manufactured here are pulsar and avenger and commercial GE series

Pantnagar , Uttarakhand

The most advanced plant of Bajaj auto .It has Capacity of 0.9 million vehicles per year. Product manufactured here are platina and XCD

State Town Units Capacity (Nos)

Aurangabad Waluj Kristal, XCD, Platina1,860,000

Maharashtra ChakanPulsar, Discover,

Avenger1,200,000

Uttarakhand Pantnagar Platina, XCD 900,000

COMPETITIVE ADVANTAGE

Bajaj went from producing a standardized product in a heavily protected

market (a market with a ten year waiting period) to a strong global competitor.

The transformation of Bajaj Auto is a model for other producers in developing

countries to follow. The company has developed capabilities in research and

development that emphasize what Indian consumers want. Bajaj maintains close

relationships with its suppliers and strives for efficiency at every turn. The

company has developed improved engine performance and product styling that

best fit the Indian market. It has developed its own version of total quality

management and constantly looks for improvements for itself and its suppliers

The case of Bajaj Auto shows that local firms can compete with foreign multinationals. While Bajaj cannot relax and feel confident that its success is assured, the company has made an impressive transformation and currently competes with the strongest firms in the world in its local market.

The success of Bajaj provides important lessons for others. The company has been able to successfully defend its market by following simple guidelines.

First, Bajaj gives consumers what they want. With a greater understanding of its local market, Bajaj has been able to produce products that are desired by its consumers.

Secondly, Bajaj pays constant attention to cost reduction and efficiencies. For example, the company has developed wind power to generate electricity for its manufacturing operations.

.

. To be competitive against stronger firms, local companies must be creative. Lastly, Bajaj strives for improvements. The company knows that in order to survive it must be better tomorrow than it is today. The past practices in India of subsidized inefficiency are gone, and the environment is constantly changing.

Bajaj Auto provides an excellent example of a local firm that was not fearful of foreign competition, and one that developed its own competitive advantage in order to prosper in its transition economy.

THANK YOU