“A PROJECT REPORT ON BAJAJ AUTO”

SUBMITTED BY:-

Prasanna Kumar MS

Pooja Goyal

Priyanka T

Priyanka Saha

MBA (1st semester)

No. 63, East West College Road, Off, Magadi Main Rd, Vishwaneedam Post,
Bharath Nagar, Anjana Nagar, Bengaluru, Karnataka 560091

UNDER GUIDANCE OF: - Ms. SUMA (Ass. Professor, Department of Management)

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 DECLARATION
We are studying in MBA, Department of Management Studies of Bangalore University.
Hereby declare that this project report entitled BAJAJ AUTO submitted is our original work.

The findings of the report are based on the information collected by us during the study and the
result embodied in this study has not been submitted to any other university for the awards.

Prasanna kumar MS

Pooja Goyal

Priyanka T

Priyanka Saha

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 ACKNOWLEDGEMENT
If words are considered a token of acknowledgement, then the words play the heralding role of
expressing our gratitude. With proud gratitude we thank god almighty for all the blessings
showered on us and for completing our project work successfully.

We wish to express our deepest gratitude to Dr. D SANDHYA, Head of the Department,
MASTER OF BUSINESS ADMINISTRATION, EWCM for her profound alacrity in our
project and her valuable suggestions. We would like to extend our sincere thanks to our guide
Ms. SUMA, Assistant Professor, for her constant academicals support and stupendous
encouragement which enabled us to complete our project work successfully.

We also extend our thanks to all other professors for their valuable guidance. We also like to
thanks our fellow students for their support and good wishes.

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 CONTENTS

Sr No. Particulars Page No.

1. Introduction 5-9
2. Profile of the organization 10-11
3. Name of the company & its history 11-12
4. Nature of business 12
5. Area of operations 13
6. Vision & mission 13
7. Product profile 13-14
8. Competitors profile 14-15
9. Market share 16
10. Awards received 16-17
11. Corporate social responsibility 17-19
12. SWOC assessment 19
13. Organizational structure 20-22
14. Summary of findings 22-25
15. Conclusion 25
16. Bibliography 26
17. Annexure 26-29

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 CHAPTER-1

1. Introduction

This research is based on primary as well as secondary data. However, primary data collection
was given less importance. Research has been done by secondary data collection & it has been
collected by searching from different websites related to company.

The project focuses on automobile industry scenario at macro & micro level, profile of Bajaj
Auto Company, its history (background), workflow model of it, area of operation means, what
is the vision & mission of the Bajaj, its product profile (two wheelers, three wheelers & four
wheelers). Then who are its competitors, what is the market share in economy, recent awards it
has received, what is the role of Bajaj towards social responsibility. Through this project, one
comes to know about SWOC assessment of it.

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Bajaj’s organizational structure, types of it, its hierarchical levels, which are the functional
departments in the organization. From our findings we conclude that it has market share of
64% in three wheelers during the fiscal year 2020. It has various competitors like Hyundai,
Yamaha, and Honda etc.

1.1 Industry Scenario at Macro level (Global level)

The automotive industry landscape has been changing over the past few years. The supply
chain shifts & sales slowdown that had already hurt margins were further aggravated by the
COVID-19 pandemic. The precautions to contain the pandemic, while necessary, continue to
impact economies, businesses & individuals, reshaping the landscape & consumer’s mobility
preferences.

As countries unlock & businesses slowly recover, strategies to survive & thrive in the post-
COVID world are the need of the hour.
South Korea’s leading electric vehicle battery manufacturer LG Energy Solution announced it
would invest US$4.4 billion by 2025 to expand its US manufacturing operations to meet
growing demand creating 10,000 jobs directly & 6000 additional jobs among its
subcontractors.

China’s new vehicle market rebounded strongly in Feb 2021, based on passenger car &
commercial vehicle wholesale data. Feb last year was the first full month after the Chinese
Govt took decisive action to control the spread of the COVID-19 pandemic which first
emerged in the city of Wuhan in Nov 2019.

Hyundai Motor Group said it aims to increase sales in china by 23% to 817,000 vehicles in
2021 from 664,744 units in 2020, as the market continues to lead the global recovery from the
COVID-19 pandemic.

South Africa’s National Dealer’s Association (NADA) said Feb sales were more encouraging
than had been expected. It was heartening to see that passenger vehicle sales increased by
almost 1,500 units & light commercial vehicle sales improved by close to 2,000 units. A slow

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start to the year had been expected, as the coronavirus & sluggish local economy have had a
negative effect on consumer & business confidence.
Japan’s new vehicle market was just slightly higher at 432,299 units in Feb 2021 from 430,185
units a year earlier. Sales overall are trending higher, however, after rebounding strongly in the
fourth quarter of 2020 & growing by almost 7% in Jan as the country continues to recover from
last year’s sharp recession caused by the global COVID-19 pandemic.

UK’s new car market was down by 35.5% year-on-year in Feb as dealer’s showrooms
remained shut under Govt lockdown orders. It has revised its market outlook to 1.83 million
new car registrations in 2021, down from the 1.89 million predicted in Jan.

1.2 Industry scenario at micro level (Indian level)

It is estimated that during the prolonged lockdown, the auto industry suffered losses of more
than Rs.2, 300 crore in turnover for every single day of closure. Having endured & managed to
recover from the disruptions induced by a once-in-a-century event, the Indian auto sector is
cautiously looking forward to 2021 with hopes of putting up a better show in the post-COVID
world.

Passenger vehicle sales in India, the barometer of the automobile industry’s performance,
plunged 78.43% in the April-June (2020), declining for the ninth straight quarter & making it
the longest slowdown in 20 years. In order to overcome the unprecedented challenge, the auto
industry players embraced digitization to adapt to the new normal to serve customers &
concentrating on financial health by reducing costs & generating free cash flows.

According to Maruti Suzuki’s Chairman (R C Bhargava),

“It was difficult to predict the future. But certainly next year would not be as bad as this year
because in 2020 the first quarter was a complete write off, so that made the big difference. So I
expect that next year (2021) will be better than this year but how much better, what is the likely
target for sale, all of that we have not fixed yet.”

According to Mahindra & Mahindra Automotive Division CEO (Veejay Nakra),

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“Overall there would be challenges given the uncertainties of the pandemic & the implication
of that on the supply chain. These supply issues will continue for some time to come & will
continue to create short term challenges.”
 Industry genesis:-The automotive industry in India is the fifth largest in the world
(fourth largest in 2018). In 1897, the first car ran on an Indian road. Through the
1930’s, cars were imports only, & in small numbers. An embryonic automotive
industry emerged in India in the 1940’s. Hindustan Motors was launched in 1942, long-
time competitor Premier in 1944, building Fiat products. Mahindra & Mahindra was
established by two brothers in 1945. Following independence in 1947, the Govt of India
& the private sector launched efforts to create an automotive-component manufacturing
industry to supply to the automobile industry.

 Market Size:-Domestic automobiles production increased at 2.36% between FY16-20

with 26.36 million vehicles being manufactured in the country in FY20. Overall,
domestic automobiles sales increased at 1.29% between FY16-20 with 21.55 million
vehicles being sold in FY20. Two wheelers & passenger cars accounted for 80.8% &
12.9% market share. The sale of luxury cars stood from 15,000 to 17,000 in the first six
months of 2019.

 Growth Rate: - India is expected to emerge as the world’s third-largest passenger

vehicle market by 2021. In FY2018-2019, sale of passenger vehicles has increased by
2.70%, two-wheeler by 4.86% & three-wheeler by 10.27% as compared to FY2017-
2018. In April-march 2019, overall automobile exports grew by 14.50%. The overall
commercial vehicles segment registered a growth of 17.55% in April-march 2019.

 Industry profit margin:- The profitability, as measured by five-year average EBITDA

margin of major companies in the sector stood at 15.1%. The automotive segment
enjoys higher profitability, with its average five-year EBITDA margin standing at
19.5% compared with 15.9% for auto-components sector.

 Competition: - Many global players in the automobile & parts industry have already set
up presence in India. Most of them are through tie-ups with dominant local players,
while some are done entirely on their own. In the absence of strong competition in the
past, the local car manufacturer Maruti Udyog Ltd (MUL) has virtually dominated the

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 Indian automotive market in the passenger segments since 1980’s. Then local players
began to face competition from new foreign car makers. Ford entered the mid-range
market with the Ikon model in April 1998, a move which was followed by Honda,
Mitsubishi, & Hyundai.

 Seasonality & cyclicality:-

 Technology:-

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  External environmental factors: - These forces are causing the automotive industry to
go through a period of accelerated change. More software is being used in autos than
ever before, allowing for high-tech driving & entertainment capabilities. For instance,
TESLA, a relatively new entrant into the auto making business, is influencing change
from within, through a greater emphasis on electric vehicles & the disruption of the
classic dealership business model.

CHAPTER-2

2.1 Profile of the Organization or Respondents

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 Rahul Bajaj (Chairman of the Bajaj Auto)

Bajaj Auto Limited is an Indian multinational two-wheeler and three-wheeler manufacturing

company based in Pune, Maharashtra. It manufactures motorcycles, scooters and auto
rickshaws. Bajaj Auto is a part of the Bajaj Group. It was founded by Jamnalal Bajaj in
Rajasthan in the 1940’s.

Customer service :   072198 21111

Parent organization :   Bajaj Group
CEO : Rajiv Bajaj (Apr 2005)
Founder :  Jamnalal Bajaj
Headquarters  : Pune
Founded  : 29 November 1945
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 Producation output : 6330000 units
Numbers of employees : 16404+

2.2 Name of the company and its history

Bajaj Auto was established on 29 November, 1945 as M/s Bachraj Trading Corporation Private
Limited. It initially imported and sold two and three-wheelers in India. In 1959, it obtained a

License from the Government of India to manufacture two-wheelers and three-wheelers and

obtained Licence from Piaggio to manufacture Vespa Brand Scooters in India. It became
a public limited company in1960. With the launch of motorcycles in 1986, the company
changed its branding from a scooter manufacturer to a two-wheeler manufacturer.

In 1984, Bajaj Auto signed a technical assistance agreement with Kawasaki, cooperating to

expand production and sales of motorcycles in the local market.

In the early 2000’s, Bajaj Auto bought a controlling stake in the Tempo Firodia company,
renaming it "Bajaj Tempo". Germany's Daimler-Benz owned 16% of Bajaj Tempo, but
Daimler sold their stake back to the Firodia group. It was agreed that Bajaj Tempo would
gradually phase out the use of the "Tempo" brand name, as it still belonged to Mercedes-
Benz. The name of the company was changed to Force Motors in 2005, dropping "Bajaj" as
well as "Tempo", over the objections of Bajaj Auto with whom the company shares a long
history as well as a compound wall.

In 2007, Bajaj Auto, through its Dutch subsidiary Bajaj Auto International Holding BV,
purchased a 14.5% stake of Austrian rival KTM, gradually increasing its stake to a 48% non-
controlling share by 2020. In December 2020, Bajaj started discussions on swapping its stake
from KTM to KTM's controlling shareholder Pierer Mobility, a subsidiary of Pierer Industrie.

On 26 May 2008, Bajaj Auto Limited was split off into three corporate entities — Bajaj
Finserv Limited (BFL), Bajaj Auto Ltd (BAL), and Bajaj Holdings and Investment
Ltd (BHIL).

In 2017, Bajaj Auto and Triumph Motorcycles Ltd teamed up to build mid-capacity

motorcycles.

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In 2017, Bajaj and Kawasaki ended a sales and services partnership in India for the sale and
after sales service of Kawasaki motorcycles, which had been established in 2009. The
partnership's dealerships were later converted into KTM ones. Bajaj and Kawasaki continue
with their relationship in overseas markets. On 26 November 2019, Bajaj Auto invested about
₹57 crore ($8 million) in bicycle and electric scooter rental startup Yulu. In this deal, Bajaj
would also manufacture customised electric scooters for Yulu.

2.3 Nature of Bajaj Auto (Manufacturing Company)

It manufactures motorcycles, scooters and auto rickshaws. Bajaj Auto is a part of

the Bajaj Group.

Subsidiary: Bajaj Auto International Holding BV

Workflow Model

2.4 Area of Operations

The company has plants in Chakan (Pune), qa Waluj (near Aurangabad) and Pantnagar in
Uttarakhand. The oldest plant at Akurdi (Pune) houses the R&D centre 'Ahead'. Bajaj Auto is
the world's third-largest manufacturer of motorcycles and the second-largest in India.

2.5 Vision and Mission Statements of bajaj auto

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Vision : To attain world class Excellency by demonstrating value added products to
customers. Mission:  Focus on value based manufacturing.
 Continual Improvement
 Total elimination of wastes
 Pollution free & safe environment.

2.6 Product profile of Bajaj Auto

Bajaj manufactures and sells motorcycles, scooters, auto-rickshaws and cars. As of 2004, Bajaj
Auto was India's largest exporter of motorcycles. Bajaj achieved this with the 150cc and 180cc
Pulsar. Motorcycles produced by Bajaj include the Platina, Discover, Pulsar, Avenger,
Dominar 400 and CT 100.

Bajaj Auto has launched the new Pulsar 180 augmenting the line-up of the most popular entry-
sport motorcycle brand in India. The New Pulsar 180 will be available for INR 107,904 (ex-
showroom Delhi) across all Bajaj Auto authorised dealerships in India, the company said in a
release.
With bold decals and twin pilot lamps with Auto Headlamp on (AHO), Pulsar 180 is a stylish
nod to the design that started the bike revolution in the 150 cc+ segments in the country.

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2.7 Competitors profile of Bajaj Auto

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2.8 Market share of Bajaj Auto
The overall domestic industry grew by 7 per cent in FY21. Thus, Bajaj Auto was able to
maintain its market share of 18.2% in FY21 as against 18.1% in FY20.

2.9 Awards Received

 Bajaj Pulsar 180 DTS-i won the BBC World Wheels Viewer’s Choice Two Wheeler of the
Year 2003 award.
 Bajaj Auto received the Bike Maker of the Year award in ICICI Bank Overdrive Awards
2004.
 In 2006, Bajaj Auto won the Frost & Sullivan Super Platinum Award for manufacturing
excellence in its Chakan Plant.

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 Pulsar 220 DTS-Fi received the Bike of the Year 2008 award by all major Indian
automobile magazines like Overdrive, Autocar, Business Standard Motoring and Bike Top
Gear.
 It received award for The Most Customer Responsive Company in Automobiles category
in a survey conducted by Economic Times for the years 2004, 2006 and 2008.
 Bajaj Pulsar 135 LS received Bike of the Year 2010 award from BBC Top Gear and Bike
India.
 National Energy Management Trophy for ‘Excellent Energy unit’ by CII (2017) – BAL
Waluj plant.
 Car and Bike NDTV Awards two – wheeler Manufacturer of year (2018) – Bajaj Auto.
 Car and Bike NDTV Awards Two wheeler of the year Award (2018) - Bajaj Dominar.
 First-in-the-Industry status of having manufacturing certified for ‘Special Award for TPM
Achievement’ by Japan Institute for plant maintenance (JIPM) (2019).
 Car and Bike Awards in Two-Wheeler category manufacturer of the year (2019) – Bajaj
Auto.

2.10 Corporate Social Responsibility of Bajaj Auto

Bajaj Auto spends Rs. 119 cr on social projects in FY 2020, surpasses prescribed budget. Bajaj Auto
Limited has spent Rs.119.44 crore (Previous Year Rs. 112.32 Crore) on Corporate Social

Responsibility (CSR) during FY 2019-20, which is more than the prescribed CSR expenditure
of 118.80 crore. Average net profit of the Company for last three financial years prior to 2019-
20 stood at Rs 5,940.18 crore.
Bajaj Group implements many CSR initiatives of substantial value through its Group
Charitable Trusts operating at various locations in the country. The vision and philosophy of
late Jamnalal Bajaj, the founder of Bajaj Group, guide the Corporate Social Responsibility
(CSR) activities of the group. He embodied the concept of trusteeship in business and common
good, and laid the foundation for ethical, value-based and transparent functioning.

Through its social investments, Bajaj Group addresses the needs of communities residing in the
vicinity of its facilities by taking sustainable initiatives in the areas of health, education,
environment conservation, infrastructure and community development, and response to natural

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 calamities. For society, however, Bajaj is more than a corporate identity. It is a catalyst for
social empowerment and the reason behind the smiles that light up a million faces.

A detailed CSR Policy was framed by the Company on 14 May 2014, with approvals of the
CSR Committee and Board of Directors. A Committee of the directors, titled ‘Corporate Social
Responsibility Committee’, which was constituted by the Board at its meeting held on 28
March, 2014 with the members: Rahul Bajaj, Rajiv Bajaj, Nanoo Pamnani, Pradeep
Shrivastava. Consequent upon the sad demise of Nanoo Pamnani on 22 February, 2020, the
CSR Committee was re-constituted with induction of Dr. Naushad Forbes as a member with
effect from 17 March, 2020.

Guiding principles of Bajaj Group:-

Benefit generations: The Company believes in ‘investment in resource creation’ for use over
generations. The Company tries to identify sustainable projects which will benefit the society
over long periods.
Encourage for self-help: To guide and do hand holding for self-help, individually and
collectively to create excellence for self and for the team.
Target those who need it most: Care for the sections of the society, which are socially at the
lowest rung irrespective of their religion or caste or language or colour.
Sustain natural resources: The Company encourages balanced development and ensures least
adverse impact on environment – Growth with Mother Nature’s blessings.

Implementing agency of CSR Projects for the year

 JBGVS (Integrated Rural and Urban Development Project)

 Action for Agriculture Renewal in Maharashtra

 Action for Food Production (AFPRO)

 Development Support Centre (DSC)

 Foundation for Ecological Security etc.

Through its social investments, Bajaj Group addresses the needs of communities residing in the

vicinity of its facilities, taking sustainable initiatives in the areas of health, education,
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environment conservation, infrastructure and community development, and response to natural
calamities.

2.11 SWOC Assessment

SWOC analysis is a tool for auditing an organization and its environment. It is the first stage of
planning and helps marketers to focus on key issues. SWOC stands for strengths, weaknesses,
opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and
threats are external factors.

Strengths:-

 Company with zero promoter pledge

 Annual net profits improving for last 2 years

 Company with no debt

 Efficient in managing assets to generate profits

 Effectively using shareholders fund etc.

Weaknesses:-

 Declining net cash flow

 Degrowth in revenue & profit
 Broker downgrades in price
 Companies with growing costs YOY for long term projects.

Opportunities:-

 High momentum scores

 Stocks that benefit from lower crude oil prices
 Brokers upgraded recommendation etc.

Challenges:-
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  Stock affected by weak monsoons
 Stock with expensive valuations.

Chapter-3

3.1 Organization Structure & Key functional areas

An organizational structure is a system that outlines how certain activities are directed in order
to achieve the goals of an organization. The five pillars of this new structure are R&D,
Engineering, two wheeler business unit, Commercial vehicles business unit & International
business unit. These pillars will be supported by functions of Finance, MIS, HR, Business
development & Commercial.

Types of the structure available

 Functional Structure:-

CEO- Rajiv Bajaj, Sales & Marketing Head-Vikas Iyer, Production Head- Vishal Patil,
HR Head- Ravi Kyran, Finance Head- Sanjeev Garg, R&D Head- Prashant Phule,
Purchase Head- Shashank Kulkarni.
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 Project Based:-

 Product Based:-

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  Matrix Structure: - The matrix organizational structure is a combination of two or
more types of organizational structures.

Ch
apte r-4

4.1

Summary of findings

The progress of business largely depends on productivity, which, in turn, relies on its
organizational skills. The better we are at organizing our business, the easier it becomes to
make positive changes to our enterprise. Disorganization has the power to make every task
twice as hard, & half as effective. Once the appreciation to the organization, it is important to
create systems & procedures for every aspect of the business.

From this project, we found that:-

 Bajaj Auto is operating well in overseas market.

 Its main vision is to continual improvement in customer satisfaction by providing QSP
(Quality, Services, and Price).
 It has competitive advantage in economy by having market share of 18.2%.
 Received many awards & showing concern towards society through CSR.
 Today, Bajaj Auto has seven strong motorcycle brands under them and the bikes can be
found in over 70 countries.

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 Table 1: Growth in real GDP and GVA, (Gross Domestic Product)

Financial Year 2017 2018 2019 2020

GDP Growth 7.1% 7.2% 6.1% 4.2%
GVA Growth 7.1% 6.9% 6.0% 3.9%

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4.2 Conclusion

The entire project days was a learning experience. A lot of ups & downs came in the path of
project completion but the end results were very promising. Company seems to be doing quite
well & its customer’s base seems satisfied. It has a lot of potential in this sector only if it is able
to tap the untapped market & do more market penetration.
From this project, we come to know about company’s scenario at Indian level & at world level,
profile of it, it’s history, nature & area of operation, what are company’s vission & mission,
varieties of products (two & three wheeler) it deals with, who are company’s strong
competitors, it’s market share, CSR, awards received by it. We have done SWOC assessment
of Bajaj, & finally it’s organisational structure (about board members, types of structure).
Therefore, overall assessment has been done by us about BAJAJ AUTO.

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4.3 Bibliography

 Images:-https://www.google.com/search?
q=bajaj+auto+products&source=lmns&rlz=1C1CHBF_enIN915IN916&safe=active&h
l=en&sa=X&ved=2ahUKEwjhjru69drvAhVB2HMBHaPXC74Q_AUoAHoECAEQA
A
 Graph:-https://www.google.com/search?
q=bajaj+auto+graph&source=lmns&bih=657&biw=1366&rlz=1C1CHBF_enIN915IN9
16&safe=active&hl=en&sa=X&ved=2ahUKEwi7zbOE9trvAhXy3XMBHXu2DxQQ_
AUoAHoECAEQAA

4.4 Annexure

Profit and loss account of the 2018/19/20

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28
Annual growth of Bajaj

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30