RESEARCH INSIGHT – 3

Company 1 : Bajaj Auto Limited

GENERAL OVERVIEW –

Bajaj Auto, the flagship company of Bajaj Group, is a two-wheeler and three-
wheeler manufacturing company that exports to 79 countries across several
countries in Latin America, Southeast Asia, and many more. Its headquarter is in
Pune, India.
It has acquired 48% of the KTM Brand which manufactures sports and super sports
two-wheelers, which was 14% in 2007 when the company first acquired KTM.
Brand Reputation
It is the world's fourth-largest manufacturer of motorcycles. It is also the largest
manufacturer and seller of 3-wheelers globally.
Segment Performance
Mileage Segment (100cc to 125cc)- This segment consists of products like Bajaj
CT, the Platina, and the Pulsar 125. It accounts for by far the highest unit-wise sale
of motorcycles in India. In FY22, the market share in this segment improved from
15.2% in FY21 to 17%.
Sports Segment (150cc to 220cc)- This segment consists of products like Pulsars
ranging from 150cc to 220cc, the Avenger, and the Dominar.
In FY22, its volume fell by 33%, and the market share in the segment reduced
from 28% in FY21 to 23% in FY22.
Probiking Segment- This segment comprises 2 brands namely KTM and
Husqvarna. There are 9 models of KTM and 2 variants of Husqvarna. KTM Sales
in India dropped by ~19% in FY22.
Scooter Segment- The Co. re-introduced ‘Chetak’ as a best-in-class electric
scooter in 2021. In FY22, it sold ~8,100 units and increased the touchpoints to 20
locations.
Three-Wheelers Segment- In FY22, the domestic sales of three-wheelers
increased by 47%, and the domestic market share increased by ~11 percentage
points to 61.5%.
Four-Wheeler Segment- It launched its first quadricycle, Quote in FY19. It has
sold 942 vehicles in FY20 and has tied up with uber to increase sales in Bangalore
markets.
Geography-wise Revenue breakup FY22
Domestic- 47%
Exports- 53%
International Business
In FY22, the Co. surpassed the 2.5 million vehicle milestone. Motorcycle exports
grew by 22% and the sports motorcycle portfolio grew by 24%. It exported
200,000+ units every month in 10 out of 12 months. Exports represented 36.9% of
Bajaj Auto's net sales in FY2017. It exceeded 50% to record 52.7% of net sales in
FY2022. No Indian automaker comes close to this percentage. The Co.’s market
share grew by ~2% point in all regions- LATAM, Africa, South Asia, and the
Middle East and ASEAN.
New Subsidiary
In October 2021, the Co. formed a new subsidiary ‘Chetak Technology Limited’ to
effectively engage in the EV Segment.
Multiple Plants
It has three manufacturing facilities across India, 1 each at Waluj, Chakan, and
Pantnagar with a total capacity of 6.6 Million Vehicle p.a in FY22, which was 6.06
Million Vehicle p.a in FY15
New Manufacturing Facility
The Co. has drawn up plans to set up a new state-of-the-art manufacturing facility
at Akurdi. It's subsidiary Bajaj Auto (Thailand) Ltd. is setting up a new facility in
Bangkok which will commence operations in FY23.
R&D
The Company Spent 1.5% of its Revenue on R&D in FY22
Focus
The Co. is focusing on the EV space by intending to house all its EV-related
activities such as R&D of new technologies, R&D for product development,
manufacturing, sales, after-sales, and customer-centric experience to the newly
formed 100% subsidiary ‘Chetak Technology Limited’.

SHAREHOLDING PATTERN –

Holder’s Name No. of Shares %Share Holding

No Of Shares 289367020 100%

Promoters 155580309 53.77%

Foreign Institutions 32280210 11.16%

N Banks Mutual Funds 13160898 4.55%

Others 21037931 7.27%

General Public 44585931 15.41%

Financial Institutions 22721741 7.85%

Some Promoters Are-
Bajaj Holdings And Investment Limited
Jamnalal Sons Pvt Ltd
Maharashtra Scooters Limited
Bajaj Sevashram Pvt Ltd
Bachhraj And Company Pvt Limited
Rahulkumar Bajaj
Madhur Baja

MANAGEMENT TEAM –

Niraj R. Bajaj
Chairman
Niraj Bajaj's career spans more than 35 years and he is currently serving as the
Chairman of Bajaj Auto since 1 May 2021. Born on 10 October 1954, he studied at
the Cathedral and John Connon School. He did his B.Com., from Sydenham
College of Commerce and Economics, Mumbai. He acquired his Masters in
Business Administration (MBA) from Harvard Business School, Boston, U.S.A.

Niraj Bajaj is one of the Promoter - Directors of the Bajaj Group, which has over
50,000 employees, and a market capitalization of over ₹900,000 crores making it
one of the largest family business houses in the country.

Madhur Bajaj
Vice Chairman
Madhur Bajaj (born August 19, 1952) graduated in commerce from Sydenham
College, Bombay, in 1973. He completed his MBA from the International Institute
of Management Development (IMD), Lausanne, Switzerland, in 1979. He is the
recipient of the Vikas Rattan Award from the International Friendship Society of
India, for enriching human life and other outstanding achievements.
Major Directorships:
Chairman - Maharashtra Scooters Limited
Bajaj Auto Limited
Bajaj Holdings & Investment Limited
Bajaj Finserv Limited
Bajaj Electricals Limited
Bajaj Auto Finance Limited

Rajiv Bajaj
Managing Director
Rajiv Bajaj graduated first in class, with distinction, in Mechanical Engineering
from the University of Pune in 1988, and then completed his masters in
Manufacturing Systems Engineering from the University of Warwick in 1990.
He has since worked at Bajaj Auto in the areas of Manufacturing & Supply Chain
(1990-95), R&D and Engineering (1995-2000), and Marketing and Sales (2000-
2005). He has served on the board of Bajaj Auto Ltd since March 2002 and has
been its Managing Director since April 2005.
His current focus is building a brand-centred strategy at Bajaj Auto with the
objective of achieving its vision of being one of the world’s leading motorcycle &
electric vehicle manufacturers.
Directorships
Bajaj Auto Ltd - Managing Director
Bajaj Holdings & Investment Limited
Bajaj Finserv Limited
Bajaj Finance Limited
Pradeep Shrivastava
Executive Director
Mr Pradeep Shrivastava joined Bajaj Auto in April 1986. After several successful
stints in the manufacturing organisation, he took over as President – Engineering
and subsequently, became the Chief Operating Officer in April 2010. He was
appointed to the Board as an Executive Director in April 2016.
After receiving a degree in Mechanical Engineering from IIT Delhi, Mr
Shrivastava obtained a graduate diploma in Production and Finance from IIM
Bangalore in 1986.

Rakesh Sharma
Executive Director
Mr Rakesh Sharma joined Bajaj Auto in October 2007 as President (International
Business) and is now an Executive Director on its board . He led the International
Business for over 10 years during which the business grew in scale to nearly INR
~10,000 crores representing close to 40% of Bajaj Auto’s revenues then. He was
elevated to the position of Chief Commercial Officer in July 2018 with the
responsibility to lead the front-end Business Units.
He is a member of the Board of Commissioners of PT Bajaj Auto Indonesia, a
subsidiary of Bajaj Auto Ltd. He is the Chairman of the Exports Council of the
Society of Indian Automobile Manufacturers (SIAM) and the President of the
International Motorcycle Manufacturers’ Association.
Prior to joining Bajaj Auto, Mr. Sharma worked for over 20 years with the ICI
Group in the chemicals, speciality materials and paints businesses in India and
overseas. His last posting was as CEO-Southeast Asia for ICI Paints.
Mr Sharma is a Commerce graduate from Delhi University and holds a PGDM
from IIM Ahmedabad.
STRENGTHS, WEAKNESSES, OPPORTUNITIES &
THREATS (SWOT) –

Strengths of Bajaj Group

Qualities are characterized as what every business is best in its array of tasks,
giving it an advantage over its rivals. They are intestinal qualities and virtues that
help an effective result and can be utilized for the upper hand. Coming up next are
the qualities of Bajaj Group:
Presumed Organization: Bajaj is available in one way or other in each Urban and
Rural family of India. Individuals trust them for the quality and administration that
they give. The parent organization has additionally put resources into making hair
oils which are likewise very acceptable.
Supportable Business: The organization’s broad scope of items permits them to
take into account a wide scope of clients. Likewise, it assists the organization with
conveying maintainable business development.
Valuing: Bajaj items are estimated quite well and practically all families can bear
the cost of it. They have brought things like the rice cooker, OTG boilers, hand
blenders into India in an extremely financially savvy way. They have ensured for
quite a while and everybody can utilize the items that they make.
Fast Administrations: Getting speedy outcomes are preferred by everybody and
this is one of the interesting qualities of Bajaj which gives the clients on-the-spot
presents quickly which has now decreased to 3 seconds.

Weaknesses of Bajaj Group

Weaknesses are inward characteristics and resources that kill a productive
outcome. It is used to suggest locales where the matter of the affiliation needs
improvement.
Not a Global Brand: Even in the wake of creating in high volume, Bajaj isn’t
perceived as a worldwide brand. It has not entered different business sectors or not
extended universally as quickly as possible. It is transcendentally an Indian market
player.
Extremely Competitive Market: Bajaj needs to manage a market that has the
second biggest populace in the world. Along these lines, there are keenly available
and additionally different organizations. The brand Philips has made plenty of
issues in the new years due to their prominent and current lighting framework. This
is a point where Bajaj most certainly needs to work a great deal.
Just Accessible in India: To grow an organization one needs to spread it outside
their nearby market. Bajaj has not been able to do what has made them be
restricted to India. Spreading into different nations helps in proliferating any
organization a great deal and helps them in understanding various decisions
throughout the planet.

Opportunities for Bajaj Group

Opportunities are assigned external parts that the substance can acquire or use for
its possible advantage to achieve its targets. These come into view when a
connection can deem conditions in its current occurrences to depict and enact
procedures that empower it to wind up being more helpful.
Dispatch New Vehicles: Bajaj Auto should additionally hope to reinforce its item
portfolio like it has done in the past with models of Avenger Pulsar, Discover, and
so on. By persistently exemplifying new advancements into its portfolio, Bajaj’s
picture of being an imaginative organization will likewise be kept up with.
Immaculate Markets: Countless protection markets are immaculate. It is assessed
that practically 27% of India’s health care coverage payouts come from around six
urban areas. So there emerged plenty of chances for Bajaj Allianz to improve the
market.
Eco-accommodating and Energy-Saving Items: Bajaj should zero in on making
things eco-accommodating and help in advancing gadgets dependent on that. This
is significant if there should arise an occurrence of family lighting as different
organizations have effectively begun to zero in on that field.

Threats to Bajaj Group

Threats emerge when conditions in an outside climate risk the unwavering quality
and benefit of the association’s business. These outside variables could seriously
influence the achievement of the undertaking.
Contest in Price: Several little new companies in India are evaluating their items in
reasonable choices. Individuals are regularly floating towards them.
Monetary Condition: Economic condition is additionally a danger to the business.
Where there is a colossal financial emergency and precariousness in the country,
clients may feel that their cash won’t get great returns.
Mindfulness Among Individuals: To build attention among individuals about
getting their future is a major danger to the organization. Clients ought to be
situated so that they want to take the premium.
This ends our study on the SWOT analysis of Bajaj Group. Let us conclude our
learning below.

Competitors of Bajaj Group –

Honda Motor Company

TVS
Mahindra Finance
Muthoot Finance
Frontier Communications.the
Havells India

Conclusion –

Bajaj Group is one of the fastest-changing and growing industries in India. Bajaj
Group is adopting new technologies to increase its business. They have also
contributed in general to the world’s economic growth.
But their shortcomings, such as Non-performing Assets (NPAs) and a lack of
adequate rural presence, must be tackled. The exciting news is that by providing
quality service and growing into untapped regions, they will work towards turning
these weaknesses into strengths and threats into opportunities.
With a huge increase in the product and service industry. There is a very high
competition where marketing plays a crucial role-taking advantage of technology
not merely in this industry in which every other company is focusing on digital
marketing to rise ahead of each other.

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