PRESENTED BY:

ANKITA NYATI.

 Founded in 1926 by JAMNALAL BAJAJ.

Bajaj Auto started its operations in importer of two and three wheelers. BUSINESS:

1945, as in

Bajaj Auto makes five kinds of motorcycles, two kinds of Scooters and eight kinds of three wheelers.

PARTERSHIP: Bajaj Auto has a technical tie-up with Kawasaki Heavy Industries of Japan to produce a range of the latest, state-of-art two-wheelers in India.

LOCATION: Bajaj Auto has three plants in Maharashtra, at Akurdi, Waluj and Chakan.

Bajaj Bajaj Bajaj Bajaj Bajaj Bajaj Bajaj Bajaj Bajaj

Pulsar 150 DTSi Discover Avenger Platina Kawasaki KB 100 RTZ Boxer Caliber Pulsar 220 DTS-Fi Krystal

Bajaj Bajaj Bajaj Bajaj Bajaj Bajaj Bajaj

Sunny Chetak Cub Super Wave Legend Bravo

UPCOMMING MODELS:

Bajaj Blade Bajaj Sonic

No Comparative sales of scooters and bikes.

No information on cost / vehicle.

No information on the realization / vehicle.

BAJAJ FACES FIERCE COMPETITION IN HOME GROUND NAMELY FROM HERO HONDA & TVS .
HERO HONDA HAS TAKEN THE LEAD IN VOLUMES AND MARKET SHARE OVER BAJAJ . BAJAJ IS STRONG IN ENTRY LEVEL AND PREMIUM SEGMENT, BUT DOESN'T HAVE A STRONG PORTFOLIO IN EXECUTIVE SEGMENT.

As at 31 March 2003 Govt. Securities & Bank Deposits Mutual Funds including UTI Debentures & Bonds Preferences Shares Inter Corporate Deposits Loan to Bajaj auto holding Ltd Fixed income investments Equity Shares based on Mutual Funds Total Cost Market Value 8,653 1,739 8,698 854 1,651 140 21,735 7,355 29,090 29,433

%to Total 29.7 6.0 29.4 2.9 5.7 0.5 74.7 25.3 100.0

As at 31 March 2002 5,797 510 4,040 917 2,609 184 14,057 8,499 22,556 21,235

% to Total 25.6 2.3 17.9 4.1 11.6 0.8 62.3 37.7 100.0

PARTICULARS Net Sales PBIT Less Interest PBT Less Tax PAT Net Fixed Assets Net Current Asset Average Fixed Assets Average Current Assets Average Assets Average Equity

2002 4172.1 705.22 3.38 701.84 183.68 518.16 1368.28 1989.83 1365.31 2025.73 5024.74 215.36

2003 4829.37 804.12 1.12 803 268.36 534.64 1298.23 2155.14 1333.25 2072.48 5858.8 215.36

Particulars PBT PAT = TAX COVERAGE MARGIN

2002 701.84 518.16 .738

2003 803 534.64 .665

PBIT

705.22

804.12

PBT
= INTEREST COVERAGE MARGIN

701.84
.995

803
.999

PARTICULARS NET SALES PBIT = GROSS PROFIT MARGIN

2002 4172 705.22 0.207

2003 4829.37 804.12 0.202

NET SALES
AVG ASSETS = AVG ASSETS TURNOVER

4172
5024.74 0.830

4829.37
5858.8 0.824

AVG ASSETS AVG EQUITY = EQUITY MULTIPLIER

5024.74 101.19 49.66

5858.8 101.19 57.90

PARTICULARS
TAX COVERAGE MARGIN INTEREST COVERAGE MARGIN GROSS PROFIT MARGIN AVG ASSETS TURNOVER EQUITY MULTIPLIER RETURN ON EQUITY .738 .995 .207 .830 25.11

2002
.665 .999 .202 .824 29.3

2003

316.79

323.98

BAJAJ AUTO Current Ratio 1.20

HERO HONDA 0.16

BAJAJ AUTO Debt Equity Ratio Interest Coverage 0.26 717.76

HERO HONDA 0.16 33.85

BAJAJ AUTO

HERO HONDA

PAT (NNRT)as % of sales

17.50

67.10

Return on Capital Employed

21.47

94.64

Complacent.

License Raj Syndrome. No technological up gradation of products.

High disposable ideal cash.

Risk averse investment portfolio.

Didnt foresee future trendz . Bajaj was a late riser to the competition. No long lasting foreign jvs

Lack of professional management team.

BAJAJ MATRIX
PULSAR SCOOTERETS

AUTO

SCOOTERS

STRENGTH
High economies of scale. High economies of scope. Legacy of brand name. Widespread distribution network.

WEAKNESS
Hasn't employed the excess cash for long. Centralized paternalistic management style Not a global player in spite of huge volumes. No collaboration with any of the foreign players .

OPPORTUNITIES
The growing gearless trendy scooters and scooterette market. Can use the existing R&D capabilities for new models. Can invest and grow the life style segments.

THREATS
The competition catches-up any new innovation in no time. Threat of cheap imported motorcycles from China. Tough competition faced by foreign as well as domestic players.

Mkt share Motorcycle/Stepthrou's 2002-03

Bajaj Auto
24%
44% 6% 18% 8%

Mkt share 3-wheelers 2002-03

2% 15%

Hero Honda TVS Yam aha Others

70% 9% 4%

Atul Auto Bajaj Auto Bajaj tempo M&M Piaggio vehicles

scooters/scooterette 6000000 5000000 4000000 3000000 2000000 1000000 0 FY96 FY97 FY98

moped

motorcycle/step-throu's

Mkt share Scooter/Scooterette 2002-03

Bajaj Auto
25%

39%

HMS

17% 19% FY99 FY00 FY01 FY02 FY03

TVS
Others

Sales - Value wise break up (Rs mn) Sales value (Rs mn) Motorcycles Scooters geared Scooters ungeared Step thrus Three wheelers Spare parts 2002-03 26,082 5,261 1,254 981 11,542 2,324

Sales - percentage break up

Sales break up % (value) 2002-03 Motorcycles Scooters geared Scooters ungeared Step thrus Three wheelers Spare parts 55 11.1 2.6 2.1 24.3 4.9 Sales break up % (volumes) 2002-03 60 18.6 4.2 3.8 13.4 -

HH.TVS,HONDA

HH, TVS , HONDA

NO PROBLEM IN THIS QUADRANT

ADVENT OF BIKES AND DEMAND OF PERSONAL MOBILITY

CONSUMERS WERE BECOMING DEMANDING IN TERMS OF CHOICE

They should have introduced new products across segments. The company should have anticipated the change in market dynamics and introduce bikes earlier then they did. They should have increased the customer centric initiatives and command more loyalty.

 Bajaj

should have discarded the notion of being the numero- uno and should have moved with times.
should have been made in high yeilding avenues.

Investments

The company should have sustained their JVs for long term synergies.