Company Profile

Presentation
PRESENTED BY:

SOURABH AVDHESH
MITTAL PATEL
Presentation Overview
COMPANY HISTORY
HUMAN RESOURCE MANAGEMENT
PRODUCTION AND QUALITY CONTROL
RESEARCH AND development
Bajaj eco spirit
MARKETING STRATEGIES
FINANCIAL Overview
SWOT ANALYSIS
FUTURE GOALS
local community development
recognition
conclusion
BIBLIOGRAPHY
Company
History
 Bajaj History
 On November 29, 1945 Bajaj Auto came into existence as M/s Bachraj Trading
Corporation Private Limited.
 It started off by selling imported two- and three-wheelers in India.
 In 1959, it obtained license from the Government of India to manufacture two-
and three-wheelers and it went public in 1960.
 In 1970, it rolled out its 100,000th vehicle.
 In 1977, the technical collaboration agreement with Piaggio of Italy expired
 In 1977, it managed to produce and sell 100,000 vehicles in a single financial
year.
 In 1985, it started producing at Waluj in Aurangabad.
 In 1986, it managed to produce and sell 500,000 vehicles in a single financial
year.
 Bajaj entered into a strategic tie-up with Kawasaki in late 1990s to enhance its
product line and knowledge up-gradation.
Human Resource
Management
 Human Resource Concern
byThe
its world's
three-wheeler
values 4th
of largest
company two-
live
Innovation, and
their brand
Perfection,
and Speed.
through They are engineering.
excitement distinctly ahead
toInnovation
future.
reach It is a
beyondis how
value
the they
that create
provokes
obvious in the
them
pursuit
of that which exceeds the ordinary.
Perfection
standards.It
determination is
is how
ato they
value
excel set
that
by new
exhibits there
endeavouring
to establish new benchmarks all the
time.
Speed
sharply is how
conviction.It is they
a
responsive, convey
value that
mirroringclear
keeps them
their
commitment
processes. towards there goals and
 Organisation Structure

Chairman & MD:

Rahul Bajaj

Vice Chairman:
Madhur Bajaj

Executive
Director: Top: Rahul Bajaj
Sanjiv Bajaj Left: Madhur Bajaj,
Right: Sanjiv Bajaj
 PRODUCTION & QUALITY CONTROL
CASTING & Misc. Alu. Misc nuts Sheet
Crank Case
FORGING Casting & bolts plates

Buffing &
Cutting
Heat treat.
to size

Machining Machining Buffing El. Plating Pressing

Bought Weld/buff
Ht. Trt. & Wheel chassis
out
Grd. assembly forming
comp.

Minor Engine Engine Final Chassis

ass. assembly painting
ass. testing forming

Quality Dispatch for

test. sale
PRODUCTS
 Timeline of new releases
 1971 - Three-wheeler goods carrier
 1972 - Bajaj Chetak
 1976 - Bajaj Super
 1977 - Rear engine Autorickshaw
 1981 - Bajaj M-50
 1986 - Bajaj M-80, Kawasaki Bajaj KB100
 1990 - Bajaj Sunny
 1991 - Kawasaki Bajaj 4S Champion
 1994 - Bajaj Classic
 1995 - Bajaj Super Excel
 Timeline of new releases
 1997 - Kawasaki Bajaj Boxer, Rear Engine Diesel
Autorickshaw
 1998 - Bajaj Caliber, Bajaj Legend, India's first four-stroke
scooter, Bajaj Spirit
 2001 - Eliminator, Bajaj Pulsar
 2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar
 2004 - Bajaj CT 100, New Bajaj Chetak 4-stroke, Bajaj
Discover
 2005 - Bajaj Wave, Bajaj Avenger
 2006 - Bajaj Platina
 2007 - Bajaj Pulsar-200(Oil Cooled), Bajaj Kristal,Bajaj
Pulsar 220 DTS-Fi,
XCD 125 DTS-Si (Pronounced Exceed 125 DTS-Si)
 QUALITY CONTROL

Trust builds quality

Quality builds satisfaction.
Satisfaction builds relationships
Relationships builds trust
We believe in…..
A Tradition of Trust
Research &
Development
 Research & Development
 Bajaj Auto has a huge, extensive and very well-equipped
Research and Development wing geared to meet two
critical organizational goals:
1. Development of exciting new products that anticipate and
meet emerging customer needs in India and abroad
2. Development of eco-friendly automobile technologies
 The company has also been investing heavily in the latest,
sophisticated technologies to scale down product
development lifecycles and enhance testing capabilities.
 Bajaj Auto R&D also enjoys access to the specialized
expertise of leading international design and automobile
engineering companies working in specific areas.
Eco Spirit
 Eco Spirit
 They are committed for continual improvement of safety, occupational
health & environment performance & compliance with applicable safety,
occupational health & environmental legislations, regulations & other
requirements.
1. Create a proactive SHE management system that addresses significant
safety, occupational health & environment aspects related to activities,
Products & services.
2. Minimize the generation of waste& conserve resources through better
technology & practices for prevention of pollution.
3. Identify potential risks/hazards & follow safe work practices by using
equipments, tools & personal protective equipments as applicable.
4. Promote SHE awreness amongst all who work for & on behalf of Bajaj
Auto Ltd. & motivate them to fulfil our commitments.

They pledge towards creating & preserving a cleaner, healthier & safe work
environment.
Environmental Policy
 Bajaj Auto Ltd.,
manufacturer of two and
three wheeler vehicles is
committed to prevention
of pollution, continual
improvement of our
environmental
performance and
compliance with all
applicable environment
legislation and regulation.
 Marketing Strategies
 Being the leading manufacturer of two & three wheelers
market BAL(Bajaj Auto Ltd.) has been providing the best
of the class models at competitive prices.

 Most of the Bajaj models come loaded with the latest

features within the price band acceptable by the market.

 They regularly update the low price bikes with the latest
features like disk-brakes, anti-skid technology and dual
suspension, etc.
 Marketing Strategies
BAL adopted different marketing strategies for different models, few of
them are discussed below: -
 Kawasaki 4S - First attempt by bajaj to make a mark in the motorcycle
segment. The target customer was the father in the family but the target
audience of the commercial was the son in the family. The time at
which Kawasaki 4S was launched Hero Honda was the market leader in
fuel-efficient bikes and Yamaha in the performance bikes.
 The commercial of Kawasaki 4S had the punch line "Kyun Hero" means
"now what hero" which reflected the aggressiveness in the marketing
front by the company.
 Caliber - The focus for the Caliber 115 was youth. And though Bajaj
made the bike look bigger and feel more powerful than its predecessor
its approach towards advertising is even more radically different this
time around. The teaser campaign and the emphasis on the Caliber 115
being a `Hoodibabaa' bike placed it as a trendy motorcycle for the
college-goers and the 25 plus executives both at the same time
 Marketing Strategies
 Pulsar

 Discover

 Bajaj Auto's entire product portfolio, from the entry-level to the

premium, is being sold by the same dealers. The restructuring
will involve separate dealer networks catering to the urban and
rural markets as well as its three-wheeler and premium bikes
segments.
 Bajaj Auto also plans to set-up an independent network of
dealers for the rural areas. The needs of financing, selling,
distribution and even after-sales service are completely different
in the rural areas and do not makes sense for city dealers to
control this.
Marketing Strategies
Marketing Strategies
 Sales
Particulars August 2008 August 2007 Change %

MOTORCYCLES 175,274 167,483 5

TOTAL 2 176,631 170,203 4

WHEELERS
3 WHEELERS 24,324 25,504 (5)

TOTAL 2&3 200,955 195,707 3

WHEELERS
Exports out of the 71,105 56,452 26
above
 Sales
Particulars April ~ August April ~ August Change %
2008 2007
MOTORCYCLES 902,743 821,406 10

TOTAL 2 908,579 833,259 9

WHEELERS

3 WHEELERS 106,175 119,929 (11)

TOTAL 2&3 1,014,754 953,188 6

WHEELERS

Exports out of the 337,075 259,974 30

above
Marketing Strategies
FINANCIAL
OVERVIEW
Volatility
 Profit & loss account
  Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Income: 
Operating income  409.66 353.15 210.08 145.40 108.07
Expenses 
Material consumed  - - - - -
Manufacturing expenses  - - - - -
Personnel expenses 50.25 32.30 20.55 12.62 9.40
Selling expenses 94.31 51.35 29.20 15.75 11.74
Adminstrative expenses 130.06 107.46 55.27 32.17 19.47
Expenses capitalised - - - ( - -
R
Cost of sales 274.62 191.11 105.02 60.54
s
40.62
Operating profit 135.05 162.04 105.06 84.86 67.46
c
Profit lossincome
Other recurring account 76.28 44.95 27.24 19.78
r 18.63
o
Adjusted PBDIT 211.33 206.99 132.30 104.63
r 86.09
e
Financial expenses 185.38 134.26 79.96 44.60
)
36.32
Depreciation  4.85 3.04 1.73 2.01 1.88
Other write offs - - - - -
Adjusted PBT 21.10 69.70 50.61 58.03 47.89
Tax charges  9.86 24.03 17.26 9.81 15.68
Adjusted PAT   11.24   45.66   33.35   48.22   32.21
Non recurring items 7.19 1.28 4.21 3.46 0.49
Other non cash adjustments 2.15 0.70 -16.48 4.27 5.87
Reported net profit 20.58 47.64 21.08 55.96 38.57
Earnigs before appropriation 20.58 47.64 21.08 55.96 38.57
Equity dividend 3.66 10.60 8.40 12.37 9.89
Preference dividend - - - - -
Dividend tax 0.62 1.80 1.18 1.73 1.27
 Share holding
Share holding
30/06/2008 31/03/2008 31/12/2007
pattern as on :
Face value 10.00 10.00 10.00
No. Of Shares % Holding No. Of Shares % Holding No. Of Shares % Holding
Promoter's holding
Indian
19075276 52.12 19043276 52.04 19043276 52.04
Promoters
Sub total 19075276 52.12 19043276 52.04 19043276 52.04
Non promoter's holding
Institutional investors
Banks Fin. Inst.
700 - 700 - 700 -
and Insurance
FII's 7777394 21.25 7669407 20.96 7474752 20.43
Sub total 8540545 23.34 8423443 23.02 8018168 21.91
Other investors
Private
Corporate 1043786 2.85 1017253 2.78 1109860 3.03
Bodies
NRI's/OCB's/For
3248015 8.88 3264705 8.92 3250514 8.88
eign Others
Direcctors/Empl
- - 32000 0.09 32000 0.09
oyees
Others 544748 1.49 543212 1.48 644662 1.76
Sub total 4836549 13.22 4857170 13.27 5037036 13.76
General public 4143706 11.32 4272187 11.67 4497596 12.29
Grand total 36596076 100.00 36596076 100.00 36596076 100.00
 Dividend
Year Month Dividend (%)
2008 May 10
2007 May 30
2006 May 40
2005 May 75
2004 Jun 60
2003 May 45
2002 May 45
2001 Jun 30
 Corporate Governance
 It is defined as a set of systems, processes & principles
which ensure that a company is governed in the best
interest of all stake holders.
 Bajaj Auto’s commitment to good corporate governance
practices predates the laws and mandates of the Securities
and Exchange Board of India (SEBI) and the stock
exchanges.
 Transparency, fairness, disclosure and accountability have
been central to the working of the company, its
management and its board of directors.
 The standing that the company enjoys in the corporate
world has as much to do with its reputation for integrity
and transparency as with its performance
 Corporate Governance
 Bajaj Auto set up its audit committee in 1987. Since then,
the company has been reviewing and making appropriate
changes in the composition and working of the
committee from time to time to bring about greater
effectiveness and to comply with various requirements
under the Companies Act, 1956 as well as Clause 49 of
the listing agreement.

The current audit committee consists of the following

directors:
 S H Khan, Chairman
 D J Balaji Rao
 J N Godrej
 Naresh Chandra
 Nanoo Pamnani
 SWOT Analysis
StrengthS
 Highly experienced management.
 Extensive R & D focus.
 Widespread distribution network.
 High performance products across all categories.

WEAKNESSES
 Still has no established brand to match Hero Honda's Splendor in commuter
segment.
 Not a global player in spite of huge volumes.
 Not a globally recognizable brand (unlike the JV partner Kawasaki)
 SWOT Analysis
OPPURTUNITIES
 Double-digit growth in two-wheeler market.
 Untapped market above 180 cc in motorcycles.
 The growing gearless trendy scooters and scooter market.
 Growing world demand for entry-level motorcycles especially in
emerging markets

THREAT
 The competition catches-up any new innovation in no time.
 Threat of cheap imported motorcycles from China.
 Margins getting squeezed from both the directions (Price as well as Cost)
 TATA Ace is a serious competition for the three-wheeler cargo segment.  
FUTURE
GOALS
 FUTURE GOALS
 Continuously launching
bikes with new
technologies like ‘Digital
Twin Spark - Swirl
induction’ (DTS-Si)
engine.
 Along with Renault they
are ready to launch there
new concept car ‘Bajaj
lite’.
 Local Community Development
Jankidevi Bajaj Gram Vikas Sanstha

 Bajaj Auto’s Corporate Social Responsibility towards the rural poor is

carried out by a trust, Jankidevi Bajaj Gram Vikas Sanstha (JBGVS). This
trust was formed in 1987. JBGVS acts as a catalyst for development at the
grass root level in 44 villages around Bajaj Auto plants in Pune and
Aurangabad District.
 A project on Rural Education and Information Network (REIN) is being
implemented in 27 villages of Maval Taluka. This project imparts non
formal education to non school going and poorly performing school
going children.
 JBGVS assist BPL families to construct low cost houses under Indira Awas
Yojana. As also help repair school rooms, old structures and construct
cowsheds / mangers, community centers etc
Local Community Development
 JBGVS also conduct classes for
vocational training like tailoring,
bamboo craft, handicraft, making
of greeting cards, mats, paper
bags and assist computer training
for Maharashtra State-CIT
examination.
 Samaj Seva Kendra was
established in 1975 by Bajaj Auto
and is part of JBGVS. SSK provides
facilities for social development of
the residents of Akurdi, Nigdi and
adjoining townships, with the aim
of improving their quality of life,
through skill development
training, hobby centre, nursery
education, health care, sports,
music, dance and cultural
programmes
 RECOGNITIONS
 BAL look to continuously improve there
Products and services to compete with
global standards as new technologies
are introduced at the blink of an eye.
 BAL obsession with perfection has been
recognized by various institutions such
as Automotive Publications like
Overdrive, BBC world wheel awards,
CNBC Autocar awards.
 Almost all the new bikes introduced by
Bajaj in previous 5-6 years has been
awarded with the bike of the year
award. It includes bikes like Pulsar,
Discover, Eliminator & Platina
 Conclusion
 Bajaj is India’s largest automobile manufacturer.
 They firmly believe in providing the customer “
VALUE FOR MONEY,FOR YEARS” through there
products & services.
 Quality, safety & service has been given as much
considerations as productivity, cost & delivery
 BIBLIOGRAPHY
 www.bajajauto.com

 www.google.com

 www.moneycontrol.com

 www.wikipedia.com
 Questions &
Answers session
THANK YOU