Bajaj Auto: Presented By:-ITM Bschool Navi Mumbai Kharghar

BAJAJ AUTO
PRESENTED BY:-
ITM Bschool
Navi Mumbai
Kharghar.
A LOOK AT INDIAN TWO WHEELER
INDUSTRY
• Spectacular growth in last few years.
• Oligopolistic market.
• Change in preference or market trends from scooters to bikes in the last

decade.
• Capital intensive industry.
• Major players are Hero Honda, Bajaj & TVS .

CURRENT MARKET SHARE
6
5
Hero Honda
47 Bajaj auto
TVS
HMSI
Others
34
INTRODUCTION TO BAJAJ AUTO
 Worlds fourth largest & India’s second largest two-wheeler manufacturer.
 World’s largest forth largest two &three-wheeler maker.
 Pioneer of scooter manufacturing in India.
 During 80s changed image from scooter to two-wheeler(Bikes+Scooters)

manufacturer.
 Distribution network of over 50 countries.

FLASHBACK
 Bajaj group founded by Jamna Lal Bajaj in 1926.
 In 1942,Kamal Nayan became the head.
 Bajaj auto came into existence on nov.29,1945.(M/s Bachraj Trading
Corp. Pvt. Ltd.)
 In 1948,started selling imported two & three wheelers.
 In 1959, obtained license from the govt. Of India for manufacturing.
 In 1960,became a public sector company ,started akurdi plant &
entered into technical collaboration with Piaggio.
 In 1968,Rahul Bajaj became the CEO of the group.
 In 1975, entered into joint venture with maharashtra scooters ltd.
 In 1977, technical collaboration with Piaggio ended.
FLASHBACK CONTD……
 In 1984,entered into technical collaboration with Japan’s Kawasaki & Waluj
plant started.
 In 1995, rolled out 10 millionth vehicle, produced & sold 1 million vehicles.
Entered into agreement with Japan’s Kubota & Tokyo R&D.
 In 1998, Chakan plant started.
 In 2007, demerger new ‘Bajaj Auto’ along with ‘BFS’ & ‘BHIL’ was formed.
 Also acquired 14.5% stake in KTM Powers Sports AG of Austria.
 In 2008,listing of newly formed Bajaj auto on NSE.

HISTORIC RELEASES
 1960 - Vespa 150 under license of Piaggio of Italy.
 1971 – Three wheeler goods carrier.
 1972 – Bajaj Chetak.
 1976 – Bajaj Super.
 1977 – Bajaj Priya & Rear Engine Auto Rickshaw.
 1981- Bajaj M-50.
 1986 – Bajaj M-80, Kawasaki Bajaj KB-100 & KB-135.
 1997 – Boxer & Rear Engine Diesel Auto Rickshaw.
 1998 – Caliber , India’s first four-stroke scooter Bajaj Legend.
 2001 – Eliminator & Pulsar.
 2003- Caliber115 & Wind 125.
CONTD…………..
 2004 – CT 100,Chetak 4- stroke with wonder gear, Discover DTS-i.
 2005 – Avenger.
 2006 – Platina.
 2009 - XCD & Ninja-250R.

SWOT ANALYSIS
Strength
Weakness
Highly experienced management.
 Product design & development  Hasn’t employed the excess cash
capability.
for long.
 Extensive R&D focus.
 High export to domestic sales ratio.  Not a global player inspite of huge volume.
 Great financial support network.  Not a globally recognized brand.
 High economies of scale.  Lack of professionals at the top.
Opportunities Threats
 Double digit growth in two wheeler  Catching up of innovation in no time.
market.  Cheap imported motorcycles from china.
 Untapped market above 200cc.  Margins getting squeezed from both the
 More maturity & movement towards high sides.
end motorcycles.  Tata ace is a serious competitor for the
 Growing gearless trendy scooters & three wheeler cargo segment.
scooterette market.
TWO-WHEELER SALES
BAL was able to sell 2.507 million bikes in FY 2009-10. Out of these 1.782
million were sold in Domestic Market.
BAL’s sales of motorcycles(Domestic & Exports)
YEAR MARKET( I MARKET BAL(IN BAL’S

ENDED 31 N GROWTH MILLION) GROWTH
MARCH MILLION)
2006 6.201 18.8% 1.912 31.9%
2007 7.100 14.5% 2.379 24.4%
2008 6.544 - 7.8% 2.140 - 10.1%
2009 6.806 4.0% 1.908 -10.8%
2010 8.444 24.1% 2.507 31.4%
SEGMENT WISE ANALYSIS
 Commuter Standard (STD) : Bajaj Platina , Hero Honda CD Series & TVS
Star.
 Commuter Deluxe(DLX) : Bajaj Discover , XCD ,Hero Honda Splendor,
Passion , Glamour , Honda Shine & TVS Fiero.
 Sports : Bajaj Pulsar , Ninja , Hero Honda CBZ ,Hunk , Karizma ,Honda
Unicorn , Stunner ,TVS Apache ,Yamaha FZ16 , FZ-S , R15 & R16.
SALES BREAK UP OF BAL
2009-10
2008-09
STD 24 STD
27 31
43 DLX DLX
SPORTS SPORTS
30 45
THREE-WHEELER SALES
 BAL is the leader in three-wheeler segment in india. It’s sales in 2009-10
went up by 24% over the last year.
THREE-WHEELER SALES IN 2009-10
CATEGORY INDUSTRY BAL BAL’S

MARKET
SHARE
PASSENGER 522167 331707 63.5%
CARRIERS
GOODS 91483 9230 10.1%
CARRIERS
TOTAL THREE 613650 340937 55.6%
WHEELERS
EXPORTS
 BAL is the country’s largest exporter of two & three-wheelers during 2009-
10.
 65.72% of the total bikes exported in 2009-10 were from Bajaj.
 95.15% of the total three-wheelers exported in 2009-10 were from Bajaj.

 Exports contributed 28% to the revenue earned by BAL from sales in 2009-
10.
BAL’S EXPORTS
PRODUCT 2008-09 2009-10 GROWTH
TWO- 633463 726115 15%
WHEELERS
THREE- 139056 164887 19%
WHEELERS
FINANCIALS (in million Rs.)
INDICATORS 2008-09 2009-10 PERCENTAGE
INCREASE
TOATL OPERATING 88104 119210 35%
INCOME
EBITDA 12023 25926 116%
OPERATING EBITDA 13.6% 21.7%
MARGIN
PBT 8464 22886 170%
PAT 6565 17036 160%
SURPLUS CASH 9300 32600 250%
PROPOSED 3724 6748 81.2%

DIVIDEND
DIVIDEND PER Rs 22(220%) Rs 40(400%) 82%

SHARE
EPS(Rs) 45.2 117.7 160%
SUBSIDIARIES
 PT BAJAJ AUTO INDONESIA (PTBAI): It is a majority shareholding
(98.94%) subsidiary of BAL. It assembles and markets Pulsars in
Indonesia.
 BAJAJ AUTO INTERNATIONAL HOLDINGS BV

(BAIHBV),NETHERLANDS :BAL runs its stock in ‘KTMPS’ through
BAIHBV . BAIHBV has increased its stake in ‘KTMPS’ to 31.9%. It also
facilitates joint development program between KTM & BAL.
STRATEGIES
 Best product at least price.
 Strong cash back up.
 Substantial investment in R & D.
 Conservation of energy.
CSR ACTIVITIES
 BY THE COMPANY:
 Code Of Conduct and affirmative action.
 Education
 Health
 THROUGH CHARITABLE AND OTHER TRUSTS.
 JAMANALAL BAJAJ FOUNDATION
 JANKIDEVI BAJAJ GRAM VIKAS SANSTHA

HERO HONDA Vs. BAJAJ
HERO HONDA BAJAJ AUTO
 Only 2 Wheelers  Also active in 3 Wheelers
 Mainly Commuter STD & DLX  Higher presence in Sports category
 High expenditure on advertisement  Lower expenditure on advertisement
 Limited R&D expenditure  Extensive R&D expenditure
 Entirely dependent on domestic market  Strong Exports
 Low tax liability  Higher tax liability
 Higher EPS & NP per share  Lower EPS & NP per share
 Lower EBITDA per share & PBT per share  Higher EBITDA per share & PBT per
share
RECENT AWARDS
PRODUCT
 PULSAR
 AME-2010 BIKE OF THE YEAR
 KAWASAKI NINJA-250
 CNBC BIKE OF THE YEAR
 ET NOW ZIGWHEELS BIKE OF THE YEAR
 BUSINESS STANDARD BIKE OF THE YEAR
 NDTV PROFIT TWO WHEELER OF THE YEAR
 INDIAN MOTORCYCLE OF THE YEAR
 Bajaj Auto
 Best advertising By auto india.
 Most Trusted Brands - Auto Two Wheeler By Brand Equity .
 Most Popular Two Wheelers Amongst Youth By Global Youth Marketing
Forum 2010.
 Chakan Plant - Super Platinum for Manufacturing Excellence By ET - Frost
& Sullivan.
 Waluj Plant -Best-In-Class Manufacturing Leadership Award - 2Wheeler by
Stars of the Industry Group.

CAPACITY EXPANSION &
NEW PROJECTS
 The company plans to increase its capacity of two and Three
Wheelers from 42,60,000 numbers per annum to 49,80,000 numbers
per annum by 31 mar 2011.
 The company is in collaboration with Renault & Nissan to launch a
low cost car ‘Bajaj Lite’ of about $2500. It is expected to be
launched in 2012.
FUTURE EXPECTATIONS
 Growth seems to be steady in the nearest future.
 Competition is going to be stiffer.
 Margins are expected to narrow down further.
 Longer future seems to be uncertain in view of expected introduction of

cheaper Chinese brands, stringent emission norms & threat from major
international players.
THANK YOU

Bajaj Auto: Presented By:-ITM Bschool Navi Mumbai Kharghar

Uploaded by

Copyright:

Available Formats

Bajaj Auto: Presented By:-ITM Bschool Navi Mumbai Kharghar

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Bajaj Auto: Presented By:-ITM Bschool Navi Mumbai Kharghar

Uploaded by

Copyright:

Available Formats

BAJAJ AUTO

• Change in preference or market trends from scooters to bikes in the last

• Capital intensive industry.

• Major players are Hero Honda, Bajaj & TVS .

 World’s largest forth largest two &three-wheeler maker.

 Pioneer of scooter manufacturing in India.

 During 80s changed image from scooter to two-wheeler(Bikes+Scooters)

 Distribution network of over 50 countries.

 In 1998, Chakan plant started.

 Also acquired 14.5% stake in KTM Powers Sports AG of Austria.

 In 2008,listing of newly formed Bajaj auto on NSE.

 2009 - XCD & Ninja-250R.

BAL’s sales of motorcycles(Domestic & Exports)

YEAR MARKET( I MARKET BAL(IN BAL’S

SALES BREAK UP OF BAL

THREE-WHEELER SALES IN 2009-10

CATEGORY INDUSTRY BAL BAL’S

 95.15% of the total three-wheelers exported in 2009-10 were from Bajaj.

PAT 6565 17036 160%

SURPLUS CASH 9300 32600 250%

PROPOSED 3724 6748 81.2%

DIVIDEND PER Rs 22(220%) Rs 40(400%) 82%

 BAJAJ AUTO INTERNATIONAL HOLDINGS BV

 Strong cash back up.

 Substantial investment in R & D.

 Code Of Conduct and affirmative action.

 THROUGH CHARITABLE AND OTHER TRUSTS.

 JAMANALAL BAJAJ FOUNDATION

 JANKIDEVI BAJAJ GRAM VIKAS SANSTHA

 Most Trusted Brands - Auto Two Wheeler By Brand Equity .

 Most Popular Two Wheelers Amongst Youth By Global Youth Marketing

 Chakan Plant - Super Platinum for Manufacturing Excellence By ET - Frost

 Waluj Plant -Best-In-Class Manufacturing Leadership Award - 2Wheeler by

Stars of the Industry Group.

 Competition is going to be stiffer.

 Margins are expected to narrow down further.

 Longer future seems to be uncertain in view of expected introduction of

You might also like