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The Five Porter Model In Bajaj

Bajaj Car is a major India Automobile producer. It is India's largest and the world's 4th most significant two- and three-wheeler machine. It is located in Pane, Maharashtra, with crops in Kauri and Chaka (in close proximity to Pane), Wale and Pat agar in Uttaranchal. Bajaj Car producers and exports motor unit scooters, motorcycles and the automobile rickshaw. During the last decade, the company has successfully transformed its image from a scooter manufacturer to a two wheeler producer. Its product range includes scooters and Motorcycles. Its real progress in amounts has come in the last four years after successful intro of a few models in the street bike segment. The business is going by Rahall Bajaj who's worthwhile more than US$1. 5 billion. Bajaj Auto had become on November 29, 1945 as M/s Bachraj Trading Company Private Limited. It started off by selling brought in two- and three-wheelers in India. In 1959, it obtained certificate from the Government of India to produce two- and three-wheelers and it gone general population in 1960. In 1970, it rolled out its 100, 000th vehicle. In 1977, it were able to produce and sell 100, 000 vehicles in a single financial season. In 1985, it began producing at Wale in Aurangabad. In 1986, it were able to produce and sell 500, 000 vehicles in a single financial time. In 1995, it rolled out its ten millionth vehicles and produced and sold 1 million vehicles in a year.

Founded in 1926, at the elevation of India's movements for independence from the British, the group has an illustrious background. The integrity, commitment, resourcefulness and willpower to succeed which are characteristic of the group today, tend to be traced back again to its delivery during days past of relentless devotion to a cause. Jamnalal Bajaj, creator of the group, was a close confidant and disciple of Mahatma Gandhi. In fact, Gandhi had followed him as his son. This close romance and his deep involvement in the self-reliance movement didn't leave Jamnalal Bajaj with much time to invest on his newly launched business venture. His son, Kamalnayan Bajaj, then 27, overran the reins of business in 1942. He too was near to Gandhi and it was only after Self-reliance in 1947, that he was able to give his full attention to the business. Kamalnayan Bajaj not only consolidated the group, but also diversified into various manufacturing activities. The present Chairman of the group, Rahall Bajaj, took charge of the business in 1965. Under his management, the turnover of the Bajaj Auto the flagship company has truly gone up from Rs. 72 million to Rs. 46. 16 billion (USD 936 million), its product portfolio has expanded in one to and the brand has found a worldwide market. He is one of India's most recognized business market leaders and internationally well known for his business acumen and entrepreneurial nature.



Anonymous. Mar 28, 2010.

- Bajaj Auto will use its Waluj and Pantnagar plants because of its capacity expansion programmes in the approaching years. The business now plans to up overall capacity to five million vehicles during 2011-12 and will divide this enhanced target almost evenly between Waluj and Pantnagar.

Waluj is, incidentally, home to the three-wheeler range as well as bikes, while Pantnagar, the youngest seed, focuses on bikes. The Bajaj Auto board approved of the expansion program on Wed.


Falaknaaz Syed. December 10, 2009.

Bajaj Finserv, the positioning company for a clutch of financial organizations manipulated by the Bajaj group, has chalked out a systematic plan for the subsidiaries, providing a new focus on profitability and aiming strategic footprint to make sure they are develop in the returning years.


Anonymous. : Jun 2008.

Last month, Japan's third-biggest carmaker missed its profits goal for the second year working. And Nissan, which is 44% held by Renault, said the year ahead would be difficult, with an expected 30% street to redemption in revenue, because of 'absolutely scary' raises in recycleables, a lackluster US market, and a strong yen. Nissan has promised to launch an 'ultra low-cost' car together with Indian motorcycle machine Bajaj Car, in 2011. Nissan must apply all its ingenuity to meet changing consumer demands


Anonymous. May 14, 2008.

While his two prior strategic strategies for the carmaker merited "full" or "much better than full" ratings for execution, Mr [Carlos Ghosn], speaking in Tokyo, recognized his Value-Up blueprint deserved "not really a full rating, but. . . still a good score".

Mr Ghosn also vowed to double sales of Nissan's Infiniti high quality brand to 300, 000 items by 2012. The carmaker will also


Anonymous. Jun 5, 2008.

Reminisces a ex - employee of Videocon, Nabankur Gupta, Brain of Nobby Brand Architects & Strategic Marketing Consultants, "'Videocon was seen to be an innovator with every new product which came into the market. It had been the first someone to bring in the automatic washers and the frost-free refrigerators in the country. But such enhancements have passed on away over time. " But now with the previous LG chief at the helm, Videocon could go back to its glory times. But there continues to be a great deal of finding up to do. In a major category, such as smooth colour Tv sets for case, LG retains forth with a 27. 5 % volume talk about while Videocon has only 9 % talk about in the category, according to market quotes. Even in the air-conditioner segment the difference looms large with LG enjoying a 25 per cent talk about and Videocon having an 11 % talk about. In frost-free refrigerators, LG leads with a 25 per cent show while Videocon is fighting a 6 per cent share in the category. However, in washers LG presently with a 22 % share has Videocon carefully trailing with a 21 per cent share.

According to a past LG employee, Ajay Bajaj, who is presently Product Business Head for ACs and WASHERS, Videocon Group, "So long as resources are channelled in the right route, it is possible for Videocon to overtake anybody. Being one of the oldest companies it had added some flab but when some amount of operational excellence will come in, it might be raring to travel. " Analysts say that in spite of Videocon's shares shrinking, its brands continue to have some collateral in certain sections with the durable business. As the flagship make of Videocon has its strengths in washers, air-conditioners and colour TVs, Electrolux is well known for its frost-free refrigerators and microwaves while Kelvinator's knowledge is in direct cool refrigerators. Sansui is best known because of its colour Television sets while Kenstar has equity because of its small gadgets and air coolers. "We can have different trade channels for each in our brands and in so doing have an extensive retail occurrence today, " offers Bajaj, who is convinced in replicating the LG strategy for Videocon as well. "In LG too we'd different models for the several trade programs and even in Videocon we want attacking all the trade channels with this different brands, " says Bajaj.


Entry barriers are high.

The market runs on high economies of level and on high economies of scope.

The dependence on technical knowledge is high.

Owning a solid distribution network is important and is also very costly.

All these make the hurdle high enough to be always a deterrent for new entrants.

SWOT Examination:

Let's analyze the positioning of Bajaj in today's market set-up, analyzing its advantages, weaknesses, hazards and opportunities available.


Highly experienced management.

Product design and development capacities.

Extensive R & D concentrate.

Widespread syndication network.

High performance products across all categories.

High export to home sales percentage.

Great financial support network (For financing the automobile)

High economies of size.

High economies of scope.


Hasn't employed the excess cash for long.

Still has no established brand to match Hero Honda's Splendor in commuter section.

Not a worldwide player in spite of huge amounts.

Not a internationally recognizable brand (unlike the JV spouse Kawasaki)


The competition catches-up any new invention very quickly.

Threat of cheap imported motorcycles from China.

Margins getting squeezed from both directions (Price as well as Cost)

TATA Ace is a significant competition for the three-wheeler cargo section.


Double-digit expansion in two-wheeler market.

Untapped market above 180 cc in motorcycles.

More maturity and movements towards higher-end motorcycles.

The growing gearless trendy scooters and scooterette market.

Growing world demand for entry-level motorcycles especially in rising markets.


Supplier Bargaining Power: Suppliers of auto components are fragmented and are extremely crucial for this industry since the majority of the element work is outsourced. Proper resource chain management is a costly yet critical need.

Buyer's Bargaining Power: Customers in vehicle market have significantly more choice to choose from and the increasing competition is driving a car the bargaining electricity of customers uphill. With an increase of models to choose from in almost all categories, the market pushes have empowered the clients to a big extent.

Industry Rivalry: The industry rivalry is incredibly high with any product being matched in a couple of months by rival. This instinct of the industry is generally driven by the complex capabilities received over years of gestation under the technical cooperation with international players.

Substitutes: There is no perfect substitute to the industry. Also, if there is any replacement to a two-wheeler, Bajaj has presence in it. Vehicles, which again are a function of move, do never directly compete or come in concern while choosing the two-wheeler, cycles do never even contend with the low entry level moped for even this choice comes at a relatively higher economic probable.


Off past due Bajaj Auto Small, India's premier motor vehicle company has emphasized a great deal on organizational restructuring for the Vehicle business. With this restructuring, the prevailing business functions and duties at the company has been strengthened and improved to ensure greater operational empowerment and effective management.

The five pillars of this new composition (Strategic models) are R&D, Executive, Two Wheeler Business Unit, and Commercial Vehicles Business Unit & International Business Device. These pillars will be backed by functions of Funding, MIS, HR, Business Development and Commercial.

Praveen Srivastava, who was simply VP-Engineering prior to restructuring, will, now, is Chief executive- Engineering. According to the reorganized composition the business will have three CEO's. S. Sridhar, presently, VP, Mktg. & Sales Two-Wheelers, will now brain the Two Wheeler Business Unit as CEO with developing procedures at Wale and Kauri also confirming to him. RC Maheshwari has became a member of Bajaj Vehicle as CEO Commercial Vehicles. The company is along the way of figuring out a CEO for its International Business. The three CEO's will be responsible for Top lines, Business Development & profitability of these respective businesses. Abraham Joseph will continue steadily to lead Research & Development.


The Company affirms that its competitiveness is interlinked with the well-being of all sections of the Indian modern culture.

The Company feels that equal opportunity in job for all parts of the population is a component of its progress and competitiveness. It further thinks that inclusive expansion is an element of growth and development of the united states.

The Company affirms the acknowledgement that diversity to reveal socially disadvantages sections of the society in the workplace has a good effect on business.

The Company wills neither practice nor support mindful discrimination in virtually any form.

The Company does not bias employment from applicants owned by disadvantaged sections of world if such job seekers own competitive skills and job credentials.

The Company's collection of business partners is not predicated on any considerations apart from normal business variables. In case of equal business offers, the Company will select a business partner belonging to a socially disadvantaged section of society.

This Code of Do for Affirmative Action will be put up on the company web-site to encourage applications from socially disadvantaged parts of society.

The Company makes all initiatives for up skilling and continual training of all its employees to be able to enhance their functions and competitive skills. No discrimination of any type will be shown in this technique.

The Company may have a partnership programmed with educational institution/s to support and help students from socially disadvantaged


The Company will maintain details of Affirmative Action.

· THE BUSINESS has nominated Mr. K Srinivas, Vice President (HR), to oversee and promote the Affirmative Action regulations and programmers. He'll be responsible to the Chairman.

· The Company can make available its learning and experience as a good commercial resident in Affirmative Action to other companies desiring to incorporate such insurance policies in their own business.



The concentration of BAL off late has been on providing the best of the class models at competitive prices. A lot of the Bajaj models come packed with the latest features within the price band satisfactory by the market. BAL has been the pioneer in stretching out competition into providing latest features in the price segment by updating the reduced price bicycles with the latest features like disk-brakes, anti-skid technology and dual suspension, etc.

BAL adopted different marketing strategies for different models, few of them are talked about below: -

KAWASAKI 4S - First look at by bajaj to produce a tag in the motor bike segment. The mark customer was the daddy in the family however the market of the commercial was the child in the family. Enough time at which Kawasaki 4S premiered Hero Honda was the marketplace innovator in fuel-efficient bikes and Yamaha in the performance bicycles.

Boxer - It took the reins from where in fact the Kawasaki 4S still left. Focus on was the rural inhabitants and the price very sensitive customer. Boxer promoted as a value for money bike with great mileage. Greater wheelbase, high earth clearance and high mileage were the offering factors and it was in direct competition to Hero Honda Dawn and Suzuki MX100.

CALIBER - The concentration for the Caliber 115 was young ones. And though Bajaj made the motorcycle look bigger and feel stronger than its predecessor (characteristics that will draw in the average, 25-plus, executive section motorcycle buyer), its strategy towards advertising is even more radically different these times. Bajaj provided the mandate for the ad campaign to Lowe, picking them from the clique of three firms that promos for the business (the other two being Leo Burnett and O&M). Heading by the initial market response, the campaign was clearly a hit in the 5-10 years generation. So, the teaser plan and the emphasis on the Caliber 115 being a `Hoodibabaa' bike located it as a trendy motorbike for the college-goers and the 25 plus executives both at exactly the same time.

PULSAR - Pulsar premiered in immediate competition to the Hero Honda's 'CBZ' model in 150 cc plus segment. The plan bearded impressive punch type of "Definitely Men" positioning Pulsar to be a masculine-looking model with an appeal to the performance delicate customers. The Pulsar proceeded to go one step ahead of Hero Honda's 'CBZ' and launched a twin variant of Pulsar with the 180 cc model. The model was a great success and has recently crossed 1 million grades in sales.

DISCOVER - Precisely the same DTSI technology of Pulsar lengthened to 125 cc Discover was a great success. With this, Bajaj could realize its success driving on the back of technological innovation rather than the jv way accompanied by competitors to gain market share.

BAL now is taking a leaf from the FMCG business model to take the business to greater heights. Bajaj has kicked off a job to completely restructure the company's retail network and create multiple sales programs.

Over another few months, the company wills set-up individual sales channels for each segment of its business and consumers. Bajaj Auto's complete product portfolio, from the entry-level to the top quality, has been sold by the same sellers. The restructuring will involve separate dealer networks catering to the urban and rural markets as well as its three-wheeler and superior bikes sections. Bajaj Car also packages to set-up an independent network of dealers for the rural areas. The needs of financing, selling, distribution and even after-sales service are very different in the rural areas and do not is practical for city retailers to control this. The business also blueprints to set-up exclusive dealerships

For its three-wheeler products rather than having they sold through an believed 300 of its existing retailers.


CASH IS Power: Bajaj Auto has been sitting on the cash pile for over five years now. Over another couple of years, competition in the two-wheeler market is set to intensify. TVS Motors and Hero Honda are on something enlargement binge. To struggle this challenge and keep its hard-earned market talk about in the street bike segment, Bajaj Car will need its cash muscle. A look at its own storyline within the last five years provides valuable insight.

DELISTING Be anxious: What's worrying is that there surely is an idea to delist the investment company (also an indirect indicator that it might be listed originally). This might be shutting the valve of equitable possession distribution.

There is a hint of an buyback of shares of the investment company as this is the only way it can be delisted. The business would not be in short supply of cash to put through such a buyback.

Factors such as low valuation, low trading interest and the need to provide shareholders may be cited as plausible known reasons for the buyback.

STAKE FOR KAWASAKI: Bajaj Auto's try to vest the surplus profit another company may be a prelude to offering a stake to Kawasaki of Japan in the equity of the auto company. The last mentioned has been participating in an increasingly dynamic role in Bajaj's recent models, and its own brand name is also more obvious in Bajaj bicycles than previously.

BETTER VALUE PROPOSITION: Shareholder interests may be better offered if the money is maintained to pursue expansion in a tough market. This might also obviate the necessity to fork-out fancy amounts as stamp responsibility to the government for the de-merger. A mixture of a big one-time dividend and a normal buyback program through the sensitive way may offer better value. A tactical stake for Kawasaki would only favorably influence the stock's valuation.


Bajaj Auto talks about external markets primarily with three strategies:

(1) Market where all BAL need to do is deliver through CKD or CBU routes.

(2) Marketplaces where BAL need to build new products

(3) Market segments where BAL need to go into with existing products and probably with a good distributor or a production facility or a jv.

Earlier, almost all of the merchandise that Bajaj exported were scooters and some motorcycles. However, in its concentrate on market segments, like in India, the shift was towards motorcycles. While using extension in Bajaj's own range to almost five-six websites of motorcycles, it got an improved offering to export, also the reason for its stronger teaching. Going back fiscal, 60 per cent of its exports were two-wheelers and the others three-wheelers. In the two-wheeler exports, close to 90 per cent were motorcycles.

Bajaj has recognized certain key markets, which keep potential. Its first overseas office established at the Jebel Ali free trade area has been the center point for exports to middle Africa and the Saharan nations. Egypt and Iran also continue being strong markets for Bajaj.

The other market, which will be a target area, is South America, where in fact the company feels it is rather well represented generally in most countries, except in Brazil, the largest market. The company recently participated in a large vehicle exhibition in Brazil and found good consumer popularity to products like Pulsar and Breeze 125. The other concentration area is the ASEAN nations, which constitute the 3rd biggest consumer of two-wheelers. The biggest among them is Indonesia, where Bajaj vendors want to bring in eco-friendly four-stroke vehicle rickshaws. But two-wheeler market requires great deal of effort from BAL. Everybody will there be with Honda leading the show. There's Suzuki, Kawasaki plus some Korean and Chinese language models. BAL should look at the right product mix for two-wheelers. Bajaj's Pulsar model has taken off well there. In addition, it wants to build up a fresh step-through model for the Indonesian market, but also for now it'll create a base there using its bike models.

Bajaj has also made a beginning by selling bicycles in the Philippines brand name in the name of its technical partner, Kawasaki. Both authorized a Moue in Feb. Kawasaki, a huge multi-product conglomerate, only makes high-end bicycles and doesn't have sub-200cc models. Kawasaki is marketing the new model, Wind 125, produced by both companies, in the Philippines. The Bajaj-developed models, Caliber and Bike, which really is a fuel-efficient cycle, are also being Written by Kawasaki. This is a good beginning strategically for Kawasaki to evince interest in Bajaj products for marketplaces which can still buy significantly less than 150 cc.



Furnaces, reduced amount of hot water temperatures for pre-treatment, use of bio- As a part of continuing efforts to conserve various resources, pursuing steps were taken to conserve energy

Electrical energy conservation was attained by installation of localized lightweight air compressors at various retailers during low production periods, energy conserving screw compressors by updating CPT compressors, real timer electronic circuits installed to change off electrical equipments during lunch time / tea breaks and during non utilization of production equipments, fan less cooling down towers for AC plants, high efficiency reflector accessories with electronic digital ballasts tube equipment and lighting, use of LED & CFT avenue lights, replacement of 350 W air circulators by 180 W air circulators, 150 W MH lighting fixtures rather than 250 W HPSV lamps at shop flooring surfaces, Variable Consistency Drives (VFD) for ASUs in paint shops, washing machine blowers, compressors etc and rationalization of pumping hours of main pump as well as booster pump of pump house. Normal water saving was achieved by replacing of old under-ground drinking water pipes with aboveground pipes to avoid normal water wastage through leakage, drip irrigation system for gardening, installation of localized fresh water storage systems, consumption of treated drinking water for bin cleansing and coloring shop process, rainfall drinking water harvesting and use of bio-chemical additives to reduce occurrence of water change in a variety of paint processes; and LPG saving was achieved by installation of waste material heat restoration system for

hot water era used in pre-treatment process of paint shop, use of reflective covering inside furnaces for better heating retention, three-wheeler electro-deposition (ED) painting process changed from Acrylic ED to Cathodic ED, optimisation of loading style in CGC and seal quench gas for cooking food in canteens, start-up losses in ovens and hot water generation plant life and modified design of color jigs to reduce jig stripping occurrence.


As due to the initiatives taken for conservation of energy and natural resources, the business has effected a standard reduction in consumption as under:-


During the year, the employees volunteered for blood vessels donation camp at Deenanath Mangeshkar Hospital, Pune and Dr Sunshield Tiwari Medical center, Pant agar Open fire fighting teams of the business along with vehicles taken care of immediately 20 Fire assistance calling from Government Flames Section / other professional units outside the manufacturer premises in the larger interests of conserving invaluable life and property.

COMMUNITY Health care:

In line with the determination to enrich the life span of most with whom bajaj discounts, it shows level of sensitivity to the employees, who chosen voluntary retirement life at the Kauri Seed. Soon after the Kauri employees indicated their desire for taking the Voluntary Retirement Scheme, the business organized some interactive conferences with leading finance institutions. The officers explained the necessity to prudently and carefully commit the monies received, considering the various options available today. The business devised attractive strategies for interested employees in order that they could obtain regular monthly payments, in addition to lump sum compensation announced. These were also provided with options of taking lending options at competitive rates of interest.

By these activities, it's the company's Endeavour that the employees, who've accepted voluntary pension scheme, are independently self-sustaining and may take good care of their own families. Employees were also guided for alternative possibilities, whether as worker or entrepreneur.


Government of India- Ministry of Health and Family Welfare - Country wide Aids Control Organisation (NACO) and CII has initiated Community Private Collaboration (PPP) to be able to provide better medical to AIDs patients. Your company has authorized a tripartite Moue with NACO and Yeshwantrao Chauvin Municipal Medical center (YCMH) in Pinprick to set up an Anti Retroviral Treatment Centre (Fine art Centre) at YCMH in Pinprick, Pane with the assistance of Pinprick Chinch wad Municipal Firm for HIV patients. Many dignitaries from Global Fund, WHO and such other organizations have visited the Fine art centre, which is the most significant unit run by an industry under Community Private Partnership programmed. Apart from two doctors and six encouraging medical staff, the ART centre has added audio-visual facilities for group counselling, because of this of which the Fine art centre registration has already reached 1, 900 quantities and the machine is identified today as one of the best Skill centers in the united states. Rural and community development activities and empowerment of women. The business continued with its rural development activities in Pane and Aurangabad districts of Maharashtra through its trust, Jankidevi Bajaj Gram Visas Sancta (JBGVS). JBGVS aims at a development of 43

Selected villages, to be carried out by the villagers under their own control and through united initiatives forged by local organizations with JBGVS behaving as a catalyst

New assignments four wheeler vegetable:

Chaka 4wheeler plant-The 'Later' selection of 4 wheeler vehicles, both in Traveler and Cargo segments of the Industry are under re-design, to Sharpen the competitive positioning of the merchandise. The Cargo version code named ' PV 1500' is likely to be launched in 2011. The Techno-economic feasibility for the Traveler 4 wheeler will be Examined by Bajaj Renault-Nissan for a final decision, leading to firming Up of the co-operation guidelines among companions and the right JV Agreement. Company is constantly on the focus on broadening its design & evaluation teams, Which includes enabled it to help make the new technology products? R & D has Increased its interior competencies by installing advanced machines in Proto shop and benefits of special tools in tests areas.

PROFITS DURING Tough economy:

2008-09 is a tumultuous season for the global economy. The year started out Which has a continuation of an world-wide inflationary spiral and ended with the Most severe slowdown because the Great Melancholy of the 1930s. While India did not Face a contraction in GDP progress like the USA, the Euro area, the united kingdom and Japan, it includes witnessed a 250 basis point compression in expansion rate - from 9% in 2007-08 to the expected 6. 5% or thereabout in 2008-09. The second 50 % of 2008-09 has seen severe financial stress across broad Parts of Indian industry-especially the developing sectors. Companies 've got re-rated; have scrapped investment strategies and capital expenditure; Decrease capacities; struggled with finances because of their previous over- Leveraged positions; wait ed payments to distributors; and possessed to borrow funds. At prohibitive interest levels. It is in this context any particular one must go through the performance of Bajaj Automobile Limited (Bajaj Auto', BAL or the Company'). Despite falling demand in. The motorbike segment, the company has been successful in maintaining an Operating EBITDA (cash flow before interest, fees, depreciation and Amortization) margin of 13. 6% of net sales and other operating income The heartening news for this portion is that state government authorities have Increased the permits for plying energy efficient three-wheelers. Bajaj Car has market share in excess of 90% in the permit-driven market segments. The Company also intends to present a RE Diesel update in 2009-10, that will have a higher mileage; provide more passengers with a luggage hold Area, and can attempt to capture a larger share of the rural market.

INDUSTRIAL Relationships:

At Kauri, the management agreed upon the wage settlement on 18 July 2008 with Vishwakalyan Kampar Sanghatana, the regarded union, in conciliation and appropriately, the advantages of the negotiation have been given to all daily- Rated employees at Kauri. Subsequently, with a view to downsizing the labor force at Kauri, Voluntary Retirement living Structure was floated for the long lasting daily ranked workmen. 2, 331 Workmen availed of the power under the scheme.

Relations with staff and workmen over the crops at Kauri, Wale, Chaka And Pant agar continued to be cordial.


PT. Bajaj Car Indonesia (PT BAI), was contained as a subsidiary company In Indonesia with an issued, subscribed & paid-up capital of US$ 12. 5 Mil (Rs. 562 million) in 2006-07. Bajaj Vehicle contains 97. 5% shares in this Company, with balance being organised by an area partner. The subsidiary company Has gathered deficits of Rs. 830. 7 million as on 31 March 2009. Through

The efforts, that happen to be prepared in the returning years, it is expected that PT BAI will turn around within a reasonable time. Through the calendar year under review, sales and service network reach have been Expanded substantially within the major cities of Jaw, Sumatra, Bali And Sulawesi islands. Total showroom durability stands at around 63 volumes, Covering 46 towns of Indonesia. PT BAI assembles and market segments Bajaj Pulsar and Bajaj XCD in Indonesia, Creating Bajaj as a superior quality tech-savvy brand. PT BAI blueprints to Develop its presence, product range and reach towards becoming a strong Player in this market currently dominated by Japanese 2-wheeler majors. Bajaj Car International Holdings BV, Netherlands (BAIHBV) -was incorporated as a wholly had subsidiary company in Netherlands with an Issued, subscribed and paid-up capital of Euros 200, 000 during 2007-08. Further capital of Euro 98. 2 million was invested in this company during The previous year, by means of premium. It really is proposed to make tactical Investments in international ventures, through equity shares and loans and undertake related activities through this company.


Automobiles need regular substitution of parts. And in addition, therefore, spare parts consist of a profitable business for major auto Manufacturers.

The targets of free parts business of Bajaj Automobile are to perform an Effective role in aiding new vehicle sales, maintain vehicle goodwill' across different geographies, makes and consumer categories, and contribute to the bottom-line. These translate into three goals:

Make free parts available to customer in any way time.

Make them affordable.

Achieve profitable business growth and greater penetration.

The company's free parts business did well. Local sales of free Parts grew by 17. 5% to achieve revenue of Rs. 5. 88 billion in 2008-09. And Exports increased by 84% to Rs. 1. 45 billion. You can find huge head room for further growth of this business. Right now, despite significant development of Bajaj Auto's approved service network, A lot more than 70% of the assistance during post-warranty period happens in the Neighborhood private garages. Hence, the task - and the business

Opportunity - is to make the company's spare parts available in not only the approved service centers but also the private garages and extra part Retailers that dot the country. This is a high volume, credit intensive Business that will require mastery on the way to obtain heterogeneous products. To do so, Bajaj Car created another channel specifically for Distribution of extra parts in 2004-05. Today, the channel has 73 Distributors, who cater right to over 15, 000 retail retailers in the united states. This channel now accounts for over 70% of total extra parts sales

Of BAL. The results demonstrate the success of the route; and the info suggests that there is still scope for significant growth.


During the entire year, the company continuing affirmative action and corporate and business Social responsibility initiatives in various fields. The business continues to place emphasis on inclusive growth and has put in Place certain processes for delivering the intended communal results in Measurable conditions. The company thinks strongly that its competitiveness is Interlinked with the well being of all parts of Indian society and this Equal chance for all sections of the modern culture is an element of its Growth and competitiveness. The business is constantly endeavoring to ensure that no discrimination of any type is proven to the socially disadvantaged parts of the modern culture in the work place.


The company has launched a designed that could help SC/ST students achieve academics excellence and make them on par with those, who can afford coaching for access to IITs. Through the yr under review, one learner with an excellent academic record was recognized from the underprivileged and low-income group, for reimbursement of complete fees for the preparation of IIT entrance test under the information of Titians Prashikshan Kendra.

Under the central government initiative of General public Private Participation

(PPP), the company has volunteered to look at 3 ITIs (Industrial Training

Institute) for up-gradation:


Bajaj Auto Ltd. was the first in support of company to kick off ecologically friendly CNG engines for three wheelers in Delhi.

The Company has been committed to its public and environmental duties both within and beyond your company, reiterating a happy workforce is a effective workforce.

Bajaj Auto encourages several welfare programmers because of its employees as well as various initiatives related to environment, health, education and rural development in the areas around the place areas.

the company facilitates this initiative through the Jankidevi Bajaj Gravitas Sancta, a listed charitable trust and a culture. The trust oversees included development of 24 villages adjoining the

Locations of BAL factories in Pane and Aurangabad. The activities are focused around improvement of natural resources, increased efficiency of land, empowerment of women, health, education, sanitation and income era programmers.

Bajaj Auto Ltd. is also an associate of the Prince of Wales International Business Market leaders Website and Business and Community Base.

Bajaj AutoLtd. Has began adding toward the fight AIDS in other ways, including committing cash for medications for AIDS patients, committing funds for awareness promotions against HIV/Helps, providing free condoms, taking initiatives to market HIV/AIDS awareness among employees and other community customers, framing non-discriminatory policies regarding HV/Assists and providing victims with a support system at work, etc.


Bajaj Auto Ltd. got several bountiful years with accolades galore across its products. NFO Customer satisfaction and CNBC-Auto Car Car Awards, the most sought after awards in the industry, were all showered on Bajaj Vehicle.

While ICICI Bank-OVERDRIVE bestowed three honors to Bajaj under various categories including the Bike Maker of the entire year, BBC World Tires showered four accolades including the viewers choice 2wheeler of the entire year to Pulsar 180 Ditsy; BS Motoring granted the coveted Bike Of THE ENTIRE YEAR award to Blowing wind 125. NFO, the best international marketing research firm given Bajaj Pulsar for Motor bike Total CLIENT SATISFACTION in the superior segment. The latest to confer the honor, CNBC-Auto Car Honor gave the "Two Wheeler of The Year Award" again to Blowing wind 125.

The rapid flames winning of honours by Bajaj Auto for nearly all its product range - from the entry level Boxer, to the recently launched Blowing wind 125 as well as for the Ditsy technology - alerts the changing face of Bajaj and its Endeavour to offer

Locations of BAL factories in Pane and Aurangabad. The activities are focused around improvement of natural resources, increased efficiency of land, empowerment of women, health, education, sanitation and income generation programmers.

Bajaj Automobile Ltd. is also a member of the Prince of Wales International Business Market leaders Website and Business and Community Basis.


Although the avalanche of motorcycles offered Indian consumers a multitude of models to choose from, it also led to increased pressure on the companies to focus on cost-cuts, technology enhancements and up-


Bajaj Car has an enormous, extensive and very well-equipped Research and Development wing targeted at meet two critical organizational goals: development of enjoyable new products that anticipate and meet emerging customer needs in India and in foreign countries, and development of eco-friendly vehicle technologies.

While the manpower durability of the R&D presents a cross-section of in-depth design and executive expertise, the company has also been investing closely in the latest, complex technologies to scale down product development lifecycles and improve testing functions.

Bajaj Automobile R&D also looks forward to usage of the specialized knowledge of leading international design and auto engineering companies employed in specific areas.

Based independently brand of globalization, they have got built their circulation network over 60 countries worldwide and multiplied the exports from 1% of total turnover in Fiscal 1989-90 to over 5% in Fiscal 1996-97.

The countries where their products have a large market are USA, Argentina, Colombia, Peru, Bangladesh, Sri Lanka, Italy, Sweden, Germany, Iran and Egypt. Bajaj leads Colombia with 65% of the mobility scooter market, in Uruguay with 30% of the street bike market and in Bangladesh with 95% of the three-wheeler market.

Several new models are being developed specifically for global markets and with these the business will progressively endeavor to establish its occurrence in Europe too.


Gradations and styling. Their margins emerged under great pressure as marketing costs escalated.

The companies were compelled to lessen prices and offer discounts to survive the competition. Additionally, experts were skeptical about the segment's ability to keep the growth rate in the years to come. Among the major assumptions root the motorcycles dash was that if the market was noticeably large and was growing at a continuous pace, there was room for a profitable living for those brands.

In 2001, there were over 30 street bike brands in the market. However, with the very best five brands accounting for more than 60% of the marketplace, only 40% of the market was available for all the new brands come up with. Despite the kick off of more vehicles, the success prospects of many of the individual brands were regarded to be rather bleak.

Further, the development in the motorcycle segment was dependant on continuing favorable market conditions. Analysts claimed that to maintain this development rate, the portion would have to completely cannibalize the market for scooters and a significant area of the market for scooterettes and mopeds.

Considering the fast growing scooterettes section, with popular from feminine customers, followed by the moderately growing moped portion and the restructuring in the mobility scooter section with major national and overseas players reinforcing their occurrence, it was unlikely that the complete expansion in the two-wheeler sector would be scheduled to motorcycles.

Analysts also commented that as the two-wheeler industry got grown steadily for eight years, stages in the product life cycle would apply to the field quicker, somewhat than later and the decrease stage would invariably come some day. There is little differentiation between your brands being launched aside from styling because so many companies had launched their four-stroke vehicles.

With the inability of the joint endeavors, the expected release of cheaper Chinese brands, stringent emission norms and menace from major international players, the survival of indigenous brands appeared uncertain. Constrained with the ruling price levels in the market place, limited infrastructure and absence of

Technological innovations in comparison with their overseas counterparts, whether the Indian companies would flourish in generating the sort of volumes had a need to support in the competitive motorcycle market, remains to be observed.


Focus on High Margin Products: Around 50% of the two-wheeler consumers buy high quality products (products of exec and premium section motorcycles). Margins on the products are higher.

BAL should choose a deliberate strategy of concentrating on executive and high grade segment motorcycles and three-wheelers, and several brands on lower-end of motorcycles (To seize the market show) and scooters section.

High margin products - Pulsar, Discover, Three-wheelers, Avenger. Low margin products - Patina, Scooters, Mopeds.

Now with increasing competition in the economy portion and limited scope from cost cutting down procedures, it is believed this plan of concentrating on higher margin products would allow the business in keeping its operating margins.

Below are other recommendations: -

Company should keep concentrating on the fast growing motor bike segment.

In view of the new menace posed by Honda Motors in the scooter segment, the business needs to review its products line-up and start new products to accommodate the improved demand.

The company needs to check out its unguarded scooters offerings and need to adapt to the latest movements. ( contend with models like Honda Dynamic)

The company needs to tap the export market more successfully as there is a huge potential to make India as the world's two-wheelers development base. Because of this, it needs to look for joint ventures abroad.

It needs to aim for the young generation better as this group is extremely trend savvy. The advertising should have a fresh look and the product should live up to the Gen-X's prospects.


Able to comprehend that how the concepts that I have learnt from the were found in the organization world and the way the companies are flexible enough to change according with their business requirements (i. e. The way the insurance policies and the set ups change Bajaj Car Small is one of India's largest two-wheeler manufacturers. As the dominant player before early on 1990s, Bajaj's market talk about declined from 49. 3% in 1994, to 38. 9% in 1999 with the accessibility of major opponents like Hero Honda.

Bajaj has initiated several methods to restore its market share and improve its competitive position. The truth discusses the financial strategy pursued by Bajaj.

Bajaj Vehicle Ltd. (BAL) is one of the oldest and the major manufacturer of automobiles in India and has been the marketplace head in scooters. In 1990s, the close to monopolistic market composition, perhaps, lulled the business into being complacent and they gave way to the rivals like Hero Honda and Television sets.

Hero Honda and Televisions Suzuki tied up with foreign majors to generate the latest in terms of appearance and technology, and Bajaj failed to gauge the changing preferences of consumers. In 1990s, there was a marked shift in customer desire from scooters to motorcycles. Bajaj found itself at a loss here, as this was basically an unchartered territory.

Here in this work, I started with the industry research, company analysis, portfolio evaluation, and then moved on to discovering the strategies used by BAL to reinvent itself and once again turn into a market make to reckon with in the Indian two-wheeler industry.

The two wheelers have played a pivotal role in the surging expansion of the Indian car industry. Over the years the domestic sale of various brands of two wheelers have grown in large numbers. Even, in exports, the two wheelers have had the opportunity to maximize the profit margin of varied two wheeler manufacturers.

There are mainly three models of two wheelers specifically, scooters, motorcycles and mopeds. In recent years, both wheeler industry has witnessed a sea change. Through the yesteryears the scooters used to have about 50% of the marketplace share and the others were divided between your motorcycles and mopeds. But now the trend indicates that folks are preferring motorcycles more than the scooters. At the moment there is a huge demand for the motorcycle models in India

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