bajaj auto

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FINANCIAL MANAGEMENT TOPIC: BAJAJ AUTO

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Bajaj Auto INTRODUCTION Bajaj Auto came into existence on November 29, 1945 as M/s Bach raj 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, it managed to produce and sell 100,000 vehicles in a single financial year. In 1985, it started producing at Waluj near Aurangabad. In 1986, it managed to produce and sell 500,000 vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicle and produced and sold 1 million vehicles in a year.

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Spinoffs and acquisitions The demerger of Bajaj Auto Ltd into three separate corporate entities—Bajaj Finserv Ltd (BFL), Bajaj Auto Ltd (BAL), and Bajaj Holdings and Investment Ltd (BHIL)—was completed with the shares listing on May 26, 2008 . In November 2007, Bajaj Auto acquired 14.5% stake in KTM Power Sports AG (holding company of KTM Sport motorcycles AG). The two companies have signed a cooperation deal, by which KTM will provide the know-how for joint development of the water-cooled four-stroke 125 and 250 cc engines, and Bajaj will take over the distribution of KTM products in India and some other Southeast Asian nations . Bajaj said it is open to taking a majority stake in KTM and is also looking at other takeover opportunities. On the 8th of January 2008, Managing Director Rajiv Bajaj confirmed the collaboration and announced his intention to gradually increase Bajaj's stake in KTM to 25 %. BAJAJ BYK -2002 [ Products Bajaj has made a number of motorcycles, scooters and cars. Motorcycles in current production are the XCD, Platina , Discover, Pulsar and Avenger. Bajaj also produces many motorcycles for other manufacturers, such as the Kawasaki Ninja 250R , Yamaha YZF-R15(Unsure), and new for 2011, the KTM Duke 125 , Cars include the Bajaj ULC ultra-low-cost car

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Low cost cars Bajaj Auto says its $2,500 car, which it is building with Renault and Nissan Motor, will aim at a fuel-efficiency of 30 kilometers per liter (85 mpg -imp ; 71 mpg -US ) (3.3 L/100 km), or twice an average small car, and carbon dioxide emissions of 100 g/km. The car is scheduled to be launched in 2012 . It is a Tata Nano competitor. The Bajaj venture will have an initial capacity of 400,000 units, while Tata expects eventual demand of 1 million Nanos AWARDS AND ACCOLADES 2009 - 2010 Product Award Award body Bajaj Auto Most Trusted Brands - Auto Two Wheeler Brand Equity Bajaj Auto Most Popular Two Wheelers Amongst Youth Global Youth Marketing Forum 2010 Bajaj Auto Chakan Plant - Super Platinum for Manufacturing Excellence ET - Frost & Sullivan Bajaj Auto Waluj Plant -Best-In-Class Manufacturing Leadership Award - 2Wheeler Stars of the Industry Group

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Product Award Award body Kawasaki Ninja Bike of the Year IMOTY Pulsar 135LS Bike of the Year ET NOW - ZigWheels Discover DTS-Si 100cc Bike of the Year ET NOW - ZigWheels Pulsar 135LS 150cc Bike of the Year ET NOW - ZigWheels Kawasaki Ninja 250cc Bike of the Year ET NOW - ZigWheels Pulsar 135LS 4-V Technology of the Year ET NOW - ZigWheels Discover DTS-Si Most Value for Money-Bike of the Year ET NOW - ZigWheels Kawasaki Ninja Motorcycle of the Year - Bike upto 250 cc NDTV Profit - Car & Bike Bajaj Discover DTS-Si Motorcycle of the Year - Bike upto 125 cc NDTV Profit - Car & Bike

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Awards Product Award Award body Bajaj Discover And Pulsar Best Integrated Campaign - Two wheelers NDTV Profit - Car & Bike Kawasaki Ninja Bike of the Year CNBC - Overdrive Bajaj Discover Best StoryBoard Commercial CNBC - Overdrive Pulsar135LS Bike of the Year 2010 UTV Bloomberg-AutoCar Pulsar135LS Viewer's Choice of the Year UTV Bloomberg-AutoCar Bajaj Discover Best TV Commercial Auto India Kawasaki Ninja Two Wheeler of the Year NDTV Profit - Car & Bike Kawasaki Ninja Bike of the Year 2010 BS Motoring Pulsar Silver Effie for PulsarMania Ad Effie Bajaj Auto Best Advertising Auto India

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SWOT ANALYSIS E valuation of Strengths Weaknesses Threats and O pportunities of Bajaj Auto. Strengths : * Highly experienced management * Product design and development capabilities. * Extensive R & D focus. * Widespread distribution network. * High performance products across all categories. * High export to domestic sales ratio. * Great financial support network ( for financing the automobile) * High economies of scale. * High economic of scope.

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Weaknesses; * Hasn’t employed the excess cash for long. * Still has no established brand to much Hero Honda’s splendor in commuter segment. *Not a global player in spite of huge volumes. * Not a global recognizable brand ( unlike the JV partner Kawasaki) Threats: * The competition catches –up any new innovation in no time * Threat of cheap imported motorcycled from china. * Margins getting squeezed from both the direction ( price as well as cost) * TATA Ace is a serious competition for the three-wheeler cargo segment. Opportunities: * Double- digit growth in two-wheeler market. * Untapped market above 180cc in motorcycles. * More maturity and movement towards higher-end motorcycles. * The growing gearless trends scooters and scooterette market. * Growing world demand for entry-level motorcycles especially in emerging markets.

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CSR Activities CSR Areas 1. Community Welfare 2. Education 3. Employee Welfare 4. Environment 5. Healthcare 6. Poverty Eradication 7. Rural Development 8. Women Three main CSR activities 1. Hospital & ART centre 2. Rural dev of 61 villages 3. Schools, colleges ITI 's Market conditions Bajaj Auto, which makes two- and three-wheelers, said lackluster market conditions were reflected in the company’s commercial vehicles sales. It expected commercial vehicle sales to grow in the second half of this financial year on the back of two new products, one each in the passenger and the goods segments.

BAJAJ AUTO (FINANCE):

BAJAJ AUTO (FINANCE) Product For December 2010 Upto December 2010 For December 2009 Upto December 2009 Motorcycles 243,675 2,550,372 219,920 1,794,359 Other 2 Wheelers - 27 509 4,593 Total 2 Wheelers 243,675 2,550,399 220,429 1,798,952 Three Wheelers 33,128 325,357 31,575 244,655 Grand Total 276,803 2,875,756 252,004 2,043,607 Product For January 2011 Upto January 2011 For January 2010 Upto January 2010 Motorcycles 275,622 2,825,994 232,939 2,027,298 Other 2 Wheelers - 27 110 4,703 Total 2 Wheelers 275,622 2,826,021 233,049 2,032,001 Three Wheelers 37,961 363,318 32,969 277,624 Grand Total 313,583 3,189,339 266,018 2,309,625

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CAPITAL STRUCTURE OF BAJAJ AUTO Capital Structure (Bajaj Auto) Period Instrument Authorized Capital Issued Capital - P A I D U P - From To (Rs. cr ) (Rs. cr) Shares (nos) Face Value Capital 2009 2010 Equity Share 150 144.68 144683510 10 144.68 2008 2009 Equity Share 150 144.68 144683510 10 144.68 2007 2008 Equity Share 150 144.68 144683510 10 144.68 2006 2007 Equity Share 150 101.18 101183510 10 101.18 2005 2006 Equity Share 150 101.18 101183510 10 101.18

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Bajaj Auto net drops 4%, vehicle sales up 8 % Pune , July 10 Bajaj Auto Ltd has recorded a 9 per cent increase in turnover and a 4 per cent drop in net profit for the first quarter of 2008-09 when compared with the same period last year .

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NEW PRODUCTS OF BAJAJ MOTORS

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