2. Founded in 1926 by JAMNALAL BAJAJ.
Bajaj Auto started its operations in 1945, as in
importer of two and three wheelers.
BUSINESS:
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.
4. No Comparative sales of scooters and bikes.
No information on cost / vehicle.
No information on the realization / vehicle.
5. 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.
6. As at 31 %to Total As at 31 % to Total
March 2003 March 2002
Govt. Securities & 8,653 29.7 5,797 25.6
Bank Deposits
Mutual Funds including 1,739 6.0 510 2.3
UTI
Debentures & Bonds 8,698 29.4 4,040 17.9
Preferences Shares 854 2.9 917 4.1
Inter Corporate 1,651 5.7 2,609 11.6
Deposits
Loan to Bajaj auto holding 140 0.5 184 0.8
Ltd
Fixed income investments 21,735 74.7 14,057 62.3
Equity Shares based on 7,355 25.3 8,499 37.7
Mutual Funds
Total Cost 29,090 100.0 22,556 100.0
Market Value 29,433 21,235
7. PARTICULARS 2002 2003
Net Sales 4172.1 4829.37
PBIT 705.22 804.12
Less Interest 3.38 1.12
PBT 701.84 803
Less Tax 183.68 268.36
PAT 518.16 534.64
Net Fixed Assets 1368.28 1298.23
Net Current Asset 1989.83 2155.14
Average Fixed Assets 1365.31 1333.25
Average Current Assets 2025.73 2072.48
Average Assets 5024.74 5858.8
Average Equity 215.36 215.36
11. BAJAJ AUTO HERO HONDA
Current Ratio 1.20 0.16
BAJAJ AUTO HERO HONDA
Debt –Equity Ratio 0.26 0.16
Interest Coverage 717.76 33.85
BAJAJ AUTO HERO HONDA
PAT (NNRT)as % of sales 17.50 67.10
Return on Capital 21.47 94.64
Employed
12. Complacent.
License Raj Syndrome.
No technological up gradation of
products.
High disposable ideal cash.
Risk averse investment portfolio.
13. Didn’t foresee future trendz .
Bajaj was a late riser to the competition.
No long lasting foreign jv’s
Lack of professional management team.
15. STRENGTH WEAKNESS
High economies of scale. Hasn't employed the excess cash for
High economies of scope. long.
Legacy of brand name. Centralized paternalistic
Widespread distribution network. management style Not a global player
in spite of huge volumes.
No collaboration with any of the
foreign players .
OPPORTUNITIES THREATS
The growing gearless trendy The competition catches-up any
scooters and scooterette market. new innovation in no time.
Can use the existing R&D Threat of cheap imported
capabilities for new models. motorcycles from China.
Can invest and grow the life style Tough competition faced by foreign
segments. as well as domestic players.
16. Mkt share Mkt share 3-wheelers
Motorcycle/Stepthrou's 2002-03
2002-03 2%
Bajaj Auto 15%
Atul Auto
24%
Hero Honda
Bajaj Auto
44%
9%
TVS Bajaj tempo
6%
Yam aha 4%
M&M
18%
Others
8% 70% Piaggio vehicles
Mkt share
scooters/scooterette moped motorcycle/step-throu's
Scooter/Scooterette 2002-03
6000000
5000000
Bajaj Auto
4000000
25%
3000000 39% HMS
2000000
TVS
17%
1000000
Others
0 19%
FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03
17. Sales - Value wise break up (Rs mn)
Sales value (Rs mn) 2002-03
Motorcycles 26,082
Scooters geared 5,261
Scooters ungeared 1,254
Step thru’s 981
Three wheelers 11,542
Spare parts 2,324
Sales - percentage break up
Sales break up % (value) Sales break up
2002-03 % (volumes) 2002-03
Motorcycles 55 60
Scooters geared 11.1 18.6
Scooters ungeared 2.6 4.2
Step thru’s 2.1 3.8
Three wheelers 24.3 13.4
Spare parts 4.9 -
18. HH.TVS,HONDA
HH, TVS , HONDA
NO
PROBLEM
IN THIS
QUADRANT
CONSUMERS
ADVENT OF WERE
BIKES AND BECOMING
DEMAND OF DEMANDING IN
PERSONAL TERMS OF
MOBILITY CHOICE
19. 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.
20. Bajaj should have discarded the notion of
being the numero- uno and should have
moved with times.
Investments should have been made in high
yeilding avenues.
The company should have sustained their
JV’s for long term synergies.