A Project Report Declaration
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A PROJECT REPORT ON BAJAJ AUTOMOBILES SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER IN COMMERCE (M.COM) TO PUNE UNIVERSITY. SUBMITTED BY: COLLEGE OF COMMERCE & ARTS, (Affiliated to PUNE University) DECLARATION I hereby declare that this project entitled “BAJAJ AUTOMOBILES”. Is an original work and all the information about the Bajaj automobile is taken down from the Bajaj website & some other sites. All sources of information and help are authentic and have been acknowledged in the project report. Submitted By: CERTIFICATE This is to certify that, student of M.COM 2nd Year College name, Pune affiliated to Which university Pune University has completed his project under my supervision. She made this project with my complete satisfaction and as per the requirement of the course. ACKNOWLEDGEMENT With an overwhelming sense of gratitude, I acknowledge the valuable guidance and consistent encouragement extended to me by our knowledgeable faculty members with whose guidance, I am able to accomplish this endeavor. Their technical acumen and years of experience have provided me with crucial inputs at a critical stage. I am especially thankful and grateful to my project guide Mr. who motivated and helped me in completing my project. A JOURNEY FROM “HAMARA BAJAJ” TO “DISTINCTLY AHEAD” The Bajaj Group was founded in 1926 by Jamnalal Bajaj and now consists of 27 companies. In 1945, Jamnalal Bajaj had formed M/s Bachraj Trading Corporation Private Limited, the flagship company, to sell imported two-wheelers and three- wheelers. The Company acquired a license from the government in 1959 to manufacture these vehicles and went public the next year. By 1977, the company saw its plant rolling out100, 000 vehicles in a single year. In another nine years, Bajaj Auto could produce 500,000 vehicles in a year. The present Chairman of the Bajaj group, Rahul Bajaj, took charge of the business in 1965. He was the first licensee of the Indian make of the Italian Vespa scooter. Japanese and Italian scooter companies began entering the Indian market in the early 1980s. Although some boasted superior technology and flashier brands, Bajaj Auto had built up several advantages in the previous decades. Its customers liked the durability of the product and the ready availability of maintenance; the company's distributors permeated the country. By 1994-95, Bajaj was racing to beat Honda, Suzuki and Kawasaki in the two-wheeler segment internationally. By 1997, Bajaj faced tough competition in the domestic market and its market share stood at 40.5%. Under the leadership of Rahul Bajaj, the turnover of Bajaj Auto has gone up from Rs.72 million to Rs.46.16 billion(USD 936 million), its product portfolio has expanded from one to many and the brand has found a global market. Bajaj as a brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia. The company has a network of 498 dealers and over1,500 authorised service centres and 162 exclusive three-wheeler dealers spread across the country. Bajaj has identified a segment of customers called 'Probikers', who are knowledgeable about motorbikes and appreciative of contemporary technology. They are trendsetters and very choosy about what they ride. Hence, Probikers need to be addressed in a meaningful way that goes beyond the product. Bajaj Auto is in the process of setting up a chain of retail stores across the country exclusively for high- end, performance bikes. These stores are called ―Bajaj Pro biking". Fifty two such stores have been opened across India. Catering to demand in this sector requires a strong and effective distribution network as consumers are more demanding and expect delivery on time. Early delivery is a cause of delight for customers. With such vast global and Indian rural presence, designing an efficient distribution system becomes a complex task even for a company like Bajaj Auto. Lot of time and effort goes into designing a strategy based. INTRODUCTION Bajaj Auto Ltd is one of the leading two & three wheeler manufacturers in India. The company is well known for their R&D, product development, process engineering and low-cost manufacturing skills. The company is the largest exported of two and three-wheelers in the country with exports forming 18% of its total sales. The company has two subsidiaries, namely Bajaj Auto International Holdings BV and PT Bajaj Indonesia. The company was incorporated on April 30, 2007 as a wholly owned subsidiary of erstwhile Bajaj Auto Ltd (the holding company) with the name Bajaj Investment & Holding Ltd. The company received the certificate of commencement of business on May 7, 2007. The holding company operated in the segments, such as automotive, insurance and investment, and others. Considering the growth opportunities in the auto, wind-energy, insurance and finance sectors, and the holding company de- merged their activities into three separate entities, each of which can focus on their core businesses and strengthen competencies. The auto business of the holding company along with all assets and liabilities pertaining thereto including investments in PT Bajaj Auto Indonesia and in a few vendor companies transferred to Bajaj Investment & Holding Ltd. In addition a total of Rs 15,000 million in cash and cash equivalents also transferred to Bajaj Investment & Holding Ltd. As the part of the scheme, Bajaj Holdings and Investment Ltd were renamed as Bajaj Auto Ltd. The appointed date of this de-merger was closing hours of business on March 31, 2007. In April 9, 2007, the company inaugurated their green field plant at Pantnagar in Uttarakhand. In the first year of operations, the plant produced over 275,000 vehicles. The company's vehicle assembly plant at Akurdi was shut down from September 3, 2007 due to higher cost of production. In November 2007, Bajaj Auto International Holdings BV, a wholly owned subsidiary company acquired 14.51% equity stake in KTM Power Sports AG of Austria, Europe's second largest sport motorcycle manufacturer for Rs 345 crore. During the year 2007-08, the company launched XCD 125 DTS-Si and the Three-wheeler Direct Injected auto rickshaw. The Chakan plant completed the cumulative production of over 2 million Pulsar. During the year 2009-10, the company expanded the production capacity of Motorised Two & Three Wheelers by 300,000 Nos to 4,260,000 Nos. The company launched Pulsar 220 F, Pulsar 180 UG, Pulsar 150 UG, Pulsar 135 LS and Discover DTS-si in the market. During the year 2010-11, the company expanded the production capacity of Motorised Two & Three Wheelers by 780,000 Nos to 5,040,000 Nos. The company launched Avenger 220 DTS-i, KTM Duke 125, Discover 150 and Discover 125 in the market. The company plans to maintain the capacity of two and three-wheelers at the current level of 5,040,000 numbers per annum during the year ending 31 March 2012. The 4 wheel vehicle development work is under progress and commercial launch of the first product from this platform is scheduled for 2012. New Competition in the 1980s Japanese and Italian scooter companies began entering the Indian market in the early 1980s. Although some boasted superior technology and flashier brands, Bajaj Auto had built up several advantages in the previous decades. Its customers liked the durability of the product and the ready availability of maintenance; the company's distributors permeated the country. The Bajaj M-50 debuted in 1981. The new fuel-efficient, 50cc motorcycle wa s immediately successful, and the company aimed to be able t o make60,000 of them a year by 1985. Capacity was the most important constraint for the Indian motorcycle industry. Although the country's total production rose from 262,000 vehicles in 1976 to 600,000 in 1982, companies like rival Lohia Machines had difficulty meeting demand. Bajaj Auto's advance orders for one of its new mini-motorcycles amounted to $57 million. Work on a new plant at Waluj, Aurangabad commenced in January 1984. The 1986 -87 fiscal year saw the introduction of the Bajaj M -80 and the Kawasaki Bajaj KB100 motorcycles. The company was making 500,000vehicles a year at this point. Although Rahul Bajaj credited much of his company's success with its focus on one type of product, he did attempt to diversify into tractor-trailers. In1987 his attempt to buy control of Ashok Leyland failed. The Bajaj Sunny was launched in 1990; the Kawasaki Bajaj 4S Champion followed a year later. About this time, the Indian government was initiating program of market liberalization, doing away with the old 'license raj‘ system, which limited the amount of investment any one company could make in a particular industry. A possible joint venture with Piaggio was discussed in 1993 but aborted. Rahul Bajaj told the Financial Times that his company was too large to be considered a po tent ia l collaborator by Japa nese f irms. It wa s ho pin g toincrease its exports, which then amounted to just five percent of sales. The company began by shipping a few thousand vehicles a year to neighboring Sri Lanka and Bangladesh, but soon was reaching markets in Europe, Latin America, Africa, and West Asia. Its domestic market share, barely less than50 percent, was slowly slipping. Objective: To get the information about the genesis, growth and the performance of the company in the recent past. To study the strategies, policies, hierarchy, managerial style etc. the company Adopted which led to its success. Quick facts •Founder - Jamnalal Bajaj •Year of Establishment -1926 •Industry Automotive - Two & Three Wheelers Business •Group -The Bajaj Group •Listings & its codes BSE - Code: 500490; NSE - Code: BAJAJAUTO •Presence: Distribution network covers 50 countries MANAGEMENT TEAM OF BAJAJ AUTO 1.