Bajaj Auto Ltd. is the largest exporter of two and three wheelers. With Kawasaki Heavy Industries of Japan, Bajaj manufactures state-of-the-art range of two-wheelers. The brand, Pulsar is continually dominating the Indian motorcycle market in the premium segment. Its Discover DTSi is also a successful bike on Indian roads.

Bajaj's Small Car in 2010 India's second largest bike manufacturer Ltd has announced to launch its concept car by 2010. The small 'Lite' will be in competition to Tata Nano which is tagged as world's cheapest car. This small concept car is being designed in collaboration with Renault and Nissan but it will not be for Rs 1 lakh. Bajaj Auto managing director said that the focus is on performance of the car rather than cost. Bajaj motors has clarified that mileage, maintenance and carbon emissions. are the sole objectives in this Lite's design.

Quick Facts Founder Year of Establishment 1926 Industry Automotive - Two & Three Wheelers Business Group The Listings & its codes BSE - Code: 500490; NSE - Code: BAJAJAUTO Presence Distribution network covers 50 countries. Dominant presence in Sri Lanka, Bangladesh, Columbia, Guatemala, Peru, Egypt, Iran and Indonesia. Joint Venture Kawasaki Heavy Industries of Japan Registered & Head Office Akurdi Pune - 411035 India Tel.: +(91)-(20)-27472851 Fax: +(91)-(20)-27473398 Works Akurdi, Pune 411035 Bajaj Nagar, Waluj Aurangabad 431136 Chakan Industrial Area, Chakan, Pune 411501

E-mail [email protected]

Website www.bajajauto.com

Segment and Brands

Products Brands

M otorcycles 4S 4S Champion Bajaj Avenger Pulsar 135

Bajaj CT 100 Bajaj Discover Bajaj Platina Platina DTS SI Bajaj Pulsar PULSAR DTS Kawasaki Ninja

Bajaj Pulsar

DTSi FI 220 250

Bajaj Sonic Bajaj Wind 125 Bajaj XCD 125 Discover 150

Boxer Caliber Caliber115 Pulsar 200 DTSi Kawasaki Bajaj KB RTZ KB100 Eliminator KB125

Bajaj Kristal

Scooters Bajaj Chetak Bajaj Wave

Dtsi

Awards & Accolades

2005 y Bajaj Discover DTS-i was chosen as Bike of the Year and Indigenous Design of the Year by Overdrive Awards. 2004 y Bajaj Auto was chosen as Bike Maker of the Year by ICICI Bank Overdrive Awards. y DTS-i Technology was chosen as Auto Tech of the Year by ICICI Bank Overdrive Awards. y Bajaj Pulsar DTS-i became Bike of the Year by ICICI Bank Overdrive Awards. y Wind 125 chosen as the Two Wheeler of the Year by CNBC AUTOCAR Awards. y Wind 125 chosen as the Bike of the Year by Business Standard Motoring. 2003 y Bajaj Pulsar 180 DTS-i chosen as Wheels Viewers Choice Two Wheeler of the Year and Best Two Wheeler by BBC World Wheels Award. y Bajaj Pulsar 150 DTS-i chosen as Best Two Wheeler between Rs. 45,000 to Rs. 55,000 by BBC World Wheels Award. y Bajaj Boxer AT KTEC chosen as Best Two Wheeler under Rs. 30,000 by BBC World Wheels Award. y Bajaj Pulsar chosen as Motorcycle Total Customer Satisfaction Study by NFO Automotive. y Bajaj Pulsar chosen as Bike of the Year by ICICI Bank OVERDRIVE Awards. 2002 y Bajaj Pulsar chosen as Most Exciting Bike of the Year by OVERDRIVE Awards. y Bajaj Eliminator chosen as Bike of the Year by OVERDRIVE Awards. 2001 y Bajaj Eliminator chosen as Most Exciting Bike of the Year by OVERDRIVE Awards.

Sales Performance Sales 2004-05 (Nos.) 2003-04 (Nos.) Motorcycle 1,449,710 1,023,551 Other two-wheelers 152,936 265,398 Total two wheelers 1,602,646 1,288,949 Three wheeler 222,053 229,182 Total two & three wheelers 1,824,699 1,518,131 Of the above, exports were:- Two wheelers 130,945 90,210 Three wheelers 65,765 65,797 Total Exports 196, 710 156,007

Market Share

Year ended Market Market BAL BAL's BAL's market 31 March (nos.) growth (nos.) growth share 2005 5,217,996 20.9% 1,449,710 41.6% 27.8% 2004 4,316,777 14.9% 1.023,551 17.9% 23.7% 2003 3,757,125 31.3% 868,138 32.3% 23.1% 2002 2,861,375 40.7% 656,018 55.4% 22.9% 2001 2.033,196 - 422,016 - 20.8%

Financials at a Glance Nine Nine Quarter Quarter Year Ended Months Months Ended Ended 31.03.05 Ended Ended 31.12.05 31.12.04 (Audited) 31.12.05 31.12.04 Segment Revenue Automotive 20020.4 16071.8 55054.0 42852.1 59338.9 Insurance 9839.6 2917.4 20847.3 7303.1 14325.4 Investment & 1074.8 873.9 3404.3 2818.3 4095.2 Others Total 30934.8 19863.1 79305.6 52973.5 77759.5 Less: Inter 57.3 39.2 211.6 245.4 290.7 segment Revenue Net Sales/Income 30877.5 19823.9 79094.0 52728.1 77468.8 from operations Segment Results Automotive 3069.5 1863.5 8067.0 5217.6 7233.4 Insurance (259.3) 59.8 (363.9) 451.5 402.1 Investment & 927.8 856.4 3139.3 2683.8 3877.8 Others Total 3738.0 2779.7 10842.4 8352.9 11513.3 Less: Interest 1.4 2.7 2.8 5.0 6.7 Total Profit 3736.6 2777.0 10839.6 8347.9 11506.6 Before Tax Capital Employed Automotive 9916.9 7931.6 9916.9 7931.6 9084.9 Insurance 3853.7 3625.1 3853.7 3625.1 3355.7 Investment & 53308.0 46392.0 53308.0 46392.0 47354.6 Others Unallocable 1069.3 329.1 1069.3 329.1 (1729.9) Total 68147.9 58277.8 68147.9 58277.8 58065.3

Milestones 2005 Bajaj Avenger and Bajaj Wave launched. 2004 Bajaj Discover DTS-i, New Bajaj Chetak 4 stroke with Wonder Geaf and Bajaj CT100 launched. Bajaj also unveils new brand identity, dons new symbol, logo and brand line. 2003 Pulsar DTS-i and Bajaj Wind 125-The World Bike was launched. In the executive motorcycle segment, its Caliber 115 "Hoodibabaa!" was launched. 107,115 Motorcycles sold in a month. 2001 Launches Pulsar and Eliminator. 2000 Bajaj Saffire was introduced. 1999 Caliber motorcycle notches up 100,000 sales in record time of 12 months. Production commences at Chakan plant. 1998 Kawasaki Bajaj Caliber rolls out of Waluj. Legend, India's first four- stroke scooter rolls out of Akurdi. Spirit launched

Outlook Since 1986, there is a technical tie-up of Bajaj Auto Ltd. with Kawasaki Heavy Industries of Japan to manufacture state-of-art range of latest two-wheelers in India. The JV has already given the Indian market the KB series, 4S and 4S Champion, Boxer, the Caliber series, and Wind125.

Kawasaki Heavy Industries is a Fortune 500 company with a turnover of USD 10 billion (Rs. 45,840 crore). It has crafted new technologies for more than hundred years. The technologies of KHI have redefined space systems, aircrafts, jet engines, ships, locomotive, energy plants, automation system, construction machinery, and of course high reliability two-wheelers.

KHI has given the world its legendary series of 600-1200cc Ninja and 1600 Vulcan bikes. Straight from its design boards, the Kawasaki Bajaj Eliminator, India's first real cruiser bike, redefines the pleasure of "biking" in looks as well as performance.

Company Flashback 'Inspiring Confidence,' the tagline, has build up confidence, through excitement engineering, not only to domestic consumers but also internationally. Established just eight decades back in 1926 by Jamnalal Bajaj, the company has been vested with India's largest exporter of two and three wheelers, 196,710 units in 2004-05, a great 26 per cent jump over the previous year.

Bajaj Auto Ltd. sales have increased by approximately 21 per cent in the year 2004-05, which exceeds Rs 65.4 billion, a record in the history of the company. The gross operating profit stands at Rs. 9.3 billion, again a record. The profits after tax of the BAL are close to Rs. 7.7 billion, and the pre-tax return on operating capital is at an impressive 80 per cent.

The strength of the company is its quality products, excellence in engineering and design, and its ability to delight the customers. The Pulsar, introduced in November 2004, is continually dominating the premium segment of the motorcycle market, helping to maintain the market superiority. Discover DTSi, one more successful bike on Indian roads, is in the 'value' segment of the motorcycle market. It incorporates a high degree of power with fuel efficiency of a 100 cc motorcycle.

BAL is committed to prevention of pollution, continual improvement of environment performance and compliance with all environmental legislation and regulations. They always believe in providing the customer 'value for money' and keeps an special eye upon quality, safety, productivity, cost and delivery

Management

Management Profile

A) Board of Directors

Shri : Chairman

Shri Nanoo Pamnani : Vice Chairman : Managing

Shri Director

Shri Madhur Bajaj : Director

Shri Rajiv Bajaj : Director

Shri D J Balaji Rao : Director

Shri S H Khan : Director

Shri Naresh Chandra : Director

B) Committee of Board a) Audit Committee

Shri Nanoo Pamnani : Chairman Shri S H Khan : Member Shri D J Balaji Rao : Member Shri Naresh Chandra : Member

b) Shareholder¶s & Investors¶ Grievance Committee

Shri Nanoo Pamnani : Chairman Shri Sanjiv Bajaj : Member Shri Rajiv Bajaj : Member

c) Remuneration & Nomination Committee Shri S H Khan : Chairman Shri D J Balaji Rao : Member Shri Nanoo Pamnani : Member Shri Naresh Chandra : Member Shri Rahul Bajaj : Member

Registered under the Companies Act, 1956 Registered Office : Bajaj Auto Ltd Complex, -Pune Road, Pune 411 035

Sanjiv Bajaj : Managing Director

Kevin P D'Sa : CFO & President (Business Development)

Mr Ranjit : President (Insurance)

Gupta

Sonal R Tiwari : Company Secretary

Management

Profile

Mr. Sanjiv Bajaj, who took charge as the Managing Director of the company on 20 February 2008, is a Mechanical Engineer from Pune University. He obtained a Masters Degree in Manufacturing Systems from the University of Warwick and an MBA degree from Harvard Business School.

Mr. Sanjiv Bajaj joined Bajaj Auto Ltd as an Officer on Special Duty in 1994, took over as the General Manager (CF) in 1997, Vice President (Finance) in Sanjiv Bajaj April 2001, Executive Director in April 2004 and continues as Executive Managing Director Director till date.

Top

Mr. Kevin D¶sa began his career with Bajaj Auto Ltd in September 1978 and is presently its Vice President (Finance). After acquiring a Bachelor¶s degree in Commerce, he completed his CA in 1978 and ICWA in 1981. He is working as CFO & President (Business Development) in the company with effect from 20 February 2008.

Kevin P D'Sa CFO & President (Business Development)

Top

Mr. Ranjit Gupta started in Bajaj Auto Limited as General Manager (Co-ordination) in 1988, and moved on to become Vice President (Materials ) in 1995 and Vice President (Insurance) in 2001.

Mr. Gupta did his Masters Degree in Mechanical & Electrical Engineering from the Indian Railway Institute of Mechanical & Electrical Engineers. He was Mr Ranjit Gupta honoured with a fellowship from the Institution of Electrical Engineering President (London) and was also inducted as a member of the Institution of Mechanical (Insurance) Engineers (London).

He is working as President (Insurance) in the company.

Top

Ms. Sonal R Tiwari is the Company Secretary of the company with effect from 20 February 2008. She is ACS, post graduate in Commerce and graduate in Law.

Sonal R Tiwari Company Secretary

Bajaj Group is an Indian conglomerate founded by Jamnalal Bajaj in 1926, Mumbai.[3] Bajaj Group is one of the oldest & largest conglomerates based in Mumbai, .[4] The group comprises 34 companies & its flagship company Bajaj Auto is ranked as the world's fourth largest two- and three-wheeler manufacturer.[5] Some of the notable companies are , Ltd & Ltd.[6] Involvement in various industries that include automobiles (2- and 3-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance. The Group is headed by Rahul Bajaj. Contents

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1 Leadership o 1.1 Jamnalal Bajaj (1889 - 1942) o 1.2 (1915 - 1972) o 1.3 Ramkrishna Bajaj (1924 - 1994) o 1.4 Rahul Bajaj (1965 - Present) 2 Bajaj Group Companies 3 Corporate Social Responsibility o 3.1 Education o 3.2 Health o 3.3 Women Empowerment o 3.4 Self Reliance o 3.5 Rural Development o 3.6 Environment & Natural Resources o 3.7 Awards & Recognition 4 Reference 5 External links

CSR 2010 Details of Bajaj Auto Ltd., Pune, Maharashtra Bajaj Auto Ltd. - Corporate Social Responsibility Activities are as follows

Company Profile

Company's Slogan Distinctly Ahead Since 1945

Company's Vision -

Company's Mission -

Special Notes Part of the Bajaj Group

Company Type Indian Multi National

Industry Sector Automobiles

Products / Services 1. Scooters 2. Autorickshaws 3. Motorcycles and Mopeds

No. of employees Not Disclosed

Other locations of factories Pune, Aurangabad and Chakan (all in Maharashtra) and Pantnagar (Uttarakhand / offices

Financial result for time April 2009 - March 2010 period - Sales Rs. 12097 Crores

- Profit before tax Rs. 2301 Crores

- Net profit after tax Rs. 1598 Crores

- CSR Budget Not Disclosed

- Remuneration of Rs. 6 Crore MD/CEO

CSR Activities

Trust / Foundation for CSR Jamnalal Bajaj Foundation, Jankidevi Bajaj Gram Vikas Sanstha and others

CSR Areas 1. Community Welfare 2. Education 3. Employee Welfare 4. Environment 5. Healthcare 6. Poverty Eradication 7. Rural Development 8. Vocational Training 9. Women

Three main CSR activities 1. Healthcare 2. Education 3. Rural Development

Publish Sustainability No Report

CSR activities in brief Pg. 26, Annual Report

Corporate social responsibility

During the year 2009-10, Bajaj Auto continued its Affirmative Action Plan & Corporate Social Responsibility initiatives in various fields. Activities in this area are set out in greater detail in the CSR Report.

------

Pg. 30 of Annual Report

Report on Corporate Social Responsibility (CSR)

The CSR activities of Bajaj Group are guided by the vision and philosophy of its Founding Father, Shri Jamnalal Bajaj, who enunciated the value of in business and laid the foundation stone for its ethical and value-based functioning.

The core elements of CSR activities include ethical functioning, respect for all stake-holders, protection of human rights and care for the environment. The Company and Bajaj Group generally implements the above initiatives through its employees, Welfare Funds and Group NGOs / Trusts / Charitable Bodies operating at various locations in the country. It also enlists the help of non-Group NGOs, Local Authorities, Business Associations and Civil Society, wherever deemed necessary.

Some of the major initiatives taken up during the year under review are summarised below :-

A. By the Company

Code of conduct and affirmative action

Your company believes that its success is interlinked with the well-being of all sections of the society and equal opportunity for all sections. The company continues to ensure no discrimination of any type to socially disadvantaged sections in the work place.

In the year under review, the company recruited 1182 new employees, of which 161 (13.62%) belong to weaker sections, in line with the affirmative action planned by the company. In the previous year, the same was 6.58%.

Education Under the Public Private Partnership program (PPP), the company has undertaken to upgrade 2 Industrial Training Institutes (ITI) in Pune and one in Pantnagar. During the year, your company took actions to ensure better quality of output from the Institute and also followed up with the concerned agencies for approval of Institute Development Plan. At Ramgarh in Pantnagar, the new structure is coming up and will be available for the current year. Economically weaker, brilliant, underprivileged children, who qualify for the coaching of IIT entrance examination, are encouraged to seek financial assistance.

Health The Anti Retroviral Treatment Centre (ART centre) set up by your company at Yeshwantrao Chavan Municipal Hospital (YCM Hospital) has registered 3500 patients with 1900 cases under ART Centre. This centre is now a bench-mark for new centres and is the largest-one run by industry. The Director General, NACO visited the ART centre and later CII awarded its recognition to Bajaj Auto for its initiatives and long-time commitment in the matter.

B. Through Charitable and other Trusts, NGOs and Group Companies In addition to the activities carried out by the Group Companies, numerous charitable and rural development activities are carried out through its various Trusts / NGOs etc. Some of those are highlighted below :

1. Jamnalal Bajaj Foundation (JBF ± Foundation) Activities carried out by JBF are highlighted as under :-

AWARDS:

The Foundation gives 4 Awards annually - each of the value of Rs.5 lakhs. Of these, three are given to individuals in India for outstanding contribution in the fields of constructive work on Gandhian lines, application of science and technology for rural development and uplift and welfare of women and children. The fourth one is an International Award - given to individuals other than Indian citizens from foreign countries for their contribution to the promotion of Gandhian values outside India.

RURAL DEVELOPMENT:

The Foundation has been undertaking rural development work in select villages of District, Maharashtra (since 1987) and in Shikohabad, Dist. Firozabad, U.P. (since 1992). The activities are undertaken on the basis of the need of the local people. Special emphasis is given on health, family welfare, immunisation, supply of potable drinking water, sanitation and alternative source of renewable energy.

OTHER CHARITABLE ACTIVITIES : l Employment Generation Programmes Programmes of employment generation in the rural area have helped the women-folk and scheduled castes and the poorer sections to develop self- confidence in themselves. l School under National Child Labour Project Schools running with the financial support of National Child Labour Project (GOI), are monitored and controlled by JBF. 200 students and 20 staff members are part of these 4 schools. l Balwadi (Child Training Centre) Balwadi is a pre-school, where under-privileged children are taught by trained teachers. The Foundation is running 24 Balwadis i.e. Bal Sanskar Kendra in rural areas for poor children below six years of age. It also runs free computer training classes, tailoring classes and stitching classes for poor and needy people. l Community Awareness Campaign & Health Camp The Foundation carried out people-to-people base awareness programmes about population control, usage of toilet, health, hygiene etc. and organised health camps for women and handicapped persons.

2. Jankidevi Bajaj Gram Vikas Sanstha (JBGVS)

During the year under review, JBGVS undertook a number of development initiatives for economic and environment development, health care and prevention of HIV / AIDS, basic education and literacy, women empowerment and social development.

Activities carried out by JBGVS for community development and empowerment of women are highlighted below :

Rural Development

The company continued with its rural development activities in Pune and Aurangabad districts of Maharashtra through JBGVS. JBGVS aims at integrated development of 43 selected villages, to be carried out by the villagers under their own leadership and through unified efforts forged by Government and local organisations with JBGVS acting as a catalyst. From April, 2010, it plans to increase the number of villages to 61, which includes 11 villages of District, , birth place of Late Jamnalal Bajaj, founder of the Bajaj Group and additional 13 villages in Pune & Aurangabad districts.

Healthcare

It conducted about 60 health check-up camps, including camps held in conjunction with Kamalnayan Bajaj Hospital at Aurangabad. JBGVS runs a mobile clinic, in 20 villages in Pune with a lady doctor and a nurse to provide primary health care services at the doorstep of the poor.

Tribal Development

A tribal development project, for 1000 tribal families, called Aamrai was launched on 21 August 2009. Rahul Bajaj, Chairman, BAL launched the project. This seven year project involves planting and tending of 27,000 mango trees and 18,000 amla trees on 900 acres of tribal wasteland and distribution of goats, buffaloes & vermi-compost beds for 100 landless tribal families. It is a Rs.3.50 crore project to be done over seven years in partnership with National Bank for Agriculture & Rural Development (NABARD). The project is expected to generate about Rs.4 crores annually from 8th year onwards and substantially improve the quality of life of 1000 tribal families.

3. Trusts for Colleges l Shiksha Mandal, Wardha founded in 1914 by Late Shri Jamnalal Bajaj runs seven colleges with around 10,000 students on its rolls. These include colleges for commerce, science, agriculture, engineering polytechnic and rural studies. Its mission is to provide high quality education at an affordable cost & to inculcate socially desirable values. One of its Colleges, the Jankidevi Bajaj College of Science has recently been selected by the University Grants Commission as a College with Potential for Excellence. Ten of its students appeared in the University merit list. Two of its colleges have received UGC grants to run remedial coaching classes and training for competitive exams for SC/ST students.

A new Bajaj College of Engineering, funded by a Rs 25 crore donation from the Bajaj trusts is in the process of being formed. It is the only educational institution chosen as a resource NGO by the Maharashtra Government for implementing a Rs.600 crore project aimed at increasing farmer incomes in Vidarbha. l Bajaj Science Centre was started in 2007 as a place for middle and high school children to enjoy science by doing it. For the last two years, one of its students has bagged a medal in the national level Homi Bhabha Bal Vaigyanik competition. Its new Rs 5 crore complex has been funded by the Bajaj trusts and the fees at the center are subsidised at Rs 100/month. l Vichar Parishad runs a 6 month PG Diploma course on Gandhian thought, which attracts students from all over India and recently from abroad too. It organised an international seminar in November 2009 on the occasion of the centennial of the publication of Gandhiji¶s ³Hind ´.

4. Bajaj Allianz Insurance Companies

Bajaj Allianz initiated a `special awards ceremony¶ and gave away Recognition Awards to `disabled / physically challenged¶ individuals under different categories ranging from sports, entertainment, business, employment and national service. It was a step to recognise and make a difference to the lives of the physically challenged in India.

5. Kamalnayan Bajaj Hospital

Kamalnayan Bajaj Hospital, located in Aurangabad in Marathwada region, is providing super speciality and tertiary care medical facilities, not available elsewhere in this region. Bajaj Auto with its group companies, is supporting the Trust, named ± MMRI (Marathwada Medical & Research Institute), which runs the hospital. In the last one year, hospital has expanded its capacity from 150 beds to 250 beds and major part of the expansion has been for general category patients. Recently, it has added cancer treatment facilities, including Linac Accelerator & Brachy therapy. Also added are MRI 1.5 Tesla equipment, new generation Siemens Cath Lab for heart patients, latest ophthalmology equipment and other advanced facilities.

The hospital has been providing annually relief for close to 55,000 patients on OPD basis and close to 7,000 patients, who are admitted to hospital for various treatments. It also provides intensive care unit and cardiac care unit, with a capacity of 22 beds and generally with an occupancy rate of more than 95%.

The hospital also runs a programme of providing relief to Below Poverty Line (BPL) and Economically Weaker Section (EWS) of the society with free / subsidised treatment. It holds camps in the villages of the district of Aurangabad and close to 400 BPL patients have been treated at a cost of Rs. 41 lakhs. The Trust is in the process of starting a Nursing College in 2010-11.

The Group has another 20 Trusts, which are also engaged in many CSR initiatives. Thus, what is listed above is not exhaustive, but only illustrative to give a glimpse of the importance being given by the company and the Group towards CSR.

A publication of the Group ³Beyond Profits ± Philanthropic Activities of the Bajaj Group´, setting out in greater detail the CSR activities of the Group can be made available to any shareholder on request. ------http://www.bajajauto.com/csr.asp as on 8-09-10

CSR GUIDING PRINCIPLES

The concept of Corporate Social Responsibility is relatively recent. But the philosophy of social responsibility and commitment to give back to the society underlines the Bajaj way of conducting its businesses for a number of years now. The wide spectrum of community development endeavors undertaken by Bajaj Auto Ltd ² embracing everything from health and education to women empowerment and more ² has touched, and changed, many lives. But the real credit for positive change is always to those whom we have enabled on the path of ³Sustainable & Inclusive growth´ & well being.

Beyond Profit: Invest To Benefit Generations We believe that majority of ³expenditures´ under CSR be converted to ³investments in resource creation´ for use over generations. We try and identify sustainable projects which will benefit the society over long periods.

Educate For Self Reliance & Growth. To usher in a growth oriented society and thereby a very strong and prosperous nation - best way is to educate each and every Indian.

Encourage For Self Help. To guide and do hand holding for self help individually and collectively to create excellence for self and for the team work.

Spread Work Areas. We believe that activities should be spread to locations where we have our presence and hence can effectively guide, monitor and implement specific projects.

Care For those who need it most. Care for the section of the society, which is socially and economically at the lowest rung irrespective of their religion or caste or language or colour.

Sustain Natural Resources. We encourage balanced development and ensure least adverse impact on environment - ³Growth with Mother Nature¶s - blessings´ ------http://www.bajajauto.com/our_csr_areas.asp

Our CSR Areas (detailed information available under each)

* Education * Health * Women Empowerment * Self Reliance * Rural Development * Environment & Natural Resources

Bajaj Auto Ltd Type of Company: Public Founded in: 1945 Headquarters: Pune, India Website: www.bajajauto.com Products: scooters, motorcycles and auto rickshaw.

Bajaj Auto Ltd. is an important Indian automobile manufacturer. Bajaj Auto is the second largest two- wheeler manufacturer in India and one of the largest in the world. It is also the earliest one in India to venture into automobile manufacturing. The company produces and exports scooters, motorcycles and the auto rickshaw. Bajaj Auto is based in Pune, Maharashtra, with plants in Akurdi and Chakan, Waluj and Pantnagar in Uttarakhand.

Bajaj Auto Limited was founded on November 29, 1945. At that time it was known as M/s Bachraj Trading Corporation Private Limited. The company initially sold imported two- and three-wheelers in India. In 1959, Bajaj Auto obtained license from the Government of India to manufacture two- and three-wheelers in the country. In 1960, Bajaj Auto became a public limited company.

Over the last few years, Bajaj Auto has smartly and successfully transformed its image from a scooter manufacturer to a two wheeler manufacturer. At present, the product range of Bajaj Auto includes Scooters, Scooterettes and Motorcycles. The last few years have seen company's real growth in numbers after it successfully introduced a number of new models in various segments of the fast growing bike market in India. In fact, Bajaj Auto smartly introduced new segments in the motorcycle market to take on its arch rival and market leader Hero Honda.

Bajaj Avenger Bajaj Avenger is a cruiser bike from the stable of Bajaj Auto. Bajaj Avenger is modeled along the lines of Kawasaki Eliminator as it draws the styling and other design cues from Bajaj Eliminator which had an air- cooled, single cylinder Kawasaki engine.

Bajaj CT 100 Bajaj CT 100 is a 100 CC entry-level bike from Bajaj Auto. Bajaj CT 100 clearly targets the value-for- money conscious young bike buyer and offers build quality and trim levels of higher-end bikes at a price closer to that of a traditional metal-bodied scooter.

Bajaj Platina Baja Platina is a bike built by the Bajaj Auto. Baja Platina borrows extensively from the Bajaj Wind and Bajaj CT 100 models. There are two variants of Platina having engine capacities of 100 CC and 125 CC.

Bajaj Discover DTSi Bajaj Discover DTSi is a 125 cc bike. The Bajaj Discover has been the highest selling 125 cc bike in India since its inception and far ahead of other bikes in its segment. It is equipped with world¶s first 125cc DTSi engine which gives best in class power of 8.47kW (11.51Ps).

Bajaj Pulsar DTSi Bajaj Pulsar has achieved the status of a cult bike in India. The sturdy and macho looking bike has been hugely popular in the Indian motorcycle market and is largely responsible for changing the 'scooter manufacturer' image of Bajaj Auto.

Bajaj Wave Bajaj Wave scooterette borrows heavily from the old Bajaj Saffire in terms of the overall design but it comes with several new refinements. Bajaj has incorporated its patented DTSi (Digital Twin Spark Ignition) technology and Exhaust TEC into Bajaj Wave.

Bajaj Wind 125 Bajaj Wind* 125 is an executive segment, upright postured, fuel efficient bike from Bajaj Auto. Though manufactured in India, Bajaj Wind 125 is available only for select international markets.

Marketing Strategy of Bajaj Auto - December 11th, 2010 Bajaj Auto is a major Indian automobile manufacturer started by a Rajasthani merchant. It is based in Pune, Maharashtra, with plants in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttaranchal. The oldest plant at Akurdi (Pune) now houses the R&D centre Ahead. Bajaj Auto makes and exports motorscooters, motorcycles and the auto rickshaw.

The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946.[1]

Over the last decade, the company has successfully changed its image from a scooter manufacturer to a two wheeler manufacturer. Its product range encompasses scooterettes, scooters and motorcycles. Its real growth in numbers has come in the last four years after successful introduction of a few models in the motorcycle segment.

The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.[2]

Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj 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

Statistics: Public Company Incorporated: 1945 as M/s Bachraj Trading Ltd. Employees: 17,200 Sales: Rs 42.16 billion ($903.36 million)(2000) Stock Exchanges: Pune Mumbai Delhi London Berlin Frankfurt Munich Ticker Symbols: BAJAJAUTO 490 BJATq.L 893361.BE 893361.F 893361.MU NAIC: 336991 Motorcycle, Bicycle, and Parts Manufacturing

Company Perspectives:

Our Philosophy: We approach our responsibilities with ambition and resourcefulness. We organise ourselves for a transparent and harmonious flow of work. We respect sound theory and encourage creative experimentation. And we make our workplace a source of pride. We believe in: Transparency- -a commitment that the business is managed along transparent lines. Fairness&mdashø all stakeholders in the Company, but especially to minority shareholders. Disclosure--of all relevant financial and non-financial information in an easily understood manner. Supervision--of the Company's activities by a professionally competent and independent board of directors.

Key Dates:

1945: Bajaj Auto is founded. 1960: Rahul Bajaj becomes the Indian licensee for Vespa scooters. 1977: Technical collaboration with Piaggio ends. 1984: Work begins on a second plant. 1998: Bajaj plans to build its third plant to meet demand. 2000: Thousands of workers are laid off to cut costs.

Company History:

Bajaj Auto Limited is India's largest manufacturer of scooters and motorcycles. The company generally has lagged behind its Japanese rivals in technology, but has invested heavily to catch up. Its strong suit is high-volume production; it is the lowest-cost scooter maker in the world. Although publicly owned, the company has been controlled by the Bajaj family since its founding.

Origins

The Bajaj Group was formed in the first days of India's independence from Britain. Its founder, Jamnalal Bajaj, had been a follower of , who reportedly referred to him as a fifth son. 'Whenever I spoke of wealthy men becoming the trustees of their wealth for the common good I always had this merchant prince principally in mind,' said the Mahatma after Jamnalal's death.

Jamnalal Bajaj was succeeded by his eldest son, 27-year-old Kamalnayan, in 1942. Kamalnayan, however, was preoccupied with India's struggle for independence. After this was achieved, in 1947, Kamalnayan consolidated and diversified the group, branching into cement, ayurvedic medicines, electrical equipment, and appliances, as well as scooters.

The precursor to Bajaj Auto had been formed on November 29, 1945 as M/s Bachraj Trading Ltd. It began selling imported two- and three-wheeled vehicles in 1948 and obtained a manufacturing license from the government 11 years later. The next year, 1960, Bajaj Auto became a public limited company.

Rahul Bajaj reportedly adored the famous Vespa scooters made by Piaggio of Italy. In 1960, at the age of 22, he became the Indian licensee for the make; Bajaj Auto began producing its first two- wheelers the next year.

Rahul Bajaj became the group's chief executive officer in 1968 after first picking up an MBA at Harvard. He lived next to the factory in Pune, an industrial city three hours' drive from Bombay. The company had an annual turnover of Rs 72 million at the time. By 1970, the company had produced 100,000 vehicles. The oil crisis soon drove cars off the roads in favor of two-wheelers, much cheaper to buy and many times more fuel-efficient.

A number of new models were introduced in the 1970s, including the three-wheeler goods carrier and Bajaj Chetak early in the decade and the Bajaj Super and three-wheeled, rear engine Autorickshaw in 1976 and 1977. Bajaj Auto produced 100,000 vehicles in the 1976-77 fiscal year alone.

The technical collaboration agreement with Piaggio of Italy expired in 1977. Afterward, Piaggio, maker of the Vespa brand of scooters, filed patent infringement suits to block Bajaj scooter sales in the United States, United Kingdom, West Germany, and Hong Kong. Bajaj's scooter exports plummeted from Rs 133.2 million in 1980-81 to Rs 52 million ($5.4 million) in 1981-82, although total revenues rose five percent to Rs 1.16 billion. Pretax profits were cut in half, to Rs 63 million.

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 was immediately successful, and the company aimed to be able to make 60,000 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 500,000 vehicles 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. In 1987 his attempt to buy control of Ahsok 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 a 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 potential collaborator by Japanese firms. It was hoping to increase 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 than 50 percent, was slowly slipping.

By 1994, Bajaj also was contemplating high-volume, low-cost car manufacture. Several of Bajaj's rivals were looking at this market as well, which was being rapidly liberalized by the Indian government.

Bajaj Auto produced one million vehicles in the 1994-95 fiscal year. The company was the world's fourth largest manufacturer of two-wheelers, behind Japan's Honda, Suzuki, and Kawasaki. New models included the Bajaj Classic and the Bajaj Super Excel. Bajaj also signed development agreements with two Japanese engineering firms, Kubota and Tokyo R & D. Bajaj's most popular models cost about Rs 20,000. 'You just can't beat a Bajaj,' stated the company's marketing slogan.

The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw were introduced in 1997. The next year saw the debut of the Kawasaki Bajaj Caliber, the Spirit, and the Legend, India's first four-stroke scooter. The Caliber sold 100,000 units in its first 12 months. Bajaj was planning to build its third plant at a cost of Rs 4 billion ($111.6 million) to produce two new models, one to be developed in collaboration with Cagiva of Italy.

New Tools in the 1990s

Still, intense competition was beginning to hurt sales at home and abroad during the calendar year 1997. Bajaj's low-tech, low-cost cycles were not faring as well as its rivals' higher-end offerings, particularly in high-powered motorcycles, since poorer consumers were withstanding the worst of the recession. The company invested in its new Pune plant in order to introduce new models more quickly. The company spent Rs 7.5 billion ($185 million) on advanced, computer-controlled machine tools. It would need new models to comply with the more stringent emissions standards slated for 2000. Bajaj began installing Rs 800 catalytic converters to its two-stroke scooter models beginning in 1999.

Although its domestic market share continued to slip, falling to 40.5 percent, Bajaj Auto's profits increased slightly at the end of the 1997-98 fiscal year. In fact, Rahul Bajaj was able to boast, 'My competitors are doing well, but my net profit is still more than the next four biggest companies combined.' Hero Honda was perhaps Bajaj's most serious local threat; in fact, in the fall of 1998, Honda Motor of Japan announced that it was withdrawing from this joint venture.

Bajaj Auto had quadrupled its product design staff to 500. It also acquired technology from its foreign partners, such as Kawasaki (motorcycles), Kubota (diesel engines), and Cagiva (scooters). 'Honda's annual spend on R & D is more than my turnover,' noted Ruhal Bajaj. His son, Sangiv Bajaj, was working to improve the company's supply chain management. A marketing executive was lured from TVS Suzuki to help push the new cycles.

Several new designs and a dozen upgrades of existing scooters came out in 1998 and 1999. These, and a surge in consumer confidence, propelled Bajaj to sales records, and it began to regain market share in the fast-growing motorcycle segment. Sales of three-wheelers fell as some states, citing traffic and pollution concerns, limited the number of permits issued for them.

In late 1999, Rahul Bajaj made a bid to acquire ten percent of Piaggio for $65 million. The Italian firm had exited a relationship with entrepreneur Deepak Singhania and was looking to reenter the Indian market, possibly through acquisition. Piaggio itself had been mostly bought out by a German investment bank, Deutsche Morgan Grenfell (DMG), which was looking to sell some shares after turning the company around. Bajaj attached several conditions to his purchase of a minority share, including a seat on the board and an exclusive Piaggio distributorship in India.

In late 2000, Maruti Udyog emerged as another possible acquisition target. The Indian government was planning to sell its 50 percent stake in the automaker, a joint venture with Suzuki of Japan. Bajaj had been approached by several foreign car manufacturers in the past, including Chrysler (subsequently DaimlerChrysler) in the mid-1990s.

Employment fell from about 23,000 in 1995-96 (the year Bajaj suffered a two-month strike at its Waluj factory) to 17,000 in 1999-2000. The company planned to lay off another 2,000 workers in the short term and another 3,000 in the following three to four years.

Principal Subsidiaries: Bajaj Auto Finance Ltd.; Bajaj Auto Holdings Ltd.; Bajaj Electricals Ltd.; Bajaj Hindustan Ltd.; Maharashtra Scooters Ltd.; Mukand Ltd.

Principal Competitors: Honda Motor Co., Ltd.; Suzuki Motor Corporation; Piaggio SpA