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Suzuki for Its Joint-Venture to Manufacture Small Cars

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Suzuki for Its Joint-Venture to Manufacture Small Cars INTRODUCTION: Automobile companies History Following economic liberalization in India in 1991, the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. Following the economic liberalisation in 1991 and the gradual weakening of the license raj, a number of Indian and multi-national automobile companies launched operations. Since then, automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands. India, is the second largest producer of two-wheelers in the world. In the last few years, the Indian two-wheeler industry has seen spectacular growth. The country stands next to China and Japan in terms of production and sales respectively. Majority of Indians, especially the youngsters prefer motorbikes rather than cars. Capturing a large share in the two-wheeler industry, bikes and scooters cover a major segment. Bikes are considered to be the favorite among the youth generation, as they help in easy commutation. Large variety of two wheelers are available in the market, known for their latest technology and enhanced mileage. Indian bikes, scooters and mopeds represent style and class for both men and women in India. However, few Indian bike enthusiasts prefer high performance imported bikes. Some of the most popular high-speed bikes are Suzuki Hayabusa, Kawasaki Ninja, Suzuki Zeus, Hero Honda Karizma, Bajaj Pulsar and Honda Unicorn. These super bikes are specially designed for those who have a zeal for speedy drive. Bajaj Auto HISTORY: Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation Private Limited. Till 1959, they imported scooters and three-wheelers from Italy and sold them in India. The company got a production license in the year 1959 and fastened a technical collaboration with Italian PIAGGIO in 1960. Bajaj Auto Ltd. is one among India's top ten companies in terms of market capitalization and among the top five in terms of annual turnover. The company started producing scooters in the year 1961 and followed three-wheelers production in 1962. Its collaboration with Piaggio expired in 1971 and since then, their scooters and three- wheelers are being sold with the brand name ³BAJAJ´. Maharashtra Scooters Ltd., a Company with 24% equity participation by the Company and 27% participation from Maharashtra State Government's Western Maharashtra Development Corp. was formed in the year 1975 under the "Horizontal transfer of technology" policy. The first production unit is located at Satara, Maharashtra. The unit continues to collect scooters from CKDs supplied by the Company. These scooters are marketed through the Company's distribution network and under the Company's brand name. In 1984, the second production plant was set up at Aurangabad, Maharashtra. This plant started scooter production in 1986, three-wheeler production in 1987 and scooterettes and motorcycle facilities were commissioned in 1990 & 1991 respectively. Today, the company has become a market leader with annual production in excess of 1.35 million units which was about 4000 units in 1961. These days, Bajaj Auto Ltd. has started offering products in all segments (mopeds & scooterettes, scooters, motorcycles, three wheelers). BOARD OF DIRECTORS Rahul Bajaj Chairman Madhur Bajaj Vice Chairman Ravi Bajaj Managing director Sanjiv Bajaj Executive director D.S.Mehta Director Kantikumar R.Podar Director Shekhar Bajaj Director D.J.Bajaji Rao Director J.N.Godrej Director S.H.Khan Director Mrs.Suman Kirloskar Director Naresh Chandra Director Nanoo Pamnani Director Manish Kejriwal Director P.Murari Director Niraj Bajaj Director Registered under the Companies Act, 1956 REGISTERED OFFICE WORKS Akurdi, Pune 411 035. Chakan Industrial Area, Chakan, Pune 411 501 Bajaj Nagar, Waluj Aurangabad 431 136 Plot No. 2, Sector 10, Pant Nagar, Rudrapur Group Of Companies Bajaj Auto is the flagship of the Bajaj group of companies. The group comprises of 34 companies and was founded in the year 1926. Bajaj Auto Ltd Bajaj Electricals Ltd. Shishir Holdings Pvt Ltd Bajaj Holdings & Hind Lamps Ltd. Kamalnayan Investments & Investment Ltd Trading Pvt Ltd Bajaj Finserv Ltd. Bajaj Ventures Ltd. Sanraj Nayan Investments Pvt. Ltd. Bajaj Allianz General Mukand Ltd. Hercules Hoists Ltd. Insurance Co.Ltd Bajaj Allianz Life Insurance Mukand Engineers Ltd. Hind Musafir Agency Pvt. Co. Ltd Ltd. Bajaj Financial Solutions Mukand International Bajaj International Pvt. Ltd. Ltd. Ltd. Bajaj Auto Finance Ltd. Bajaj Sevashram Pvt. Bachhraj Factories Pvt. Ltd. Ltd. Bajaj Allianz Financial Jamnalal Sons Pvt. Ltd. Baroda Industries Pvt. Ltd. Distributors Ltd. Bajaj Auto Holdings Ltd. Rahul Securities Pvt Jeevan Ltd. Ltd P T Bajaj Auto Indonesia Shekhar Holdings Pvt Bachhraj & Co Pvt Ltd (PTBAI) Ltd Bajaj Auto International Madhur Securities Pvt The Hindustan Housing Co. Holdings BV Ltd Ltd. Niraj Holdings Pvt Ltd Hospet Steels Ltd ACHIVEMENTS 2008 September Bajaj Platina 125 DTS-Si launched August Bajaj XCD 125 DTS-Si is largest selling 125cc motorcycle July Bajaj Discover 135 DTS-i Upgrade Launched. June Bajaj Pulsar 220 bags IMOTY award 2009 April Bajaj Pulsar 150 & 180 upgrade launched January Bajaj XCD 135 DTS-Si launched Factory Location Bajaj Auto's has in all three plants, two at Waluj and Chakan in Maharashtra and one plant at Pant Nagar in Uttranchal, western India. Waluj Bajaj Range of motorcycles and three wheeler Chakan Bajaj Range of motorcycles Pant Nagar Bajaj Range of motorcycles PRODUCTS: Avenger Boxer CT 100 Discover Pulsar 220-Fi (2007±2009) Pulsar 220-i (2009) Pulsar 135 Platina Wind XCD Kristal Chetak Saffire Sunny Wave Super PERFORMANCE AS ON 31st MARCH 2009 Total sales(Rs in millions) 90,496.60 Net profit (Rs in millions) 144.70 Operating profit (Rs in millions) 8,446 Earning per share 45.20 Total Current assets (Rs in millions) 15,052 Total current liabilities (Rs in millions) 13,607 Working capital 1,445 Total Export 7,72,519 Bajaj Auto country¶s second largest two wheeler maker of India, has reported growth of mere 10.80% in the month of December 2010. The company has sold 2,43,675 units of motorcycle in the month of December 2010 compared to 2,19,920 units in the month of December 2009. The company has posted single digit growth in export this month after posting declining sales last month. The company exported 95,388 units in the month of December 2010 up by 4.40% compared to 91,369 units in the month of December 2009. On the month on month basis the company¶s sales is down by 8.06% compared to 2,65,036 units in the month of November 2010 due to year end. The company¶s total sales stood at 2,76,803 units in the month of December 2010 up by 9.84% compared to 2,52,004 units in the month of December 2009. The company has sold 25,50,372 units of motorcycle during the period of April to December 2010 up 42.13% compared to17,94,359 units sold in the same period last year. The company¶s export stood at 9,27,875 units during the period of April to December 2010 up 37.15% compared to 6,76,531 units sold in the same period. Pulsar and Discover sales stood close to 70% of total motorcycle sales. As mentioned in the previous month sales report the higher base effect has started showing its effect. Other reason includes no scooter in portfolio which is benefiting TVS Motors and Hero Honda by posting almost double sales compared to previous year. The company has set goal of 4 million units for this financial year including export and three wheelers. It seems like it will over achieve 1 million units of export but will miss target of overall sales of 4 million units. MARKETING: In a bid to gain marketshare as well as mind share, Bajaj Auto Ltd (BAL) is drawing up an ambitious game plan which includes extension of its distribution network, new product launches, marketing initiatives and fresh ad campaigns. For starters, the two-wheeler company is planning to expand its Bajaj dealership network to touch 500 in the current financial year. As for the rationale behind the company¶s expansion plans, says Bajaj Auto Ltd vice-president (marketing) RL Ravichandran: ³With this move, we want to reach out to a wider target audience. At present, we have 450 dealerships across the country. We plan to add 50 more dealers in the rural and semi- rural markets in India.´ With Bajaj Auto Finance¶s tie-up with ICICI and the State Bank of India, people in small towns can now buy BAL brands. The company is also planning to spend a sizable portion of its adspend to promote new... Bajaj Auto¶s new marketing strategy has been a tremendous success in terms of sales. The company has set all sort of records, be it sales or be it profitability of the company. Bajaj has created a severe dent in the sales of Hero Honda. So, what has the company in store for us in future ? ³The next step is to increase volumes of these two brands to levels of 2,50,000 to 3,00,000 units a month. We are confident that this can be done in the coming months,´ Mr Bajaj said. Its market share, which was barely 17 per cent a year ago, has increased since to 35 per cent today. ³We have more than doubled our market share in a year and would be at our highest level by the end of this quarter,´ Mr Rajiv Bajaj, Managing Director, said.
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