chapter
chapter
INTRODUCTION
PRODUCTS
AWARDS
Bajaj Auto was awarded the NDTV Profit Business Leadership Award 2010
at the hands of the Hon'ble Finance Minister Shri Pranab Mukherjee on 1st
September 2010.
Bajaj Auto’s Bajaj Pulsar DTS–Fi won bike of the year in 2007 by CNBC–
TV18 Autocar Auto Awards.
Bajaj Platina 100 cc won bike of the year 2007 by NDTV Profit Bike India.
Bajaj Auto’s Chakan Plant won Super Platinum Award For manufacturing
Excellence in 2006–07 by Frost and Sullivan.
Bajaj CT 100 bagged Motorcycle Total Customer Satisfaction Study in 2005
by TNS Automotive.
DIRECTORS' REPORT
The directors present their Eighth Annual Report and audited financial
statements for the year ended 31 March 2015.
The directors recommend for consideration of the shareholders at the
ensuing annual general meeting, payment of a dividend of Rs.50 per share,
(500%) for the year ended 31 March 2015. The amount of dividend and the
tax thereon aggregate to Rs. 1,734.57 crore.
Dividend paid for the year ended 31 March 2014 was also Rs. 50 per share
(500%). The amount of dividend and the tax thereon aggregated to Rs.
1,692.73 crore.
The paid up equity share capital as on 31 March 2015 was Rs.289.37 crore.
There was no public issue, rights issue, bonus issue or preferential issue etc.
during the year.
The Company has not issued shares with differential voting rights, sweat
equity shares nor has it granted any stock options.
Operations
Detailed information on the operations of the Company are covered in the
Management Discussion and Analysis Report.
Capacity expansion and new projects
The Company's current installed capacity is 6.06 million units per annum.
The Company plans to increase the installed capacity to around 6.12 million
units per annum by March 2016.
As regards our quadricycle – RE 60, the product is ready for launch.
Detailed information on the same is provided in the Management Discussion
and Analysis Report.
Research and Development and technology absorption
CHAPTER II
INDUSTRIAL PROFILE
On May 2015, its market capitalisation was 640 billion (US$8.9 billion),
making it India's 23rd largest publicly traded company by market value. The
Forbes Global 2000 list for the year 2012 ranked Bajaj Auto at 1,416
With the launch of motorcycles in 1986, the company has changed its image
from a scooter manufacturer to a two-wheeler manufacturer. In 2017 it was
announced that Bajaj Auto and Triumph Motorcycles Ltd would form an alliance
to build mid-capacity motorcycles.
CURRENT PRODUCTS
Bajaj manufactures and sells motorcycles, scooters, auto-rickshaws and most
recently, cars. Bajaj Auto is India's largest exporter of motorcycles and three-
wheelers. Bajaj Auto's exports accounted for approx. 35% of its total sales. 47% of
its exports are made to Africa. Boxer motorcycle is the largest selling single brand
in Africa.
THREE WHEELER
In 2010, Bajaj Auto announced cooperation with Renault and Nissan Motor
to develop a US$2,500 car, aiming at a fuel efficiency of 30 kilometres per litre
(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.
On 3 January 2012, Bajaj auto unveiled the Bajaj RE60, a mini car for intra-
city urban transportation. The target customer group will be Bajaj's three-wheeler
customers. According to its Managing Director Rajiv Bajaj, the RE60 powered by
a new 200 cc rear mounted petrol engine will have a top speed of 70 kilometres per
hour (43 mph), a mileage of 35 kilometres per litre (99 mpg-imp; 82 mpg-US) and
carbon dioxide emissions of 60 g/km.
ACQUISITIONS
Bajaj Auto Ltd. made a technical assistance agreement with Kawasaki Japan
in 1984, and since then it had cooperated to expand production and sales of
motorcycles in India.[
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 Mahatma Gandhi, 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.
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.
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.
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.
PRINCIPAL SUBSIDIARIES
Bajaj Auto Finance Ltd.; Bajaj Auto Holdings Ltd.; Bajaj Electricals Ltd.;
Bajaj Hindustan Ltd.; Maharashtra Scooters Ltd.; Mukand Ltd.
PRINCIPAL COMPETITORS
KEY DATES:
PUBLIC COMPANY
No. of Respondent
Percentage of respondents = -------------------------------------- x 100
Total No. of Respondents
CHAPTER-IV
TABLE NO.4.1
1 Male 71 94.67
2 Female 04 5.33
Total 75 100
GENDER
100.00%
90.00%
80.00%
70.00%
60.00%
GENDER
50.00% 94.67%
40.00%
30.00%
20.00%
10.00%
0.00% 5.33% 0.00% 0.00%
MALE FEMALE
TABLE NO.4.2
2 31-40 years 09 12
4 Above 50 years 6 08
Total 75 100
INTERPRETATION
The above table shows that out of total responds, 53.33% of the respondents
age group is 41-50 years, and lower only 8% of the respondents are above 50
years.
CHART NO.4.2
CLASSIFICATION OF THE RESPONDENTS BASED ON AGE
0.6
0.5
0.4
Percentagee %
0.3 0.5333
0.2
0.2667
0.1 12%
0.08
0
20-30 YEARS 31-40 YEARS 41-50 YEARS ABOVE 51 YEARS
AGE
TABLE NO.4.3
CLASSIFICATION OF THE RESPONDENTS BASED ON EDUCATION
QUALIFICATION
2 ITI/Diploma 10 13.33
3 UG/PG 05 6.67
4 Others 35 46.67
TOTAL 75 100
SOURCE : Primary data
INTERPRETATION :
From the above table it could be inferred that 46.67% of the respondents are others
category and 33.33% of respondents are in school level, 13.33% are in
ITI/Diploma, 6.67% of the respondents are UG/PG holders.
CHART NO.4.3
CLASSIFICATION OF THE RESPONDENTS BASED ON EDUCATION
QULIFICATION
0.5
0.45
0.4
0.35
0.3
percentage %
0.25
0.4667
0.2
0.33330000000000
0.15 4
0.1
13.33%
0.05
0.0667
0
SCHOOL LEVEL ITI/DIPLOMA UG/PG OTHERS
Education qualification
TABLE NO.4.4
1 Manager 01 1.33
2 Supervisor 03 4
3 Office staff - -
4 Others 71 94.67
Total 75 100
SOURCE : Primary data
INTERPRETATION :
CHART NO.4.4
TABLE NO.4.5
CLASSIFICATION OF THE RESPONDENTS BASED ON WORKING
EXPERIENCE
Total 75 100
SOURCE : Primary data
INTERPRETATION :
From the above table shows that working experience highest 34.67%
of the respondents above 5 years and 29.33% of the respondents are 4-5 years
working experience.
CHART NO.4.5
CLASSIFICATION OF THE RESPONDENTS BASED ON WORKING
EXPERIENCE
0.35
0.3
0.25
Percentage %
0.2 34.67%
0.29330000000000
0.15 26.67% 2
0.1
0.09330000000000
0.05 01
0
0-1 YEARS 2-3 YEARS 4-5 YEARS ABOVE 5 YEARS
Working experience
TABLE N0.4.6
CLASSIFICATION OF THE RESPONDENTS BASED ON MONTHLY
INCOME (RUPEES)
1 Below Rs.5,000 - -
2 Rs.5,001-15,000 54 72
3 Rs.15,001-30,000 17 22.67
Total 75 100
SOURCE : Primary data
INTERPRETATION :
The above table shows the monthly income of respondents highest 72%
of the respondents are earn monthly income Rs.5,001-15,000 and lower 5.33% of
the respondents are earn monthly income above Rs.30,001.
CHART NO.4.6
CLASSIFICATION OF THE RESPONDENTS BASED ON MONTHLY
INCOME (RUPEES)
0.8
0.7
0.6
Percentage %
0.5
0.4 72%
0.3
0.2
0.2267
0.1
0.0533
0
0
BELOW Rs.5,000 Rs.5,001-15,000 Rs.15,001-30,000 ABOVE Rs.30,001
Monthly income
TABLE NO.4.7
CLASSIFICATION OF THE RESPONDENTS BASED ON JOB
SATISFACTION
2 Satisfied 42 56
Total 75 100
INTERPRETATION :
From the above table it is clear that 56% employees are satisfied with
his job, 26.67% of respondents are highly satisfied and 13.33% of the respondents
are dis satisfied and only 4% highly dis satisfied.
CHART NO.4.7
CLASSIFICATION OF THE RESPONDENTS BASED ON JOB
SATISFACTION
0.6
0.5
0.4
Percentage %
56%
0.3
0.2
0.2667
0.1 0.1333
0.04
0
HIGHLY SATISFIED SATISFIED DISSATISFIED HIGHLY DISSATISFIED
Job satisfaction
TABLE NO.4.8
CLASSIFICATION OF THE RESPONDENTS BASED ON OPINION
ABOUT MANAGEMENT
1 Yes 66 88
2 No 09 12
Total 75 100
SOURCE : Primary data
INTERPRETATION
From the above table it is clear that 88% of the respondents are yes
management respect to employees and 12% of the respondents says no
management never respect to employees in the organization.
CHART NO.4.8
CLASSIFICATION OF THE RESPONDENTS BASED ON OPINION
ABOUT MANAGEMENT
88%
TABLE NO.4.9
CLASSIFICATION OF THE RESPONDENTS BASED ON JOB SECURITY
1 Yes 23 30.67
2 No 52 69.33
Total 75 100
SOURCE : Primary data
INTERPRETATION :
The above table shows that, 69.33% of the respondents are says there is no job
security, and 30.67% of the respondents are say there is provide job security to
employees.
CHART NO.4.9
CLASSIFICATION OF THE RESPONDENTS BASED ON JOB SECURITY
JOB SECURITY
70.00% 69.33%
60.00%
50.00%
40.00% 30.67%
30.00%
20.00%
10.00%
0.00%
YES
NO
TABLE NO.4.10
Total 75 100
INTERPRETATION :
The above table shows that 56% of the respondents are says there is no
any promotional activities , and 44% of the respondents are says there is occur
promotional activities.
CHART NO.4.10
CLASSIFICATION OF THE RESPONDENTS BASED ON THEIR
PROMOTIONAL ACTIVITIES
PROMOTIONAL ACTIVITY
Sales
60%
50%
40%
30%
56%
44%
20%
10%
0% 0% 0%
YES NO
TABLE NO.4.11
CLASSIFICATION OF THE RESPONDENTS BASED ON ADEQUATE
SUPPORT FROM SUPERIOR
1 Yes 64 85.33
2 No 11 14.67
Total 75 100
SOURCE : Primary data
INTERPRETATION :
The above table shows that 85.33% of the respondents are yes and
14.67% of the respondents are no.
CHART NO.4.11
CLASSIFICATION OF THE RESPONDENTS BASED ON ADEQUATE
SUPPORT FROM SUPERIOR
ADEQUATE SUPPORT
90.00%
80.00%
70.00%
60.00%
50.00%
85.33%
40.00%
30.00%
20.00%
10.00%
14.67%
0.00%
YES NO
TABLE NO.4.12
CLASSIFICATION OF THE RESPONDENTS BASED ON TRAINING
PROGRAMMERS
2 Satisfied 50 66.67
3 Dis satisfied - -
Total 75 100
INTERPRETATION :
From the above table it is inferred that about 66.67% of the respondents
are satisfied and 33.33% of the respondents are highly satisfied.
CHART NO.4.12
CLASSIFICATION OF THE RESPONDENTS BASED ON TRAINING
PROGRAMMERS
0.8
0.7
0.6
Percentage %
0.5
0.4
66.67%
0.3
0.2 0.33330000000000
4
0.1
0 0 0
HIGHLY SATISFIED SATISFIED DIS SATISFIED HIGHLY DIS SATISFIED
Training programmers
5. CHAPTER
FINDING , SUGGESTION AND CONCLUTTION
FINDINGS
SUGGESTION
CONCLUSION
Best minus point of this bike it's plastic body part is more than other model
of pulser and small size also be not looking good. After all milage also be poor as
compare to other 135cc engine bikes. So files consumption as a large amount
which is not good for this bike. And plastic part of this bike is break after a small
accident which is repair costly. So maintence is high of this bike. Over all it's life
line also be not good after one two year this bike wants high maintence. I see
condition of this bike in 3 year which is seeing as very large old.
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"India is the largest three-wheeler industry globally". Deccan Chronicle.
15 March 2016. Retrieved 15 December 2016. "The top-three players
such as market leader Bajaj Auto, second largest manufacturer Piaggio
and Mahindra and Mahindra […]."
"Table 4-12: Top '50' Companies by Market Capitalisation as on March
31, 2013". NSE India. 31 March 2013. Retrieved 27 October 2013.
"Achievements 1945-1959". Bajaj Auto. Archived from the original on 29
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2. GENDER ?
a)Male ( ) b)Female( )
3. EDUCATION ?
4 .MARITAL STATUS?
a)Married ( ) b)Unmarried ( )
5. AGE ?
6. SALARY?
7. OCCUPATION ?
d)Farmer ( ) e)Employee ( )
8. ARE YOU SATISFIED OVER ALL PERFORMANCE IN HERO
SERVICES ?
a)Yes ( ) b)No ( )
11 .FAMILY SIZE ?
a)Below 2 ( ) b)2 To 4 ( )