Bajaj Auto
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
  • plz mail it too me........rawal.shivam025@gmail.com
    Are you sure you want to
    Your message goes here
  • please mail it 2 me . prasad.nitesh@hotmail.com
    Are you sure you want to
    Your message goes here
  • plz mail me all ppt on my mail id is m.lohote@gmail.com&
    m.lohote@yahoo.com
    Are you sure you want to
    Your message goes here
  • very good reaserch
    Are you sure you want to
    Your message goes here
No Downloads

Views

Total Views
19,703
On Slideshare
19,673
From Embeds
30
Number of Embeds
2

Actions

Shares
Downloads
1,351
Comments
4
Likes
7

Embeds 30

http://www.slideshare.net 23
http://www.brijj.com 7

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. PRESENTED BY: AMITANSHU SRIVASTAVA. ANKHI CHATTERJEE. ANIRUDDHA DARIPA. ANKUR GOLCHHA. ABHIRUCHI CHANDGOTHIA.
  • 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.
  • 3. Pulsar 150 DTSi Bajaj Bajaj Sunny  Discover Bajaj Bajaj Chetak  Avenger Bajaj Bajaj Cub  Platina Bajaj Bajaj Super  Kawasaki KB 100 RTZ Bajaj Bajaj Wave  Boxer Bajaj Bajaj Legend  Caliber Bajaj Bajaj Bravo  Pulsar 220 DTS-Fi Bajaj Krystal Bajaj Bajaj Blade UPCOMMING MODELS: Bajaj Sonic
  • 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
  • 8. Particulars 2002 2003 PBT 701.84 803 PAT 518.16 534.64 = TAX COVERAGE MARGIN .738 .665 PBIT 705.22 804.12 PBT 701.84 803 = INTEREST COVERAGE MARGIN .995 .999
  • 9. PARTICULARS 2002 2003 NET SALES 4172 4829.37 PBIT 705.22 804.12 = GROSS PROFIT MARGIN 0.207 0.202 NET SALES 4172 4829.37 AVG ASSETS 5024.74 5858.8 = AVG ASSETS TURNOVER 0.830 0.824 AVG ASSETS 5024.74 5858.8 AVG EQUITY 101.19 101.19 = EQUITY MULTIPLIER 49.66 57.90
  • 10. PARTICULARS 2002 2003 TAX COVERAGE MARGIN .738 .665 INTEREST COVERAGE MARGIN .995 .999 GROSS PROFIT MARGIN .207 .202 AVG ASSETS TURNOVER .830 .824 EQUITY MULTIPLIER 25.11 29.3 RETURN ON EQUITY 316.79 323.98
  • 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. 
  • 14. BAJAJ MATRIX PULSAR SCOOTERETS SCOOTERS AUTO
  • 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.