HISTORY OF BAJAJ AUTOLTD. BAL was initially started by a Rajasthani merchant. It came into existence on November 29, 1945 as M/S Bachraj Trading corporation pvt. ltd. It started off by selling imported two and three wheelers in India. This organization obtained a manufacturing license from the govt. in 1960.
PLANT LOCATIONS IN INDIA Waluj - Maharashtra Chakan - Maharashtra Pant Nagar – Uttaranchal Site location of the plant visited: MIDC, Plot No A1, Mahalunge Village, Chakan, Pune- 410501.
OVERVIEW OF THE PLANT Emerged in the Automobile Industry in 1960 with a two wheeler vehicle called “VESPA” Under license of Piaggio of Italy. Presently a manufacturer of 2 wheelers namely Pulsar, Avenger and Discover. Won several awards for quality delivery and excellent service. Automated Guided Vehicles(AGV) are used along with a manpower of 1000 employees. There is no formation of trade unions.
Pulsar DTS-i boomed in the market in 2001. Its 150cc, 180cc, 200cc, 220cc have done wonders in their market segment. 90% of the manufacturing components are from vendors while some spare parts are manufactured by Bajaj Auto itself. Excellent infrastructure and various leisure facilities are available for the employees.
PRODUCTION UNIT Production unit has been categorized as engine assembly unit and vehicle assembly unit. ENGINE ASSEMBLY UNIT: spare parts are tested and the engine is assembled. All parts assembled are made of aluminium. VEHICLE ASSEMBLY UNIT: The parts assembled in the Engine assembly unit are assembled to form the bike here. The plant has a total of 3 assembly conveyors and produces 6 models.
MANAGEMENT Rahul Bajaj Chairman Madhur Bajaj Vice Chairman Rajiv Bajaj Managing Director Sanjiv Bajaj Executive Director Pradeep Shrivastava President (Engineering) Rakesh Sharma CEO (International Business) R C Maheshwari CEO (Commercial Vehicles) S Sridhar CEO (Two Wheelers) Abraham Joseph President(R&D) Eric Vas President (New Projects) C P Tripathi Vice President (Corporate) Kevin D’sa Vice President (Finance)
MANUFACTURING PROCESS Apart from the engine assembly unit and vehicle assembly unit, the plant has a paint shop where the parts are painted. Simultaneously in the engine assembly room, these painted parts are assembled along with parts procured from the vendors. The engines are assembled on a conveyer belt with each individual doing a specific function throughout.
These engines are then transported to the vehicle assembly room through overhead conveyers. Lastly in the vehicle assembly all parts namely engine, tyres and the main body known as CHASSIS along with a few other parts are assembled. In the end, a testing is done to ensure functioning of all parts and keeping a check on the emission levels as specified by the Indian Govt.
POLICIES & STRATEGYFOLLOWED BAL follows the TPM and SHE(safety, occupational health and environmental) policies. BAL is also moving towards the FMCG business model. It will set up separate sales channels for every segment of its business and customers. BAL believes in CASH IS STRENGTH.
HUMAN RESOURCEACQUISITION BAL is an equal opportunity employer. Selection is based on individual merit. It has both campus recruitments and lateral hiring. On- campus BAL is a preferred employer for engineering and post graduate management institutions. Lateral hiring brings in various organizational cultures leading to diverse perspectives.
BALANCE SHEET- 2009Total liabilities 34,438,851Total assets 34,438,851SOURCES OF FUNDS:Paid-up capital 1,446,835Reserves and surplus 17,250,207Secured loans —Unsecured loans 15,699,927Defer red Tax Adjustments 41,882 34,438,851APPLICATION OF FUNDS:Net Fixed Assets 15,480,873Investments 18,085,192Net Current Assets (1,122,846)Misc. Exp-Technical Know-how & Unamortised VRS Compensation 1,995,632 34,438,851
SWOT ANALYSISSTRENGTHS: Highly experienced management. Product design and design capabilities. Extensive R&D focus. Widespread distribution network. High performance products across all categories. High export to domestic sales ratio. Great financial support network. High economies of scale.
WEAKNESSES: Hasn’t employed the excess cash for long. Not a global player in spite of huge volumes. Not a globally recognizable brand (unlike the JV partner Kawasaki )
OPPORTUNITIES: Double digit growth in the two wheeler market. Untapped market above 180 cc in motorcycles. More maturity and movement towards high end motorcycles. Growing world demand for entry level motorcycles especially in emerging markets.
THREATS: The market catches up any new competition in no time. Threat of cheap imported motorcycles from China.
RECOMMENDATIONS: Focus on high margin products. Focus on fast growing motorcycle segment. Tap the export market more efficiently. Target young age group more effectively.