Principles And Practices Of IT Enabled Management
Assignment 2 On Bajaj Auto
By-Ajinkya Kadam
16030141091
Bajaj Auto
Martket Cap- ₹640 billion
REGISTERED & HEAD OFFICE-
Bajaj Auto Ltd., Akurdi, Pune 411035, India
Introduction
Bajaj Auto Limited is an Indian two-wheeler and three-
wheeler manufacturing company. Bajaj Auto
manufactures and sells motorcycles, scooters and auto
rickshaws. Bajaj Auto is a part of the Bajaj Group. It was
founded by Jamnalal Bajaj in Rajasthan in the 1940s. It is
based in Pune, Mumbai, with plants in Chakan (Pune),
Waluj (near Aurangabad) and Pantnagar in Uttarakhand.
The oldest plant at Akurdi (Pune) now houses the R&D
centre 'Ahead'.
Bajaj Auto is the world's sixth-largest manufacturer of
motorcycles and the second-largest in India. It is the
world’s largest three-wheeler manufacturer.
On May 2015, its market capitalization was ₹640 billion
(US$9.5 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.
Bajaj Auto, India's third biggest domestic two-wheeler seller, is
targeting 27-30% share of the local motorcycle market based
on a series of launches planned in the coming months.
Kevin D'Sa, chief financial officer, Bajaj Auto said in an interview
to CNBC TV18, "Our domestic market share presently stands at
around 24% and we would like to take it to 27-30%".
The targeted share is a significant increase from the current
levels even as the Rajiv Bajaj-led company suffered a 3% fall in
sales so far this financial (till February end) at 2,282,371 units.
The industry sales have, however, increased by 3.85% to
12,696,690 units during the same period. Rivals Honda
Motorcycle and Scooter India (HMSI) recorded the maximum
jump in sales during the same period growing 33% at 2,366,992
units.
Bajaj Auto is not present in the automatic scooter segment
which has so far this year recorded a growth of 16% as against a
near-flat growth of one% of the motorcycle segment. Whereas
HMSI has a stranglehold in the scooter segment where every
second vehicle is made by the Japanese company.
Bajaj Auto recorded its biggest monthly fall in sales this year
with 12% decrease in February at 178,632 units in the domestic
market. The slowdown, however, will not put any pause on
launch plans of the company.
Bajaj will launch several new motorcycles in the next financial
year including premium performance bikes under the flagship
Pulsar brand and commuter and economy segment bikes under
the Discover brand.
The company's stock is trading at a three months low at Rs
1,827.10 on the Bombay Stock Exchange at 12.25pm, down
1.37% as compared to its previous day's close.
Bajaj Auto India Limited
(Parent)
Organization Structure Of Bajaj
Working Strategy
Sales
Chart shows how, after a great phase of high growth between
FY2009 and FY2012,
Motorcycle sales have tapered off. Given this environment,
Bajaj Auto continued to focus on getting
The best out of manufacturing costs and productivity without
unduly sacrificing its prices. As a result,
BAL’s domestic motorcycle sales (by units) reduced by 15.6%,
while its total motorcycle sales including
Exports fell by 3.8%. Even so, the Company achieved an all-time
high turnover, exports, operating
EBITDA and the best EBITDA margin in the industry.
Bajaj Auto’s Sale of Motorcycles, Domestic and Exports
(in number)
Bajaj Auto’s Top 10 Overseas Markets
(Beyond India)
Bajaj Auto 2 Wheeler Product Line Up(2016)
1. Bajaj Pulsar 135
2. Bajaj Pulsar 150
3. Bajaj Pulsar 180
4. Bajaj Pulsar 200 NS
5. Bajaj Pulsar 220
6. Bajaj Pulsar RS200
7. Bajaj Discover 100,125,150
8. Bajaj Platina
9. Bajaj V 150
10. Bajaj Pulsar AS 150,200
11. Bajaj Avenger
Bajaj Auto India Limited
BoD’s
Chairman- Rahul Bajaj
Vice Chairman- Madhur Bajaj
Managing Director- Rajiv Bajaj-
Sanjiv Bajaj
Kantikumar R Podar
Shekhar Bajaj
D J Balaji Rao
D S Mehta
J N Godrej
S H Khan
Ms. Suman Kirloskar
FY 2015 Performance
 l Despite a dull and sluggish market, Bajaj Auto’s net sales plus
other operating income grew
 by 7.2% to B 21,817 crore.
 l Operating EBITDA rose by 1.7% to B 4,379 crore, which is the
highest in the Company’s history.
 The operating EBITDA margin was at 20.1% of net sales and other
operating income,
 which continues to be the highest in the industry.
 l Exports of two-and three-wheelers increased by 14% to 1.81
million units. In terms of value,
 exports grew by 14.6% to more than US$ 1.5 billion.
 l Profit before tax (PBT) reduced by 11.8% to B 4,085 crore. This
was largely due to higher
 depreciation arising out of the Companies Act, 2013; lower
treasury income from your
 Company’s surplus funds; and a one-time charge in the form of
the National Calamity Contingent
 Duty levied on Bajaj Auto’s Pantnagar plant. Consequently, Profit
after tax (PAT) decreased
 by 13.2% to B 2,814 crore.
 l Surplus cash and cash equivalents as on 31 March 2015 was B
8,455 crore.
Bajaj Auto(Sri Lanka)
 David Pieris Group Of Companies is Authorised Dealer and
Reseller of Bajaj Motorcycles In Sri Lanka.
 David Pieris Group Of Companies is Subsidiary of Bajaj
Auto India Limited in Sri lanka
 DPMC’s wide range of Bajaj motorcycles are the best-selling
in Sri Lanka and the most fuel-efficient.
 Assembled at a conveyorised vehicle assembly line.
 The models include Pulsar RS200, Pulsar 200 NS, Pulsar
DTS-i 180UG 4, Pulsar AS150, Pulsar DTS-i 150UG 4.5,
Pulsar 135 LS, Discover 125, Discover 100, Platina 100 and
CT 100.
Relationship Of DPGC With Bajaj Auto India Limited
1-DPGC Is Subsidiary of Bajaj Auto Limited
2-Sales Bajaj Motorcycles Across Sri Lanka
3-Both CKD and CBU Units Sold In Sri Lanka
4-Good Market Hold in Sri Lanka
5-Largest Automotive Seller in Sri Lanka
Board Of Directors(DPGC)
Chairman- Shyamal Mendis
Chief Operating Officer- Kushantha de Silva
Director of Parts & Accessories- Thusitha Molligoda
Director of Marketing and Executive Director -Jagath Kulatunge
Director of Service and Executive Director- Lester Carron

Bajaj Auto

  • 1.
    Principles And PracticesOf IT Enabled Management Assignment 2 On Bajaj Auto By-Ajinkya Kadam 16030141091
  • 2.
    Bajaj Auto Martket Cap-₹640 billion REGISTERED & HEAD OFFICE- Bajaj Auto Ltd., Akurdi, Pune 411035, India
  • 3.
    Introduction Bajaj Auto Limitedis an Indian two-wheeler and three- wheeler manufacturing company. Bajaj Auto manufactures and sells motorcycles, scooters and auto rickshaws. Bajaj Auto is a part of the Bajaj Group. It was founded by Jamnalal Bajaj in Rajasthan in the 1940s. It is based in Pune, Mumbai, with plants in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttarakhand. The oldest plant at Akurdi (Pune) now houses the R&D centre 'Ahead'. Bajaj Auto is the world's sixth-largest manufacturer of motorcycles and the second-largest in India. It is the world’s largest three-wheeler manufacturer. On May 2015, its market capitalization was ₹640 billion (US$9.5 billion), making it India's 23rd largest publicly
  • 4.
    traded company bymarket value.The Forbes Global 2000 list for the year 2012 ranked Bajaj Auto at 1,416. Bajaj Auto, India's third biggest domestic two-wheeler seller, is targeting 27-30% share of the local motorcycle market based on a series of launches planned in the coming months. Kevin D'Sa, chief financial officer, Bajaj Auto said in an interview to CNBC TV18, "Our domestic market share presently stands at around 24% and we would like to take it to 27-30%". The targeted share is a significant increase from the current levels even as the Rajiv Bajaj-led company suffered a 3% fall in sales so far this financial (till February end) at 2,282,371 units. The industry sales have, however, increased by 3.85% to 12,696,690 units during the same period. Rivals Honda Motorcycle and Scooter India (HMSI) recorded the maximum jump in sales during the same period growing 33% at 2,366,992 units.
  • 5.
    Bajaj Auto isnot present in the automatic scooter segment which has so far this year recorded a growth of 16% as against a near-flat growth of one% of the motorcycle segment. Whereas HMSI has a stranglehold in the scooter segment where every second vehicle is made by the Japanese company. Bajaj Auto recorded its biggest monthly fall in sales this year with 12% decrease in February at 178,632 units in the domestic market. The slowdown, however, will not put any pause on launch plans of the company. Bajaj will launch several new motorcycles in the next financial year including premium performance bikes under the flagship Pulsar brand and commuter and economy segment bikes under the Discover brand. The company's stock is trading at a three months low at Rs 1,827.10 on the Bombay Stock Exchange at 12.25pm, down 1.37% as compared to its previous day's close.
  • 6.
    Bajaj Auto IndiaLimited (Parent)
  • 7.
  • 8.
  • 10.
    Sales Chart shows how,after a great phase of high growth between FY2009 and FY2012, Motorcycle sales have tapered off. Given this environment, Bajaj Auto continued to focus on getting The best out of manufacturing costs and productivity without unduly sacrificing its prices. As a result, BAL’s domestic motorcycle sales (by units) reduced by 15.6%, while its total motorcycle sales including Exports fell by 3.8%. Even so, the Company achieved an all-time high turnover, exports, operating EBITDA and the best EBITDA margin in the industry.
  • 11.
    Bajaj Auto’s Saleof Motorcycles, Domestic and Exports (in number)
  • 12.
    Bajaj Auto’s Top10 Overseas Markets (Beyond India)
  • 13.
    Bajaj Auto 2Wheeler Product Line Up(2016) 1. Bajaj Pulsar 135 2. Bajaj Pulsar 150 3. Bajaj Pulsar 180 4. Bajaj Pulsar 200 NS 5. Bajaj Pulsar 220 6. Bajaj Pulsar RS200 7. Bajaj Discover 100,125,150 8. Bajaj Platina 9. Bajaj V 150 10. Bajaj Pulsar AS 150,200 11. Bajaj Avenger
  • 14.
    Bajaj Auto IndiaLimited BoD’s Chairman- Rahul Bajaj Vice Chairman- Madhur Bajaj Managing Director- Rajiv Bajaj- Sanjiv Bajaj Kantikumar R Podar Shekhar Bajaj D J Balaji Rao D S Mehta J N Godrej S H Khan Ms. Suman Kirloskar
  • 15.
    FY 2015 Performance l Despite a dull and sluggish market, Bajaj Auto’s net sales plus other operating income grew  by 7.2% to B 21,817 crore.  l Operating EBITDA rose by 1.7% to B 4,379 crore, which is the highest in the Company’s history.  The operating EBITDA margin was at 20.1% of net sales and other operating income,  which continues to be the highest in the industry.  l Exports of two-and three-wheelers increased by 14% to 1.81 million units. In terms of value,  exports grew by 14.6% to more than US$ 1.5 billion.  l Profit before tax (PBT) reduced by 11.8% to B 4,085 crore. This was largely due to higher  depreciation arising out of the Companies Act, 2013; lower treasury income from your  Company’s surplus funds; and a one-time charge in the form of the National Calamity Contingent  Duty levied on Bajaj Auto’s Pantnagar plant. Consequently, Profit after tax (PAT) decreased  by 13.2% to B 2,814 crore.  l Surplus cash and cash equivalents as on 31 March 2015 was B 8,455 crore.
  • 16.
    Bajaj Auto(Sri Lanka) David Pieris Group Of Companies is Authorised Dealer and Reseller of Bajaj Motorcycles In Sri Lanka.  David Pieris Group Of Companies is Subsidiary of Bajaj Auto India Limited in Sri lanka  DPMC’s wide range of Bajaj motorcycles are the best-selling in Sri Lanka and the most fuel-efficient.  Assembled at a conveyorised vehicle assembly line.  The models include Pulsar RS200, Pulsar 200 NS, Pulsar DTS-i 180UG 4, Pulsar AS150, Pulsar DTS-i 150UG 4.5, Pulsar 135 LS, Discover 125, Discover 100, Platina 100 and CT 100.
  • 17.
    Relationship Of DPGCWith Bajaj Auto India Limited 1-DPGC Is Subsidiary of Bajaj Auto Limited 2-Sales Bajaj Motorcycles Across Sri Lanka 3-Both CKD and CBU Units Sold In Sri Lanka 4-Good Market Hold in Sri Lanka 5-Largest Automotive Seller in Sri Lanka
  • 18.
    Board Of Directors(DPGC) Chairman-Shyamal Mendis Chief Operating Officer- Kushantha de Silva Director of Parts & Accessories- Thusitha Molligoda Director of Marketing and Executive Director -Jagath Kulatunge Director of Service and Executive Director- Lester Carron