Bajaj Auto: A Market Analysis

A PROJECT REPORT ON

A study on Customer’s preference regarding Bajaj Auto

Submitted To

Sahibzada Ajit Singh Institute of Information Technology & Research

Session

2008-11

On partial fulfilment of the requirement for the degree

Bachelor of Business Administration (BBA)

Project Guide: Submitted By: Ms. Shyana Girdhar Aazam Abdal Internal Project Guide Roll no. 81010320001

ACKNOWLEDGEMENTS

It is a matter of great pleasure and privilege for me to express my profound

regards and gratitude to my research supervisor Ms. Shyana Girdhar, Lecturer for

the valuable guidance with exceptional promptness. Ms. Shyana Girdhar, with her

luscious behavior, kindled enthusiasm side by side fulfilling her domestic and

academic responsibilities.

I would also place on record my gratitude to all teachers & Department of

Business Management, SAS Institute of information Technology & Research,

Mohali for their constant encouragement.

I gratefully thanks to my friends for their support and encouragement, which

helped me to complete this project Report.

CONTENTS

INTRODUCTION

HISTORY

PRODUCTS

INFRASTRUCTURE

ACCOMPLISHMENTS

CODE OF CONDUCT

GLOBAL BAJAJ

H.R POLICY

COMMUNITY INNITIATIVE

PERFORMANCE REPORT

BAJAJ FINANCE

OBJECTIVES OF STUDY

RESEARCH METHODOLOGY

LIMITATION

QUESTIONNAIRE

DATA EVALUATION

FINDING

CONCLUSION

INTRODUCTION

The Bajaj Group is amongst the top 10 business houses in India. Its footprint

stretches over a wide range of industries, spanning automobiles (two-wheelers

and three-wheelers), home appliances, lighting, iron and steel, insurance, travel

and finance. The group’s flagship company, Bajaj Auto, is ranked as the world’s

fourth largest two- and three- wheeler manufacturer and the Bajaj brand is well-

known in over a dozen countries in Europe, Latin America, the US and Asia.

Founded in 1926, at the height of India's movement for independence from

the British, the group has an illustrious history. The integrity, dedication,

resourcefulness and determination to succeed which are characteristic of

the group today, are often traced back to its birth during those days of

relentless devotion to a common cause. Jamnalal Bajaj, founder of the

group, was a close confidant and disciple of Mahatma Gandhi. In fact,

Gandhiji had adopted him as his son. This close relationship and his deep

involvement in the independence movement did not leave Jamnalal Bajaj

with much time to spend on his newly launched business venture.

His son, Kamalnayan Bajaj, then 27, took over the reins of business in

1942. He too was close to Gandhiji and it was only after Independence in

1947, that he was able to give his full attention to the business.

Kamalnayan Bajaj not only consolidated the group, but also diversified into

various manufacturing activities.

The present Chairman of the group, Rahul Bajaj, took charge of the

business in 1965. Under his leadership, the turnover of the Bajaj Auto the

flagship company has gone up from Rs.72 million to Rs.100.76 billion

(USD 2.3 billion), its product portfolio has expanded from one to and the

brand has found a global market. He is one of India’s most distinguished

business leaders and internationally respected for his business acumen

and entrepreneurial spirit.

History

Bajaj Auto came into existence on November 29, 1945 as M/s Bacraj

Corporation Private Limited. It started off by selling imported two- and three-

wheelers in India. In 1959, it obtained license from the Government of India to

manufacture two and three-wheelers and it went public in 1960. In 1970, it

rolled out its 100,000th vehicle. In 1977 it managed to produce and sell 100,000

vehicles in a single financial year. In 1985 it started producing at Waluj in

Aurangabad. In 1986, it managed to produce and sell 500,000 vehicles in a

single financial year. In 1995 it rolled out its ten millionth vehicle and produced

and sold 1 million vehicles in a year.

Timeline of new releases 1971 - three-wheeler goods carrier

1972 - Bajaj Chetak

1976 - Bajaj Super

1977 - Rear engine Auto rickshaw

1981 - Bajaj M-50

1986 - Bajaj M-80, Kawasaki Bajaj KB100

1990 - Bajaj Sunny

1991 - Kawasaki Bajaj 4S Champion

1994 - Bajaj Classic

1995 - Bajaj Super Excel

1997 - Kawasaki Bajaj Boxer, Rear Engine Diesel Auto rickshaw

1998 - Kawasaki Bajaj Caliber, Bajaj Legend India's first four-stroke

scooter, Bajaj Spirit

2000 - Bajaj Saffire

2001 - Eliminator Bajaj Pulsar

2003 - Caliber115, Bajaj Wind125, Bajaj Pulsar

2004 - Bajaj CT 100, New Bajaj Chetak 4-stroke with Wonder Gear

2005 - Bajaj Waver, Bajaj Avenger, Bajaj Discover

2006 - Bajaj Platina

2007 - Bajaj Pulsar-200(Oil Cooled), Bajaj Kristal, Bajaj Pulsar.

2010 – Bajaj Discover 100

Spin offs and acquisitions

It has been reported that Bajaj is headed for a de-merger into two separate

companies: Bajaj Auto and Bajaj Finance. It is expected that the sum of the parts

created will be worth more that the current whole, as was the case in the de-

merger of Reliance Industries. In November 2007, Bajaj Auto acquired 14.5%

stake in KTM Power Sports AG (holding company of KTM Sportmotocycles AG).

The two companies have signed a cooperation deal, by which KTM will provide the

know-how for joint development of the water-cooled 4 stroke 125 and 250 cc

engines, and Bajaj will take over the distribution of KTM products in India and

some other Southeast Asian nations. Bajaj Auto said it is open to take a majority

stake in KTM and is also looking at other takeover opportunities. On the 8th of

January 2008, Managing Director Rajiv Bajaj confirmed the collaboration and

announced Bajaj Auto's intention to gradually increase their stake in KTM to 25%.

PRODUCTS

Cruise through our range of bikes, scooters and three-wheelers and select

the Bajaj that suits you best. When you buy a Bajaj, you buy Quality. Every

vehicle is crafted with precision in our state-of-the art plants, in

conformance with global standards. When you ride a Bajaj, you can be

sure every care has been taken to ensure your comfort and safety. Some

of the models that Bajaj makes (or has made including prototypes) are:

Scooters Bajaj Kristal DTS

Cars Bajaj Lite concept

Bajaj ULC (ultra-low cost)- the Tata Nano competitor.

Motorcycles Bajaj CT 100

Bajaj Platina

Bajaj Discover 110cc

Bajaj Discover DTS-i 125cc

Bajaj XCD 125 DTS-Si

Bajaj Discover DTS-i 135cc

Bajaj Pulsar150 DTSi

Bajaj Pulsar 180 DTSi

http://en.wikipedia.org/w/index.php?title=Bajaj_ULC&action=edit&redlink=1

Bajaj Pulsar 200 DTSi

Bajaj Pulsar 220 DTS-Fi

Bajaj Avenger

UPCOMING MODELS

Bajaj Pankaj

Bajaj Sonic

Bajaj Discover 150

Bajaj XCD 125 sprint

Discontinued Models

Bajaj Sunny

Bajaj Chetak

Bajaj Cub

Bajaj Super

Bajaj Safire

Bajaj Wave

Bajaj Legend

Bajaj Bravo

Kawasaki Eliminator

Bajaj Kawasaki Wind 125

Bajaj Kawasaki 4s Champion

Bajaj Kawasaki KB 100 RTZ

Bajaj Boxer

Bajaj Caliber

Low cost cars

Bajaj Auto says its $2,500 car, which it is building with Renault and Nissan

Motor, will aim at a fuel-efficiency of 30 km/liter, or twice an average small

car, and carbon dioxide emissions of 100 gm/km.

It is a Tata Nano competitor. The Bajaj venture will have an initial capacity

of 400,00units, while Tata expects eventual demand of 1 million Nanos.

Some like our looks. Some go for the speed and power. The truth is our

motorcycles have it all -style, mileage, speed, performance, comfort and

safety. So go ahead and make your choice; whichever bike you go for, you

are in for a great ride.

Conventional Engine

A conventional 4 Stroke engine has a Single Spark Plug located at one

end of the combustion chamber and hence the combustion is inefficient

leading to sub optimal mileage and sub optimal performance.

DTS-i Engine –

DIGITAL TWIN SPARK ignition engine has two Spark plugs located at

opposite ends of the combustion chamber and hence fast and efficient

combustion is obtained. The benefits of this efficient combustion process

can be felt in terms of better fuel efficiency and lower emissions.

DTS-i Engine can be further tuned to deliver exhilarating performance or

exceptional mileage.

DTS- Si Engine

Like DTS-i (which is the mother technology) the engine has 2 spark plugs,

but, instead of conventionally positioned straight ports, the offset

positioning of the ports generate high swirl and turbulence of the air fuel

mixture in the combustion chamber. This results in highly efficient

combustion that further results in exceptional mileage. Like the mother

DTS-i technology, the DTS-Si technology is a patented technology

developed by Bajaj Auto R&D.We are launching our first bike with 125 cc

DTS-Si engine and best in class mileage of 109 kmpl in September 07.

The mileage and performance of this bike is sure to delight you.

DTS-Fi-

DTS-Fi stands for "Digital Twin Spark Fuel Injection", a ‘Bajaj Patented

Technology’. In fuel injection the conventional carburettor has been

replaced by injector which injects fuel in to the engine in a spray form

based on the instructions of the Engine Control Unit (ECU) which is a part

of the Engine Management System EMS. The Electronic Control Unit

(ECU) is microprocessor based and is the brain of the fuel injection

system. It processes information sent by various sensors and instantly

determines optimum fueling and spark timing for various engine operating

conditions. The ECU contains detailed information of the engine's

characteristics from which it picks the necessary data for commanding

both fueling & spark timing.

Infrastructure

Plants

Bajaj Auto's three plants at Akurdi, Waluj and Chakan in Maharashtra and one

plant at Pant Nagar in Uttranchal, western India, produced 1,814,799 vehicles in

2004-05.

AkurdiGeared scooters, ungeared scooters, CT100 and Discover

Waluj Bajaj - Kawasaki range of motorcycles and three-wheelers

Chakan Bajaj motorcycles - Pulsar and DiscoverPant Nagar

Bajaj motorcycles - Platina

Plant Locations

Bajaj Auto plants are located at: Mumbai - Pune Road, Akurdi, Pune 411 035Bajaj Nagar, Waluj, Aurangabad 431 136MIDC, Plot No A1, Mahalunge Village, Chakan 410 501 Dist. PunePlot No. 2, Sectoe 10 Phase -II - E, Pant Nagar, Sidcul, Rudrapur Dist. Udhamsingh Nagar Uttranchal

DEALER LOCATOR

The company has a network of 485 dealers and over 1,600 authorized

service centers and 171 exclusive three-wheeler dealers spread across the

country. Around 3,750 rural outlets have been created in towns with

population of 25,000 and below. The current dealer network is servicing

these outlets.

Distribution network covers 50 countries

250,204 units exported in 2005-06

Dominant presence in Sri Lanka, Colombia, Bangladesh, Mexico, Central

America, Peru and Egypt

Largest exporter of three-wheelers; over 75,297 units exported in 2005-06

Largest exporter of three-wheelers; over 75,297 units exported in 2005-06

27 per cent growth in total exports over 2004-05

SERVICES

Bajaj Auto offers full range of services to the business partners:

• Training in sales, service and spare parts management based on the

Bajaj distribution system.

• Active support for setting up manufacturing facilities overseas including

transfer of technical know how.

• Assistance in setting up an assembly plant for assembly of vehicles from

complete knocked down (CKD) kits.

• Select machinery and equipment, training of technical personnel, all in a

phased manner as required by the regulations in the recipient country.

ACCOMPLISHMENTS

Bajaj Auto continued to be India’s largest exporter of two and three

wheelers. During 2005-06, it exported 250,204 two and three-wheelers—

which represented a growth of 27 per cent over 2004-05. Exports now

constitute 11 per cent in volume terms and 12 per cent of its value of net

sales.

CODE OF CONDUCT FOR AFFIRMATIVE ACTION

Bajaj Auto Limited (herein after referred to as the “Company”) hereby

adopts the following Code of Conduct for Affirmative Action. This will be

effective from 1st December 2006.

1. The Company affirms that its competitiveness is interlinked with the

well being of all sections of the Indian society.

2. The Company believes that equal opportunity in employment for all

sections of the society is a component of its growth and

competitiveness. It further believes that inclusive growth is a

component of growth and development of the country.

3. The Company affirms the recognition that diversity to reflect socially

disadvantages sections of the society in the workplace has a

positive impact on business.

4. The Company will not practice nor support conscious discrimination

in any form.

5. The Company does not bias employment away from applicants

belonging to disadvantaged sections of society if such applicants

possess competitive skills and job credentials.

6. The Company’s selection of business partners is not based on any

considerations other than normal business parameters. In case of

equal business offers, the Company will select a business partner

belonging to a socially disadvantaged section of society.

7. This Code of Conduct for Affirmative Action will be put up on the

company web-site to encourage applications from socially

disadvantaged sections of society.

8. The Company makes all efforts for upskilling and continual training

of all its employees in order to enhance their capabilities and

competitive skills. No discrimination of any type will be shown in this

process.

9. The Company may have a partnership programme with educational

institution/s to support and aid students from socially disadvantaged

sections of society.

10. Company will maintain records of Affirmative Action.

11. Company has nominated Mr. Srinivas, Vice President (HR), to

oversee and promote the Affirmative Action policies and programmes.

He will be accountable to the Chairman.

12. Company will make available its learning and experiences as a

good corporate citizen in Affirmative Action to other companies desiring

to incorporate such policies in their own business.

Code of Conduct for Directors and Members of Senior

Management

Preface

This code of conduct shall apply to the directors and members of the

senior management of Bajaj Auto Limited (referred to hereinafter as BAL

or the Company).

For this code, members of the senior management (hereinafter referred to

as `senior managers') shall mean those personnel of the company, who

are members of the core management team, but shall exclude the whole-

time directors.

Directors and senior managers shall observe the highest standards of

ethical conduct and integrity and shall work to the best of their ability and

judgement. Directors and senior managers shall be governed by the rules

and regulations of the company as are made applicable to them from time

to time.

Directors and senior managers shall affirm compliance with this code on

an annual basis as at the end of each financial year.

Code of conduct :

1. Directors and senior managers shall ensure that they use the

company's assets, properties and services for official purposes only

or as per the terms of appointment.

2. Directors and senior managers shall not receive directly or indirectly

any benefit from the company's business associates, which is

intended or can be perceived as being given to gain favour for

dealing with the company.

3. Directors and senior managers shall ensure the security of all

confidential information available to them in the course of their

duties.

4. No director or senior manager, other than the designated

spokespersons shall engage with any member of press and media in

matters concerning the company. In such cases, they should direct

the request to the designated spokespersons.

5. Directors and senior managers shall not engage in any material

business relationship or activity, which conflicts with their duties

towards the company.

6. Senior managers shall not, without the prior approval of the

managing director of the company, accept employment or a position

of responsibility with any organization for remuneration or otherwise.

In case of Whole-time Directors, such prior approval must be

obtained from the board of directors of the company.

7. Directors and senior managers shall declare information about their

relatives (spouse, children and parents) employed in the company.

8. Senior managers shall follow all prescribed safety and environment-

related norms.

Global Bajaj

Internationally competitive R&D capabilities

Proven technological know-how

Cost and quality balance

Unique designs

Products in sync with market needs

Warranty and trained service support

Supply Chain Management

Partnership with globally trusted shipping lines:

Maersk Sealand, P&O Nedloyd, APL ensuring safe and timely delivery.

Efficiently packed, factory stuffed cargo shipped in CBU, SKD or CKD

modes.

Specially designed export packing procedure followed.

Full container (FCL) or less than container load (LCL) dealt with safety

and security.

H R

Recruitment Policy

Bajaj Auto is an equal opportunity employer. Selection is based strictly

on individual merit. A large number of our recruits are fresh engineers

and MBAs. Natural attrition is usually taken care of by promotions and

horizontal movements within the organization to provide career

opportunities for our employees. Occasionally, specific skill-sets may

warrant lateral recruitment.

Entry level Recruitment

Engineers: We recruit Engineering Graduates from reputed institutes

from all over India. Bajaj Auto enjoys an excellent reputation with all

National Institutes of Technology (NITs) and is among the preferred

employers for on-campus recruitment. The selection process comprises

a written test in technical, analytical and logical reasoning, group

discussion and personal interview.

Management Graduates: We recruit management graduates from

reputed management institutes all over India. The selection procedure

comprises a written test in analytical and logical reasoning, group

discussion and personal interview. All entry-level selections are made

through on-campus recruitment only.

After recruitment, new entrants undergo a thorough induction-training

programme before their placement in the company. Departments are

allocated on the basis of the individual recruit’s aptitude and our

requirements. Usually, after completing two years of service they are

provided opportunities for job-rotation.

Work Culture

Our work culture supports and enhances our brand. The Bajaj brand

signifies excitement. Bajaj strives to inspire confidence through

excitement engineering. The culture is built on core values of learning,

innovation, perfection, speed and transparency. Facilitative leadership

style helps in developing leaders at all levels and establishes

accountability.

Brand Values

We live our brand by its values of Innovation, Perfection, and Speed.

Bajaj will be distinctly ahead through excitement engineering.

Innovation is how we create the future.

It is a value that provokes us to reach beyond the obvious in pursuit of

that which exceeds the ordinary.

Perfection is how we set new standards.

It is a value that exhibits our determination to excel by endeavoring to

establish new benchmarks all the time.

Speed is how we convey clear conviction.

It is a value that keeps us sharply responsive, mirroring our

commitment towards our goals and processes.

Competency Building

Bajaj Auto has a very flat organization structure with three management

levels. Each level represents a specific role and hence needs relevant

competencies. Competency building at Bajaj Auto is a combination of

development for current and future roles.

We cater to these needs by using interventions like development

centres, need-based training and job-rotation plans. We use different

methods of imparting training like lectures, group-discussions, role-

plays, seminars, outbound training, assignments and on-the-job tasks.

Compensation Philosophy

We strive to be amongst the top quartile in our compensation structure.

Competence and performance are the key drivers of our compensation

policy. A significant part of the compensation is in the form of variable

pay linked to the individual’s and the organization’s performance.

Remuneration criteria for NEDs

CRITERIA FOR PAYMENT OF REMUNERATION TO NON-EXECUTIVE

DIRECTORS OF BAJAJ AUTO LTD.

Non-executive directors of the company play a crucial role to the

independent functioning of the board. They bring in external and wider

perspective to the decision-making by the board. They provide leadership

and strategic guidance, while maintaining objective judgment. They also

help the company in ensuring that all legal requirements and corporate

governance are well taken care of.

The responsibilities and obligations imposed on the non-executive

directors have increased manifold in the recent years on account of a

number of factors, including the growth in the activities of the company and

the rapid evolution arising out of legal and regulatory provisions and

requirements.

Non-executive directors of the company are paid the following:

a) Sitting Fees

Non-executive directors are paid a sitting fee of Rs.20,000/- for every

meeting of the board or committee thereof attended by them.

b) Commission

Non-executive directors are paid commission upto an aggregate amount

not exceeding 1% of the net profits of the company for the year. The

payment of commission is based on their attendance at the board and the

committee meetings. With effect from 1 April 2006, commission is payable

to them at the rate of Rs.50,000/- for every meeting of the board or

committee thereof attended by them.

Apart from sitting fees, commission and reimbursement of travelling

expenses for their attending the board and committee meetings, no

payment by way of bonus, pension, incentives etc. is paid to any of the

non-executive directors. The company has no stock option plans and

hence, such instruments do not form part of remuneration package

payable to non-executive directors.

Community Initiatives

Bajaj in the community

Bajaj Auto is committed to nation-building and contributing to the uplift

and development of the weaker sections of society. This is a legacy of

our founders, Jamanalalji, Kamalnayanji and Ramkrishna Bajaj.

Jankidevi Bajaj Gram Vikas Sanstha (JBGVS)

• Samaj Seva Kendra

• Kamalnayan Bajaj Hospital

Janki devi Bajaj Gram Vikas Sanstha (JBGVS)

Bajaj Auto’s Corporate Social Responsibility towards the rural poor is

carried out by a trust, Jankidevi Bajaj Gram Vikas Sanstha (JBGVS).

This trust was formed in 1987. JBGVS acts as a catalyst for

development at the grass root level in 44 villages around Bajaj Auto

plants in Pune and Aurangabad District.

Vision Statement of JBGVS

JBGVS, a Registered Society and a Trust, is an apolitical and secular

organisation which aims to act as a catalyst for rural and urban

development. It assists the resident community of the selected villages

and areas, in integrated development, making their villages and areas

into models of excellence for others to emulate.

Organizational Overview of Rural Development

JBGVS will work with the participating rural community in the selected

villages to improve their quality of life. Stress is laid on alleviation of

poverty, health care, education, empowerment of women & gender

http://www.bajajauto.com/1024/aboutbajaj/community.asp#kamalnayan

http://www.bajajauto.com/1024/aboutbajaj/community.asp#samaj

http://www.bajajauto.com/1024/aboutbajaj/community.asp#janakidevi

justice. We strive to motivate our rural community to willingly and

enthusiastically undertake the improvement of their villages, so that

they become models of excellence within 5 to 7 years.

Implementation strategy

(1) To ensure the involvement of our rural community, JBGVS relies on a

participatory approach in implementing all its projects.

(2) In addition, the trust secures the participation of local elected bodies

like the Gram Panchayat (village council), Co-operative Societies, Self

Help Groups, Women and Youth Clubs in decision making.

(3) JBGVS undertakes large-scale human resource development projects

in agriculture, animal husbandry, dairy, horticulture, health, education and

income generation to accelerate the pace of development activities.

(4) JBGVS disengages from the village that achieves 80% of development

as per our social indicators and discontinues active participation but

monitors their progress incase they need assistance and guidance. JBGVS

plan for Integrated Rural Development rolls on to another village awaiting

development.

Putting a Smile on the Face of Rural India!

JBGVS works at the grassroots level in 33 villages and hamlets of Khed

and Maval Talukas of Pune District and 11 villages of Aurangabad district,

Maharashtra. The integrated development activities under implementation

include women empowerment, income generation, health programmes,

agricultural extension, animal husbandry, watershed development, drinking

water schemes, sanitation and education. 5600 families comprising a rural

population of about 30,000 people are our copartners in these

development activities.

Education

The socio economic condition of the villages around Pune is rapidly changing due to

manufacturing, service, agro and IT industries. Education and vocational training need to be

given further emphasis. JBGVS, implements programmes for non formal education, school

education and vocational training.

A project on Rural Education and Information Network (REIN) is being implemented in 27

villages of Maval Taluka. This project imparts non formal education, through KIRANS

(volunteers), to non school going and poorly performing school going children. About 400

primary students undergo the programme each year.

JBGVS also conduct classes for vocational training like tailoring, bamboo craft, handicraft,

making of greeting cards, mats, paper bags and assist computer training for Maharashtra State-

CIT examination.

Computer class Tailoring Class

Health Care

The health care programme, which includes mother and child care, eradication of malnutrition,

TB, leprosy etc, is implemented through women Health Workers (HW). Each village has a HW

who makes home visits to assist/ advise villagers on health matters and administer simple

medicines for minor ailments. JBGVS is also providing medical services, for a nominal fee or

free for the BPL/ poor, at the door steps of the villagers, through the mobile clinic. A close

coordination is maintained with Government Health Department for participating in

immunisation and pulse polio drives, workshops on health and hygiene awareness, and utilise the

services of Primary Health Centers.

Mobile Clinic Van Eliza testing for HIV

HIV/AIDS Awareness, Prevention and Care Programme

The aim of this programme is to generate awareness about HIV/AIDS,

thereby, arrest further spread of disease and help those affected to lead a

comfortable life. ‘Project JEEVAN’ was launched in September 2004, to

cover 33 villages in Pune District and slums of Pimpri Chinchwad

Municipal Corporation (PCMC) area. Till the end of 2007, we covered

24000 population and facilitated 1000 voluntary tests for HIV detection.

Income Generation and Poverty Alleviation Agriculture

Over the years JBGVS has been demonstrating advanced agricultural practices for enhancing the

quantity and quality of yield, and improve the economic condition of the farmers. Production and

use of organic manure, more especially vermicompost is advocated.

Vermicompost Organic Cabbage

Veterinary Services and Dairy Development

Milk production and dairy products are emerging as important support to

agriculture. JBGVS provide quality veterinary services, through qualified

live stock supervisors, to increase milk production and to keep animals in

healthy state. The services include artificial inseminations, cultivation of

quality fodder, establishing dairy / milk society etc.

78 families were partly assisted by JBGVS to purchase a goat each

and were given training and guidance in goat rearing. They get an

additional income of Rs. 1000 to 1200/- for every goat born.

Model Cowshed Designed by JBGVS

Proud Owners of Goats

Community Assets and Environment Development

Construction Activity

JBGVS assist BPL families to construct low cost houses under Indira Awas

Yojana. As also help repair school rooms, old structures and construct

cowsheds / mangers, community centers etc.

Watershed Development

JBGVS has been implementing Drought Prone Area Development Project of Zilla Parishad in 7

villages of Pune District since 2003. The overall project cost is Rs.2.10 crores and it includes

watershed development work over 3,500 ha. 22 farm ponds, 3 diversion bunds, 4 soil nala bunds

and 3 cement check dams have been constructed till April 2008. The activities carried out under

this programme helps increase water table in non irrigated area, wells and thereby increase crop

yield.

Cement Check Dam at Shivli

Soil Nala Band - Retwadi

Environmental Sanitation

JBGVS insist on high standard of environmental sanitation in the village.

Seven of our villages, where JBGVS had worked in the past, received

“Nirmal Gram Abhiyan” and “Sant Gadgebaba Swachata Abhiyan” awards.

JBGVS has withdrawn from these villages as they attained 80%

development as per JBGVS laid down indicators. They continue to give

guidance when necessary.

Leadership, Social, Cultural Development and Women Empowerment

JBGVS helps to maintain cultural fabric of the society by organizing

various programmes. The Mahila melavas are organized in each cluster of

villages, where subjects like Income Generation activities, Bank Linkages

of SHGs, Insurance, alcohol de-addiction, health, HIV/AIDS etc. are

discussed. Training programmes for personality development, social

awareness, banking, decision making, and income generation are

conducted through out the year by JBGVS.

Project monitoring

JBGVS has an elaborate follow-up, monitoring and impact analysis

mechanism for all its programmes. They have 20 sub indicators grouped in

five main development indicators, where, development status of each

village is assessed through a survey conducted every three years. The

priority of works is decided and future budget is planned. A village that

achieves 80% of development is considered as fairly well developed.

JBGVS then disengage from the village and discontinue active

participation but monitor their progress incase they need assistance and

guidance. JBGVS plan for Integrated Rural Development rolls on to

another village awaiting development.

Samaj Seva Kendra (SSK)

Samaj Seva Kendra was established in 1975 by Bajaj Auto and is part

of JBGVS. SSK provides facilities for social development of the

residents of Akurdi, Nigdi and adjoining townships, with the aim of

improving their quality of life, through skill development training, hobby

centre, nursery education, health care, sports, music, dance and

cultural programmes. It has a membership of 1000 families. SSK, also

conduct joint programmes with Pimpri Chinchwad Municipal

Corporation, Kamgar Kalyan Kendra, Jan Shikshan Sanstan, Shramik

Shiksha Board, World Centre of Girl Guides and Scouts.

A modern, 135-bed hospital at Aurangabad in Western Maharashtra, the

Kamalnayan Bajaj Hospital provides high-quality secondary and tertiary

healthcare and specialist facilities under one roof.

Its panel of renowned full-time consultants provides comprehensive multi-

specialty care and advanced surgical procedures such as coronary artery

bypass, beating heart graft surgeries, joint replacements, complex

neurosurgical procedures, kidney transplants. The hospital's well-designed

suite of five operation theatres is equipped to cater to complex surgical

procedures.

The hospital has state-of-the-art facilities like a cardiac catheterisation lab,

advanced spiral computer topography (CT) scanner, a colour doppler — all

from GE Medical Systems — a Mac 5000-series stress test machine, a

holter monitor from GE-Marquette, ultra-touch dialysis equipment from

Baxter and an advanced reverse osmosis plant.

A well-equipped, 26-bed multi-specialty intensive care unit (ICU) provides

emergency and post-operative care that is on par with the best in the

country.

The hospital has a critical-care ambulance (a hospital on wheels) with a

defibrillator, portable ventilator, pulse oximeter, ECG machine and

Glucometer. The ambulance is attended round the clock by a physician, a

nurse and support team of qualified paramedics.

The hospital’s facilities range from spacious and hygienically maintained

general wards with all essential amenities to large deluxe rooms furnished

with sofas, telephones, refrigerator, television and a small kitchenette. For

relatives of patients, the hospital provides guesthouse facilities and a

professionally managed cafeteria.The large hospital campus with its wide

open spaces, pleasing landscape, ample parking are meticulously

maintained.

The hospital offers a specially designed health insurance and annual

medical check-up plan in association with Bajaj Allianz General Insurance,

which provides cash-less hospitalisation and treatment.

Performance Reports

Sales in numbers for the month of September 20061st October 2006

Product For

September 2006

Upto September

2006

For September

2005

Upto September

2005Motorcycles 271,377 1,191,249 180,926 868,100Other 2 Wheelers

894 12,412 14,298 71,180

Total 2 Wheelers

272,271 1,203,661 195,224 939,280

Three Wheelers 27,870 151,558 23,118 121,796Grand Total 300,141 1,355,219 218,342 1,061,076

Press

Bajaj Auto flags off Kawasaki tie-up for Philippines

Launch a beginning of global thrust in collaboration with Kawasaki.

Bajaj Auto and their technology partners Kawasaki Heavy Industries (KHI,

Japan, a Fortune 500 company) have flagged off their first Global sales tie-

up on 3rd February 2004. Bajaj products will be jointly marketed in a

phased manner across the globe.

We have appointed M/s Kawasaki Motor Philippines Corporation

(KMPC) as our exclusive distributors to market our 2 wheelers in

that country. KMPCs is a joint venture company of KHI Japan

with a local Philippines company in the Philippines.

They have commenced with 3 of our motorcycles namely the

BYK, Caliber 115 and the Wind 125.

Our products shall be sold under 'Bajaj' brand throughout

Kawasaki network all over the Philippines.

This is the first time that Kawasaki is sourcing products from Bajaj

for selling the same through its network outside of India

Currently the Philippines market is being catered by Japanese

and Chinese products. This is for the first time an Indian

Manufacturer would be entering this market in a major way with

its own Brand Name.

Philippines traditionally has been a market where motorcycles

have been used as tricycles after attaching a side car to them, as

taxis. Of late, mopeds/step-thrus from the Japanese and

Chinese, at much cheaper prices, have penetrated the market

and that has resulted in 2 wheelers being used for personal

usage. This has given the market good growth and the market

today stands at approx. 300,000 units.

Motorcycles are being launched in the Philippines Market at a

comparable price to the Srtep-thrus. This is expected to result in

a substantial lateral shift from 100-125 cc Step-thrus to

motorcycles at a comparable competitive price.

Bajaj models will present an opportunity to the Philippines

customer to use attractively styled motorcycles for personal use.

Kawasaki conducted consumer research over a period of 4

months-the response was very positive. The products will be sold

through 65 dealers with 365 branches across the Philippines.

The Philippines launch on 3rd Feb was attended by Kawasaki

Dealers and their response to the Bajaj range was highly

enthusiastic.

The vehicles are being sent as CBU to Philippines. 360 vehicles

have already been exported with another 360 nos being sent in

February itself. Their plan is to sell approx. 3500-4000 units in the

first year of operation.

Currently the tie-up is only for the Philippines market. This will be

the be the test market for further expanding the Bajaj Kawasaki

tie-up to other S-E Asian and South American Markets.

Speaking on the occasion Of the Wind Launch in Mumbai last year , Mr.

Morita had said, "This model is going to be produced only in India and

Kawasaki is going to export it to many countries of the world. The Wind

125 is designed keeping the export markets in mind. It also indicates the

close collaborative effort between Kawasaki & Bajaj. With our long-

standing association we are keen to emerge as the dominant player in the

Indian motorcycle market."

The Bajaj Wind125, India's first World Bike will be manufactured at the

state-of-the-art motorcycle plant at Waluj. Kawasaki has identified Bajaj

Auto's Waluj facility as a Global Hub for sub-250 cc range of Kawasaki

Motorcycles. These motorcycles will be manufactured in Waluj for serving

the worldwide Kawasaki sales network in addition to the Indian market.

With over 3 million Kawasaki Bajaj bikes on Indian roads the 18-year

strong Kawasaki-Bajaj collaboration is moving from strength to strength.

Awards

Product Award Year By

Bajaj Pulsar DTS-Fi - Bike of the Year 2007 CNBC-TV18 Autocar Auto Awards

Bajaj Platina 100cc - Bike of the Year 2007 NDTV Profit Bike India

Mr. Rajiv Bajaj - Man of the year 2005 2005 Autocar Professional

Mr. Rajiv Bajaj - Automotive Man of the year 2005

2005 Bike India & NDTV India

Bajaj CT 100 - Motorcycle Total Customer Satisfaction Study 2005

2005 TNS Automotive

Bajaj Discover DTS-i - Bike of the Year 2005

2005 OVERDRIVE Awards 2005

Bajaj Discover DTS-i - Indigenous Design of the Year 2005

2005 OVERDRIVE Awards 2005

BAJAJ AUTO - Bike Maker of the Year 2004

2004 ICICI Bank OVERDRIVE Awards 2004

DTS-i Technology - Auto Tech of the Year 2004


Bajaj Pulsar DTS-i Bike of the Year 2004


Wind 125 Two Wheeler of the Year 2004

2004 CNBC AUTOCAR Awards 2004

Wind 125 Bike of the Year 2004 2004 Business Standard Motoring

Bajaj Pulsar 180 DTS-i BBC World Wheels Viewers Choice Two Wheeler of Year 2003

2003 BBC World Wheels Award 2003

Bajaj Pulsar 180 DTS-i BBC World 2003 BBC World Wheels Award 2003

Wheels Award for Best Two Wheeler between Rs 55,000 to Rs 70,000

Bajaj Pulsar 150 DTS-i BBC World Wheels Award for Best Two Wheeler between Rs 45,000 to Rs 55,000


Bajaj Boxer AT KTEC BBC World Wheels Award for Best Two Wheeler under Rs 30,000


Bajaj Pulsar - Motorcycle Total Customer Satisfaction Study

2003 NFO Automotive

Bajaj Pulsar - Bike of the year 2003 ICICI Bank OVERDRIVE Awards 2003

Bajaj Pulsar - Most exciting bike of the year

2002 OVERDRIVE Awards

Bajaj Eliminator - Bike of the year 2002 OVERDRIVE Awards

Bajaj Eliminator - Most exciting bike of the year

2001 OVERDRIVE Awards

Award Year By

Chakan Plant Super Platinum Award for Manufacturing Excellence

2006-07

Frost and Sullivan

Chakan & Waluj Plants Audit Passed for TPM Excellence Award

2006-07

TPM

Bikemaker of the Year 2006-07

Overdrive Awards

Bike Manufacturer of the Year 2007 2006-07

NDTV Profit Bike India

All India Trophy for Highest Exporter 1998-99

EEPC

Focus LAC Award for Outstanding Performance

1998-99

India Trade Promotion Organisation

Export Excellence 1998-99

EEPC

Certificate of Merit 1998-99

India Trade Promotion Organisation

Award for Export Excellence 1997-98

EEPC


MCCIIA

All India Trophy for Highest Exporter 1997-98

EEPC

Top Exporter Shield - Western Region 1996- EEPC

97


MCCIA

Regional Top Exporter - Large Scale Manufacturer

1995-96

EEPC

Highest Export Performance 1995-96

EEPC

Outstanding Export Performance 1995-96

Government of India, Ministry of Commerce

Export Excellence Award 1995-96

MCCIA

Top Exporter Shield - Western Region 1995-96

EEPC




EEPC

Regional Top Exporter - Large Scale Manufacturer

1994-95

EEPC

All India Special Shield - Consumer Durables Exporter

1994-95

EEPC

National Export award for Outstanding Performance

1994-95


Western Region Top Export Award 1994-95

EEPC

All India Special Shield - Consumer Durables

1994-95

EEPC

Regional Special Shield - Capital Goods Category

1993-94

EEPC


EEPC

Capital Goods Export 1992-93

EEPC

Regional Special Shield - Capital Goods Category

1990-91

EEPC

Certificate of Export Excellence 1986-87

EEPC

Certificate of Export Recognition 1980-81

EEPC


EEPC

Award for Export Excellence 1979- EEPC

80




EEPC


EEPC


EEPC

Export Promotion 1976 FICCI

Golden Jubilee Export Year Award 1976 FICCI


EEPC

Safety Award Year By

Meritorious Performance in Industrial Safety for three consecutive years

2001 National Safety Council

Certificate of Excellence 2001 National Safety Council

Achieving Lowest Average Frequency Rate

2001 National Safety Award





Achieving Longest Accident-free Period under Heavy Engineering Industries Group





1998 Council of Industrial Safety





Achieving Lowest Frequency Rate under Heavy Engineering Industries Group




Longest Accident-free Period 1992 Council of Industries, Mumbai

Best Safety Performance 1989 CII

Longest Accident-free Period 1987 National Safety Council

Bajaj Finance

Bajaj Auto Finance Ltd offers schemes that are specially formulated

with you in mind, and go easy on your wallet. All schemes are:

Completely transparent with absolutely no hidden costs or

charges.

Offer the lowest interest rates.

Open throughout the year, whenever you need a loan.

AUDITED FINANCIAL RESULTS OF BAJAJ AUTO LIMITED FOR THE YEAR ENDED MARCH 31, 2008(Rs. in Million)

NINE MONTHS

ENDED31.12.2007(Audited)

QUARTERENDED

31.03.2008(Audited)

YEYEAR ENDED

31.03.2008(Audited)

Sales in numbers 1,898,819 552,588 2,451,407

Gross Sal Gross Sales & Income from Operations 77969.4 22758.7 100728.1Less: Excise duty 8252.2 2014.4 10266.6Net Sales & Income from Operations 69717.2 20744.3 90461.5

Other Incom Other Income 1022.3 204.6 1226.9

TOTAL INCOME 70739.5 20948.9 91688.4

EXPENDITURE :a) a. (Increase) / decrease in stock in trade and work in progress (289.5) (389.0) (678.5)

b) Con b. Consumption of raw materials 49137.2 14347.2 63484.4 c) c. Purchase of traded goods 2115.7 1282.1 3397.8 d) E d. Employees Cost 2553.2 863.0 3416.2 E e. Depreciation and write downs 1325.7 413.9 1739.6 F f. Other expenditure 6048.4 2088.4 8136.8 g) Exp g. Expenses capitalized (167.5) (62.9) (230.4) To Total 60723.2 18542.7 79265.9 Interest 33.5 18.1 51.6

Excepti Exceptional Items

Com pen Compensation paid under Voluntary Retirement Schemes 511.8 511.8 1023.6 Profit / ( (Profit/Loss) from ordinary activities before tax 9471.0 1876.3 11347.3 Tax exp Tax Expenses (Including Fringe Benefit Tax) 3118.2 669.6 3787.8 Net Pro Net Profit / (Loss) from ordinary activities after tax 6352.8 1206.7 7559.5 Prior period adjustments (2.9) 1.2 (1.7) Net Profit / (Loss) for the period 6349.9 1207.9 7557.8

Paid up Equity Share Capital (Face value of Rs 10/-) 1446.8 1446.8 1446.8

Weighted average number of shares (In million) 139.5

Reserves excluding Revaluation Reserves as at 31st March 2008 14429.1

Basic and Diluted Earnings Per Share ( Rs.)

a) before extraordinary items 54.2

b) after extraordinary items 54.2

Public shareholding

No. of shares (See Note) 70,130,634

Percentage of Shareholding (See Note) 48.47%

Note:

After allotment of shares pursuant to scheme of demerger on 3 April 2008, the public shareholding

in the company went up to 70,130,634 shares (48.47% of the total capital) as on 3 April 2008.

The above results have been reviewed by the Audit Committee and approved by the Board of

Directors in the meeting held on May 22, 2008.

Objectives of study :-

1. To know preference of peoples regarding bajaj auto.

2. To study the factor influencing brand preference for bajaj auto.

3. To know the satisfaction level of customers.


Research design

Sampling

Measuring techniques

Data collection methods


“All progress is born of inquiry.Doubt is better than overconfidence for it leads to

inquiry and inquiry leads to invention”

This project was made on the basis of survey conducted by preparing a questionnaire.

RESARCH DESIGN

A research design is an arrangement of condition for collection and analysis

Of data in a manner that aims to combine relevance to research purpose with economy

in procedure.

The approach selected for this research work is Descriptive research.

The research method is Descriptive survey method.

The universe area is Chandigarh market

The method of contact is personl interview.

The research instrument is Questionnaire.

SAMPLING PLAN:

Sampling Unit:

Professional people, resident, students.

Sampling Field

Chandigarh region and Mohali.

Sample Size:

About 25 as some of them were not available and some are non cooperative as the

refuse to give any kind of information.

MEASURING TECHNIQUE

Questionnaire

The main purpose of preparing questionnaire was to detect any error/mistake in the

resarch. After findings some errors/mistakes in the research.,it was rectified and when it

was found to be free from errors and mistakes, the same was administered for the

research.

DATA COLLECTION METHOD

For making this project report attractive and accurate data is collected from both sources

that is primary and secondary sources.

Primary Data:

OBSERVATION METHOD

QUESTIONNNAIRE

Questionnaire consists of various questions. Both type of questions are included that

was open and close ended questions in the questionnaire.Only one questionnaire is

prepared for both Godrej dealers.

Secondary Data:

Secondary data was collected from the following sources:

a. Books

b. Internet (Websites)

Analysis instruments

Diagram

Pie-char

LIMITATIONS

All studies conducted may have some shortcomings. A few errors may have crept in

despite the best efforts to avoid them but it is expected that still our finding are very

much relevant. Following are the limitations.

1. Persons filled the questionnaire by giving their own opinion and thus, there could

be possibilities of errors occurred due to the personal biases of the respondents.

2. Due to the time and financial constraints the study was limited to the

Chandigarh and Mohali only.

3. Dealers response:Sometime dealers were not available and refused to co-

operate Non-response error might have arisen due to this season.

Questionnaire

1) Name: …………………………2) Address: ……………………….3) Contact No: ……………………4) Marital status: a) Married: …14………….. b) Unmarried: …11………. 5) Occupation: a) Student ……8…………..

b) Business …..7………… c) Service ……9……….. d) Any other….1……...6) Income group: a) 0-10000…………8………… b) 10000-20000……4……….... c) 20000-30000……5…………. d) More than 30000…8………..

8) which two wheeler brand you most prefer? a) Bajaj………5…………. b) Hero Honda …6……….. c) TVS………2………… d) Honda……5…………. e) Any Other…5………….9) Are you satisfied with your current brand? a) Yes ……15………… b) No………8……......10) Do you want to shift to some other brand? a) Yes ………8……… b) No………15……..11) Is the company of this brand provides you after sales services? a) Yes …18………… b) No……5………..12) Do you remember any advertisement of your brand a) Yes ……17……… b) No………6……..13) Are you satisfied with the customer care of the company? a) Yes ……10……… b) No……..13……..14) Do you know about the schemes available with the company? a) Yes ……5……… b) No……..18………..15) What is the important deciding factor for the purchase? a) Mileage……16………

b) Price………18…….. c) Design……10……… d) Colour……10……… e) Any other…3………16) Do you know something about MVSA (Motor vehicle safety act)? a) Yes ……4…………. b) No…….21…………

Evaluation1) Marital status: a) Married: …14………….. b) Unmarried: …11……….

No. of persons

0

2

4

6

8

10

12

14

16

Married Unmarried

Marital Status

No

. o

f p

erso

ns

No. of persons

2) Occupation:

a) Student ……8………….. b) Business …..7…………

c) Service ……9……….. d) Any other….1……...

0

1

2

3

4

5

6

7

8

9

No. of persons

Student Business Service Any Other

Occupation

No.of Persons

3) Income group: a) 0-10000…………8………… b) 10000-20000……4……….... c) 20000-30000……5…………. d) More than 30000…8………..

012345678

No.pf persons

0-10000 10000-20000

20000-30000

More than30000

Income groups

No. of persons

No. of persons

4) Do you have any? a) Two wheeler………9…….. b) Four wheeler ……..14…… c) Any other………….2……..

No.pf persons

0

2

4

6

8

10

12

14

16

Two wheeler Four wheeler Any other

Vehicles

No

. o

f p

erso

ns

No.pf persons

5) which brand of two wheeler you prefer the most? a) Bajaj………5…………. b) Hero Honda …6……….. c) TVS………2………… d) Honda……5………….

e) Any Other…5………….

6) Are you satisfied with your current brand? a) Yes ……15………… b) No………8……......

Are you satisfied with your current brand?

Yes

No

7) Do you want to shift to some other brand? a) Yes ………8………

b) No………15……..

0

1

2

3

4

5

6

No. of persons

HERO Honda BAJAJ TVS Honda Any Other

Brands

No. of persons

Shift to other brand

Yes

No

8) Is the company of this brand provides you after sales services? a) Yes …18………. b) No……5………..

Sales Services

Yes

No

12) Do you remember any advertisement of your brand company:

a) Yes ……17……… b) No………6……..

13) Are you satisfied with the customer care of the company? a) Yes ……10……… b) No……..13……..

Customer Care

Yes

No

14) Do you know about the schemes available with the company? a) Yes ……5………

Advertisement

Yes

No

b) No……..18………..

15) What is the important deciding factor for the purchase? a) Mileage……16……… b) Price………18…….. c) Design……10……… d) Colour……10……… e) Any other…3………

02468

1012141618

No. of Persons

Mileage Price Design Colour Any Other

Factors

Factor of purchasing

No. of persons

16) Do you know something about MVSA (Motor vehicle safety act)?

a) Yes ……4…………. b) No…….21…………

Knowledge about MVSA

Yes

No

Findings

Mileage is the most influencing factor while purchasing a motorcycle.

Most of the consumer buy the vehicle when company offers discount

The most preferred sources of information from which the respondents came to

know about brands are advertisements and friends.

Majority of respondents including male and females prefer to buy Hero Honda

than any other brands.

Conclusion

From the above data it is concluded that Bajaj is ruling over the auto market.

Bajaj is the heart of Indian customers as it gives the quality product and

services with negligible maintenance. Bajaj has provided its services to

every class of employee (Lower to top class). It has the

two wheeler and three wheeler which is on the economic level of the people.

It gives the true value of money, as its product gives the maximum

satisfaction to its customers in the society. It also takes initiative for the

societal welfare.

Bajaj Auto: A Market Analysis

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