1. Company: Bajaj Auto
Operations
Management
Project_2nd Term
By,
Sindoor Naik (MBA)
Universal Business School
(sindoornaik@yahoo.com)

2. History
• Bajaj Auto came into existence on 29 November 1945.
• Bajaj Auto Limited is India's 2nd largest manufacturer
of scooters and motorcycles.
• The company generally has lagged behind its Japanese
rivals in technology, but has invested heavily to catch
up.
• It is the lowest-cost scooter maker in the world.
• Although publicly owned, the company has been
controlled by the Bajaj family since its founding.

3. Introduction
• Market Capital: INR 520 billion (On 31 March
2013)
• One of the oldest and the 2nd largest
manufacturer of automobiles in India
• World's 4th largest two- and three-wheeler
maker
• Bajaj Auto makes motor scooters, motorcycles
and the auto rickshaw.
• Changed its image from a scooter manufacturer
to a two wheeler manufacturer

4. Business; Partnership; Location
BUSINESS: Bajaj Auto makes several kinds of
motorcycles, scooters and three wheelers.
PARTNERSHIP: 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.

5. USP of Bajaj Auto Ltd.
• Style
• Technology
• Pricing Strategy
• Innovation
• Speed
• Perfection

6. 0
5000
10000
15000
20000
25000
FY2009 FY2010 FY2011 FY2012 FY2013
Bajaj Auto
Net Sales and Operating
Income (in Rs. Crore)

7. Year
ended
31st
March
Industry
(Nos.)
Industry
’s
Growth
Bajaj
Auto
(Nos.)
Bajaj
Auto’s
Growt
h
Bajaj
Auto’
s
Marke
t
Share
2009 6806114 4.0% 1907853 10.8% 28.0%
2010 8444243 24.1% 2506791 31.4% 29.7%
2011 10500073 24.3% 3387043 35.1% 32.3%
2012 11943535 13.7% 3834405 13.2% 32.1%
2013 11952135 0.1% 3757105 2.0% 31.4%
Bajaj Auto’s Sale of Motorcycles, Domestic + Exports
(in numbers)

8. Land
Waluj: Aurangabad (Maharashtra)
Chakan: Mahalunge Village (Maharashtra)
Patnagar: Uttaranchal
Bajaj Autohas in all threeplants:
The use of optimised resources and improved efficiencies at
all levels has
Helped the Plants to achieve superior results in:
Productivity Product
Quality
Cost
Reduction
Company
Culture

9. TheWaluj Plant wonthe TPMAward for ‘Excellence in ConsistentTPM
Commitment’ from theJIPMin March2013.
TheGreenManufacturingExcellence Award, 2012 was awarded to the Walujplant asthe
‘Challenger Award —Large Business’.
TheNational EnergyManagementAward, 2012 hasbeen awarded to the Waluj plant as
an
‘Efficient EnergyUnit’.

10. Chakanplants won the TPMAward for‘Excellence in Consistent TPM
Commitment’ from the JIPMin March2013.

11. Patnagar Plant

12. Product
Range
Plant Output Capacity Products
Waluj 2.40
million
2.22
million-
2 & 3
wheelers
Boxer,
Platina,
Discove
r,
Pulsar
and 3
Wheeler
Capacit
y
Chakan 1.20
million
0.88
million-
vehicles
Pulsar,
Avenger,
Ninja
and KTM
Patnagar 1.80
million
1.12
million-
vehicles
Platina,
Discove
r,
Boxer

13. Technology
-R&D
During 2003-04, the
company's R&D team
unveiled an innovative and
path-breaking
technology called DTSi
(Digital Twin Spark
ignition).

14. Technology
-R&D
Plugsprovide unprecedentedperformanceand
efficiency.
Fast and optimal combustion.
Lower emissions.
Controlled by an advanced Electronic ControlUnit, is the
technology ofthe future.
Combustion in a triple spark engine is 27%
faster than a twin spark and 50% faster than a
single spark engine.
THE TRIPLE
SPARK
TECHNOLOGY
Facilitates induction ofmore quantityof
charge(air-fuelmixture)and complete
evacuation ofall burnt gases.
Resultsin increasedengine performance
–power, throttle responseand pick-up at
all enginespeeds.
4-VALVE
4-valve engines can be revved to much higher RPMs,
without any engine strain, allowing the rider to
experience superior performance.
LIQUID
COOLING
Engine is kept cooled usingliquid
coolant, which is better at heat dispension
as compared to an air cooled engine.
Ensuresthereis nopower fading due to
overheating.
Resultsin longer engine life.
Thecoolant provides for a muffling effect
which smoothensengine noises evenat
high RPMs.Air
Cooled
Liquid
Cooled
6SPEED
GEARBOX
Ensures optimal use of the wider range of
power delivery.

15. FOCUS
Market
Customer
Segments

16. Focus Market
Youth
Most of their Bikes Targets
the Youth.
Bajaj Pulsar 150cc is
certainly one of them!
Office
Goers
Discover 125 and 100 T, rather the
Discover Brand is clearly aimed at
Targeting the Office Goers,
specially the Middle Class
Segment.
Sports Segment With the Launch of KTM DUKE
200, even KTM DUKE 100, as well
as the PULSAR 200 NS, they are
surely Targeting those who want
Speed !

17. Focus Products

18. Auto-RickshawsBajaj-Pulsar 150 ccBajaj-Avenger

19. Pulsar 200NS

20. Has redefined
the sports motorcycle segment
in India.
Set newbenchmarks
in terms of performance, style,
technology and affordability.
Theaward for the best
product design across the entire
automobile segment.
Pulsar 200 NS

21. Discover125 ST Discover125 ST
TheDiscover 125 ST is equipped with a
high performancefour-valveair cooled
engine powered by twin spark ignition,
delivering 13 Ps,and a 5 speed gear box
suitably synchronisedto the power
characteristicsofthe engine.
Thisprovides the joy ofa powerful
drive while
maintaining the high fuelefficiency
for which Discover is known for.
Nitroxmono shock absorber
Swing arms
Big and stylish fuel tank

22. Bajaj Discover 100T Bajaj Discover 100T
Smaller enginecapacity
More fuelefficiency
Thevehicle is
powered by a high performancefour-
valve air cooled 100 cc DTSi engine
delivering
10.2 Ps,with a five- speed gear box.
The Discover 100 T is
Theworld’s first 100 cc single cylinder four-valve DTSiengine
and also delivers best-in-class power and fuel efficiency.

23. KTM
DUKE-125
KTM DUKE-125
KTM DUKE-200

24. KTMDUKE-125 and200
Anti-lock
braking system(ABS)
The KTM 200 Duke also won eight awards
during the year.
Thisincreasesdriver
safety by not allowing the vehicleto skid
even incasesofpanic braking on high
skid surfaces.
TheKTM200 Duke also won eight awards
during theyear.

25. Value Chain Analysis of
Bajaj Auto
They select Suppliers that provide majority of the
required Raw Materials!
Suppliers and Raw Materials
Minda
Headlamps and
Lights
Suppliers Raw Materials
JBM
MRF
Minda
Reinder
Frames
Tires
Locks and Ignition Systems
Headlamps and Lights
Endurance
Varroc
Max Auto Comp.
Silico Cable
Brakes, Clutch &
Cast Vehicles
Digital Meters &
Plastic Parts
Ignition Systems & Switches
Wires & Cables

26. Inventory Management
Bajaj
Auto
maintains 7 days
Inventory
Demand Estimation is based on
Panel Regression
Takes
into
accountTime Series & Cross
Section Variation in
Data
All Mediators are connected with
each other through IT Linkage

27. Manufacturing:
• Bajaj Auto is the world's third-largest manufacturer of motorcycles and
the second-largest in India.
• Manufacturing locations:
Akurdi, Pune, 411035
• This is one of the oldest plants of bajaj auto ltd with production capacity
of 0.6 million vehicles/ year. The plant has been closed in order to equip
for four wheeler production
Bajaj Nagar, Waluj Aurangabad 431136
• This is second plant with production capacity of 0.86 million/ year.
Products manufactured here are Kristal, XCD and platina and commerial
GC series.

28. Manufacturing:
Chakan Industrial Area, Chakan , Pune 411501
• This is the biggest plant of bajaj auto Production Capacity of 1.2
million/ year , Product manufactured here are pulsar and avenger
and commercial Ge series
Pantnagar , Uttarakhand
• The most advanced plant of bajaj auto .It has Capacity of 0.9 million
vehicles per year. Product manufactured here are platina and XCD

29. Cont…..

31. ISO
• Bajaj Auto have Adhered to ISO9001(Quality
System) .
• It also posses ISO-4001(Environment System)
Certification.
• All plants of bajaj Auto is actively invovled in
Afforestation with Plantation work in &
Around plant premises.
• It also made huge Investment in Effluent
Treatment Plant(ETP)

32. ISO CERTIFICATE

33. DISTRIBUTION CHANNEL
Various players involved in the channel design are:
• Manufacturing Plant
Depots
• Carrying & Forward Agent
• Dealers
• Sub Dealers

35. • Setting up depots is a geographical strategy adopted by Bajaj Auto.
• It has chosen strategic locations.
• The key role played by depots is that they are meant to cater to any
sudden rise in demand of vehicles, and to cover the existing
geographic span of India.
Ex : Due to extensive distance of manufacturing plants in
Maharashtra from West Bengal and north-east India, there
exist a depot in Kharagpur with capacity of housing
800 vehicles
• There are similar depots in Punjab, Rajasthan and southern India.
Depots:

36. Depots:
• Reaching the states of the North-East takes 15 days if
we go via the carrying and forwarding agent concept.
• Generally bikes reach West Bengal in 7-8 days.
• The bottleneck is the Darjeeling route.
• Hence, came in the concept of a depot whereby we
can reach the North-East in the same time, instead of
experiencing a lag of almost a week.”

37. Dimensions for Choosing Depot or
Factory Approach
• A dealer needs to consider his order requirements and
then come up with an order to place to the regional
office.
• If the demand is immediate, he may approach a Depot
for the load.
• Else, he has to try to stick to factory load.
• Generally, orders are placed to the factory but in case
of urgent requirement, due to which the lead time
reduces considerably, the order is procured from the
depot.

38. Dealers:
• Bajaj Auto has a network of 498 dealers and over
1,500 authorized service centers and 162
exclusive three-wheeler dealers spread across the
country.
• Around 1,400 rural outlets have been created in
towns with population of 25,000 and below.
• The current dealer network is servicing these
outlets.

39. Company Owned & Company Operated
showrooms.
• These concepts exists only for Pro-Biking showrooms. ( Ex: Bajaj Kawasaki
Ninja and Bajaj KTM Duke)
• Bajaj Auto has tried showcasing their muscle power in high end biking
segment.
• The concept has evolved very fast and now there are 52 Pro-Biking
showrooms in the country.
• The company itself does not take any order from the customer in these
showrooms.
• The giant dealer of the region who is acting as a logistics partner for the
pro-biking concept takes the order on behalf of the company and fulfills
the customer requirement.

40. Dealer Owned & Dealer Operated
• These dealers are fewer in number because they
are generally the giant dealers who are the
financial muscle for the company.
• In the future years Bajaj wants to do away with
this concept.
• The reason behind this is that the bargaining
power increases in the hands of the dealer, which
puts the company in a knotty situation.

41. • This function of distribution is not owned by the
company in any form.
• This is outsourced to the third party vendors.
• The third party here is Transport Corporation of India
(TCI) and a few other private vendors namely OSL
Jamuna Transport ,Sumit Transport etc.
• The fleet to be transported is custom-designed for
Bajaj Auto by the vendor.

42. Transport & Logistics:
• A Transit Insurance Compliance Letter (TICL) is signed
between the two parties
• The local level sub-dealer sometimes gets to decide the
last mile logistics, as he can decide to pick up the
vehicles himself or have it transported to him.
• Logistics of the vendor is decided by the company.
• Freight charges are built in the product price.

43. Services to Dealer :
Workshop Training
In a month:
• 30-40 Mechanics can be trained per dealer
• 15-20 Sales personnel can be trained per dealer

44. Order Tracking:
• Taking a daily account of
the order received from various dealers and Regional Offices
(RO).
• Orders from dealers are punched in by dealer themselves.
• Orders are followed up in the system only if the credit limit is not crossed.
• This credit limit is preset into the system depending upon the dealer and
his/her track record.

45. Packaging:
• Packaging in factory is outsourced to third
party vendor. These vendors are generally
from the Transport & Logistics partners

46. Dispatching Goods:
• Goods need to be dispatched via third party
vendor TCI. State corporations and other
private players are also part of the vendor list

47. Generating Invoice & Waybill:
• These documents need to be generated and
dispatched to the respective dealer.

48. Key Players in Market
• Hero Honda
• Bajaj Auto
• TVS
• Honda
• Yamaha
• Suzuki
• LML
• Royal Enfield

49. Market Share
Hero Honda
TVS Motors
Bajaj Auto
Others
41%
31%
14%
14%

50. Bajaj Investment
Particular As at 31st
March 2013
Govt. Securities & Bank deposits 8653
Mutual funds including UTI 1739
Debentures & Bonds 8698
Preferences shares 854
Inter corporate Deposits 1651
Fixed income investments 21735
Market value 29433

51. Particulars As of 31st March
Share Capital 2893.70
Inventories 6362.80
Sundry Debtors 7675.80
Cash & Bank 5588.50
Sundry Creditors 5461.60
Liabilities & Assets

52. Turnover €612 million
Net Profit € 25.3 million
Share of dividends € 3.64 million
Total production 4237162 units
Net sales 20,792.74 crore
Total exports 1,547,157 units
Market capitalization €61 million
FINANCIALS 2013

53. Hamara Bajaj!!!
Thanking You