2. ABOUT BAJAJ
Founder – Jamnalal Bajaj
Founded on year – 1945
Headquarters – Pune & Mumbai
Current Chairman – Rahul Bajaj
Revenue (2013) – Rs. 202.01 Billion
Employees – About 12000
Bajaj Auto is the world's third-largest manufacturer of
motorcycles and the second-largest in India.
The Bajaj brand is well-known across several countries in Latin
America, Africa, Middle East, South and South EastAsia.
Bajaj has operations in 50 countries.
It target audience is every sector of society.
5. AKURDI PUNE
Manufacturing locations Akurdi, Pune
This is one of the oldest plant 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
Chakan Industrial Area, Chakan , Pune
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
7. WALUJ PLANT
Bajaj Nagar,Waluj AurangabadThis is
second plant with production capacity of
0.86 million/ year. Products
manufactured here are Kristal, XCD and
platina and commerial GC series
Waluj is now the export hub of Bajaj Auto
The basic raw materials are steel and
aluminium. Surface treatment processes
like heat treatment, painting and
electroplating are carried out in the
Pantnagar , UttarakhandThe most advanced plant of
bajaj auto . It has Capacity of 0.9 million vehicles per
year , product manufactured here are platina and XCD.
To maximize tax benefits available at Uttarakhand, the
Company has shifted products like Discover and Pulsar
135 to Pantnagar
They outsource machinery and have four assembly
lines which operate in two shifts with 950 manpower,
manufacturing 6000 vehicles per day and targeting 1.5
Lakh vehicles per month.The efficiency of the plant is
Two- wheeler sales in the country have boomed in the recent
years and the annual sales of motorcycles in India crossed the 10
million mark in 2010.The low penetration of two-wheelers in the
country 31 two-wheelers per 1000 citizens (2004) changed rapidly
over the time. Overall the industry sales of two-wheelers have
grown by 15% from 6.57 million in 2004/2005 to 7.57 million in
2005/2006.The buoyant Indian economy with a growth rate of
around 8% per annum is further expected to fuel the growth of
two wheelers in the country.
The major factors that determine the demand in the automobile
industry are affordability, product innovation, style, looks and
power and fuel efficiency. Rapidly growing middle class and the
change in life style of Indians has lead to a huge demand in India
for performance vehicles like the Bajaj Pulsar 180. Statistics shows
a steady upward trend in domestic as well as exports passenger
12. Period Month of 2011 Demand
Forecast for Month of 2012
1 Jan 1264 #N/A
2 Feb 1463 1264
3 Mar 1211 1403.3
4 Apr 1743 1268.69
5 May 1467 1600.707
6 June 1584 1507.1121
7 July 1467 1560.93363
13. The Bajaj Pulsar demand for the year 2012 is going to be forecasted
using the Exponential Smoothing Forecasting Model. Exponential
Smoothing Forecasting Model is a weighted moving average in
which the forecast for the next period’s demand is the current
period’s forecast adjusted by a fraction of the difference between
the current period’s actual demand and its forecast.
Bajaj Auto Ltd. have modern and technologically advance
machines and state of the art assembly lines.These machineries
are arranged in operation department systematically.
The production process is step by step, the raw material move
from one line to another line systematically
Assembly line technology is for facilities that produce a narrow
range of standardized products
Bajaj auto maintains seven days inventory . Demand Estimations
are based on Panel Regression, which takes into account both
time series and cross section variation in data .
All the Mediators are connected with each other through IT
linkage to know exact status of delivery of goods
With operations spanning to such vast geographies, managing a
value chain globally becomes more and more complex.
In countries where Bajaj perceives a strong market potential, they
establish a tie up with one major industrial establishment eager to
invest in the project.
This investment may include setting up strategic manufacturing
or assembly units, apart from a well-established nation-wide
network for marketing , distribution and after sales services.
These investors who form alliances with BajajAuto are termed as
“Business Partners”. Bajaj Auto offers a number of services to its
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
Selecting of machinery and equipment and training of technical
personnel, all in a phased manner as required by the regulations in
the recipient country
Active support in setting nation-wide dealer network, also
involving identification and recommending suitable partner who
would assist the distributor in Business growth
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
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 commercialGC series.
MANAGEMENT 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
State Town Units Capacity (Nos)
Aurangabad Waluj Kristal, XCD, Platina
Uttarakhand Pantnagar Platina, XCD 900,000
Bajaj went from producing a standardized product in a heavily
market (a market with a ten year waiting period) to a strong global
The transformation of Bajaj Auto is a model for other producers in
countries to follow.The company has developed capabilities in
development that emphasize what Indian consumers want. Bajaj
relationships with its suppliers and strives for efficiency at every turn.
company has developed improved engine performance and product
best fit the Indian market. It has developed its own version of total
management and constantly looks for improvements for itself and its
23. The case of Bajaj Auto shows that local firms can compete with
foreign multinationals.While Bajaj cannot relax and feel confident
that its success is assured, the company has made an impressive
transformation and currently competes with the strongest firms in
the world in its local market.
The success of Bajaj provides important lessons for others.The
company has been able to successfully defend its market by
following simple guidelines.
First, Bajaj gives consumers what they want.With a greater
understanding of its local market, Bajaj has been able to produce
products that are desired by its consumers.
Secondly, Bajaj pays constant attention to cost reduction and
efficiencies. For example, the company has developed wind power
to generate electricity for its manufacturing operations.
.To be competitive against stronger firms, local
companies must be creative. Lastly, Bajaj strives for improvements.The
company knows that in order to survive it must be better tomorrow
than it is today.
The past practices in India of subsidized inefficiency are gone, and the
environment is constantly changing.
Bajaj Auto provides an excellent example of a local firm that was not
fearful of foreign competition, and one that developed its own
competitive advantage in order to prosper in its transition economy.