2. HISTORY OF BAJAJ AUTO
LTD.
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.
3. 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.
5. 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.
6. 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.
7. 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.
10. 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)
11. 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.
12. 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.
13.
14. POLICIES & STRATEGY
FOLLOWED
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.
15. HUMAN RESOURCE
ACQUISITION
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.
16. BALANCE SHEET- 2009
Total liabilities 34,438,851
Total assets 34,438,851
SOURCES OF FUNDS:
Paid-up capital 1,446,835
Reserves and surplus 17,250,207
Secured loans —
Unsecured loans 15,699,927
Defer red Tax Adjustments 41,882
34,438,851
APPLICATION OF FUNDS:
Net Fixed Assets 15,480,873
Investments 18,085,192
Net Current Assets (1,122,846)
Misc. Exp-
Technical Know-how & Unamortised VRS Compensation
1,995,632
34,438,851
17. SWOT ANALYSIS
STRENGTHS:
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.
18. 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 )
19. 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.
20. THREATS:
The market catches up any new
competition in no time.
Threat of cheap imported motorcycles
from China.
21. RECOMMENDATIONS:
Focus on high margin products.
Focus on fast growing motorcycle
segment.
Tap the export market more efficiently.
Target young age group more effectively.