PROJECT REPORT ON

BAJAJ AUTO

Presented by - Vahid Shaikh

Roll No - 41

Submitted To,
Rahul Sir.
 PROJECT REPORT ON

BAJAJ AUTO

Presented by - Vahid Shaikh

Roll No - 41

Submitted To,
Rahul Sir.

Bajaj Auto is a major Indian automobile manufacturer. It is India's largest and the
world's 4th largest two- and three-wheeler maker. It is based in Pune, Maharashtra,
with plants in Akurdi and Chakan (near Pune),Waluj (near Aurangabad) and
Pantnagar in Uttaranchal. Bajaj Auto makes and exports motorscooters, motorcycles
and the auto rickshaw.

The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946.

Over the last decade, the company has successfully changed its image from a
scooter manufacturer to a two wheeler manufacturer. Its product range encompasses
Scooterettes, Scooters and Motorcycles. Its real growth in numbers has come in the
last four years after successful introduction of a few models in the motorcycle
segment.

The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.

Company's history

Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading
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.

PRODUCT AND SERVICES

BAJAJ CT100
 Bajaj CT100 is as energetic and economical entry-level bike. It targets the
value-for-money conscious young bike buyer and offers build quality and
trim levels of higher-end bikes at a price closer to that of a traditional
metal-bodied scooter.

The build quality of Bajaj CT 100 is a big plus. The eye-catching decals on
the fuel tank and body side panels and the shapely, wide seating that
gradually slopes upward and the chrome grab rail at the rear gives Bajaj CT 100 the
appearance similar to that of a more expensive bikes. The new ergonomically
designed seat and the right angled handle gives the rider a more comfortable riding
posture

Striking Features

• Bajaj CT 100 is equipped with a four-stroke, 99.27cc engine

• Bajaj CT 100 develops 8.2bhp of peak power at 7,500 rpm and a maximum
torque of 8.05Nm at 5,500 rpm.
• Bajaj CT 100's torque spread gives the bike a high level of low-speed
tolerance and obviates the need for frequent shifting into a lower gear.
• Bajaj CT 100 comes with a "Ride Control" switch, which helps in improving
the bike's mileage.
• All in all, Bajaj CT 100 is a combination of good looks, new-age technology,
high mileage and features that should be enticing for the entry-level bike
buyer.

BAJAJ PLATINA

Bajaj Platina is a new 100cc bike from Bajaj Auto Ltd. with a mileage of
70 km on road conditions. The bike is equipped with exclusive streak
design side panels and with sleeker rear panels. It is a budget bike in two
variants, complimenting the existing CT 100 model from the company in
the lower segment of the bike market.

Striking features

• Exclusive Styling Package.

• Superior engine performance for practical riding conditions
• Best in class suspension system for superior comfort.
• World first SNS (Spring-N-Spring) rear suspension with the longest travel in its
class of 100 mm.
• Unique streak design side panels.

BAJAJ DISCOVER DTSi 125cc

Bajaj Discover is a bike with all the latest features. It has ExhausTEC tecnology, SNS
suspension and a ride control switch. It comes in two variants, the base model and
Discover DTSi. The base model is of 112 cc and the DTSi, 125 cc. The 112 cc gives
the rider the best mileage of 101 kmpl (under standard test conditions). The DTSi is
ranked among the most powerful and torquey in the 125 cc class of bikes

Striking feature

• Athletic, Lean and Muscular styling

• 101 kmpl ExhausTEC mileage
• Telescopic Front suspension of 30 mm diameter and the longest travel in its
class of 135 mm.
• World first SNS (Spring-N-Spring) Rear suspension with triple rated springs,
also the longest travel in its class of 110 mm.

BAJAJ XCD-125 DTS-Si

Bajaj Auto Ltd., launched the much awaited bike Exceed with a short and
crispy name of XCD-125, powered with the latest DTS-SI technology. Bajaj
Auto Ltd. has projected XCD-125 DTS-Si to offer the features of 150cc,
performance of 125cc and the mileage of 100cc.

The all-new XCD-125 has number of unique features like digital

speedometer, LED tail lamp (for the first time), chain cover with built in
noise-damping feature, Full DC electrical system for quick and easy start. The power
packed performance has been taken care by the 125 cc engine loaded with
revolutionary DTS-SI (Digital Twin Spark Swirl Induction) technology that promises to
offer 10.85 Nm @ 5000 rpm and the unbelievable mileage of 109 KMPL.

Striking Feature

• All new 'Digital Twin Spark - Swirl induction' (DTS-Si) engine for better fuel
efficiency
 • Digital Speedometer
• LED tail lamp and headlamp with twin prismatic pilot lamps
• New concept of folding front number plate
• Full DC electrical system for constant illumination
• Unbelievable mileage promise of 109 KMPL

BAJAJ DISCOVER DTSI 135cc

Bajaj Discover 135 cc lies in between the 125 cc and 150 cc segments
with an engine displacement of 134.21 cc. The Bajaj Discover 135 cc is
easy to control, easy on the pocket, and a good choice between a 125 cc
and 150 cc motorbike. The 135 mm telescopic front suspension
combined with the adjustable Nitro X suspension at the rear provides smooth and
comfortable rides; alloy wheel rims add flamboyance to the strong double cradle
body, and a front 240 mm hydraulic disc brake enhances safety. The added engine
power gives the Bajaj Discover 135 cc greater performance edge over 125 cc
alternatives with the looks of a 125 cc machine. The electric start without a kick
works like a charm.
Striking features

• The engine can deliver 57 KPL

• It has got 10L of tank
• The high class efficency of the bikes with a keihin CV
carburetor.
• The new suspension is like the bajaj pulsar 150cc and is fitted
to bear the weight of the bike.
• The brakes of the bike are 240mm. disc brake In the front.

BAJAJ AVENGER DTSi

Bajaj Avenger, 180 cc bike, is the technology showcase for the entire
two-wheeler industry. The motorcycle is the second offering in the
cruiser bike segment by Bajaj after Eliminator. It comes with the DTS-i
engine and incorporates the ExausTEC for better low-end torque. It is
said that riders can expect more low-end and mid-range grunt and crisp
carburetion for instant response in tandem with light throttle feel.

Striking Features

• Dynamic Cruiser Looks.

 • Completely re-tuned legendary DTS-i technology especially designed for
India's first cruiser.
• Linear and smooth power delivery.
• Tubular Double cradle with rectangular swing rm and longest wheelbase
(1475 mm).
• Widest tyres.
• Most efficient braking action.

BAJAJ PULSER DTSi

Bajaj Auto Ltd. has launched Pulsar DTSi in its attempt to remain
'Distinctly Ahead'. The all new Pulsar DTSi is packed with the path
breaking next generation technology of digital biking. Its various digital
systems like capacitor discharge ignition (CDI) system, Digital console and
Digital Twin Spark ignition (DTSi) provides efficient fuel combustion and
better performance under all conditions. The latest DTSi engine of Bajaj
Pulsar DTSi, with twin spark plugs and 8 bit microprocessor chip, generates the
pulsating 18 ps of power to excite the bikers and its advanced ExhausTEC
technology ensures the great performance at lower rpm.

The muscular aerodynamic shape of Pulsar DTSi and its 1350 mm of wheel base
with 17" large alloy wheels give this bajaj bike a robust presence on the road. For the
first time in India, Pulsar DTSi is equipped with an Oil cooler, tube less tyres and new
digital console that makes the Pulsar most sporty and stylish two wheeler on Indian
roads.

Launched in variants of 150cc and 180 cc, Pulsar DTSi has a price tag of Rs.70-
75,000 (approx.) and up for sale through out the dealerships of Bajaj Auto India.

Striking Feature

• Engine Oil Cooler to control the temperature and maintain the high speed and
rpm.
• Digital Odometer, Digital Speedo Meter, Digital Fuel Gauge and two Digital
Trip Meters contributes to enhanced riding comfort.
• Tubeless tyres for better road grip and stability.
• First bike in India with large 33 mm front fork for better shock absorbing ability.
• Constant velocity (CV) carburetor for high level of performance.
• Split seat for better riding and sitting comfort.

BAJAJ PULSAR DTSI 200CC

Bajaj Auto, the pioneer in performance biking has further extended the portfolio with
the launch of the new 200 cc ‘Pulsar’ DTS-i
The new digital console is an advanced version of the latest Pulsar family. Apart from
the Digital Odometer, Digital Speedo Meter, Digital Fuel Gauge and two Digital Trip
Meters, the console on the 200 cc Pulsar DTS-i has indicators for Air filter condition,
Engine temperature, Battery voltage and Oil level, all of which contribute to
enhancing rider info for trouble-free riding. Another first is the use of split seats for
styling and comfort. The split grab rail perfectly compliments the new rear chiseled
looks. It is also the first Indian bike to have electric start as the sole means of engine
cranking, dispensing with the kick lever.

Speaking on the launch Mr. S.Sridhar, VP (Sales & Marketing-2 wh), Bajaj Auto Ltd
said, “This launch is in line with our strategy of enhancing our product portfolio to
offer riding excitement to pro-bikers. Our entire focus and effort is to deliver
outstanding technology and performance. The new Pulsar has now raised the bar in
the motorcycle industry with superior technology and features such as the engine oil
cooler, digital console etc.”
The bike would be available at exclusive Probiking showrooms at select locations
across the country. Performance biking now also comes at an attractive price of
Rs.65,497 ex showroom.

Striking Feature

 A lowered Headlamp/Fairing assembly alongwith a high tail-end, giving it an

aggressive, ready to pounce stance.
 An all Stainless Steel silencer with a Aluminium muffler can for genuine sporty
looks and long life.
 Large Ø 33 mm Front forks for muscular looks and to take care of the extra
suspension and braking loads.
 Large Ø 260 mm front disc for strong and predictable stopping power.
 A unique Auto Switchover feature comes into play incase one of the two
Headlamp filaments stops functioning.
 A unique Battery Energy Conserving feature ensures a fixed delay after 3
continuous cranks.

BAJAJ PULSAR DTS FI 220

India's leading motorcycle manufacturer Bajaj Auto has unveiled its new
bike model to the Pulsar family. Pulsar DTS-FI 220 bike was first put on
display at the Delhi Auto Expo held in year 2006. The new avatar of Bajaj
Pulsar is powered with the new-age DTS FI engine technology. DTS FI
stands for Digital Twin Spark Fuel Injection that offers higher fuel efficiency with great
mileage per litre. Pulsar DTS FI 220 has so many firsts accredited to it, like this bike
is India's first bike that comes fitted with front and rear disc braking, tubeless tyres
and it comes equipped with projector head lamp that functions through direct current
for consistent illumination.

This stunner bike Bajaj Pulsar DTS-Fi has a long list of features that takes it a step
ahead in terms of performance and styling. It comes with oil cooled engine, digital
console with amber back light, self canceling indicators, twin seats, split grab rail,
exposed drive chain and no kick lever. The 220 cc engine of Bajaj Pulsar DTS Fi
exhales a maximum power of 20 bhp @ 8500 rpm and a maximum torque of 19.12
Nm @ 6500 rpm.

Packed with revolutionary digital engine technology and host of eye-catching

features, the Pulsar DTS Fi 220 cc bike comes costlier and has been priced with Rs.
80,000

Striking Feature

• Powered with Digital Twin Spark Fuel Injection engine for exceptional
performance.
• India's first bike to have 230 mm rear disc brake.
• Pulsar DTS Fi is the first bike on the Indian roads having factory fitted front
and rear tubeless tyres.
• Eye-catching digital console with amber back light illumination.
• The bike has been equipped with Projector Head Lamp powered with DC for
constant illumination while driving.
• Six spoked, 17" alloy wheels

Scooter

BAJAJ KRISTAL DTSI

Bajaj Auto Limited has launched a 4 stroke, gear less scooter with a
unique name of Kristal DTSi. Bajaj Kristal DTSi is the second vehicle
offered in scooterette segment. The company has launched Kristal DTSi
to attract youth of the age group between 16-25 years who need loads of trendy
features with power performance.

Kristal boasts Bajaj patented engine technology of DTSi (Digital Twin Spark Ignition),
the revolutionary ExhausTEC (Torque Expansion Chamber) and SNS (spring-in
spring) suspension system for superior fuel-efficiency and great comfort. Bajaj Kristal
has a 95 cc DTSi engine, which delivers a peak power of 7.2 PS at 7,500 rpm.

Kristal DTSi comes with lots of features for the safety, riding comfort and ease of
drive. Light weight, wide wheelbase, seat storage space of 22 litres, front fuelling,
side stand alarm and automatic lamp features of this scooterette make it outstanding
in its class.

Kristal scooter is available for sale at the Bajaj Dealer near you with a price tag of
Rs. 35,000-40,000 and there are four sparkling body colors of Kristal to choose from.

Striking Feature

• Packed wih the latest technology of DTSi and ExhausTEC.

• SNS (spring-in spring) suspension system for better riding comfort.
• Widest wheelbase of 1250 mm is highest in its class.
• Large storage seat space of 22 litres.
• The front fuel filling first time in its class.
• 05 convenient functions from one key.

The light sensor automatically switches on the pilot lamp, tail lamp and speedo
console light

UPOMMING MODEL

BAJAJ SONIC – DTSi

, Bajaj Auto Ltd. will launch Sonic DTSi. Bajaj Sonic was displayed in
2006 auto show and may hit the roads for sale by end of 2007. Powered
with the latest DTSi engine technology Bajaj Sonic will be a 100 cc bike targeted to
the young males, passionate for style, speed and performance.

New Sonic will be powered by the latest DTSi (Digital Twin Spark Ignition) engine
with Exhaus TEC technology. This Bajaj Bike will get Direct Injection (DI) and
produce an impressive 10 ps of power that will make it more fuel efficient to satisfy
the mileage conscious customers. For better riding comfort and sporty handling Bajaj
Sonic DTSi will be equipped with the twin Spring-in-Spring (SNS) suspension, disc
brakes and 17" wide alloy wheels.

The stylish and power packed Bajaj Sonic bike will definitely rock the 100 cc bike
segment with its competitive price band.

Bajaj Discover 150 DTSi

This is Bajaj, once more, playing the game it’s learnt, offer more
products and profit from the slight overlap and consequent cannibalisation. This is
good thing, mind you. The Discover chassis grows up a little to host the Pulsar 150
DTSi engine, giving rise to a machine that is clearly a stylistic evolution of the
Discover school of design. not convinced about the XCD-ish shape of the tank
extensions, but appreciate the LED tips that will replace the stalk-type indicators.
Similarly, don’t know if the ultra-sleek tail design is a production-ready design or not,
but it looks good. In terms of positioning, the Pulsar 150 is likely to evolve into a
more serious machine, with a clear sporty intent and therefore, a higher price tag,
marginally, of course. According to Rajiv Bajaj, the P150 will become more of a sport-
tourer of sorts, while the Disco 150 will be the commuter. He also mentioned that
other companies had tried to engineer this stratified approach to the 150
commuter/specialist, but he hopes that Bajaj is the company that gets it right first.

UPCOMMING CARS

BAJAJ LITE
The launch of the Tata People's car approaches, Bajaj has surprised by unveiling it
own cheap passenger car, the 4 seater Bajaj Lite concept

Launch date is expected to be a couple of years down the line - so no, we are not
going to see Bajaj's small car battling it out with Tata's small car on the streets of
India.

Expected fuel efficiency of the Bajaj Lite is 35 kmpl. That is higher than the rumoured
fuel efficiency of the Tata small car which is 25 kmpl.

The Tata small car is expected to cost Rs 1.25 lakhs - when it is out on the streets.
That day is not too far away. But the Bajaj car is gonna be a long time coming.

The price which renault is targeting for the small car is $ 3000, which translates to Rs
1,17,000 at current exchange rates

ULC
The Bajaj auto and the Renault Nissan alliance declared its plans to
create the Renault Bajaj ULC (codename) – a $2500 car. The new
industry that will produce the ULC will be owned 50 percent by Bajaj,
25 percent by Renault and 25 percent by Nissan.

The latest ULC will be created at an entire new plant to be built in Chakan,
Maharashtra. Firstly this car will be produced in 4000000 units yearly and sales will
begin 2011 in the India.

Renault declared that the project is going on to meet the marked performance and
price.

SERVICES

Bajaj Auto Ltd service systems’ 400 dealers across the country. Currently, about 60
dealers have this facility and the rest are expected to follow suit over the next three
years, a senior company official said.

“The concept of a service centre is getting replaced by a service showroom.

Automated tools are being used for diagnosis and repair. The level of efficiency at
the production line in the factory is getting transferred to the service centres,” said RL
Ravichandran, vice-president, marketing, at a news conference held here on
Tuesday.

The advanced service systems use tools that are pnumatic and hydraulics controlled.
“The productivity per bay can increase from 4 vehicles per day to about ten,” said a
dealer who has adopted the system. The cost outlay for the Chennai-based dealer is
about Rs 22 lakhs. The layout and other details is provided by Bajaj auto while the
implementation is done by us, the dealer added.

Among other things, Mr Ravichandran said that the two wheeler market would grow
by six to eight per cent this year. “The bike segment, which is poised to grow at 30
per cent will help the segment post modest growth. The scooter, moped and step
through segments are expected to post negative growth,” said the vice president.
Bajaj Auto expects to post a 12 per cent growth in volumes this fiscal aided by 50 per
cent growth in motorcycles this fiscal. “ We will finish the year with a market share of
22 per cent in motorcycles and we will maintain our position in the ungreared scooter
segment,” said the company official.
BAJAJ Auto Ltd has launched Bajaj Advanced Service
System aimed at improving the performance efficiency of its dealers. Under the
system, Bajaj dealers will be provided with layout plans on how to streamline the
service area and also instal hydraulic equipment to improve performance efficiency.

KEYS STEP TOWARDS STARTEGIC PLAN

MISSION :
 • Focus on value based manufacturing
• Fostering team work & enhancing the capability of the team
• Continual Improvement
• Total Elimination of wastes
• Pollution Free & Safe Environment

VISION :

• To attain World Class Excellency by demonstrating Value Added products to

customers

OBJECTIVE

Bajaj Limited are to cater the market needs of transportation by

providing 2 wheeler and 3 wheeler vehicles. BALW has been producing the
catalogue products to cater to the changing market requirements. Based on the
customer feedback, improvements are being made continuously in the existing
products. In the process of introducing new products, emission requirements are 
being taken into consideration and products manufactured are meeting the
regulatory
requirements

GOAL

• To catapult Bajaj Auto as the country's largest automobile company.

PROGRAMME

1945
• Bajaj Auto comes into existence as M/s Bachraj Trading Corporation
Private Limited

1959
• Bajaj Auto obtains licence from the Government of India to manufacture
two- and three-wheelers

1960
• Bajaj Auto becomes a public limited company. Bhoomi Poojan of Akurdi
Plant.

1971
• The three-wheeler goods carrier is introduced

1972
• The Bajaj Chetak is introduced.

1977
• The Rear Engine Autorickshaw is introduced
 • Bajaj Auto achieves production and sales of 100,000 vehicles in a single
financial year
1991
• The Kawasaki Bajaj 4S Champion is introduced.

1995
• Bajaj Auto is 50.
• Agreements signed with Kubota of Japan for the development of diesel
engines for three-wheelers and with Tokyo R&D for ungeared Scooter and
moped development.
• The Bajaj Super Excel is introduced while Bajaj celebrates its ten millionth
vehicle,
• One million vehicles were produced and sold in this financial year.
1998
• Kawasaki Bajaj Caliber rolls out of Waluj.
• Legend, India’s first four-stroke scooter rolls out of Akurdi.
• Spirit launched.

2001
• Bajaj Auto launches its latest offering in the premium bike segment
‘Pulsar’.
• The Eliminator is launched.

2003
• Pulsar DTS-i is launched.
• 107,115 Motorcycles sold in a month.
• Bajaj Wind 125,The World Bike, is launched in India.
• Bajaj Auto launched its Caliber115 "Hoodibabaa!" in the executive
motorcycle segment.

2004
• Bajaj Discover DTS-i launched.
• New Bajaj Chetak 4 stroke with Wonder Gear launched.
• Bajaj CT100 Launched.
• Bajaj unveils new brand identity, dons new symbol, logo and brandline.

2005
• Bajaj Discover launched
• Bajaj Avenger DTS-i launched
• Bajaj Wave DTS-i launched

2006
• Bajaj Platina launched.

2007
 • Launch of XCD DTS-Si.
• National Launch of 220 cc Pulsar DTS-Fi.
• Bajaj Auto Commissions New Plant at Pantnagar, Uttarakhand.
• 200 cc Pulsar DTS-i launched.
• Bajaj Kristal DTS-i launched.

Strategies
Means the rules and guidelines by which the mission, objective etc are achieved.

FMCG Business Model

BAL now is taking a leaf out of the FMCG business model to take the company to
greater heights.
The company will set-up separate sales channels for every segment of its business
and consumers
Other Strategic Issues
Cash is strength: Bajaj Auto has been sitting on a cash pile for over five years now.
Over the next couple of years, competition in the two-wheeler market is set to
intensify. TVS Motors and Hero Honda are on a product expansion binge. To fight
this battle and retain its hard-earned market share in the motorcycle segment, Bajaj
Auto will need its cash muscle
Strategies for the Overseas Markets
Bajaj Auto looks at external markets primarily with three strategies: -
1) A market where all BAL need to do is distribute through CKD or CBU routes.
2) Markets where BAL need to create new products.
3) Markets where BAL need to enter with existing products and probably with a good
distributor or a production facility or a joint venture.
 KEYS TO BUSINESS STRATEGIES ( i.e. SWOT analysis )

• SWOT is an acronym for Strengths, Weaknesses, Opportunities, Threats.

Occasionally, it may also be found as a ‘WOTS up’ analysis or the TOWS
analysis.

• A SWOT analysis is a planning tool used to understand the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a
business. It involves stating the objective of the business or project and
identifying the internal and external factors that are either supportive or
unfavourable to achieving that objective. SWOT is often used as part of a
strategic or business planning process, but can be useful in understanding
an organisation or situation and decision-making for all sorts of situations.

Internal factors
Negative or
Positive potential to
factors be negative
Strengths Weaknesses

Opportunities Threats

External factors

SWOT ANAYLSIS of BAJAJ AUTO are as follows

Strengths:
• Highly experienced management.
• Product design and development capabilities.
• Extensive R & D focus.
• Widespread distribution network.
• High performance products across all categories.
• High export to domestic sales ratio.
• Great financial support network (For financing the automobile)
• High economies of scale.
• High economies of scope.

Weaknesses:

• Hasn't employed the excess cash for long.

• Still has no established brand to match Hero Honda's Splendor in commuter
segment.
• Not a global player in spite of huge volumes.
• Not a globally recognizable brand (unlike the JV partner Kawasaki)

Opportunities:

• Double-digit growth in two-wheeler market.

• Untapped market above 180 cc in motorcycles.
• More maturity and movement towards higher-end motorcycles.
• The growing gearless trendy scooters and scooterette market.
• Growing world demand for entry-level motorcycles especially in
emerging markets.

Threats

• The competition catches-up any new innovation in no time.

• Threat of cheap imported motorcycles from China.
• Margins getting squeezed from both the directions (Price as well as Cost)
• TATA Ace is a serious competition for the three-wheeler cargo segment.

BCG MATRIX
BCG matrix was develop by bruce hendersen in 1970 to help organization and with
analyzing their business unit or product line.
BCG develop the simple conceptual framework named the growth share matrix to
help the corporate manger determine the position of the business.

The BCG Matrix for BAJAJ AUTO

Stars Question mark

• Pulsar150&180cc • XCD 125cc

• Discover135cc
• Pulsar 200&220cc
Cows Dogs

• Discover125cc • Platina
• CT100 • Avenger
• Kristal

Question mark - there are also called as wild cats that are new product with
potential for success but there cash needs are high and cash generation is low
pulsar200&220cc and XCD have lot of potential in the market but there is poor profit
margin.
Strategies adopted are harvest divest and Drop.

STAR- They have high relative market share and high growth rate. Bajaj pulsar
150&180cc require large investment to finance growth they provide good returns to
the company strategies adopted obtaining the large share and involving CRM
activities. Thus they are the market leader to the company.

Cash Cow - it has high relative market share but compete in low growth rate as they
generate cash in excess of their needs. Discover125cc & CT 100 are the profitable
products and generate more cash strategies adopted are they provide best price and
use excess cash to develop a new product in the market.

Dogs - dogs have no market share and do not have potential to bring in much cash.
Platina , Avenger & Kristal are not able to generate profit thus giving some new
feature and try to sale the product the strategies adopted should be reduction in
product cost.
PRODCUT LIFE CYCLE
A new product progress through a sequence of stages from introduction to growth ,
maturity and decline. This sequence is known as the product life cycle and Is
associated with changes In the marketing situation, thus impacting the marketing
strategy.

The different stages in a product life cycle of BAJAJ AUTO are as follows

INTRODUCTION STAGE :
In the introduction stage, the firm seeks to build product awareness and develop a
market for the product. The product of Baja auto in this stage is pulsar200&220cc,
XCD & Discover 135cc these product are introduce newly to the market and have a
potential for cash generation .

GROWTH STAGE :
In the growth stage, the firm seeks to build brand preference and increase the
market share. Bajaj auto products in this stage are bajaj pulsar 150&180cc. they
have high demand in market and they provide good return to the company.

MATURITY STAGE :
AT maturity, the strong growth in sale diminishes. Competition may appear with
similar product. The primary objective at this point is to defend market share while
maximizing the profit. Bajaj auto product in this stage is CT100 & bajaj discover
125cc there is low growth of this product due to low level of innovation. There is a
price reduction due to increase in competition thus profit is decline

DECLINE STAGE :
Avenger platina market get new substitute product and new technologies thus the
demand goes down in these stage thus the company can plan following strategies
such as turnaround divest etc. here are profit very low and the product remain un
change.

GE MATRIX
 strong medium weak

Pulsar 150 CT100 Pulsar

180cc (reinforce 200&220cc
High (invest to grow) vulnerable areas) (seek ways to
overcome
weakness)

Discover Discover Avenger

125cc 135cc (look ways for
(Invest heavily) Manage per earning) expansion)
M

N
Medium
A

K
E

V
E

E
S
S
T

T
T

T
I

XCD Platina Kristal

Manage for current (upgrade product (cut fix cost)
Low earning line)

The nine cells G>E Matrix are groome grouped on the basis of Low-High industry
attractiveness and weak to strong business or competitive position.
Zones are made each indicating different combinations that are as follows

1.The upper left corner indicate strong SBU’s i.e pulsar150&180cc,

discover125cc, discover in which the company should invest or grow with
strategic decisions such as market development or expansion.
2.the diagonals cells stretching from lower left to upper-right indicate
SBU’s that are XCD, CT100, Pulsar 200&220cc Medium in overall
attractiveness indicating hold and maintain current strategies.
3.The 3 cells in the lower right corner indicate SBU’s that are low in
overall attractiveness that are avenger, kristal, platina, indicating retrenchment
strategies of divestment and closure adopting turnaround strategies.

7.s mckinsey model frame work

Hard skills

1.Srategy
• The direction and scope of company for a long term is called a strategy.
• BAL should adopt a deliberate strategy of focusing on executive and premium
segment motorcycles and three-wheelers, and is reducing its dependence on
lower-end of motorcycles and scooters segment. BAL started with the
industry analysis, company analysis, portfolio analysis, and then moved on to
exploring the strategies adopted by BAL to reinvent itself and once again
become a market force to reckon with in the Indian two-wheeler industry.

2 Structure

• The basic organization of the company entitles the structure of the

organization. Bajaj Auto Ltd. (BAL) is one of the oldest and the largest
manufacturer of automobiles in India and has been the market leader in
scooters. In 1990s, the near monopolistic market structure, perhaps, lulled the
company into being complacent and they gave way to the competitors like
Hero Honda and TVS.

3 System

• Th formal and informal procedure that govern the everyday activity covering
from MIS. BAJAJ Auto Ltd has launched Bajaj Advanced Service
System aimed at improving the performance efficiency of its
dealers. Under the system, Bajaj dealers will be provided with
layout plans on how to streamline the service area and also install
hydraulic equ ipment to improve performance efficiency.

Soft skills

4.Skills:

• The capabilities and competencies that exist within the company to

do the best for the organization. The focus of BAL off late has been
on providing the best of the class models at competitive prices.
BAL has been the pioneer in stretching competition into providing
latest features in the price segment by updating the low price bikes
with the latest features like disk-brakes, anti-skid technology and
dual suspension, etc.

5.Shared value
 • A value and belief of company that ultimaty guide employee
towards value behavior.
• BAJAJ MOTORS LTD. is committed to provide Value added products to its
customers by ethical working, enhancing core competency of its team,
continual improvement in the system involving total employees maintaining
external & internal customer concepts

6.Staff :

• The co. people resources the way in which they are developed,
trained and Motivated to, Double-digit growth in two-wheeler
market and more maturity and movement towards higher-end
motorcycles.

• Thus,The growing gearless trendy scooters and scooter market.

7.Style

• Leadership approach of top management and co.s approach and

Highly experienced management.
• entitles an organizations style towards the success of the company

CORPORATE GOVERNANCE

Bajaj Auto's commitment to good corporate governance practices predates the laws
and mandates of the Securities and Exchange Board of India (SEBI) and the stock
exchanges through Clause 49 of their listing agreements. Transparency, fairness,
disclosure and accountability have been central to the working of the company, its
management and its board of directors. The standing that the company enjoys in the
corporate world has as much to do with its reputation for integrity and transparency
as with its performance.

Given below are the company's corporate governance policies and practices for
2004-05. As will be seen, Bajaj Auto's corporate governance practices and
disclosures go well beyond complying with the statutory and regulatory requirements.

Board of directors
Recognising the importance of having a strong and broad-based board, the company
is currently in the process of enhancing the limit on the number of directors from 15
to 18 by amending its Articles of Association, and presently awaits approval from the
shareholders and the central government. Bajaj Auto had earlier enhanced the limit
on the number of directors on the board from 12 to 15.

Three new directors were appointed during 2004-05. Two of them are non-executive:
Tarun Das (who is also an independent director), and Manish Kejriwal; the third,
Sanjiv Bajaj, is an executive director. Their appointments are to be approved by the
shareholders in the company's ensuing annual general meeting.

Composition
The board of Bajaj Auto currently consists of 15 directors, of whom 10 are non-
executive, and five are whole-time executives. Eight out of the
10 non-executive directors are independent. According to Clause 49, if the chairman
is an executive, at least half of the board should consist of non-executive,
independent directors. This provision is more than adequately met at Bajaj Auto.

With effect from 1 April 2005, the board appointed Rahul Bajaj as the Chairman of
the company, and elevated Rajiv Bajaj to the position of Managing Director. The
other three executive directors comprise Madhur Bajaj, Vice-Chairman, Sanjiv Bajaj,
Executive Director, and Dhirubhai Mehta, a whole-time director. The board has no
institutional nominee directors.

According to the statutes, at least two-third of the board should consist of retiring
directors. Of these, a third are required to retire every year and, if eligible, may seek
re-appointment by the shareholders. Ten out of the 15 directors in Bajaj Auto are
retiring directors. On this occasion, the retiring directors are Suman Kirloskar, D J
Balaji Rao and S H Khan who, being eligible, have offered their candidature for re-
appointment. Their details are given in the section on "Shareholders" in this chapter,
as well as in the Directors' Report.

Board procedures
During the year 2004-05, the board of directors met six times on the following dates:
19 May 2004, 31 July 2004, 15 September 2004,
20 October 2004, 19 January 2005 and 9 March 2005. The gap between any two
meetings has been less than three months-thus complying with the Clause 49
requirement. The dates of the meetings were decided well in advance.

Information supplied to the board

The board of Bajaj Auto is presented with all the relevant information well in advance
before each meeting on various matters affecting the working of the company, as
well as those that require deliberation at the highest level. Directors have separate
and independent access to senior management at all times.

In addition to items which are required to be placed before the board for its noting
and/or approval under the statutes or regulations, information is also provided for the
periodic review/information on various items, such as:

• production, sales and capital expenditure budgets and updates

• sales, operations, investments and
• financial performance
• review of plant-wise/segment-wise businesses
• financial results
• domestic and international market reviews
• staff matters, including senior appointments and extensions
• labour matters and human resource issues
• legal proceedings by or against the company
 • legal compliance reports
• insider trading disclosures
• share transfer and demat compliance
• significant developments in subsidiary/associate companies
• IT strategies and related investments
• donations and
• other significant matters

Audit committee

Constitution and composition

Bajaj Auto set up its audit committee
in 1987. Since then, the company has been reviewing and making appropriate
changes in the composition and working of the committee from time to time to bring
about greater effectiveness and to comply with various requirements under the
Companies Act, 1956 as well as Clause 49 of the listing agreement. The current
audit committee consists of the following directors:

1. S H Khan, Chairman
2. D J Balaji Rao
3. J N Godrej
4. Naresh Chandra
5. Nanoo Pamnani
All members of the audit committee are independent, non-executive directors and
are "financially literate". S H Khan, D J Balaji Rao and Nanoo Pamnani have a strong
financial and accounting background and can be considered as having accounting or
related financial management expertise.

Remuneration committee
Bajaj Auto constituted the remuneration committee of the board on 16 January 2002,
and its composition remained unchanged during the year. It consisted of the
following non-executive independent directors:

1. D J Balaji Rao, Chairman

2. S H Khan
3. Naresh Chandra

Shareholders' and investors' grievance committee

The board of directors of Bajaj Auto constituted the shareholders' and investors'
grievance committee of the directors in 2000.
This committee specifically looks into the shareholders' and investors' complaints on
matters relating to transfer of shares, non-receipt of annual report, non-receipt of
dividend etc. In addition, the committee also looks into matters that can facilitate
better investor services and relations.
The present committee consists of the following non-executive independent
directors:

1. D J Balaji Rao, Chairman

2. J N Godrej
3. Naresh Chandra
Recommendations

Focus on High Margin Products: Around 50% of the two-wheeler consumers buy
high quality products (products of executive and premium segment motorcycles).
Margins on these products are higher.

BAL should adopt a deliberate strategy of focusing on executive and premium

segment motorcycles and three-wheelers, and is reducing its dependence on lower-
end of motorcycles and scooters segment.

High margin products - Pulsar, Discover, Three-wheelers, Avenger.

Low margin products - Platina, Scooters, Mopeds.

Now with increasing competition in the economy segment and limited scope from
cost saving measures, it is believed this strategy of focusing on higher margin
products would enable the company in retaining its operating margins.

Below are other useful recommendations: -

Company should keep focusing on the fast growing motorcycle segment.

In view of the new threat posed by Honda Motors in the scooter segment, the
company needs to review its products line-up and launch new products to cater the
changed demand.

The company needs to take a look at its ungeared scooters offerings and need
to adapt to the latest trends.

The company needs to tap the export market more efficiently as there is a huge
potential to make India as the world's two-wheelers production base. For this, it
needs to look for joint ventures abroad.

It needs to target the young age group more effectively as this group is
extremely trend savvy. The advertising should have a fresh look and the product
should live up to the Gen-X's expectations.

CONCLUSION

• Bajaj Auto has been at the forefront of bringing about major changes in its
technologies and processes to create more exciting and distinctive offerings
 for its customers. In the process, it has gone through two overlapping
processes of transformation. The first was creating, communicating and
executing basic processes of change - of the way it looked at products and
design, at markets, at engineering and manufacturing, and at the
organizational structure for delivering mind-set change. Its use of new
technologies gave consumers greater power and more riding comfort without
sacrificing economy; in its high quality engineering and R&D; and in its speed
and transparency.
• Bajaj Auto has clearly dominated the 150+ cc segment, and been a major
player at all other price points of the motorcycle market. In the process, the
Company’s gross sales has increased from Rs.47.4 billion in 2002-03 to over
Rs.106 billion in 2006-07 a growth of124 per cent in four years.
• The Pulsar was the first “definitely male” bicycle that was the first one to be
positioned as the “male” amongst bikes. Thanks to this single place the Pulsar
150cc has been the greatest prosperous 150 cc till date.