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Overview
Founded in 1926 by JamnaLal Bajaj.
His son, Kamalnayan Bajaj, then 27, took over the reins of
business in 1942.
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).
The company was incorporated on April 30, 2007 as a wholly
owned subsidiary of erstwhile Bajaj Auto Ltd (the holding
company) with the name Bajaj Investment & Holding Ltd. The
company received the certificate of commencement of business
on May 7, 2007.
INTRODUCTION
In the mid -1940s,BAL started as an important of two and threewheelers .in the early 1960s,BAL ,in collaboration with piaggo
,started manufacturing vespa brand scooters at its plant near Pune ,
Maharashtra.
In 1970s,BAL started manufacturing scooters under the Bajaj brand.
Bals first scooter model under the Bajaj brand was introduced in
1972.(Chetak)
In the late 1990s the Indian two wheeler market witnessed a shift in
consumer preferences.
In 2005-06 scooter sales in the Indian market were around 1 million
units annually and consisted predominantly of gearless scooters. In
early 2006 BAL announced that it would launch two new models of
gearless scooters in 2006-07.
CSR
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 the
founders, Jamanalalji, Kamalnayanji and Ramkrishna
Bajaj.
Jankidevi Bajaj Gram Vikas Sanstha (JBGVS)
Samaj Seva Kendra.
Kamalnayan Bajaj Hospital
BACKGROUND NOTE:
1926- Bajaj Auto was found by JamnaLal Bajaj.
1956- Company secured a license from the GOI.
1960- Company went public & collaboration with
Piaggio.
1961- Started the production of scooters.
1962- Started the production of three wheelers.
1971- Started selling scooters under the Bajaj brand
1972- BAL Introduced the Bajaj Chetak scooters.
1975- BAL entered into a joint venture with western
Maharashtra Development corporation.
Cont
BACKGROUND Cont..
1986:- BAL entered into a technical partnership with
Kawasaki
Heavy Industries & launched the Kawasaki
Bajaj.
1990:- The Bajaj Sunny was introduced.
1997:- BAL launched the Bajaj Boxer.
1998:- BAL introduce the Bajaj Caliber.
1999:- The company launched the Bravo, a geared scooter.
2000:- Bal launched the Saffire, a gearless scooter.
2001:- It introduced the Pulsar.
2004:- Bal created a new Logo.
2005:- The Saffire was relaunched as the Wave.
2006:- Bal launched the Platina.
2006:- Indian two wheeler industry was the second largest in
the world.
Contd
It act as Sellers Market like other consumer goods &
customers had to wait for many years for delivery.
(10-12 yrs for Bajaj Chetak).
It plays a major role in dowry in India.
1970s-1980s-Govt. introduced MRTP Act & FERA.
Indian manufacturing motorcycles were not fuel
efficient, results low sell.
GoI changed several policies in 1970s & early 1980s
to give impetus to auto industry.
Focus on :modernization, technology upgradations,&
healthy competitions in domestic market.
Motorcycle segment
Joint Venture: Foreign players had only option)
Many players like Honda,Suzuki,Yamaha had joint ventures
with Indian companies.
The foreign players came with latest technology, efficient
production system etc that enhance the quality of the motorcycle
in India .
Soon new models come with new style, advanced technology &
fuel efficient.
Scooter segment
LML entered into joint venture with Piaggio in 1982 , to
produce Vespa, sold well in 1980s-1990s after Chetak.
1984:The Kinetic tied up with Honda ,introduced new models ,
new features like self start & automatic gear transmissions.
1980-1990s :BAL dominate by Chetak & Super model with their
values for money appeal durability, versatility, low
maintenance,avaliablity of spare parts ,etc.Hamara Bajaj add
Cont..
FY 2001
FY 2000
Growth (%)
Geared Scooters
426,334
757,714
-43.7
Un Geared
Scooters
78,892
69,726
13.1
Mopeds
121,238
176,961
-31.5
Motorcycles
427,088
254,847
67.6
Total twoFailed
wheelers
1,053,552
1,259,248
-16.3
April ~ March
2010
April ~ March
2009
Growth %
MOTORCYCLES
2,506,749
1,907,853
31
TOTAL 2
WHEELERS
2,511,600
1,919,625
31
Change Portfolio
Others; 8%
3w; 16%
Pulsar; 29%
Discover; 48%
The Flying
Brand Positioning
Statement
DEFiNiTELY
MALE
Outlook:
Late 1990s- popularity of scooters vanish &
motorcycles come into sight
Reason- uncared for this segment, mileage
problem and fashionable technology design &
launch of new motorcycles model
Demand of gearless scooter was set to rise(20%
every year)
Reason- Trendy Style, better technology &
mileage, targeted to women and aged people,
easy to function
Continued
The case traces the company's rise to dominance in
the scooter segment of the market, and its eventual
fall, against a backdrop of changes in customer tastes
and preferences.
It describes the reasons for the shift in demand and
discusses the initiatives that the company undertook
to regain lost ground. The case also discusses the
competition in the Indian scooter market, and ends
with a brief discussion on recent developments in the
two-wheeler market.
Thank you