A

CPP Report

TITLED

‘BAJAJ AUTO LIMITED’

For fulfilling the requirement of the award of degree of BBA

Subject: CPP (IMS-206)

Under the supervision of

Dr. JK Chandel

Assistant professor

Submitted to: - Submitted by:-

The Director Mayank Bangar

MBA 5years 3rd sem.

Roll no. 33

Registration no. 12-UD-14

Institute of management studies

Kurukshetra University Kurukshetra

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DECLARATION

I, MAYANK BANGAR hereby declare that I have completed the report entitled assigned to me by the Institute,

to be submitted in the partial fulfillment of the MBA 5 Year Degree from Kurukshetra University. Further, I

declared that this is original work done by me and the information provided in the study is authentic to the best

of my knowledge and belief.

Signature

(MAYANK)

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ACKNOWLEDGEMENT

In this project, I have made an honest and dedicated attempt to make the Project Report so easy to understand

for a person who is willing to get knowledge about the ORIENTAL BANK OF COMMERCE.

I am deeply indebted to my esteemed teacher & our chairman Prof. M.K Jain, K.U.K., because he gave

me opportunity of making project report. I am also thankful to my lecturer as well as my supervisor (Guide)

Dr.J.K CHANDEL for their kind support & suggestion for making project report.

Signature

Mayank bangar

MBA 5yrs. 3rd sem.

Roll no. 33

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CONTENT

CHAPTER NO TITLE OF CHAPTER PAGE NUMBER

1 AUTOMOBILE SECTOR 5-7

1.1 INTRODUCTION 5

1.2 PLAYERS IN SECTOR 6-7

2 BAJAJ AUTO LTD 8-30

2.1 INTRODUCTION 8

2.1.1 VISION MISSION AND VALUES 8-10

2.1.2 TWO WHEELER INDUSTRY- AN OVERVIEW

10-11

2.1.3 NATURE OF BUSINESS 11-12

2.1.4 MANAGEMENT PROFILE 12-13

2.2 HISTORY 14-18

2.3 GROUP OF COMPANIES 18-19

2.4 ORGANISATIONAL STRUCTURE 19-20

2.5 PRODUCTS 21-24

2.5.1 TIMELINE OF PRODUCTS 24-25

2.6 AWARDS 26-30

3 ANALYSIS AND DISCUSSION 31-40

3.1 FINANCIAL ANALYSIS OF BAJAJ 31-33

3.2 MANEGERIAL STYLE 34-35

3.3 BUSINESS STRATEGIES 35-37

3.4 BALANCE SHEET AND PROFIT & LOSS ACCOUNT

37-40

4 SWOT ANALYSIS 41-42

4.1 SWOT ANALYSIS 41-42

4.2 PORTER’S FIVE FORCES ANALYSIS

42

REFERENCES 42CONCLUSION 43ANNEXTURE 44-46

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CHAPTER 1

AUTOMOBILE INDUSTRY

1.1 INTRODUCTION

The automotive industry in India is one of the larger markets in the world. It had previously been one of the

fastest growing globally, but is currently experiencing flat or negative growth rates India's passenger car and

commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more

than 3.9 million units in 2011. According to recent reports, India overtook Brazil and became the sixth largest

passenger vehicles produced in the world (beating such old and new auto makers as Belgium, United Kingdom,

Italy, Canada, Mexico, Russia, Spain, France, Brazil), grew 16 to 18 percent to sell around three million units in

the course of 2011 and 2012. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind

Japan, South Korea, and Thailand. In 2010, India beat Thailand to become Asia's third largest exporter of

passenger cars.

As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were

produced in India in 2010 (an increase of 33.9%), making the country the second (after China) fastest growing

automobile market in the world in that year. According to the Society of Indian Automobile Manufacturers,

annual vehicle sales are projected to increase to 4 million by 2015, no longer 5 million as previously projected.

The majority of India's car manufacturing industry is based around three clusters in the south, west and north.

The southern cluster consisting of Chennai is the biggest with 35% of the revenue share. The western hub

near Mumbai and Pune contributes to 33% of the market and the northern cluster around the National capital

region contributes 32%.Chennai, with the India operations

of Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW,Hindustan Motors, Daimler, Caparo, and PSA Peugeot

Citroën is about to begin their operations by 2014. Chennai accounts for 60% of the country's automotive

exports.Gurgaon and Manesar in Haryana form the northern cluster where the country's largest car

manufacturer, Maruti Suzuki, is based. The Chakan corridor near Pune, Maharashtra is the western cluster with

companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes

Benz, Land Rover, Jaguar Cars, Fiat and Force Motorshaving assembly plants in the area. Nashik has a major

base of Mahindra and Mahindra with a SUV assembly unit and an Engine assembly

unit. Aurangabad with Audi,Skoda and Volkswagen also forms part of the western cluster. Another emerging

cluster is in the state of Gujarat with manufacturing facility of General Motors in Halol and further planned

for Tata Nano at their plant in Sanand. Ford, Maruti Suzuki and Peugeot Citroenplants are also set to come up in

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Gujarat.Kolkata with Hindustan Motors, Noida withHonda and Bangalore with Toyota are some of the other

automotive manufacturing regions around the country.

In 2011, there were 3,695 factories producing automotive parts in all of India.  The average firm made US$6

million in annual revenue with profits close to US$400 thousand.

The two wheeler industry has been in the country since 1955. It generally consists of three segments Mopeds,

Motorcycles and Scooters. Two wheelers have played a pivotal role in the rising growth of the Indian

automobile industry. Over the years the domestics sales of two wheelers have grown by huge margins.The two

wheeler market has witnessed a sea change over the years. In the past Indians preferred scooters and mopeds

but with the rising income levels and standard of living there is a remarkable rise in the demand for motorcycles

which along with serving the purpose of a vehicle has become a style statement for the youth of the country.

1.2 Two wheeler manufacturers are:-

a) Hero Honda Motors Ltd: Hero Honda Motors Ltd is the result of a joint venture between India's Hero

group and the Japanese Honda Motors Company in the year 1983. The joint venture has only resulted in

making Hero Honda the world's largest two wheeler manufacturing company. Her Honda is a global

name and is commonly known for being the most fuel-efficient and the largest CBZ selling company in

India. During the 198's Hero Honda proved to the world that that it was possible to drive a two wheeler

without polluting the roads. The company possesses three manufacturing units in Dharuhera, Gurgaon

and Haridwar which are capable of producing 4.4 million units per year. It was this company that

introduced new generation motorcycles that set the industry benchmark for fuel efficient and low

emission two wheelers.Some of the important two wheelers manufactured by Hero Honda Motors Ltd

are CD-DAWN, SPLENDOR and PASSION.

b) Bajaj Auto: Bajaj Auto is the largest exporter of two and three wheelers in India. In collaboration with

Kawasaki Heavy Industries of Japan Bajaj Auto Ltd manufactures a wide range of two wheelers which

are the best in the industry. This company has introduced certain models like Pulsar, Discover DTSi and

Kawasaki Bajaj Eliminator which has given other two wheeler manufacturing companies a run for their

money.

c) TVS Motor Company: TVS Motor Company is the third largest two wheeler manufacturer in India and

among the top ten in the world. In its wide range of products TVS offers a two wheelers for everyone

right from mopeds to racing bikes. It has a range of products for women as well like the TVS Wego,

Scooty Streak, Scooty Pep+, ScootyTeenz and among its most famous road dominators are: TVS

Apache RTR 180. and TVS Flame DS 1256

d) Majestic Auto Ltd: The Company began operations in the year 1975, having understood the

requirements of the Indian two wheeler market the company started off with manufacturing mopeds.

The company is synonymous for its mopeds under name of Hero Majestic. The company has a

phenomenal growth record since its very inception in the year 1973. 

e) Kinetic: Kinetic is the name that is almost synonymous with scooters in India. They were the first to

introduce auto chokes, auto fuel cork, TLAD suspensions, and gearless two wheelers to the Indian

market which was an immediate hit with the Indian women. However the latest two wheelers introduced

by Kinetic are Kinetic 4S and Kinetic Luna TFR Plus.

f) Suzuki Bikes and Scooters: Suzuki motors first entered India in collaboration with TVS Motors.

Suzuki motors ruled the two wheeler market for quite a long time until competitors started flooding in.

Some of the most famous and stylish two wheelers by Suzuki are Suzuki Samurai, Suzuki Shogun and

Suzuki Max 100.

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CHAPTER 2

BAJAJ AUTO LIMITED

2.1 INTRODUCTION

Bajaj Auto is a major Indian automobile manufacturer started by a Rajasthani merchant. It is world's fourth

largest manufacturer of two-wheelers and India's second largest two wheeler manufacturer and the world's

4th largest two- and three-wheeler maker. It is based in Pune, Maharashtra, with plants in Akurdi and Chakan

(Pune), Waluj (near Aurangabad) and Pantnagar in Uttaranchal. Bajaj Auto makes and exports motor scooters,

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, headed by Rahul Bajaj, is worth more than US$1.5 billion.

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.Bajaj has grown operations in 50 countries by creating a line of value-for-money bikes targeted to the

different preferences of entry-level buyers.

2.1.1 VISION MISSION AND VALUES

Bajaj doesn't have a straight vision or mission statement. They define it in terms of brand identity, brand

essence (derived from mission) and brand values

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Our Brand Identity

Our Brand is the visual expression of our thoughts and actions.

It conveys to everyone our intention to constantly inspire confidence.

Our customers are the primary audience for our brand.

Indeed, our Brand Identity is shaped as much by their belief in Bajaj as it is by our own vision.

Everything we do must always reinforce the distinctiveness and the power of our brand.

We can do this by living our brand essence and by continuously seeking to enhance our customers’

experience.

In doing so, we ensure a special place for ourselves in the hearts and the minds of our customers.

Our Brand Essence

Our Brand Essence is the soul of our brand.

Our brand essence encapsulates our mission at Bajaj.

It is the singular representation of our terms of endearment with our customers.

It provides the basis on which we grow profitably in the market.

Our Brand Essence is Excitement.

Bajaj strives to inspire confidence through excitement engineering.

Blending together youthful creativity and competitive technology to exceed the spoken and the implicit

expectations of our customers.

By challenging the given. By exploring the unknown and thereby stretching ourselves towards

tomorrow, today.

Our Brand Values

We live our brand by its values of Learning, Innovation, Perfection, Speed and Transparency. Bajaj will

constantly inspire confidence through excitement engineering.

Learning

Learning is how we ensure proactivity. It is a value that embraces knowledge as the platform for

building well informed, reasoned, and decisive actions.

Innovation

Innovation is how we create the future. It is a value that provokes us to reach beyond the obvious in

pursuit of that which exceeds the ordinary.

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Perfection

Perfection is how we set new standards.It is a value that exhibits our determination to excel by

endeavoring to establish new benchmarks all the time.

Speed

Speed is how we convey clear conviction. It is a value that keeps us sharply responsive, mirroring our

commitment towards our goals and processes.

Transparency

Transparency is how we characterise ourselves. It is a value that makes us worthy of credibility through

integrity, of trust through sensitivity and of loyalty through interdependence

2.1.2 TWO WHEELER INDUSTRY- AN OVERVIEW

The Indian two-wheeler industry has witnessed spectacular growth in the last few years. The market dynamics

of the industry has substantially changed with a majority of the customers preferring bikes to scooters and

mopeds. This is primarily due to better fuel efficiencies, dynamics, looks and longer product lives of

motorcycles.

The motorcycle segment constitutes about 81.5% of the two wheeler market in India1. It also contributes to

three-fourths of the total exports in the two wheeler industry. Exhibit 1 shows that Bajaj is the second largest

player in this segment after Hero Honda.

(Market Shares of the major players in the two wheeler market segment)

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The industry exhibits some degree of collusive behavior and thus represents an oligopolistic form of market

structure. Product and brand differentiation are seen as the primary means of sustaining competitive advantage.

In order to sustain brand equity, players spend large percentages of their revenues in advertising and brand

building activities. The supply and distribution networks are decisive factors in staying competitive and

normally need a huge capital investment.

The two wheeler industry is capital intensive with large fixed cost requirements and new model introductions

mandatory at frequent intervals in order to sustain the demand. This involves substantial design and R&D costs.

Such high fixed costs can be offset only by achieving economies of scale. Moreover, developing a distribution

channel is extremely difficult in a country like India. Therefore, it is difficult for a new player to enter this

industry.

2.1.3 NATURE OF THE BUSINESS

Bajaj Auto Ltd. is the largest exporter of two and three wheelers. With Kawasaki Heavy Industries of Japan,

Bajaj manufactures state-of-the-art range of two-wheelers. The brand, Pulsar is continually dominating the

Indian motorcycle market in the premium segment. Its Discover DTSi is also a successful bike on Indian roads.

The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of

industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel,

insurance, travel and finance.

Bajaj Auto, the flagship company of the Bajaj group, manufacturers two-wheelers and three-wheelers scooters.

The company manufactures and markets scooters, motorcycles, passenger carriers and goods carriers. Bajaj

Auto also trades spare parts and accessories. The company has distribution network in 50 countries and

presence in India, Sri Lanka, Colombia, Bangladesh, Mexico, Central America, Peru and Egypt. It is

headquartered in Pune, India.

BAJAJ AUTO LTD has two main objectives: To cater the market needs of transportation by providing 2

wheeler and 3 wheeler vehicles and to produce the catalogue products to cater to the changing market

requirements. Bajaj Auto Limited makes scooters for commuters. The company manufactures and sells small

motorcycles, scooters, and three-wheeler vehicles. Motorcycle and scooter models include Avenger, Discover,

Kristal, Platina, and Pulsar. The three-wheelers are used for both passenger transportation and light delivery.

Bajaj's technology partner, Kawasaki Heavy Industries, has helped the company bring a number of bikes to the

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Indian market -- including the Kawasaki Bajaj Eliminator -- India's first heavy cruiser. Nearly 3 million units of

Bajaj's products are annually distributed to more than 50 countries. Bajaj Auto was founded in 1945.

PROFILE

Founder Jamnalal BajajYear of Establishment 1926Industry Automotive - Two & Three WheelersBusiness Group The Bajaj GroupListings & its codes BSE: 532977, NSE: BAJAJ-AUTOPresence Distribution network covers 50 countries.

Dominant presence in Sri Lanka, Bangladesh, Columbia, Guatemala, Peru, Egypt, Iran and Indonesia.

Joint Venture Kawasaki Heavy Industries of JapanRegistered & Head Office Akurdi, Pune - 411035

IndiaTel.: +(91)-(20)-27472851 Fax: +(91)-(20)-27473398

Works Akurdi, Pune 411035 Bajaj Nagar, Waluj Aurangabad 431136 Chakan Industrial Area, Chakan, Pune 411501

E-mail rahulbajaj@bajajauto.co.inWebsite www.bajajauto.com

2.1.4 MANAGEMENT PROFILE

Bajaj Auto Ltd. is ably managed by a team of seasoned professionals:

Rahul Bajaj Managing Director

J. Sridhar Company Secretary

R. A. Jain Executive Director

Madhur Bajaj Vice Chairman

D. S. Mehta Wholetime Director

Rajiv Bajaj President

Sanjiv Bajaj Vice President (Finance)

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Ranjit Gupta Vice President (Insurance)

N. H. Hingorani Vice President (Materials)

P. B. Menon Vice President (Projects)

R. L. Ravichandran Vice President (Business Development & Marketing)

C. P. Tripathi Vice President (Waluj)

Niladri Banerjee General Manager (Corporate Affairs), Delhi

Ramesh Bhargava General Manager (International marketing)

K. P. Chander General Manager (Machine Tool Division), Waluj

Kevin D’Sa General Manager (Finance)

R. V. Govind General Manager (Product Engineering)

Arvind Gupta General Manager (Manufacturing Engineering)

R. S. Gupta General Manager (Motorcycle Project Team), Waluj

N. V. Iyer General Manager (Engineering Support)

Anil G. Khopkar General Manager (Management Information Service)

G. B. Laddha General Manager (Finance)

ShrikantMarathe General Manager (R & D)

N. G. Maengane General Manager (Motorcycle Division), Waluj

K. P. Nair General Manager (Quality Assurance)

C. K. Rao General Manager (Marketing – Three Wheelers)

V. M. Rao General Manager (Akurdi)

P. K. Rath General Manager (Chakan)

S. R. Rage General Manager (Maharashtra Scooters Ltd.)

D.K. Sharma General Manager (Production), Akurdi

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2.2 HISTORY

The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of

industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel,

insurance, travel and finance.Bajaj Auto Limited is India's largest manufacturer of scooters and motorcycles.

The company generally has lagged behind its Japanese rivals in technology, but has invested heavily to catch

up. Its strong suit is high-volume production; 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.

Origins

The Bajaj Group was formed in the first days of India's independence from Britain. Its founder, Jamnalal Bajaj,

had been a follower of Mahatma Gandhi, who reportedly referred to him as a fifth son. 'Whenever I spoke of

wealthy men becoming the trustees of their wealth for the common good I always had this merchant prince

principally in mind,' said the Mahatma after Jamnalal's death. Jamnalal Bajaj was succeeded by his eldest son,

27-year-old Kamalnayan, in 1942. Kamalnayan, however, was preoccupied with India's struggle for

independence. After this was achieved, in 1947, Kamalnayan consolidated and diversified the group, branching

into cement, ayurvedic medicines, electrical equipment, and appliances, as well as scooters.The precursor to

Bajaj Auto had been formed on November 29, 1945 as M/s Bachraj Trading Ltd. It began selling imported two-

and three-wheeled vehicles in 1948 and obtained a manufacturing license from the government 11 years later.

The next year, 1960, Bajaj Auto became a public limited company. Rahul Bajaj reportedly adored the famous

Vespa scooters made by Piaggio of Italy. In 1960, at the age of 22, he became the Indian licensee for the make;

Bajaj Auto began producing its first two-wheelers the next year. Rahul Bajaj became the group's chief executive

officer in 1968 after first picking up an MBA at Harvard. He lived next to the factory in Pune, an industrial city

three hours' drive from Bombay.The company had an annual turnover of Rs 72 million at the time. By 1970, the

company had produced 100,000 vehicles. The oil crisis soon drove cars off the roads in favor of two-wheelers,

much cheaper to buy and many times more fuel-efficient. A number of new models were introduced in the

1970s, including the three-wheeler goods carrier and Bajaj Chetak early in the decade and the Bajaj Super and

three-wheeled, rear engine Autorickshaw in 1976 and 1977. Bajaj Auto produced 100,000 vehicles in the 1976-

77 fiscal year alone. The technical collaboration agreement with Piaggio of Italy expired in 1977. Afterward,

Piaggio, maker of the Vespa brand of scooters, filed patent infringement suits to block Bajaj scooter sales in the

United States, United Kingdom, West Germany, and Hong Kong. Bajaj's scooter exports plummeted from Rs

133.2 million in 1980-81 to Rs 52 million ($5.4 million) in 1981-82, although total revenues rose five percent to

Rs 1.16 billion. Pretax profits were cut in half, to Rs63 million. Rahul Kamalnayan Bajaj, 66, has stepped down

as managing director of Bajaj Auto passing on the mantle of the company to his eldest son, Rajiv. Rahul Bajaj

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will continue as the chairman of the Bajaj conglomerate. Bajaj Auto is facing increased competition from

Honda and Piaggio. Honda has overtaken Bajaj as India's No.1 scooter maker in the past two years.

New Competition in the 1980s

Japanese and Italian scooter companies began entering the Indian market in the early 1980s. Although some

boasted superior technology and flashier brands, Bajaj Auto had built up several advantages in the previous

decades. Its customers liked the durability of the product and the ready availability of maintenance; the

company's distributors permeated the country. The Bajaj M-50 debuted in 1981. The new fuel-efficient, 50cc

motorcycle was immediately successful, and the company aimed to be able to make 60,000 of them a year by

1985. Capacity was the most important constraint for the Indian motorcycle industry. Although the country's

total production rose from 262,000 vehicles in 1976 to 600,000 in 1982, companies like rival Lohia Machines

had difficulty meeting demand. Bajaj Auto's advance orders for one of its new mini-motorcycles amounted to

$57 million. Work on a new plant at Waluj, Aurangabad commenced in January 1984.The 1986-87 fiscal year

saw the introduction of the Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles. The company was making

500,000 vehicles a year at this point. Although Rahul Bajaj credited much of his company's success with its

focus on one type of product, he did attempt to diversify into tractor-trailers. In 1987 his attempt to buy control

of Ahsok Leyland failed.

END OF LICENSE RAJ

The Bajaj Sunny was launched in 1990; the Kawasaki Bajaj 4S Champion followed a year later. About this

time, the Indian government was initiating a program of market liberalization, doing away with the old 'license

raj' system, which limited the amount of investment any one company could make in a particular industry. It

was hoping to increase its exports, which then amounted to just five percent of sales. The company began by

shipping a few thousand vehicles a year to neighboring Sri Lanka and Bangladesh, but soon was reaching

markets in Europe, Latin America, Africa, and West Asia. Its domestic market share, barely less than 50

percent, was slowly slipping. By 1994, Bajaj also was contemplating high-volume, low-cost car manufacture.

Several of

Bajaj's rivals were looking at this market as well, which was being rapidly liberalized by the Indian government.

Bajaj Auto produced one million vehicles in the 1994-95 fiscal year. The company was the world's fourth

largest manufacturer of two-wheelers, behind Japan's Honda, Suzuki, and Kawasaki. New models included the

Bajaj Classic and the Bajaj Super Excel. Bajaj also signed development agreements with two Japanese

15

engineering firms, Kubota and Tokyo R & D. Bajaj's most popular models cost about Rs 20,000. 'You just can't

beat a Bajaj,' stated the company's marketing slogan. The Kawasaki Bajaj Boxer and the RE diesel

Autorickshaw were introduced in 1997. The nextyear saw the debut of the Kawasaki Bajaj Caliber, the Spirit,

and the Legend, India's first fourstrokescooter. The Caliber sold 100,000 units in its first 12 months. Bajaj was

planning to build its third plant at a cost of Rs 4 billion ($111.6 million) to produce two new models, one to be

developed in collaboration with Cagiva of Italy.

NEW TOOLS IN THE 1990S

Still, intense competition was beginning to hurt sales at home and abroad during the calendar year 1997. Bajaj's

low-tech, low-cost cycles were not faring as well as its rivals' higher-end offerings, particularly in high-powered

motorcycles, since poorer consumers were withstanding the worst of the recession. The company invested in its

new Pune plant in order to introduce new models more quickly. The company spent Rs 7.5 billion ($185

million) on advanced, computercontrolledmachine tools. It would need new models to comply with the more

stringent emissions standards slated for 2000. Bajaj began installing Rs 800 catalytic converters to its two-

stroke scooter models beginning in 1999. Although its domestic market share continued to slip, falling to 40.5

percent, Bajaj Auto's profits increased slightly at the end of the 1997-98 fiscal year. In fact, Rahul Bajaj was

able to boast, 'My competitors are doing well, but my net profit is still more than the next four biggest

companies combined.' Hero Honda was perhaps Bajaj's most serious local threat; in fact, in the fall of 1998,

Honda Motor of Japan announced that it was withdrawing from this joint venture.

REVAMPING THE DESIGN

Bajaj Auto had quadrupled its product design staff to 500. It also acquired technology from its foreign partners,

such as Kawasaki (motorcycles), Kubota (diesel engines), and Cagiva(scooters). 'Honda's annual spend on R &

D is more than my turnover,' noted Ruhal Bajaj. His son, Sangiv Bajaj, was working to improve the company's

supply chain management. A marketing executive was lured from TVS Suzuki to help push the new cycles.

Several new designs and a dozen upgrades of existing scooters came out in 1998 and 1999. These, and a surge

in consumer confidence, propelled Bajaj to sales records, and it began to regain market share in the fast-

growing motorcycle segment. Sales of three-wheelers fell as some states, citing traffic and pollution concerns,

limited the number of permits issued for them.

SHARE IN COMPETITOR

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In late 1999, Rahul Bajaj made a bid to acquire ten percent of Piaggio for $65 million. The Italian firm had

exited a relationship with entrepreneur Deepak Singhania and was looking to reenter the Indian market, possibly

through acquisition. Piaggio itself had been mostly bought out by a German investment bank, Deutsche Morgan

Grenfell (DMG), which was looking to sell some shares after turning the company around. Bajaj attached

several conditions to his purchase of a minority share, including a seat on the board and an exclusive Piaggio

distributorship in India. Employment fell from about 23,000 in 1995-96 (the year Bajaj suffered a two-month

strike at its Waluj factory) to 17,000 in 1999-2000. The company planned to lay off another 2,000 workers in

the short term and another 3,000 in the following three to four years.

THE TURNING POINT

The early 1990s saw a recession in the Indian two-wheeler market. Overall sales of two wheelers declined by

15% in 1991 and 8% in 1992. This period saw a steep rise in fuel prices which resulted in consumers placing

greater emphasis on fuel efficiency when purchasing a new two wheeler.

However, even as late as 1997-98, the scooter segment was the largest sub segment in the two wheeler market.

Scooters, with 42% of the market (in terms of unit sales), were followed by motorcycles (37%), and mopeds

(21%).

THE FALL OF ICON

“HAMARA BAJAJ” Ad campaign helped Bajaj position CHETAK:

“A geared model-scooter occupying near iconic status”.

In January 2006, BAL announced that it had stopped production of Chetak. With this announcement, BAL

closed a major chapter in its history. Rajiv said that it was a history he would like to forget. His company has

lived too long on nostalgia holding on to anything from the past isa sign of weakness.

“INSPIRING CONFIDENCE”

Bajaj launched a series of motorcycle in an attempt to capture market share. In 2001, BAL showed ‘slice of life

situations’ of new age India.Analyst felt that by 2004, BAL‘s image had undergone considerable change. But In

spite of changing its focus & strategy from scooters to motorcycles BAL - MD felt that:

• "Like Volkswagen Beetle, the product (Bajaj Chetak) had lost its relevance."

• "We believe it is not good enough to be better, it is important to be distinct.”

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This Lead to the strategy of…………

“DISTINCTLY AHEAD”

BAL announced new corporate strategy in mid-2007. It’s USP – Styling & Technology. Bajaj repositioned

itself – aggressive &fast-paced. Their new strategy ‘Distinctly Ahead’ focused on 3-core values:

Innovation, Speed & Perfection.

The ad featured pay-off line,

“AlagAndaaz, AlaghaiKhoj, RakheAage, HamariSoch.”

Bajaj launched Bajaj Pulsar – flagship brand- based on this strategy

Principal Subsidiaries: Bajaj Auto Finance Ltd.; Bajaj Auto Holdings Ltd.; Bajaj Electricals

Ltd.; Bajaj Hindustan Ltd.; Maharashtra Scooters Ltd.; Mukand Ltd.

Principal Competitors: Honda Motor Co., Ltd.; Suzuki Motor Corporation; PiaggioSpA.

2.3 GROUP OF COMPANIES

Bajaj Auto Ltd.

Bajaj Holdings & Investment Ltd.

Bajaj Finserv Ltd.

Bajaj Allianz General Insurance Company Ltd.

Bajaj Allianz Life Insurance Co. Ltd

Bajaj Financial Solutions Ltd.

Bajaj Auto Finance Ltd.

Bajaj Allianz Financial Distributors Ltd.

Bajaj Auto Holdings Ltd.

P T Bajaj Auto Indonesia (PTBAI)

Bajaj Auto International Holdings BV

Bajaj Electricals Ltd.

Hind Lamps Ltd.

Bajaj Ventures Ltd.

Mukand Ltd.

18

Mukand Engineers Ltd.

Mukand International Ltd.

Bajaj Sevashram Pvt. Ltd.

Jamnalal Sons Pvt. Ltd.

Rahul Securities Pvt Ltd

Shekhar Holdings Pvt Ltd

Madhur Securities Pvt Ltd

Niraj Holdings Pvt Ltd

Shishir Holdings Pvt Ltd

Kamalnayan Investments & Trading Pvt Ltd

SanrajNayan Investments Pvt. Ltd.

Hercules Hoists Ltd.

Hind Musafir Agency Pvt. Ltd.

Bajaj International Pvt. Ltd.

Bachhraj Factories Pvt. Ltd.

Baroda Industries Pvt. Ltd.

Jeevan Ltd.

Bachhraj& Co Pvt Ltd

The Hindustan Housing Co. Ltd.

2.4 ORGANISATIOANAL STRUCTURE

India's premier automotive company, has unveiled a focused organizational restructuring for the Auto business.

With this restructuring, the existing business roles and responsibilities at the company has been strengthened

and enhanced to ensure greater operational empowerment and effective management. The five pillars of this

new structure, called strategic units, are;

R&D

Engineering

Two-wheeler business unit

Commercial vehicles business unit and

International business unit

19

Sanjiv Bajaj said that they are trying to make the organisational structure more responsive. They have brought

down the number of layers between the chief executive officer (CEO) and the shop-floor level to four, which is

in line with existing standards. They are further looking at cutting down on one more layers in the

organisational structure. This re-organisation, according to him, is a reflection of the changing market structure

and dynamics. Bajaj Auto Ltd also plans to invest in marketing, sales and the R&D side. BAL had recently

announced a voluntary retirement scheme for middle-level management covering around 400-500 people of

which 170 odd, opted for the VRS. BAL has previously stated that it intends to bring down its workforce level

to 10,000 from its current 13,000 odd levels. Interestingly, the country‘s other major two-wheeler manufacturer

Hero Honda has also embarked on a manpower rationalisation drive at the top level. The aim is to induct fresh

competencies at the senior level.

BCG MATRIX FOR BAJAJ

2.5 PRODUCTS

20

Bajaj manufactures and sells motorcycles, scooters, auto-rickshaws and most recently, cars. Bajaj Auto is

India’s largest exporter of motorcycles and three-wheelers. Bajaj Auto’s exports accounted for approx. 35% of

its total sales. 47% of its exports are made to Africa. Boxer motorcycle is the largest selling single brand in

Africa.

Motorcycles

Two-wheeler sales of Indian players are dominated by the domestic market and, within it, by motorcycles. After

growing at a sharp clip from the late 1990s, motorcycle sales witnessed a7.8% drop in volume in 2007-08, due

to falling domestic demand as a result of rising interest rates and many private sector banks reducing their retail

lending exposures. 2008-09 saw a modest increase in motorcycle sales of 4%, driven largely by growth in cash

sales. Even so, sales of motorcycles (both domestic and exports) in 2008-09 has been lower than what it was in

2006- 07, before the slowdown hit this sector. Chart A depicts the data from 1998-99.

Despite the slight uptick in the industry’s sales volume, Bajaj Auto did not maintain volume growth, for reasons

that will be discussed below. From 1.66 million motorcycles in 2007-08, the company’s domestic sales fell

by23% to 1.28 million units in 2008-09. Some of this was compensated by a 31% increase in exports to 631,383

units. But it was not enough Consequently, Bajaj Auto’s market share (domestic and exports, combined) fell

from 32.7% in 2007-08 to 28% in 2008-09. Table 1 gives the data.

Table 1: Motorcycle sales, domestic and exports (in numbers)

21

Year ended

31 March

Sales (nos.

Millions)

Sales growth BAL (nos.

Millions)

BAL’s

growth

BAL’s

Market share

2003 3.757 31.3% 0.868 32.3% 23.1%

2004 4.317 14.9% 1.024 17.9% 23.7%

2005 5.218 20.9% 1.450 41.6% 27.8%

2006 6.201 18.8% 1.912 31.9% 30.8%

2007 7.100 14.5% 2.379 24.4% 33.5%

2008 6.544 (7.8%) 2.140 (10.1%) 32.7%

2009 6.806 4.0% 1.908 (10.8%) 28.0%

Motorcycles: Domestic Sales for the Industry

The company classifies motorcycles into three segments, based on consumer categories and approximate price

points. These arecategorized as:

SEGMENT OF

THE BIKES

FEATURES BAL PRODUCTION COMPETITOR

PRODUCTS

ENTERY

SEGMENT

100cc motorcycles at

35,000.

The Platina. The

segment accounted

for 34% in India in

2008-09

Hero Honda Passion

Plus

EXECUTIVE

SEGMENT

Comprise 100cc to

135cc motorcycles,

prices between

Rs.40,000 to Rs.50,000

In this segment with two brands:

XCD and

Discover.

HERO HONDA CBZ

Extreme and

Splendour

PERFORMANCE

SEGMENT

These are sleek, high

performance, with

price points in excess

Of Rs.50, 000.

flagship brand, the

Pulsar, and our

Cruiser, the Avenger.

BAL dominate this

space, with a

domestic market

share in excess of

47%.

HEO HONDA

Karizma and Hunk

11

22

Three wheelersThe company’s domestic sales of three-wheelers in 2008-09 were 12% lower compared to the previous year,

and stood at 135,473 units. Export demand grew at 2% to 139,056 units. However that was not sufficient to

prevent a decline in the company’s total threewheeler sales — which fell by 5.4% to 274,529 units in 2008-09.

Given that total industry sales shrank by 1.6% in 2008-09 over the previous year, while Bajaj Auto’s fell by

5.4%, the company’s market share dropped by 2.3 percentage points to 55.1%. At this market sharehowever,

Bajaj Auto remains the leading three-wheeler player in India.

PASSENGER VEHICLE

SALES

2007-2008 2008-2009 RATE OF GROWTH

INDUSTRY SALES 375,180 415,411 10.7%

BAJAJ AUTO SALES 263,598 264,332 0.3%

BAJAJ AUTO MARKET

SHARES

70.3% 63.6% (6.7%)

GOODS CARRIERS

INDUSTRY SALES 130,826 82,382 (37.0%)

BAJAJ AUTO SALES 26,714 10,197 (61.8%)

BAJAJ AUTO MARKET

SHARES

20.4% 12.4% (8.0%)

TOTAL 3-WHEELERS

INDUSTRY SALES 506,006 497,793 (1.6%)

BAJAJ AUTO SALES 290,312 274,529 (5.4%)

BAJAJ AUTO MARKET

SHARES

57.4% 55.1% (2.3%)

Cars

In 2010, Bajaj Auto announced cooperation with Renault and Nissan Motor to develop a US$ 2,500 car, aiming

at a fuel efficiency of 30 kilometres per litre (85 mpg; 71 mpg) (3.3 L/100 km), or twice an average small car,

and carbon dioxide emissions of 100 g/km. On 3 January 2012, Bajaj auto unveiled the Bajaj RE60, a mini car

for intra-city urban transportation. The target customer group will be Bajaj's three-wheeler customers.

According to its Managing Director Rajiv Bajaj, the RE60 powered by a new 200 cc rear mounted petrol engine

23

will have a top speed of 70 kilometres per hour (43 mph), a mileage of 35 kilometres per litre (99 mpg; 82 mpg)

and carbon dioxide emissions of 60 g/km.

2.5.1 TIMELINE OF PRODUCTS:

1961–1971 – Vespa 150 – under the licence of Piaggio of Italy

1971 – three-wheeler goods carrier

1972 – Bajaj Chetak

1976 – Bajaj Super

1975 – Bajaj Priya

1977 – Rear engine autorickshaw

1981 – Bajaj M-50

1986 – Bajaj M-80, Kawasaki Bajaj KB100,

1990 – Bajaj Sunny

1991 – Kawasaki Bajaj 4S Champion

1993 – Bajaj Stride

1994 – Bajaj Classic

1995 – Bajaj Super Excel

1996 - Bajaj SX Enduro

1997 – (Bajaj KB125) Kawasaki Bajaj Boxer, rear engine diesel autorickshaw

1998 – Kawasaki Bajaj Caliber, Bajaj Super 99,

1999 – Bajaj Legend, Bajaj Bravo, Bajaj Chetak 99Bajaj Spirit[15]

2000 – Bajaj Saffire, Bajaj Prowler

2001 – Eliminator, Bajaj Pulsar, Caliber Croma

2003 – Caliber 115, Kawasaki Bajaj Wind 125, Bajaj PulsarDTS-i,

2004 – Bajaj KT 100, New Bajaj Chetak 4-stroke with Wonder Gear, Bajaj Discover DTS-i

2005 – Bajaj Wave, Bajaj Avenger, Bajaj Discover 112

2006 – Bajaj Platina

2007 – Bajaj Pulsar-200 (Oil Cooled), Bajaj Kristal, Bajaj Pulsar 220 DTS-Fi (Fuel

Injection), XCD 125 DTS-Si

2008 – Bajaj Discover 135 DTS-i – sport (upgrade of existing 135 cc model)

24

2009 – Bajaj Pulsar 135, Bajaj XCD 135 cc, Bajaj Pulsar 150 DTS-i UG IV, Bajaj Pulsar 180

DTS-i UG IV, Bajaj Pulsar 220 DTS-i, Bajaj Discover 100 DTS-Si, Kawasaki Ninja 250R

2010 – Bajaj Discover 150

2011 – Bajaj Discover 125

2012 – BajajRE60, mini car for intra-city urban transportation

2012 – KTM Duke 200

2012 – Bajaj Pulsar 200 NS, launch of 200 cc bike, Discover 125ST, launch of 125 cc bike

2013 – KTM 390 Duke

2013- (Bajaj discover 125t)

RECENT NEWS ON BAJAJ AUTO

Bajaj-Renault-Nissan to drive small car (ULC)

Bajaj Auto has redrafted its bike strategy for this fiscal that will see the Pulsar and Discover act as the key

growth drivers. The script goes according to plan, it has have set ourselves a target of 200,000 units from both

brands by March 2010. Bajaj Auto and the Renault-Nissan Alliance to build the car code- named ULC with

wholesale price range starting from 2500 USD. All this is part of a renewed thrust by the company to focus on

two key requirements of the market which, over the years, have pretty much remained constant for either fuel-

efficient commuter bikes or sporty, powerful products. The Discover has now been positioned to fulfill the

former need in a segment where Hero Honda reigns supreme while the Pulsar has established itself in the sporty

slot, with monthly sales of over 40,000 units. Bajaj Auto Ltd has announced that the company may launch a

small car in the year 2010 in India. The second largest two wheeler maker in India will enter the small car

segment in partnership with French car giant Renault and Nissan. The small car prototype was unveiled today

and the company wants to promote the vehicle as economical and affordable car.

The Bajaj Auto‘s car will be expensive as it will meet safety and emission norms. The standard version will

come with an air conditioner.

Bajaj Auto Ltd = 50 per cent

Bajaj Auto, which is yet to sign a joint venture agreement with its partners, Renault and Nissan. The ULC

project was conceived as a three-way alliance where Bajaj would hold 50 per cent equity.

Renault = 25 per cent

The ULC project was conceived as a three-way alliance where Renault would hold 25 per cent equity.

25

Nissan = 25 per cent

The ULC project was conceived as a three-way alliance where Nissan would hold 25 per cent equity.

Bajaj Auto, which is yet to sign a joint venture agreement with its partners, Renault and Nissan. The ULC

project was conceived as a three-way alliance where Bajaj would hold 50 per cent equity with Renault and

Nissan accounting for 25 per cent each. Bajaj-Renault-Nissan will miss its 2011 deadline on its ultra-low-cost

car project. Bajaj Auto managing director Rajiv Bajaj has ordered that the work done so far on the project be

scrapped and has demanded major modifications on design, positioning and other details, according to a person

familiar with the development.

Bajaj Auto Launches RE600 Cargo Vehicle

Bajaj Auto‘s R&D team has created this unique product to deliver the highest mileage and lowest operating

costs in the commercial 3-wheeler category. RE600 offers best in class mileage which is at least 5 km per liter

of diesel more than other vehicles. It has a robust solid construction and comes at an attractive price point which

makes for the lowest cost of ownership. RE600 is priced at Rs.1, 03,686. The RE 600 is being launched phase

wise across the country from September 2009 onwards

2.6 AWARDS

For year 2001-2002

For year 2002-2003

26

PRODUCT AWARD AWAED BODY

Bajaj Eliminator Most Exciting Bike of the Year 2001 OVERDRIVE

Bajaj Eliminator Bike of the Year 2002 OVERDRIVE

Bajaj Pulsar Most Exciting Bike of the Year 2002 OVERDRIVE

Bajaj Pulsar Bike of the Year 2002 Business Standard Motoring

For year 2003-2004

PRODUCTS AWARDS AWARD BODY

Bajaj Wind 125 Bike of the Year 2004 Business Standard Motoring

Bajaj Wind 125 Two Wheeler of the Year 2004 CNBC AUTOCAR AUTOAWARDS 2004

Bajaj Pulsar DTS-i

Bike of the Year 2004 ICICI Bank OVERDRIVE Awards 2004

DTS-i Technology

Auto Tech of the Year 2004 ICICI Bank OVERDRIVE Awards 2004

Bajaj Auto Bike Maker of the Year 2004 ICICI Bank OVERDRIVE Awards 2004

General The Most Customer Responsive Company – Automobiles

Economic Times

For year 2004-2005

PRODUCT AWARD AWARD BODYBajaj Pulsar DTSi TNS Automotive Total Customer Satisfaction in Premium

SegmentNFO Automotive

Bajaj Discover DTS-i

Bike of the Year OVERDRIVE

27

PRODUCT AWARDS AWARD BODY

Bajaj pulsar Bike of the year 2003 ICICI Bank OVERDRIVE Awards 2003

Bajaj pulsar Motorcycle total customer

satisfaction study 2003

NFO Automotive

Bajaj Boxer AT KTEC BBC World Wheels Award for Best Two Wheeler under Rs 30,000

BBC World Wheels

Bajaj Pulsar 150 DTS-i BBC World Wheels Award for Best Two Wheeler between Rs 45,000 to Rs 55,000

BBC World Wheels

Bajaj Pulsar 180 DTS-i BBC World Wheels Award for

Best Two Wheeler between Rs

55,000 to Rs 70,000

BBC World Wheels

Bajaj Pulsar 180 DTS-i BBC World Wheels Viewer’s

Choice Two Wheeler of the 

Year 2003

BBC World Wheels

Bajaj Discover DTS-i

Indigenous Design of the Year OVERDRIVE

For year 2005-2006

For year 2006-2007

PRODUCT AWARDS AWARD BODYChakan Plant Super Platinum Award for Manufacturing

ExcellenceFrost and Sullivan

Chakan&Waluj Plants

Audit Passed for TPM Excellence Award Category I

TPM

General Bikemaker of the Year Overdrive Awards 07Pulsar DTS-Fi Bike of the year CNBC-TV18 Autocar Auto

AwardsPlatina 100cc Bike of the Year NDTV Profit Bike IndiaGeneral Bike Manufacturer of the Year 2007 NDTV Profit Bike India

For year 2007-2008

PRODUCT AWARD AWARD BODYGeneral Best Two-wheeler Company NDTV Profit Business Leadership

Awards

28

PRODUCTS AWARDS AWARD BODY

Mr. Rajiv Bajaj Man of the year 2005 Autocar Professional

Mr. Rajiv Bajaj Man of the year 2005 Bike India

Bajaj CT 100 Motorcycle Total Customer Satisfaction Study 2005

TNS Automotive

Bajaj Discover DTS-i

Indigenous design of the year 2005 OVERDRIVE

Bajaj Discover DTS-i

Bike of the year 2005 OVERDRIVE

General The Most Customer Responsive Company – Automobiles

Avaya Global Connect-Economic Times

Pulsar Ranked First in 'TOP 30 AUTOMOBILE BRANDS OF INDIA'

4Ps Power Brand Awards

Bajaj Auto, Waluj First prize for category "Productivity Thru Quality"

IMTMA-SIEMENS Productivity Championship Award 2007

Mr. Rajiv Bajaj Rashtrabhusan Award FIE (Fuel Instruments and Engineering)Mr. Rahul Bajaj Lakshya Business Visionary Award NITIEBajaj Discover 135 DTS-i

Highest customer satisfaction in Upper Executive Mc Segment

TNS Voice of Customer Awards

XCD 125 DTS-Si Bike of the Year 2008 CNBC-TV18 Autocar Auto AwardsXCD 125 DTS-Si Award for motorcyleupto 125cc - 2008 NDTV Profit Car India and Bike India

AwardsXCD 125 DTS-Si Bike of the Year 2008 Business Standard MotoringPulsar 220 DTS-Fi Bike of the Year 2008 OverdrivePulsar 220 DTS-Fi Bike of the Year 2008 NDTV Profit Car India and Bike India

AwardsRural Financing Customer Responsive Business Practice Avaya Global Connect-Economic TimesHR HR Initiative of the Year AutomonitorGeneral Bike Manufacturer of the Year 2007 AutomonitorPulsar 220 DTS-Fi IMOTY Award-Indian Motorcycle of the

YearAll Auto Mags-Overdrive, AutoCar, BS, Bike Top Gear

For the year 2009-2010

PRODUCT AWARD AWARD BODYKawasaki Ninja Bike of the Year IMOTYPulsar 135LS Bike of the Year ET NOW - ZigWheelsDiscover DTS-Si 100cc Bike of the Year ET NOW - ZigWheelsPulsar 135LS 150cc Bike of the Year ET NOW - ZigWheelsKawasaki Ninja 250cc Bike of the Year ET NOW - ZigWheelsPulsar 135LS 4-V Technology of the Year ET NOW - ZigWheelsDiscover DTS-Si Most Value for Money-Bike of the Year ET NOW - ZigWheelsKawasaki Ninja Motorcycle of the Year - Bike upto 250 cc NDTV Profit - Car & BikeBajaj Discover DTS-Si

Motorcycle of the Year - Bike upto 125 cc NDTV Profit - Car & Bike

Kawasaki Ninja Two Wheeler of the Year NDTV Profit - Car & BikeBajaj Discover And Pulsar

Best Integrated Campaign - Two wheelers NDTV Profit - Car & Bike

Kawasaki Ninja Bike of the Year CNBC - OverdriveBajaj Discover Best StoryBoard Commercial CNBC - OverdrivePulsar135LS Bike of the Year 2010 UTV Bloomberg-AutoCarPulsar135LS Viewer's Choice of the Year UTV Bloomberg-AutoCarBajaj Discover Best TV Commercial Auto IndiaKawasaki Ninja Bike of the Year 2010 BS MotoringBajaj Auto Best Advertising Auto IndiaPulsar Silver Effie for PulsarMania Ad EffieBajaj Auto Most Trusted Brands - Auto Two Wheeler Brand Equity

29

Bajaj Auto Most Popular Two Wheelers Amongst Youth Global Youth Marketing Forum 2010

Bajaj Auto Chakan Plant - Super Platinum for Manufacturing Excellence

ET - Frost & Sullivan

Bajaj Auto Waluj Plant -Best-In-Class Manufacturing Leadership Award - 2Wheeler

Stars of the Industry Group

For year 2010-2011

CHAPTER: 3

ANALYSIS AND DISCUSSION

3.1 FINANCIAL ANALYSIS OF BAJAJ AUTO

Liquidity and Solvency ratios

This ratio suggests the short-term liquidity position of the firm. The following ratios are to be calculated.

(i) Current Ratio:

YEAR CURRENT ASSETS (RS. In Cr.)

CURRENT LIABILITIES (RS. In Cr.)

CURRENT RATIO

30

PRODUCT AWARD AWARD BODYBajaj Pulsar 135 LS

Bike of the Year 2010 BBC - TopGear

Bajaj Pulsar Hall of Pride Awards CNBC - OverdriveBajaj Pulsar 135 LS

Bike of the Year Bike India

Bajaj Pulsar 135 LS

Bike India upto 150 cc Bike India

Bajaj Avenger 220 2011 Mc of the year upto 250cc NDTV Car & Bike Awards

Bajaj Pulsar 135 LS

"Golden Steering Wheel" for Executive Motorcycle

Auto Build

Discover 150 DTS-I

Best Value for Money Vehicle of the Year ET ZigWheels

2008 1780.67 2019.29 0.88 times

2009 2401.45 2602.35 0.92 times

Analysis:-Current ratio is higher in 2009 as compared to 2008. There is decreased all current assets except other

receivables which increased in 2009. The net current assets increased by Rs.238.62 cr. in 2009 and at same time

current liabilities increased by Rs.200.9 cr. in 2009. It means Bajaj Auto Ltd., has sufficient current assets to

pay current liabilities. Short term solvency of the company is satisfactory.

(ii) Acid Test Ratio:

YEAR DEBT (Rs In. Cr.) EQUITY (Rs In.

Cr.)

DEBT EQUITY RATIO

2008 1334.34 1587.59 0.84 times

2009 1570.00 1869.69 0.84 times

Analysis:-We have seen that the company had a higher current ratio in 2009 and was able to meet its short term

obligations as compared to 2008. Whereas the quick ratio identifies the role played by the inventories in this

context. Therefore the ratio shows that in year 2009 it has increased as compared to 2008 due to the fact that the

quick assets is increased by Rs.164.14 cr. only and current liabilities have increased by Rs.583.12 cr. The

company is able to meet its short term obligations.

(iii) Debt Equity Ratio:

31

YEAR QUICK ASSETS

(Rs. In Cr.)

QUICK LIABILITIES

(Rs. In Cr.)

QUICK RATIO

2008 331.38 2019.23 0.16 times

2009 495.52 2602.35 0.19 times

Analysis:-This ratio says that both year 2008 and 2009 as same. In 2009 increased debt by Rs.236 cr. That is

increased in Debenture, Long Term loan, Redeemable Preference shares. And equity means Equity share

capital, Preference shares other than redeemable, Reserves and surplus, Losses and Fictitious assets increased

by Rs.282.1 cr. in 2009 tear.

(iv) Inventory Turnover Ratio:

Analysis:-The inventory turnover ratio in the year 2008 was 28.19 which indicate that 28.19 times in a year the

inventory of the firm is converted into receivables or cash. However, in 2009, the inventory turnover ratio

slightly decreased to 27.47. This was due to the fact that the Bajaj Auto Ltd. in 2009 invested more then 0.72

times the inventory in 2008.

(v) Fixed assets Turnover:

YEAR SALES FIXED ASSETS FIXED ASSETS

32

YEAR SALES TURNOVER

(Rs. In Cr.)

INVENTORY

(Rs. In Cr.)

INVENTORY

TURNOVER RATIO

2008 9856.66 349.61 28.19

2009 9310.24 338.84 27.47

(Rs. In Cr.) (Rs. In Cr.) TURNOVER

2008 8827.15 4906.42 1.79%

2009 8700.17 5752.26 1.51%

Analysis:-According to the calculations above the productivity of fixed assets in year 2009 is not better than it

was in previous years. In 2008, it was 1.79% and now it has been slightly decreased to 1.51%. This change was

brought about by decreased in total sales by Rs.126.98 cr., whereas the fixed assets increased only by Rs.845.84

cr.

3.2 Managerial Style:

Off late Bajaj Auto Limited, India’s premier automotive company has emphasized a lot on organizational

restructuring for the auto business. With the restructuring, the existing business roles and responsibilities at

company has been strengthened and enhanced to ensure greater empowerment and effective management.

The first pillar of this new structure (strategic units) are R&D, engineering, two wheeler business unit, and

commercial vehicles business unit & International Business Unit. These pillars will be supported by functions

of Finance, MIS, HR, Business development and commercial.

Pradeep Srivastava, who was VP-Engineering prior to restructuring, will now be President- Engineering. As per

the reorganized structure the company will have three CEO’s. S. Sridhar, currently, VP, Mktg. & Sales Two-

Wheelers, will now head the Two Wheeler Business Unit as CEO with manufacturing operations at Waluj and

Akurdi also reporting to him. RC Maheshwari has joined Bajaj Auto as CEO Commercial Vehicles. The

company is in the process of identifying a CEO for its International Business. The three CEO’s will be

responsible for Top line, Business Growth & profitability of their respective businesses. Abraham Joseph will

continue to lead Research & Development.

3.3 Business Strategies:

Marketing Strategies:

The focus of BAL off late has been on providing the best of the class models at competitive prices. Most of the

Bajaj models come loaded with the latest features within the price band acceptable by the market. 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.

BAL adopted different marketing strategies for different models, few of them are discussed below: -

33

Kawasaki 4S - First attempt by Bajaj to make a mark in the motorcycle segment. The target customer was the

father in the family but the target audience of the commercial was the son in the family. The time at which

Kawasaki 4S was launched Hero Honda was the market leader in fuel-efficient bikes and Yamaha in the

performance bikes.

Boxer - It took the reins from where the Kawasaki 4S left. Target was the rural population and the price

sensitive customer. Boxer marketed as a value for money bike with great mileage. Larger wheelbase, high

ground clearance and high mileage were the selling factors and it was in direct competition to Hero Honda

Dawn and Suzuki MX100.

Caliber - The focus for the Caliber 115 was youth. And though Bajaj made the bike look bigger and feel more

powerful than its predecessor (characteristics that will attract the average, 25-plus, executive segment bike

buyer), its approach towards advertising is even more radically different this time around. Bajaj gave the

mandate for the ad campaign to Lowe, picking them from the clique of three agencies that do promos for the

company (the other two being Leo Burnett and O&M). Going by the initial market response, the campaign was

clearly a hit in the 5-10 years age bracket. So, the teaser campaign and the emphasis on the Caliber 115 being a

`Hoodibabaa' bike placed it as a trendy motorcycle for the college-goers and the 25 plus executives both at the

same time.

Pulsar - Pulsar was launched in direct competition to the Hero Honda's 'CBZ' model in 150 cc plus segment.

The campaign beared innovative punch line of "Definitely Male" positioning Pulsar to be a masculine-looking

model with an appeal to the performance sensitive customers. The Pulsar went one step ahead of Hero Honda's

'CBZ' and launched a twin variant of Pulsar with the 180 cc model. The model was a great success and has

already crossed 1 million mark in sales.

Discover - The same DTSI technology of Pulsar extended to 125 cc Discover was a great success. With this,

Bajaj could realize its success riding on the back of technological innovation rather than the joint venture way

followed by competitors to gain market share.

BAL now is taking a leaf out of the FMCG business model to take the company to greater heights.Bajaj has

kicked off a project to completely restructure the company's retail network and create multiple sales channels.

Over the next few months, the company will set-up separate sales channels for every segment of its business

and consumers. Bajaj Auto's entire product portfolio, from the entry-level to the premium, is being sold by the

same dealers. The restructuring will involve separate dealer networks catering to the urban and rural markets as

34

well as its three-wheeler and premium bikes segments. Bajaj Auto also plans to set-up an independent network

of dealers for the rural areas. The needs of financing, selling, distribution and even after-sales service are

completely different in the rural areas and do not makes sense for city dealers to control this. The company also

plans to set-up exclusive dealerships for its three-wheeler products instead of having them sold through an

estimated 300 of its existing dealers.

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. A look at its own story over the past five years provides valuable insight.

Stake for Kawasaki: Bajaj Auto's attempt to vest the surplus cash in a separate company may be a prelude to

offering a stake to Kawasaki of Japan in the equity of the automobile company. The latter has been playing an

increasingly active role in Bajaj's recent models, and its brand name is also more visible in Bajaj bikes than in

the past.

Better value proposition: Shareholder interests may be better served if the cash is retained to pursue growth in

a tough market. This would also obviate the need to fork-out fancy sums as stamp duty to the government for

the de-merger. A combination of a large one-time dividend and a regular buyback program through the tender

route may offer better value. A strategic stake for Kawasaki would only positively influence the stock's

valuation.

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.

Earlier, most of the products that Bajaj exported were scooters and some motorcycles. However, in its target

markets, like in India, the shift was towards motorcycles. With the expansion in Bajaj's own range to almost

35

five-six platforms of motorcycles, it had a better offering to export, also the reason for its stronger showing. For

the last fiscal, 60 per cent of its exports were two-wheelers and the rest three-wheelers. Exports to middle Africa

and the Saharan nations. Egypt and Iran also continue to be strong markets for Bajaj.

3.4 Balanced and P&L account:-

Table 3.4 A

Income Analysis of BAL

(2009-13)

Income ------------------- in Rs. Cr. -------------------Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 19,997.25 20,475.74 17,386.51 12,420.95 9,310.24

Excise Duty 0.00 959.09 934.71 607.70 610.07

Net Sales 19,997.25 19,516.65 16,451.80 11,813.25 8,700.17

Other Income 795.49 413.66 1,176.00 22.50 -6.20

Stock Adjustments -24.00 94.15 82.79 47.60 -24.49

Total Income 20,768.74 20,024.46 17,710.59 11,883.35 8,669.48

It is interpreted from the above table that the total income is more in 2013 than 2012. The total income is 20768.74 in 2013 and in 2012 it is 20021.46. Because of increase in net sale the net sale in 2013 is 19997.25 and in 2012 it is 19516.65.

Table 3.3 B

Expenditure

(2009-2013)

Expenditure

Raw Materials 14,761.83 14,580.24 11,965.30 8,187.11 6,502.10

Power & Fuel Cost 121.33 101.85 86.61 70.35 60.89

Employee Cost 639.48 541.04 494.33 411.76 366.67

Other Manufacturing

Expenses

0.00 73.76 61.77 57.54 57.08

Selling and Admin 0.00 364.06 517.27 407.61 381.73

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Expenses

Miscellaneous Expenses 815.36 263.37 168.53 221.94 225.56

Preoperative

ExpCapitalised

0.00 -49.43 -16.66 -15.67 -14.42

Total Expenses 16,338.00 15,874.89 13,277.15 9,340.64 7,579.61

It is interpreted from the above table that the total expenses are more in 2013 than 2012 the total expenses in

2013 is 16338.00 and in 2012 is 15874.89. It is because of more expenses on raw materials, employee cost.

the raw material cost in 2013 is 14761.83 and in 2012 is 14580.24

Table 3.3 C

Liabilities

(2009-2013)

Liabilities In Rs Cr.

Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 289.37 289.37 289.37 144.68 144.68

Equity Share Capital 289.37 289.37 289.37 144.68 144.68

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 7,612.58 5,751.70 4,620.85 2,783.66 1,725.01

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 7,901.95 6,041.07 4,910.22 2,928.34 1,869.69

Secured Loans 0.00 0.00 23.53 12.98 0.00

Unsecured Loans 71.27 97.48 301.62 1,325.60 1,570.00

Total Debt 71.27 97.48 325.15 1,338.58 1,570.00

Total Liabilities 7,973.22 6,138.55 5,235.37 4,266.92 3,439.69

It is interpreted from the above table that the total liabilities are more in 2013 than 2012 the total liabilities are

7973.22 in 2013 and in 2012 is 6138.55. It is because of increase in reserves the reserves of the company are

7612.58 in 2013 and in 2012 are 5751.70.

Table 3.3 D

Asstes of BAL

37

(2009-2013)

Mar ‘13 Mar ‘12 Mar ‘11 Mar ‘10 Mar ‘09

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block 3,828.85 3,425.94 3,395.16 3,379.25 3,350.20

Less: Accum. Depreciation 2,024.42 1,914.33 1,912.45 1,899.66 1,807.91

Net Block 1,804.43 1,511.61 1,482.71 1,479.59 1,542.29

Capital Work in Progress 293.55 343.15 149.34 120.84 106.48

Investments 6,430.48 4,882.81 4,795.20 4,021.52 1,808.52

Inventories 636.28 678.53 547.28 446.21 338.84

Sundry Debtors 0.00 423.20 362.76 272.84 358.65

Cash and Bank Balance 558.86 446.49 155.45 100.20 135.68

Total Current Assets 1,195.14 1,548.22 1,065.49 819.25 833.17

Loans and Advances 1,987.44 1,744.82 3,891.66 2,291.29 1,567.09

Fixed Deposits 0.00 1,208.36 401.04 1.21 1.19

Total CA, Loans & Advances 3,182.58 4,501.40 5,358.19 3,111.75 2,401.45

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 668.22 2,925.53 2,624.35 2,218.06 1,378.20

Provisions 1,742.47 2,174.89 3,925.72 2,248.72 1,224.15

Total CL & Provisions 2,410.69 5,100.42 6,550.07 4,466.78 2,602.35

Net Current Assets 771.89 -599.02 -1,191.88 -1,355.03 -200.90

Miscellaneous Expenses 0.00 0.00 0.00 0.00 183.30

Total Assets 9,300.35 6,138.55 5,235.37 4,266.92 3,439.69

It is interpreted from the above table that the total are more in 2013 as compared to 2012 the assets are 9300.35

in 2013 and in 2012 it is 6138.55. It is because of more investments the total investments are 6430.48 in 2013

and 2012 it is 4882.81.

Table 3.3 E

Profit & loss of BAL

(2009-2013)

Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

38

Operating Profit 3,635.25 3,735.91 3,257.44 2,520.21 1,096.07

PBDIT 4,430.74 4,149.57 4,433.44 2,542.71 1,089.87

Interest 0.54 22.24 1.69 5.98 21.01

PBDT 4,430.20 4,127.33 4,431.75 2,536.73 1,068.86

Depreciation 163.97 145.62 122.84 136.45 129.79

Other Written Off 0.00 2.14 2.14 0.00 0.00

Profit Before Tax 4,266.23 3,979.57 4,306.77 2,400.28 939.07

Extra-ordinary items 0.00 46.60 46.77 26.87 18.72

PBT (Post Extra-ord

Items)

4,266.23 4,026.17 4,353.54 2,427.15 957.79

Tax 1,222.66 1,022.12 1,011.02 710.12 301.61

Reported Net Profit 3,043.57 3,004.05 3,339.73 1,702.73 656.48

It is interpreted from the above table that the net profit in 2013 is more than compared to 2012’s net profit. The

net profit of 2013 is 3043.57 and of 2012 is 3004.05. its is because of increases in PBDIT. The PBDIT is

4430.74 in 2013 and in 2012 it is 4149.57

CHAPTER 4

SWOT ANALYSIS

4.1 SWOT Analysis:

SWOT analysis means analyzing the company’s strength, weakness, opportunities, threats. Let's analyze the

position of Bajaj in the current market set-up, evaluating its strengths,

Weaknesses, threats and opportunities available.

Strengths:

Highly experienced management.

Product design and development capabilities.

Extensive R & D focus.

Widespread distribution network.

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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.

4.2 Porter’s Five Forces Analysis:

1. Supplier Bargaining Power: Suppliers of auto components are fragmented and are extremely critical

for this industry since most of the component work is outsourced. Proper supply chain management is a

costly yet critical need.

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2. Buyer's Bargaining Power: Buyers in automobile market have more choice to choose from and the

increasing competition is driving the bargaining power of customers uphill. With more models to choose

from in almost all categories, the market forces have empowered the buyers to a large extent.

3. Industry Rivalry: The industry rivalry is extremely high with any product being matched in a few

months by competitor. This instinct of the industry is primarily driven by the technical capabilities

acquired over years of gestation under the technical collaboration with international players.

4. Substitutes: There is no perfect substitute to this industry. Also, if there is any substitute to a two-

wheeler, Bajaj has presence in it. Cars, which again are a mode of transport, do never directly compete

or come in consideration while selecting a two-wheeler, cycles do never even compete with the low

entry level moped for even this choice comes at a comparatively higher economic potential.

REFERENCES

1. www.bajajauto.com2. econimictimes.indiatimes.com3. www.zigwheels.com4. www.moneycontrol.com5. Profit.ndtv.com

41

CONCLUSION

The impression of Bajaj in the minds of the public is that it is a moped & a three-wheeler company, & it

is a very orthodox &unhappening image in the minds of the youth. It should use a powerful brand

ambassador & individual whom the youth can relate with.

It should aggressively market itself as a motorcycle company & move from its traditional mindset

(Rahul Bajaj had once stated that he had only one department in his company the dispatch department &

that he did not require a marketing department.)

Bajaj should aggressively push sales of higher margin products & launch new products in niche

segments.

Bajaj should also try & push for tie-ups & Joint Ventures in foreign market & try & increase its export

base. (E.g. Tata Motors tie-up with Rover for marketing of India & Joint Venture with Senegal

government for manufacturing trucks & commercial vehicles.)

42

Bajaj should look for possible mergers & acquisitions. (E.g. Maharashtra Scooters) & try & improve its

distribution network & provide it with products in niche segments & help increase production capacity

& provide economies of scale.

Bajaj should evaluate the process of backward integration as it has huge cash reserves surplus. This

process would help it in acquiring inputs continuously at lower cost & at regular intervals.

Increase its dealer network to tap rural growing markets by going in for tie-ups & offering better

margins to dealers.

The key to Bajaj real success lies in Research & development. How it is able to use value analysis &

value engineering by adding new features to its existing product line & how it is able to come out with

new product for different niche markets. Analysis of different alternatives like outsourcing, in-house,

purchase & tie-up should be evaluated.

43

ANNEXURES

A) BALANCE SHEET OF BAJAJ AUTO LTD

Table A.1

Balance sheet of bajaj auto In Rs Cr.

Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 289.37 289.37 289.37 144.68 144.68

Equity Share Capital 289.37 289.37 289.37 144.68 144.68

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 7,612.58 5,751.70 4,620.85 2,783.66 1,725.01

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 7,901.95 6,041.07 4,910.22 2,928.34 1,869.69

Secured Loans 0.00 0.00 23.53 12.98 0.00

Unsecured Loans 71.27 97.48 301.62 1,325.60 1,570.00

Total Debt 71.27 97.48 325.15 1,338.58 1,570.00

Total Liabilities 7,973.22 6,138.55 5,235.37 4,266.92 3,439.69

Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block 3,828.85 3,425.94 3,395.16 3,379.25 3,350.20

Less: Accum. Depreciation 2,024.42 1,914.33 1,912.45 1,899.66 1,807.91

Net Block 1,804.43 1,511.61 1,482.71 1,479.59 1,542.29

Capital Work in Progress 293.55 343.15 149.34 120.84 106.48

Investments 6,430.48 4,882.81 4,795.20 4,021.52 1,808.52

Inventories 636.28 678.53 547.28 446.21 338.84

Sundry Debtors 0.00 423.20 362.76 272.84 358.65

Cash and Bank Balance 558.86 446.49 155.45 100.20 135.68

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Total Current Assets 1,195.14 1,548.22 1,065.49 819.25 833.17

Loans and Advances 1,987.44 1,744.82 3,891.66 2,291.29 1,567.09

Fixed Deposits 0.00 1,208.36 401.04 1.21 1.19

Total CA, Loans & Advances 3,182.58 4,501.40 5,358.19 3,111.75 2,401.45

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 668.22 2,925.53 2,624.35 2,218.06 1,378.20

Provisions 1,742.47 2,174.89 3,925.72 2,248.72 1,224.15

Total CL & Provisions 2,410.69 5,100.42 6,550.07 4,466.78 2,602.35

Net Current Assets 771.89 -599.02 -1,191.88 -1,355.03 -200.90

Miscellaneous Expenses 0.00 0.00 0.00 0.00 183.30

Total Assets 9,300.35 6,138.55 5,235.37 4,266.92 3,439.69

Contingent Liabilities 1,252.99 1,445.67 959.66 818.25 924.96

Book Value (Rs) 273.08 208.77 169.69 202.40 129.23

B) PROFIT AND LOSS ACOUNT OF BAJAJ AUTO LTD

Table B.1

Standalone Profit & Loss account

------------------- in Rs. Cr. -------------------

Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 19,997.25 20,475.74 17,386.51 12,420.95 9,310.24

Excise Duty 0.00 959.09 934.71 607.70 610.07

Net Sales 19,997.25 19,516.65 16,451.80 11,813.25 8,700.17

Other Income 795.49 413.66 1,176.00 22.50 -6.20

Stock Adjustments -24.00 94.15 82.79 47.60 -24.49

Total Income 20,768.74 20,024.46 17,710.59 11,883.35 8,669.48

Expenditure

Raw Materials 14,761.83 14,580.24 11,965.30 8,187.11 6,502.10

Power & Fuel Cost 121.33 101.85 86.61 70.35 60.89

Employee Cost 639.48 541.04 494.33 411.76 366.6745

Other Manufacturing

Expenses

0.00 73.76 61.77 57.54 57.08

Selling and Admin

Expenses

0.00 364.06 517.27 407.61 381.73

Miscellaneous Expenses 815.36 263.37 168.53 221.94 225.56

Preoperative

ExpCapitalised

0.00 -49.43 -16.66 -15.67 -14.42

Total Expenses 16,338.00 15,874.89 13,277.15 9,340.64 7,579.61

Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 3,635.25 3,735.91 3,257.44 2,520.21 1,096.07

PBDIT 4,430.74 4,149.57 4,433.44 2,542.71 1,089.87

Interest 0.54 22.24 1.69 5.98 21.01

PBDT 4,430.20 4,127.33 4,431.75 2,536.73 1,068.86

Depreciation 163.97 145.62 122.84 136.45 129.79

Other Written Off 0.00 2.14 2.14 0.00 0.00

Profit Before Tax 4,266.23 3,979.57 4,306.77 2,400.28 939.07

Extra-ordinary items 0.00 46.60 46.77 26.87 18.72

PBT (Post Extra-ord

Items)

4,266.23 4,026.17 4,353.54 2,427.15 957.79

Tax 1,222.66 1,022.12 1,011.02 710.12 301.61

Reported Net Profit 3,043.57 3,004.05 3,339.73 1,702.73 656.48

Total Value Addition 1,576.17 1,294.65 1,311.85 1,153.53 1,077.51

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 1,302.15 1,302.15 1,157.47 578.73 318.30

Corporate Dividend Tax 221.30 211.24 187.77 96.12 54.10

Per share data (annualised)

Shares in issue (lakhs) 2,893.67 2,893.67 2,893.67 1,446.84 1,446.84

Earnings Per Share (Rs) 105.18 103.81 115.42 117.69 45.37

Equity Dividend (%) 450.00 450.00 400.00 400.00 220.00

Book Value (Rs) 273.08 208.77 169.69 202.40 129.23

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47