A PROJECT REPORT

ON
STRATEGIC ANLYSIS OF
BAJAJ AUTO LTD.
Submtted By
Pranay Sharma (36/08)
Anju Bala Ahuja (48/08)
Nipun Trikha (58/08)
Abhishek hanana (!38/08)
Session 2008-200
S!"#i$$e% $o&
P'o(. S.P. Sin)*
1
"N#$%
C*+,$e' NA-E PAGE NO
1 Company history
Origins
Completion in 1990
End of licence raj
New toola in 1990
.
/
/
0
1
2 Product profile and financial performance
Motorcycles
Three wheelers
Oerall performance
!inancial analysis
8
2
0
2
/
.
S$'+$e)i3 +n+45sis
-ission 6ision +n% 6+4!es
Lo)o
S7o$
Po'$e' (i6e (o'3es #o%e4
-+n+)e'i+4 s$54e
B!siness s$'e+$e)5
O$*e' s$'+$e)i3 iss!e
8
2
20
2
2.
2/
20
21
/ S!,,45 3*+in +n+45sis
8+4!e 3*+in
S!"si%i+'5
S,+'e ,+'$ %i6ision
29
28
.0
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0 CORPORATE SOCIAL RESPONSIBILITY .2
1 T:E FUTURE AND RECO--ENDATIONS .1
9 BIBLIOGRAP:Y /
2
C:APTER ONE
CO-PANY :ISTORY
O"#$#N%
COMPET#T#ON #N 19&0
EN' O! (#CEN%E ")*
NE+ TOO(% O! 1990,%
P"O'-CT "E.)MP #N /000,%
3
Co#,+n5 :is$o'5& B+;+; A!$o Li#i$e%
The 0ajaj $roup is amongst the top 10 1usiness houses in #ndia2 #ts footprint stretches oer a
wide range of industries3 spanning automo1iles 4two5wheelers and three5wheelers63 home
appliances3 lighting3 iron and steel3 insurance3 trael and finance2
0ajaj )uto (imited is #ndia7s largest manufacturer of scooters and motorcycles2 The company
generally has lagged 1ehind its *apanese rials in technology3 1ut has inested heaily to catch
up2 #ts strong suit is high5olume production8 it is the lowest5cost scooter ma9er in the world2
)lthough pu1licly owned3 the company has 1een controlled 1y the 0ajaj family since its
founding2
O'i)ins
The 0ajaj $roup was formed in the first days of #ndia7s independence from 0ritain2 #ts founder3
*amnalal 0ajaj3 had 1een a follower of Mahatma $andhi3 who reportedly referred to him as a
fifth son2 7+heneer # spo9e of wealthy men 1ecoming the trustees of their wealth for the
common good # always had this merchant prince principally in mind37 said the Mahatma after
*amnalal7s death2
*amnalal 0ajaj was succeeded 1y his eldest son3 /:5year5old ;amalnayan3 in 19</2 ;amalnayan3
howeer3 was preoccupied with #ndia7s struggle for independence2 )fter this was achieed3 in
19<:3 ;amalnayan consolidated and diersified the group3 1ranching into cement3 ayuredic
medicines3 electrical e=uipment3 and appliances3 as well as scooters2
The precursor to 0ajaj )uto had 1een formed on Noem1er /93 19<> as M?s 0achraj Trading
(td2 #t 1egan selling imported two5 and three5wheeled ehicles in 19<& and o1tained a
manufacturing license from the goernment 11 years later2 The ne@t year3 19A03 0ajaj )uto
1ecame a pu1lic limited company2
"ahul 0ajaj reportedly adored the famous .espa scooters made 1y Piaggio of #taly2 #n 19A03 at
the age of //3 he 1ecame the #ndian licensee for the ma9e8 0ajaj )uto 1egan producing its first
two5wheelers the ne@t year2
"ahul 0ajaj 1ecame the group7s chief e@ecutie officer in 19A& after first pic9ing up an M0) at
Barard2 Be lied ne@t to the factory in Pune3 an industrial city three hours7 drie from 0om1ay2
The company had an annual turnoer of "s :/ million at the time2 0y 19:03 the company had
produced 1003000 ehicles2 The oil crisis soon droe cars off the roads in faor of two5wheelers3
much cheaper to 1uy and many times more fuel5efficient2
) num1er of new models were introduced in the 19:0s3 including the three5wheeler goods carrier
and 0ajaj Cheta9 early in the decade and the 0ajaj %uper and three5wheeled3 rear engine
4
)utoric9shaw in 19:A and 19::2 0ajaj )uto produced 1003000 ehicles in the 19:A5:: fiscal
year alone2
The technical colla1oration agreement with Piaggio of #taly e@pired in 19::2 )fterward3 Piaggio3
ma9er of the .espa 1rand of scooters3 filed patent infringement suits to 1loc9 0ajaj scooter sales
in the -nited %tates3 -nited ;ingdom3 +est $ermany3 and Bong ;ong2 0ajaj7s scooter e@ports
plummeted from "s 1CC2/ million in 19&05&1 to "s >/ million 4D>2< million6 in 19&15&/3
although total reenues rose fie percent to "s 121A 1illion2 Preta@ profits were cut in half3 to "s
AC million2
"ahul ;amalnayan 0ajaj3 AA3 has stepped down as managing director of 0ajaj )uto passing on
the mantle of the company to his eldest son3 "aji2 "ahul 0ajaj will continue as the chairman of
the 0ajaj conglomerate2 0ajaj )uto is facing increased competition from Bonda and Piaggio2
Bonda has oerta9en 0ajaj as #ndia7s No21 scooter ma9er in the past two years2
Ne7 Co#,e$i$ion in $*e 280s
*apanese and #talian scooter companies 1egan entering the #ndian mar9et in the early 19&0s2
)lthough some 1oasted superior technology and flashier 1rands3 0ajaj )uto had 1uilt up seeral
adantages in the preious decades2 #ts customers li9ed the dura1ility of the product and the
ready aaila1ility of maintenance8 the company7s distri1utors permeated the country2
The 0ajaj M5>0 de1uted in 19&12 The new fuel5efficient3 >0cc motorcycle was immediately
successful3 and the company aimed to 1e a1le to ma9e A03000 of them a year 1y 19&>2 Capacity
was the most important constraint for the #ndian motorcycle industry2 )lthough the country7s
total production rose from /A/3000 ehicles in 19:A to A003000 in 19&/3 companies li9e rial
(ohia Machines had difficulty meeting demand2 0ajaj )uto7s adance orders for one of its new
mini5motorcycles amounted to D>: million2 +or9 on a new plant at +aluj3 )uranga1ad
commenced in *anuary 19&<2
The 19&A5&: fiscal year saw the introduction of the 0ajaj M5&0 and the ;awasa9i 0ajaj ;0100
motorcycles2 The company was ma9ing >003000 ehicles a year at this point2
)lthough "ahul 0ajaj credited much of his company7s success with its focus on one type of
product3 he did attempt to diersify into tractor5trailers2 #n 19&: his attempt to 1uy control of
)hso9 (eyland failed2
END OF LICENSE RAJ
The 0ajaj %unny was launched in 19908 the ;awasa9i 0ajaj <% Champion followed a year later2
)1out this time3 the #ndian goernment was initiating a program of mar9et li1eraliEation3 doing
away with the old 7license raj7 system3 which limited the amount of inestment any one company
could ma9e in a particular industry2
5
#t was hoping to increase its e@ports3 which then amounted to just fie percent of sales2 The
company 1egan 1y shipping a few thousand ehicles a year to neigh1oring %ri (an9a and
0angladesh3 1ut soon was reaching mar9ets in Europe3 (atin )merica3 )frica3 and +est )sia2 #ts
domestic mar9et share3 1arely less than >0 percent3 was slowly slipping2
0y 199<3 0ajaj also was contemplating high5olume3 low5cost car manufacture2 %eeral of
0ajaj7s rials were loo9ing at this mar9et as well3 which was 1eing rapidly li1eraliEed 1y the
#ndian goernment2
0ajaj )uto produced one million ehicles in the 199<59> fiscal year2 The company was the
world7s fourth largest manufacturer of two5wheelers3 1ehind *apan7s Bonda3 %uEu9i3 and
;awasa9i2 New models included the 0ajaj Classic and the 0ajaj %uper E@cel2 0ajaj also signed
deelopment agreements with two *apanese engineering firms3 ;u1ota and To9yo " F '2 0ajaj7s
most popular models cost a1out "s /030002 7Gou just can7t 1eat a 0ajaj37 stated the company7s
mar9eting slogan2
The ;awasa9i 0ajaj 0o@er and the "E diesel )utoric9shaw were introduced in 199:2 The ne@t
year saw the de1ut of the ;awasa9i 0ajaj Cali1er3 the %pirit3 and the (egend3 #ndia7s first four5
stro9e scooter2 The Cali1er sold 1003000 units in its first 1/ months2 0ajaj was planning to 1uild
its third plant at a cost of "s < 1illion 4D1112A million6 to produce two new models3 one to 1e
deeloped in colla1oration with Cagia of #taly2
NE< TOOLS IN T:E 220S
%till3 intense competition was 1eginning to hurt sales at home and a1road during the calendar
year 199:2 0ajaj7s low5tech3 low5cost cycles were not faring as well as its rials7 higher5end
offerings3 particularly in high5powered motorcycles3 since poorer consumers were withstanding
the worst of the recession2 The company inested in its new Pune plant in order to introduce new
models more =uic9ly2 The company spent "s :2> 1illion 4D1&> million6 on adanced3 computer5
controlled machine tools2 #t would need new models to comply with the more stringent emissions
standards slated for /0002 0ajaj 1egan installing "s &00 catalytic conerters to its two5stro9e
scooter models 1eginning in 19992
)lthough its domestic mar9et share continued to slip3 falling to <02> percent3 0ajaj )uto7s profits
increased slightly at the end of the 199:59& fiscal year2 #n fact3 "ahul 0ajaj was a1le to 1oast3
7My competitors are doing well3 1ut my net profit is still more than the ne@t four 1iggest
companies com1ined27 Bero Bonda was perhaps 0ajaj7s most serious local threat8 in fact3 in the
fall of 199&3 Bonda Motor of *apan announced that it was withdrawing from this joint enture2
RE8A-PING T:E DESIGN
0ajaj )uto had =uadrupled its product design staff to >002 #t also ac=uired technology from its
foreign partners3 such as ;awasa9i 4motorcycles63 ;u1ota 4diesel engines63 and Cagia
4scooters62 7Bonda7s annual spend on " F ' is more than my turnoer37 noted "uhal 0ajaj2 Bis
son3 %angi 0ajaj3 was wor9ing to improe the company7s supply chain management2 )
mar9eting e@ecutie was lured from T.% %uEu9i to help push the new cycles2
6
%eeral new designs and a doEen upgrades of e@isting scooters came out in 199& and 19992
These3 and a surge in consumer confidence3 propelled 0ajaj to sales records3 and it 1egan to
regain mar9et share in the fast5growing motorcycle segment2 %ales of three5wheelers fell as some
states3 citing traffic and pollution concerns3 limited the num1er of permits issued for them2
S:ARE IN CO-PETITOR
#n late 19993 "ahul 0ajaj made a 1id to ac=uire ten percent of Piaggio for DA> million2 The
#talian firm had e@ited a relationship with entrepreneur 'eepa9 %inghania and was loo9ing to
reenter the #ndian mar9et3 possi1ly through ac=uisition2 Piaggio itself had 1een mostly 1ought
out 1y a $erman inestment 1an93 'eutsche Morgan $renfell 4'M$63 which was loo9ing to sell
some shares after turning the company around2 0ajaj attached seeral conditions to his purchase
of a minority share3 including a seat on the 1oard and an e@clusie Piaggio distri1utorship in
#ndia2
Employment fell from a1out /C3000 in 199>59A 4the year 0ajaj suffered a two5month stri9e at its
+aluj factory6 to 1:3000 in 19995/0002 The company planned to lay off another /3000 wor9ers in
the short term and another C3000 in the following three to four years2
P'in3i,+4 S!"si%i+'ies& 0ajaj )uto !inance (td28 0ajaj )uto Boldings (td28 0ajaj Electricals
(td28 0ajaj Bindustan (td28 Maharashtra %cooters (td28 Mu9and (td2
P'in3i,+4 Co#,e$i$o's& Bonda Motor Co23 (td28 %uEu9i Motor Corporation8 Piaggio %p)2
7
C*+,$e' 2
PRODUCT PROFILE AND FINANCIAL
PERFOR-ANCE
Motorcycles
Three wheelers
Oerall performance of the company
!inancial ratio analysis
8
P'o%!3$s
-o$o'3534es
Two5wheeler sales of #ndian players are dominated 1y the domestic mar9et and3 within it3 1y
motorcycles2 )fter growing at a sharp clip from the late 1990s3 motorcycle sales witnessed a
:2&H drop in olume in /00:50&3 due to falling domestic demand as a result of rising interest
rates and many priate sector 1an9s reducing their retail lending e@posures2 /00&509 saw a
modest increase in motorcycle sales of <H3 drien largely 1y growth in cash sales2 Een so3 sales
of motorcycles 41oth domestic and e@ports6 in /00&509 has 1een lower than what it was in /00A5
0:3 1efore the slowdown hit this sector2 Chart ) depicts the data from 199&5992
Chart )I %ales of two5wheelers 4million units6
9
'espite the slight uptic9 in the industry,s sales olume3 0ajaj )uto did not maintain olume
growth3 for reasons that will 1e discussed 1elow2 !rom 12AA million motorcycles in /00:50&3 the
company,s domestic sales fell 1y/CH to 12/& million units in /00&5092 %ome of this was
compensated 1y a C1H increase in e@ports to AC13C&C units2 0ut it was not enough Conse=uently3
0ajaj )uto,s mar9et share 4domestic and e@ports3 com1ined6 fell from C/2:H in /00:50& to /&H
in /00&5092 Ta1le 1 gies the data2
Ta1le 1I Motorcycle sales3 domestic and e@ports 4in num1ers6
Gear ended
C1 March
%ales 4nos2
Millions6
%ales growth 0)( 4nos2
Millions6
0)(,s
growth
0)(,s
mar9et share
/00C C2:>: C12CH 02&A& C/2CH /C21H
/00< <2C1: 1<29H 120/< 1:29H /C2:H
/00> >2/1& /029H 12<>0 <12AH /:2&H
/00A A2/01 1&2&H 1291/ C129H C02&H
/00: :2100 1<2>H /2C:9 /<2<H CC2>H
/00& A2><< 4:2&H6 /21<0 41021H6 C/2:H
/009 A2&0A <20H 1290& 4102&H6 /&20H
%ourceI %#)M and Company data
MotorcyclesI 'omestic %ales for the #ndustry
The company classifies motorcycles into three segments3 1ased on consumer categories and
appro@imate price points2 These areI
10
Motorcycles of 0ajaj can 1e categoriEed asI
SEG-ENT OF
BI=ES
FEATURES BAL PRODUCTS CO-PETITORS
PRODUCTS
En$'5 se)#en$& 100 cc motorcycles
at "s2C>3 0002
the Platina2 The
segment accounted
for C<H in #ndia in
/00&509
Bero Bonda Passion
Plus
E>e3!$i6e se)#en$& comprises 100 cc to
1C> cc motorcycles3
priced 1etween
"s2<03 000 to "s2>03
0002
#n this segment with
two 1randsI JC' and
'iscoer2
BE"O BON') C0K
E@treme and
%plendour
Pe'(o'#+n3e se)#en$& These are slee93 high
performance3 with
price points in e@cess
of "s2>03 0002
flagship 1rand3 the
Pulsar3 and our
cruiser3 the )enger2
0)( dominate this
space3 with a
domestic mar9et
share in e@cess of
<:H2
BEO BON')
;ariEma and Bun9
11
T*'ee-7*ee4e's
The company,s domestic sales of three5wheelers in /00&509 were 1/H lower compared to the
preious year3 and stood at 1C>3<:C units2 E@port demand grew at /H to 1C930>A units 4see Ta1le
/ a1oe62 Boweer that was not sufficient to preent a decline in the company,s total three5
wheeler sales L which fell 1y >2<H to /:<3>/9 units in /00&5092 $ien that total industry sales
shran9 1y 12AH in /00&509 oer the preious year3 while 0ajaj )uto,s fell 1y >2<H3 the
company,s mar9et share dropped 1y /2C percentage points to >>21H2 )t this mar9et share
howeer3 0ajaj )uto remains the leading three5wheeler player in #ndia2
Ta1le gies the data2
P+ssen)e' 6e*i34e s+4es& 2009-08 2008-02 R+$e o( )'o7$*
#ndustry sales C:>31&0 <1>3<11 102:H
0ajaj )uto sales /AC3>9& /A<3CC/ 02CH
0ajaj )uto mar9et share :02CH AC2AH 4A2:H6
Goo%s 3+''ie's
#ndustry sales 1C03&/A &/3C&/ 4C:20H6
0ajaj )uto sales /A3:1< 10319: 4A12&H6
0ajaj )uto mar9et share /02<H 1/2<H 4&20H6
To$+4 .-7*ee4e's&
#ndustry sales >0A300A <9:3:9C 412AH6
0ajaj )uto sales /903C1/ /:<3>/9 4>2<H6
0ajaj )uto mar9et share >:2<H >>21H 4/2CH6
%ourceI %#)M and Company data2
12
&'erall Per()rman*e )( +he *)mpany,
-inan*ials, (Rs. In Mon )
2008-09 2007-08
Net saes & other ncome 89,323 91,688
Gross proft before
exceptona tems,
nterest & deprecaton 13,140 14,162
T)+al Sales,
2008-09 2007-08 (Nos.) (Nos.)
Motorcyces 1,907,853 2,139,779
Other two-wheeers 11,772 21,316
Tota Two wheeers 1,919,625 2,161,095
Three wheeers 274,529 290,312
Tota 2 & 3 wheeers 2,194,154 2,451,407

Of the above, e.p)r+s were
Two wheeers 633,463 482,026
Three wheeers 139,056 136,315
Tota Exports 772,519 618,341
13
FINANCIAL ANALYSIS OF BAJAJ AUTO
Li?!i%i$5 +n% So46en35 '+$io@s
This ratio suggests the short5term li=uidity position of the firm2 The following ratios are to
1e calculated2
AiB C!''en$ R+$io.
Current )ssets M 'e1tors N Cash?0an9 N Mar9eta1le Non Trade #nestments N %toc9 N (oans F
)dances N Prepaid E@penses2
Current (ia1ility M Creditors N 0an9 Oerdraft N O?% E@penses2 The ideal ratio is /I1
An+45sis&-Current ratio is higher in /009 as compared to /00&2 There is decreased all current
assets e@cept other receia1les which increased in /0092 The net current assets increased 1y
"s2/C&2A/ cr2 in /009 and at same time current lia1ilities increased 1y "s2/0029 cr2 in /0092 #t
means 0ajaj )uto (td23 has sufficient current assets to pay current lia1ilities2 %hort term solency
of the company is satisfactory2
14
Ye+' C!''en$ Asse$s
(Rs. In cr.)
C!''en$ Li+"i4i$ies
(Rs. In cr.)
C!''en$ R+$io
/00& 1:&02A: /0192/9 02&& times2
/009 /<012<> /A0/2C> 029/ times2
AAB -+n+)e#en$ E((i3ien35 '+$io@s
This ratio finds how efficient the management is in their decision5ma9ing F utiliEation of
the production capacity F other resources2
AiB In6en$o'5 T!'no6e' R+$io.

Ye+' S+4es T!'no6e'
(Rs. n cr.)
In6en$o'5
(Rs. n cr.)
In6en$o'5 T!'no6e' R+$io
/00& 9&>A2AA C<92A1 /&219
/009 9C102/< CC&2&< /:2<:
An+45sis&-
The inentory turnoer ratio in the year /00& was /&219 which indicate that /&219 times in a year
the inentory of the firm is conerted into receia1les or cash2 Boweer3 in /0093 the inentory
turnoer ratio slightly decreased to /:2<:2 This was due to the fact that the 0ajaj )uto (td2 in
/009 inested more then 02:/ times the inentory in /00&2
15
PROFITABILITY RATIO
G'oss P'o(i$ R+$io

Ye+' NPAT
(Rs. n
cr.)
Ne$ s+4es
(Rs. n
cr.)
P'o(i$ -+')in
/00& :>>29> &&/:21> &2>A H
/009 A>A2<& &:0021: :2>> H
An+45sis&-
The profit margin has decreased from &2>AH in /00&3 to :2>>H in /0092 )ccording to the
figures3 company has 1een successful in decreasing their %ales 1y "s21/A29& cr2 in /009 1ut the
increases in net income aaila1le common stoc9 holders was 111H which leaded to a decrease in
the profit margin2
16
ABB -+'Ce$ 8+4!e R+$io.
P'i3e E+'nin) R+$io.

Ye+' P'i3e Pe' S*+'e
(Rs. n cr.)
E+'nin) Pe' S*+'e
(Rs. n cr.)
PER
/00& 10 >/2/> 0219
/009 10 <>2C: 02//
An+45sis&-
#t can 1e seen from calculations that in year /009 the ratio is more than dou1led from 0219 to
02//2 This was due to the fact that the price per share oer the year has same with "s210 per share
where as 1oo9 alue per share increased 1y just "s21092:C to "s21/92/C2
17
C:APTER T:REE
STRATEGIC ANALYSIS
+B.ision mission and alues
"B(ogo
3B %+OT )nalysis
%BPorter,s fie !orces Model )nalysis
eB Managerial style
(B 0usiness strategies
)BOther strategic issues
18
/"S"&N 0"SS"&N AN# /A12$S
0ajaj doesn7t hae a straight ision or mission statement2 They define it in terms of 1rand
identity3 1rand essence 4deried from mission6 and 1rand alues2
O!' B'+n% I%en$i$5
Our 0rand is the isual e@pression of our thoughts and actions2
#t coneys to eeryone our intention to constantly inspire confidence2
Our customers are the primary audience for our 1rand2
#ndeed3 our 0rand #dentity is shaped as much 1y their 1elief in 0ajaj as it is 1y our own
ision2
Eerything we do must always reinforce the distinctieness and the power of our 1rand2
+e can do this 1y liing our 1rand essence and 1y continuously see9ing to enhance our
customers, e@perience2
#n doing so3 we ensure a special place for ourseles in the hearts and the minds of our
customers2
O!' B'+n% Essen3e
Our 0rand Essence is the soul of our 1rand2
Our 1rand essence encapsulates our mission at 0ajaj2
#t is the singular representation of our terms of endearment with our customers2
#t proides the 1asis on which we grow profita1ly in the mar9et2
Our 0rand Essence is E@citement2
0ajaj stries to inspire confidence through e@citement engineering2
0lending together youthful creatiity and competitie technology to e@ceed the spo9en
and the implicit e@pectations of our customers2
0y challenging the gien2 0y e@ploring the un9nown and there1y stretching ourseles
towards tomorrow3 today2
O!' B'+n% 8+4!es
+e lie our 1rand 1y its alues of (earning3 #nnoation3 Perfection3 %peed and Transparency2
0ajaj will constantly inspire confidence through e@citement engineering2
19
Le+'nin)
(earning is how we ensure proactiity2 #t is a alue that em1races 9nowledge as the
platform for 1uilding well informed3 reasoned3 and decisie actions2
Inno6+$ion
#nnoation is how we create the future2 #t is a alue that proo9es us to reach 1eyond the
o1ious in pursuit of that which e@ceeds the ordinary2
Pe'(e3$ion
Perfection is how we set new standards2#t is a alue that e@hi1its our determination to
e@cel 1y endeaoring to esta1lish new 1enchmar9s all the time2
S,ee%
%peed is how we coney clear coniction2 #t is a alue that 9eeps us sharply responsie3
mirroring our commitment towards our goals and processes2
T'+ns,+'en35
Transparency is how we characterise ourseles2 #t is a alue that ma9es us worthy of
credi1ility through integrity3 of trust through sensitiity and of loyalty through
interdependence2
LOGO o( BAJAJ&
#N#T#)( (O$O 4upto /00<6 CB)N$E' (O$O 4upto
/00:6
()TE%T (O$O 4since /00:6
Be@agonal 1lue and white
logo
Completely 1lue logo to
signify modernity and
dynamism
To stress the leadership
position of the 1rand in
the mar9et
20
S3&T Analysis,
(et7s analyEe the position of 0ajaj in the current mar9et set5up3 ealuating its strengths3
wea9nesses3 threats and opportunities aaila1le2
S$'en)$*s&
Bighly e@perienced management2
Product design and deelopment capa1ilities2
E@tensie " F ' focus2
+idespread distri1ution networ92
Bigh performance products across all categories2
Bigh e@port to domestic sales ratio2
$reat financial support networ9 4!or financing the automo1ile6
Bigh economies of scale2
Bigh economies of scope2
<e+Cnesses&
Basn7t employed the e@cess cash for long2
%till has no esta1lished 1rand to match Bero Bonda7s %plendor in commuter segment2
Not a glo1al player in spite of huge olumes2
Not a glo1ally recogniEa1le 1rand 4unli9e the *. partner ;awasa9i6

T*'e+$s&
The competition catches5up any new innoation in no time2
Threat of cheap imported motorcycles from China2
21
Margins getting s=ueeEed from 1oth the directions 4Price as well as Cost6
T)T) )ce is a serious competition for the three5wheeler cargo segment2
O,,o'$!ni$ies&
'ou1le5digit growth in two5wheeler mar9et2
-ntapped mar9et a1oe 1&0 cc in motorcycles2
More maturity and moement towards higher5end motorcycles2
The growing gearless trendy scooters and scooterette mar9et2
$rowing world demand for entry5leel motorcycles especially in emerging mar9ets2
22
Po'$e'@s Fi6e Fo'3es An+45sis&
S!,,4ie' B+')+inin) Po7e'& %uppliers of auto components are
fragmented and are e@tremely critical for this industry since most of the component wor9 is
outsourced2 Proper supply chain management is a costly yet critical need2
B!5e'Ds B+')+inin) Po7e'& 0uyers in automo1ile mar9et hae more choice to choose
from and the increasing competition is driing the 1argaining power of customers uphill2
+ith more models to choose from in almost all categories3 the mar9et forces hae
empowered the 1uyers to a large e@tent2
In%!s$'5 Ri6+4'5& The industry rialry is e@tremely high with any product 1eing matched
in a few months 1y competitor2 This instinct of the industry is primarily drien 1y the
technical capa1ilities ac=uired oer years of gestation under the technical colla1oration with
international players2
S!"s$i$!$es& There is no perfect su1stitute to this industry2 )lso3 if there is any su1stitute
to a two5wheeler3 0ajaj has presence in it2 Cars3 which again are a mode of transport3 do
neer directly compete or come in consideration while selecting a two5wheeler3 cycles do
neer een compete with the low entry leel moped for een this choice comes at a
comparatiely higher economic potential2
-+n+)e'i+4 S$54e&
Off late 0ajaj )uto (imited3 #ndia,s premier automotie company3 has emphasised
a lot on organiEational restructuring for the )uto 1usiness2 +ith this restructuring3
the e@isting 1usiness roles and responsi1ilities at the company has 1een
strengthened and enhanced to ensure greater operational empowerment and
effectie management2
The fie pillars of this new structure 4%trategic units6 are "F'3 Engineering3 Two
+heeler 0usiness -nit3 and Commercial .ehicles 0usiness -nit F #nternational
0usiness -nit2 These pillars will 1e supported 1y functions of !inance3 M#%3 B"3
0usiness 'eelopment and Commercial2
23
Pradeep %riastaa3 who was .P5Engineering prior to restructuring3 will now 1e
President5 Engineering2 )s per the reorganiEed structure the company will hae
three CEO,s2 %2 %ridhar3 currently3 .P3 M9tg2 F %ales Two5+heelers3 will now
head the Two +heeler 0usiness -nit as CEO with manufacturing operations at
+aluj and )9urdi also reporting to him2 "C Maheshwari has joined 0ajaj )uto as
CEO Commercial .ehicles2 The company is in the process of identifying a CEO
for its #nternational 0usiness2 The three CEO,s will 1e responsi1le for Top line3
0usiness $rowth F profita1ility of their respectie 1usinesses2 )1raham *oseph
will continue to lead "esearch F 'eelopment2
Business S+ra+er4ies,
0arke+in4 S+ra+e4ies,
The focus of BAL off ate has been on provdng the best of the
cass modes at compettve prces. Most of the Ba|a| modes come
oaded wth the atest features wthn the prce band acceptabe
by the market. BAL has been the poneer n stretchng
competton nto provdng atest features n the prce segment by
updatng the ow prce bkes wth the atest features ke dsk-
brakes, ant-skd technoogy and dua suspenson, etc.
BAL adopted dfferent marketng strateges for dfferent modes,
few of them are dscussed beow: -
5a6asaki 4S 7 Frst attempt by ba|a| to make a mark n the
motorcyce segment. The target customer was the father n the
famy but the target audence of the commerca was the son n
the famy. The tme at whch Kawasak 4S was aunched Hero
Honda was the market eader n fue-effcent bkes and Yamaha n
the performance bkes.
B).er 7 It took the rens from where the Kawasak 4S eft. Target
was the rura popuaton and the prce senstve customer. Boxer
marketed as a vaue for money bke wth great meage. Larger
wheebase, hgh ground cearance and hgh meage were the
seng factors and t was n drect competton to Hero Honda
Dawn and Suzuk MX100.

aliber 7 The focus for the Caber 115 was youth. And though
Ba|a| made the bke ook bgger and fee more powerfu than ts
24
predecessor (characterstcs that w attract the average, 25-pus,
executve segment bke buyer), ts approach towards advertsng
s even more radcay dfferent ths tme around. Ba|a| gave the
mandate for the ad campagn to Lowe, pckng them from the
cque of three agences that do promos for the company (the
other two beng Leo Burnett and O&M). Gong by the nta
market response, the campagn was ceary a ht n the 5-10 years
age bracket. So, the teaser campagn and the emphass on the
Caber 115 beng a `Hoodibabaa' bke paced t as a trendy
motorcyce for the coege-goers and the 25 pus executves both
at the same tme.
Pulsar 7 Pusar was aunched n drect competton to the Hero
Honda's 'CBZ' mode n 150 cc pus segment. The campagn
beared nnovatve punch ne of "Defntey Mae" postonng
Pusar to be a mascune-ookng mode wth an appea to the
performance senstve customers. The Pusar went one step ahead
of Hero Honda's 'CBZ' and aunched a twn varant of Pusar wth
the 180 cc mode. The mode was a great success and has aready
crossed 1 mon mark n saes.
#is*)'er 7 The same DTSI technoogy of Pusar extended to 125
cc Dscover was a great success. Wth ths, Ba|a| coud reaze ts
success rdng on the back of technoogca nnovaton rather than
the |ont venture way foowed by compettors to gan market
share.
BAL now s takng a eaf out of the FMCG busness mode to take
the company to greater heghts.Ba|a| has kcked off a pro|ect to
competey restructure the company's reta network and create
mutpe saes channes.
Over the next few months, the company w set-up separate saes
channes for every segment of ts busness and consumers. Ba|a|
Auto's entre product portfoo, from the entry-eve to the
premum, s beng sod by the same deaers. The restructurng w
nvove separate deaer networks caterng to the urban and rura
markets as we as ts three-wheeer and premum bkes
segments. Ba|a| Auto aso pans to set-up an ndependent network
of deaers for the rura areas. The needs of fnancng, seng,
dstrbuton and even after-saes servce are competey dfferent
25
n the rura areas and do not makes sense for cty deaers to
contro ths. The company aso pans to set-up excusve
deaershps for ts three-wheeer products nstead of havng them
sod through an estmated 300 of ts exstng deaers.
26
&+her S+ra+e4i* "ssues,
ash is s+ren4+h, Ba|a| Auto has been sttng on a cash pe for
over fve years now. Over the next coupe of years, competton n
the two-wheeer market s set to ntensfy. TVS Motors and Hero
Honda are on a product expanson bnge. To fght ths batte and
retan ts hard-earned market share n the motorcyce segment,
Ba|a| Auto w need ts cash musce. A ook at ts own story over
the past fve years provdes vauabe nsght.
S+ake ()r 5a6asaki, Ba|a| Auto's attempt to vest the surpus
cash n a separate company may be a preude to offerng a stake
to Kawasak of |apan n the equty of the automobe company.
The atter has been payng an ncreasngy actve roe n Ba|a|'s
recent modes, and ts brand name s aso more vsbe n Ba|a|
bkes than n the past.
Be++er 'alue pr)p)si+i)n, Sharehoder nterests may be better
served f the cash s retaned to pursue growth n a tough market.
Ths woud aso obvate the need to fork-out fancy sums as stamp
duty to the government for the de-merger. A combnaton of a
arge one-tme dvdend and a reguar buyback program through
the tender route may offer better vaue. A strategc stake for
Kawasak woud ony postvey nfuence the stock's vauaton.
S+ra+e4ies ()r +he &'erseas 0arke+s,
Ba|a| Auto ooks at externa markets prmary wth three
strateges: -
!) A market where a BAL need to do s dstrbute through CKD or
CBU routes.
8) Markets where BAL need to create new products.
3) Markets where BAL need to enter wth exstng products and
probaby wth a good dstrbutor or a producton facty or a |ont
venture.
Earer, most of the products that Ba|a| exported were scooters
and some motorcyces. However, n ts target markets, ke n
Inda, the shft was towards motorcyces. Wth the expanson n
27
Ba|a|'s own range to amost fve-sx patforms of motorcyces, t
had a better offerng to export, aso the reason for ts stronger
showng. For the ast fsca, 60 per cent of ts exports were two-
wheeers and the rest three-wheeers. Exports to mdde Afrca
and the Saharan natons. Egypt and Iran aso contnue to be
strong markets for Ba|a|.
28
C:APTER FOUR
SUPPLY C:AIN ANALYSIS
.alue chain management
%u1sidiaries
%pare part diision
29
8+4!e C*+in -+n+)e#en$
8en%o's E 0ajaj )uto has a consolidated 1ase of 1&0 endors supplying components to all 0ajaj
)uto,s plants2 ) large num1er of endors are located either near Pune or )uranga1ad2 Those that
are far are encouraged to tie up with third party logistics proiders3 who along with local endors
supply multiple delieries daily to Cha9an F +aluj plant2 0ajaj )uto has e@tended the TPM
4Total Preentie Maintenance6 to endor as well2 )round A0H 1y alue of 0ajaj ehicle is
outsourced2 .irtually no components are imported F :0H of 0ajaj )uto,s re=uirements are
sourced from within the state of Maharashtra2 To improe =uality3 0ajaj )uto has also 1egun
actiely assisting its suppliers in finaliEing joint entures with counterparts in *apan3 #taly3
Taiwan F %pain2
=e5 s!,,4ie's &
0ajaj auto has appro@imately 19& suppliers for their raw materials2
%ome of the 9ey suppliers are I5
*0M 5 !rames
M"! F 'unlop O tires
Minda 5 loc9s F ignition system
"einder O headlamps F lights
Endurance O 1ra9es3 clutch F Cast wheel
.arroc O Plastic parts F 'igital Meter
Ma@ auto components O ignition system and switches
%ilco ca1le O wires and ca1les
Ma9ino industry O 0ra9e shoes 2 0ra9e lining3 clutch center
#nder auto industries5 Cham1ers3 $as9ets3 Cylinder Piston 9it2
;0J O dis9 0ra9es assem1ly
30
In6en$o'5 ,o4i35-
0ajaj auto maintains seen days inentory 2 'emand Estimations were 1ased on Panel
"egression3 which ta9es into account 1othtime series and cross section ariation in data 2)ll the
Mediators are connected with each other through #T lin9age to 9now e@act status of deliery of
goods
-+n!(+3$!'in) 4o3+$ions
AC!'%iF P!ne /0.0
This is one of the oldest plant of 1ajaj auto ltd with production capacity of 02A million ehicles?
year2 The plant has 1een closed in order to e=uip for four wheeler production
B+;+; N+)+'F <+4!; A!'+n)+"+% /..1
This is second plant with production capacity of 02&A million? year 2products manufactured here
are ;ristal3 JC' and platina and commerial $C series
C*+C+n In%!s$'i+4 A'e+F C*+C+n F P!ne /00
This is the 1iggest plant of 1ajaj auto Production Capacity of 12/ million? year 3 Product
manufactured here are pulsar and aenger and commercial $e series
P+n$n+)+' F U$$+'+C*+n%
The most adanced plant of 1ajaj auto 2#t has Capacity of 029 million ehicles per year 2 product
manufactured here are platina and JC'
De+4e's- 0ajaj )uto has a networ9 of <// dealers and oer 13C00 authoriEed serice centers2 The
company plans to increase the num1er of dealers to >00 1y this financial year2 ) large num1er of
these new dealerships are planned in semi5ur1an F rural areas2
31
'uring the financial year /00:50&3 the company e@tended 0)%% 40ajaj )uto %erice %tandard6
to standardiEe the wor9shops of />0 dealers F >0 authoriEed serice centers2 These programmers
included a uniform e@ternal F internal loo92 This initiatie has improed wor9 hygiene3
promoted consistent F 1etter serice =uality3 F greater productiity2 !aster turnaround of
sericed ehicles coupled with higher spare parts sales in conerting such wor9shops into
independent profit centers for the dealers2
/alue *hain )( +he *)mpany
Subsi9iaries,
PT. Ba|a| Auto Indonesa (PT BAI), was ncorporated as a
subsdary company n Indonesa wth an ssued, subscrbed &
pad-up capta of US$ 12.5 mon (Rs.562 mon) n 2006-07.
Ba|a| Auto hods 97.5% shares n ths company, wth baance
beng hed by a oca partner. The subsdary company has
accumuated osses of Rs. 830.7 mon as on 31 March 2009.
Through the efforts, whch are panned n the comng years, t s
expected that PT BAI w turn around wthn a reasonabe tme.
Durng the year under revew, saes and servce network reach
have been xpanded substantay coverng the ma|or ctes of
|awa, Sumatara, Ba and Suawes sands. Tota showroom
32
strength stands at around 63 numbers, coverng 46 ctes of
Indonesa.
PT BAI assembes and markets Ba|a| Pusar and Ba|a| XCD n
Indonesa, estabshng Ba|a| as a hgh quaty tech-savvy brand.
PT BAI pans to expand ts presence, product range and reach
towards becomng a strong payer n ths market currenty
domnated by |apanese 2-wheeer ma|ors.
Ba|a| Auto Internatona Hodngs BV, Netherands (BAIHBV) -was
ncorporated as a whoy owned subsdary company n
Netherands wth an ssued, subscrbed and pad-up capta of
Euros 200,000 durng 2007-08. Further capta of Euro 98.2 mon
was nvested n ths company durng the prevous year, by way of
premum. It s proposed to make strategc nvestments n
overseas ventures, by way of equty shares and / or oans and to
undertake reated actvtes through ths company.
Spare par+s #i'isi)n,
Automobes need perodc repacement of parts. Not surprsngy,
therefore, spare parts comprse a proftabe busness for ma|or
automobe manufacturers. The ob|ectves of spare parts busness
of Ba|a| Auto are to perform an effectve roe n supportng new
vehce saes, mantan vehce goodw' across dfferent
geographes, makes and consumer groups, and contrbute to the
bottom-ne. These transate nto three goas:
* Make spare parts avaabe to customer at a tme.
* Make them affordabe.
* Acheve proftabe busness growth and greater penetraton.
The company's spare parts busness has done we. Domestc
saes of spare parts grew by 17.5% to acheve a revenue of
Rs.5.88 bon n 2008-09. And exports rose by 84% to Rs.1.45
bon. There s huge head room for further growth of ths
busness. Even today, despte sgnfcant expanson of Ba|a| Auto's
authorsed servce network, more than 70% of the servces durng
post-warranty
33
:APT$; -"/$
&;P&;AT$ S&"A1 ;$SP&NS"B"1"T"$S
Envronmenta frendy technques
Communty eadershp programmes:
heath educaton
Other CSR actvtes
34

C&;P&;AT$ S&"A1 ;$SP&NS"B"1"T<

)s+ e((e*+i'e an9 $n'ir)nmen+al s+ra+e4ies,
)nser'a+i)n )( ener4y,
As a part of contnung efforts to conserve varous resources,
foowng steps were taken to conserve energy:
Eectrca energy savng was acheved by nstaaton of ocased
portabe ar compressors at varous shops durng ow producton
perods, energy effcent screw compressors by repacng CPT
compressors, rea tmer eectrca crcuts nstaed to swtch off
eectrca equpments durng unch / tea breaks and durng non
utsaton of producton equpments, fan ess coong towers for
AC pants, hgh effcency refector fttngs wth eectronc baasts
tube ghts, use of LED & CFT street ghts, repacement of 350 W
ar crcuators by 180 W ar crcuators, 150 W MH amps nstead
of 250 W HPSV amps at shop foors, Varabe Frequency Drves
VFD) for ASUs n pant shops, washng machne bowers,
compressors etc and ratonasaton of pumpng hours of man
pump as we as booster pump of pump house. Water savng was
acheved by repacement of od under-ground water ppes wth
aboveground ppes to avod water wastage through eakage, drp
rrgaton system for gardenng, nstaaton of ocased fresh
water storage systems, usage of treated water for bn washng
and pant shop process, ran water harvestng and use of bo-
chemca addtves to reduce frequency of water change n varous
pant processes; and LPG savng was acheved by nstaaton of
waste heat recovery system for hot water generaton used n pre-
treatment process of pant shop, use of refectve coatng nsde
furnaces for better heat retenton, three-wheeer eectro-
deposton (ED) pantng process changed from Acryc ED to
Cathodc ED, optmsaton of oadng pattern n CGC and sea
quench furnaces, reducton of hot water temperature for pre-
treatment, use of bo- gas for cookng n canteens, start-up osses
n ovens and hot water generaton pants and changed desgn of
pant |gs to reduce |g strppng frequency.
35
"mpa*+ )( measures +aken,
As a resut of the ntatves taken for conservaton of energy and
natura
resources, the company has effected an overa reducton n
consumpton as
under:-
36
"n'es+men+ / sa'in4s,
Investment for energy conservaton actvtes: Rs.9.35 mon
Savng acheved through above actvtes: Rs.24.2 mon
)mmuni+y lea9ership pr)4rammes,
Durng the year, the empoyees vounteered for bood donaton
camp at Deenanath Mangeshkar Hospta, Pune and Dr Susheea
Twar Hospta, Pantnagar Fre fghtng teams of the company
aong wth vehces responded to 20 Fre assstance cas from
Government Fre Department / other ndustra unts outsde the
factory premses n the arger nterests of savng nvauabe fe
and property.
)mmuni+y are,
In ne wth the commtment to enrch the fe of a wth whom
ba|a| deas, t showes senstvty to the empoyees, who opted for
vountary retrement at the Akurd Pant. Soon after the Akurd
empoyees expressed ther nterest n acceptng the Vountary
Retrement Scheme, the company organsed a seres of
nteractve meetngs wth eadng fnanca nsttutons. The
offcers expaned the
need to prudenty and safey nvest the mones receved,
consderng the varous optons avaabe today. The company
devsed attractve schemes for nterested empoyees so that they
coud receve reguar monthy payments, n addton to ump sum
compensaton announced. They were aso provded wth optons
of takng oans at compettve rates of nterest.
By these actons, t s the company's endeavour that the
empoyees, who have accepted vountary retrement scheme, are
ndependenty sef-sustanng and can take good care of ther
fames. Empoyees were aso guded for aternatve possbtes,
whether as empoyee or entrepreneur.
:eal+h,
37
Government of Inda- Mnstry of Heath and Famy Wefare -
Natona Ads Contro Organsaton (NACO) and CII have ntated
Pubc Prvate Partnershp (PPP) n order to provde better
heathcare to AIDs patents. The company has sgned a trpartte
MoU wth NACO and Yeshwantrao Chavan Muncpa Hospta
(YCMH) n Pmpr to set up an Ant Retrovra Treatment Centre
(ART Centre) at YCMH n Pmpr, Pune wth the cooperaton of
Pmpr Chnchwad Muncpa Corporaton for HIV patents.
Many dgntares from Goba Fund, WHO and such other
organsatons have vsted the ART centre, whch s the argest
unt run by an ndustry under Pubc Prvate Partnershp
programme. Apart from two doctors and sx supportng medca
staff, the ART centre has added audo-vsua factes for group
counseng, as a resut of whch the ART centre regstraton has
reached 1,900 numbers and the unt s recognsed today as one of
the best ART centres n the country. Rura and communty
deveopment actvtes and empowerment of women.
$9u*a+i)n:
The company has aunched a programme that woud hep SC/ST
students acheve academc exceence and make them on par
wth those, who can afford coachng for entrance to IITs. Durng
the year under revew, one student wth a brant academc
record was dentfed from the underprveged and ow-ncome
group, for rembursement of compete fees for the preparaton of
IIT entrance test under the gudance of IITans Prashkshan
Kendra.
Under the centra government ntatve of Pubc Prvate
Partcpaton (PPP), the company has vounteered to adopt 3 ITIs
(Industra Tranng Insttute) for up-gradaton:
* ITI Mush
* ITI Have
* ITI Ramnager

The )+her a*+i'i+ies in*lu9e,
38
Ba|a| Auto Ltd. was the frst and ony company to aunch
ecoogcay frendy CNG engnes for three wheeers n Deh.
Ba|a| Auto promotes severa wefare programmes for ts
empoyees as we as varous ntatves reated to
envronment, heath, educaton and rura deveopment n the
communtes around the pant areas.
:APT$; S"%
THE FUTURE
RECOMMENDATIONS
39
T:$ -2T2;$
B+;+;-Ren+!4$-Niss+n $o %'i6e s#+44 3+' AULCB
0ajaj )uto has redrafted its 1i9e strategy for this fiscal that will see the Pulsar and 'iscoer act
as the 9ey growth driers2 The script goes according to plan3 it has hae set ourseles a target of
/003000 units from 1oth 1rands 1y March /0102 0ajaj )uto and the "enault5Nissan )lliance to
1uild the car code5 named -(C with wholesale price range starting from />00 -%'
)ll this is part of a renewed thrust 1y the company to focus on two 9ey re=uirements of the
mar9et which3 oer the years3 hae pretty much remained constant for either fuel5efficient
commuter 1i9es or sporty3 powerful products2 The 'iscoer has now 1een positioned to fulfill
the former need in a segment where Bero Bonda reigns supreme while the Pulsar has esta1lished
itself in the sporty slot3 with monthly sales of oer <03000 units2
0ajaj )uto (td has announced that the company may launch a small car in the year /010 in
#ndia2 The second largest two wheeler ma9er in #ndia will enter the small car segment in
partnership with !rench car giant "enault and Nissan2 The small car prototype was uneiled
today and the company wants to promote the ehicle as economical and afforda1le car2 The 0ajaj
)uto,s car will 1e e@pensie as it will meet safety and emission norms2 The standard ersion will
come with an air conditioner2
40
0ajaj )uto has said in a statement that the car will offer a mileage of C< 9ilometer per litter2
0ajaj will launch the car in Petrol and 'iesel ariants2 0ajaj has plans to manufacture the small
car at its facility in Cha9an near Pune2
B+;+; A!$o L$% G 00 ,e' 3en$
0ajaj )uto3 which is yet to sign a ;oin$ 6en$!'e agreement with its partners3 "enault and Nissan2
The -(C project was conceied as a three5way alliance where 0ajaj would hold >0 per cent
e=uity2
Ren+!4$ G 20 ,e' 3en$
The -(C project was conceied as a three5way alliance where "enault would hold /> per cent
e=uity2
Niss+n G 20 ,e' 3en$
The -(C project was conceied as a three5way alliance where Nissaan would hold /> per cent
e=uity2
0ajaj )uto3 which is yet to sign a ;oin$ 6en$!'e agreement with its partners3 "enault and Nissan2
The -(C project was conceied as a three5way alliance where 0ajaj would hold >0 per cent
e=uity with "enault and Niss+n accounting for /> per cent each2 0ajaj5"enault5Nissan will
miss its /011 deadline on its ultra5low5cost car project2 0ajaj )uto managing director "aji
0ajaj has ordered that the wor9 done so far on the project 1e scrapped and has demanded
major modifications on design3 positioning and other details3 according to a person familiar
with the deelopment2
41
Re3o##en%+$ions
The impression of 0ajaj in the minds of the pu1lic is that it is a moped F a three5wheeler
company3 F it is a ery orthodo@ F unhappening image in the minds of the youth2 #t
should use a powerful 1rand am1assador F indiidual whom the youth can relate with2
#t should aggressiely mar9et itself as a motorcycle company F moe from its traditional
mindset 4"ahul 0ajaj had once stated that he had only one department in his company the
dispatch department F that he did not re=uire a mar9eting department26
0ajaj should aggressiely push sales of higher margin products F launch new products in
niche segments2
0ajaj should also try F push for tie5ups F *oint .entures in foreign mar9et F try F
increase its e@port 1ase2 4E2g2 Tata Motors tie5up with "oer for mar9eting of #ndia F
*oint .enture with %enegal goernment for manufacturing truc9s F commercial
ehicles26
0ajaj should loo9 for possi1le mergers F ac=uisitions2 4E2g2 Maharashtra %cooters6 F try
F improe its distri1ution networ9 F proide it with products in niche segments F help
increase production capacity F proide economies of scale2
42
0ajaj should ealuate the process of 1ac9ward integration as it has huge cash reseres
surplus2 This process would help it in ac=uiring inputs continuously at lower cost F at
regular interals2
#ncrease its dealer networ9 to tap rural growing mar9ets 1y going in for tie5ups F
offering 1etter margins to dealers2
The 9ey to 0ajaj real success lies in "esearch F deelopment2 Bow it is a1le to use alue
analysis F alue engineering 1y adding new features to its e@isting product line F how it
is a1le to come out with new product for different niche mar9ets2 )nalysis of different
alternaties li9e outsourcing3 in5house3 purchase F tie5up should 1e ealuated2
43
BIBLIOGRAP:Y
www.ba|a|auto.com
http://www.busness-standard.com/nda/news/ba|a|-auto-
revamps-organsatona-structure/
http://www.karmayog.org/csr500companes/csr500compane
s_7373.htm
www.wkpeda.org
http://www.bma.ac.n/KnowedgeCentre/ndex1.htm
http://www.prdoman.com/companes/B/Ba|a|Auto
http://www.cooavenues.com/know/gm
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