Bajaj_INterview - 1 S EP T EM B ER 2010 consumer pack aged...

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1 S E P T E M B E R 2 0 1 0 Learning from emerging markets: An interview with Bajaj Auto’s Rajiv Bajaj The managing director of India’s second-largest motorcycle producer explains how the company’s emerging-market experience is helping it expand internationally. Laxman Narasimhan C O N S U M E R P A C K A G E D G O O D S P R A C T I C E
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2 Founded in 1945, India’s Bajaj Auto frst sold imported two- and three-wheeled scooters beFore obtaining a license From India’s government to become a manuFacturer in its own right, in 1959. Today, the company is India’s second-largest motorcycle producer, selling nearly three million vehicles annually and operating in more than 50 countries. Since 2005, Rajiv Bajaj has been managing director oF the company his grandFather Founded. Educated in both India and Britain, he has been instrumental in Focusing Bajaj Auto on motorcycle manuFacturing, driving down costs and raising productivity in the company’s operations while investing heavily in research and development. In this interview with Laxman Narasimhan, a director in McKinsey’s Delhi oFfce, Rajiv Bajaj discusses the transFormation oF Bajaj Auto, what can be learned From its experience in emerging markets, and its eFFort to expand internationally. The Quarterly : How has the Indian market evolved in recent years? Rajiv Bajaj: Over the past two decades, India has been progressively and signifcantly liberalized, both economically and socially. That has increased both the wealth and spending capacity oF consumers, resulting in almost unparalleled market scale For consumer durables in general and automotive products in particular. Yet in my view, India’s markets are not just underpenetrated but also undersegmented. I think they are underestimated in terms oF their potential to be the center oF gravity oF the world For many businesses in the future. The Quarterly : You are positioning Bajaj Auto to be an emerging-market champion. What does that mean to you? Rajiv Bajaj: ±or me, being an emerging-market champion means aligning the organization’s ideas, energies, and resources toward building a Few key motorcycle brands that, collectively, could make us one oF the world’s most comprehensive and proftable motorcycle makers. It means building and positioning Bajaj as a global motorcycle specialist and, given the rapid pace oF evolution oF our market, leveraging our expertise and experience to expand into emerging markets similar to ours. The
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Bajaj_INterview - 1 S EP T EM B ER 2010 consumer pack aged...

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