BPSM Project - INTRODUCTION Bajaj Group Bajaj Group is an...

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INTRODUCTION Bajaj Group Bajaj Group is an Indian conglomerate founded by Late Sh. Jamnalal Bajaj in 1926, Mumbai. Bajaj Group is one of the oldest & largest conglomerates based in Mumbai, Maharashtra. The group comprises 34 companies & its flagship company Bajaj Auto is ranked as the world's fourth largest two & three wheeler manufacturer. Some of the notable companies are Bajaj Electricals, Mukand Ltd & Bajaj Hindusthan Ltd. which has involvement in various industries including automobiles (2 and 3 wheelers), home appliances, lighting, iron and steel, insurance, travel and finance. The Group is currently headed by Mr. Rahul Bajaj. He took charge of the business in 1965. Under his leadership, the turnover of the Bajaj Auto the flagship company has gone up from Rs.72 million to Rs.100.76 billion (USD 2.3 billion). Bajaj Auto Bajaj Auto is a major Indian vehicle manufacturer based in Pune, Maharashtra, with plants in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttaranchal. The oldest plant at Akurdi (Pune) now houses the R&D centre. Bajaj Auto makes and exports automobile scooters, motorcycles and auto rickshaws. Bajaj is India's second largest motorcycle maker, smaller than Honda Motorcycle Scooter India, but larger than TVS Motor Co. Ltd. Bajaj Auto, and is ranked as the world’s fourth largest two- and three- wheeler manufacturer. The company is well known for their R&D, product development, process engineering and low-cost manufacturing skills. 1
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Current Situation and Performance BAL is currently outperforming the industry growth rate in two-wheeler segment with 31.4% growth in year 2009-10 v/s industry growth of 24.1%. Market share in motorcycles is improving with every passing year. It has increased from 23.72% in 2004 to almost 30% in 2010. Annual turnover for year 2009-10 is Rs.120.97 billion v/s Rs.89.37 billion a year before – an increase of 35.36% which is very healthy. BAL has significant presence in all the three basic segments - Price Segment, Value Segment and Performance Segment - and has been showing increased sales in all the segments over years. Besides this, BAL is a market leader in two-wheeler exports and it consists a great chunk of their overall revenues. Currently, BAL is selling over 4 lack vehicles in Africa and Middle East countries. The market share in domestic bike sale has gone up from 21% to 32% in 2010. 2009-10 saw a 24% growth in the number of Bajaj Auto three-wheelers sold. As always, the Company remains the leading three-wheeler player from India with a market share of over 55%. INDUSTRY ANALYSIS PORTER’S FIVE FORCES 1. Threat of New Entrants : The entry barriers are high. The market runs on high economies of scale and high economies of scope. The need for technical expertise is high. Owning a strong distribution channel is important which is very costly. 2.
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This note was uploaded on 12/04/2011 for the course ECON 001 taught by Professor Tnaga during the Spring '11 term at Abant İzzet Baysal University.

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BPSM Project - INTRODUCTION Bajaj Group Bajaj Group is an...

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