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INDUSTRIAL PROFILE

INVENTION OF TWO WHEELERS:

The invention of the first two-wheeler is a much-debated issue. "Who

invented the first motorcycle?" may seem like a simple question, but the

answer is quite complicated.

Two-wheelers owe their descent to the "safety" bicycle, i.e., bicycles

with front and rear wheels of the same size, with a pedal crank mechanism to

drive the rear wheel. Those bicycles, in turn descended from high-wheel

bicycles. The high-wheelers descended from an early type of pushbike,

without pedals, propelled by the rider's feet pushing against the ground.

These appeared around 1800, used iron-banded wagon wheels, and were

called "bone-crushers," both for their jarring ride, and their tendency to toss

their riders.

Gottlieb Daimler (who later teamed up with Karl Benz to form the

Daimler-Benz Corporation) is credited with building the first motorcycle in

1885, one wheel in the front and one in the back, although it had a smaller

spring-loaded outrigger wheel on each side. It was constructed mostly of

wood, the wheels were of the iron-banded wooden-spoked wagon-type, it

definitely had a "bone-crusher" chassis!

This two-wheeler was powered by a single-cylinder Otto-cycle engine,

and may have had a spray-type carburetor. (Wilhelm Maybach, Daimler's

assistant, was working on the invention of the spray carburetor at the time).


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If two wheels with steam propulsion can be called a motorcycle, then the

first one may have been American

Indian Two- Wheeler Industry:

Automobile is one of the largest industries in global market . Bring

the leader in product and process technologies in the manufacturing sector,

it as been recognized as one of the drivers of economic growth . during the

last decade , well directed efforts have been made to provide a new look to

the automobile policy for realizing the sectors full potential for the

economy. Steps like abolition of licensing , removal of quantitative

restrictions and initiatives to bring the policy framework in consonance with

WTO requirements have set the industry in a progressive track. Removal of

the restrictive environment has helped restructuring, and enabled industry to

absorb new technologies, aligning itself with the global development and

also to realize its potential in the country . The liberalization policies have

led to continuous increase in competition which has ultimately resulted inmodernization in line with the global standards as well as in substantial cut

in price. Aggressive marketing by the auto finance companies have also

played a significant role in boosting automobile demand, especially from the

population in the middle income group.

Evolution of Two-wheeler Industry in India:

Two-wheeler segment is one of the most important components of the

automobile sector that has undergone significant changes due to shift in

policy environment. The two-wheeler industry has been in existence in the

country since 1955. It consists of three segments viz. scooters, motorcycles


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and mopeds. According to the figures published by SIAM, the share of two-

wheelers in automobile sector in terms of units sold was about 80 per cent

during 2003-04. This high figure itself is suggestive of the importance of

the sector. In the initial years, entry of firms, capacity expansion, choice of

products including capacity mix and technology, all critical areas of

functioning of an industry, were effectively controlled by the State

machinery. The lapses in the system had invited fresh policy options that

came into being in late sixties. Amongst these policies, Monopolies and

Restrictive Trade Practices (MRTP) and Foreign Exchange Regulation Act

(FERA) were aimed at regulating monopoly and foreign investment

respectively. This controlling mechanism over the industry resulted in: (a)

several firms operating below minimum scale of efficiency; (b) under-

utilisation of capacity; and (c) usage of outdated technology. Recognition of

the damaging effects of licensing and fettering policies led to initiation of

reforms, which ultimately took a more prominent shape with the

introduction of the New Economic Policy (NEP) in 1985.

However, the major set of reforms was launched in the year 1991 in

response to the major macroeconomic crisis faced by the economy. The

industrial policies shifted from a regime of regulation and tight control to a

more liberalised and competitive era. Two major results of policy changes

during these years in two-wheeler industry were that the, weaker players

died out giving way to the new entrants and superior products and a sizeable

increase in number of brands entered the market that compelled the firms to

compete on the basis of product attributes. Finally, the two-wheeler

industry in the country has been able to witness a proliferation of brands

with introduction of new technology as well as increase in number of


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players. However, with various policy measures undertaken in order to

increase the competition, though the degree of concentration has been

lessened over time, deregulation of the industry has not really resulted in

higher level of competition.

AGrowthPerspective:

The composition of the two-wheeler industry has witnessed sea changes

in the post-reform period. In 1991, the share of scooters was about 50 per

cent of the total 2-wheeler demand in the Indian market. Motorcycle andmoped had been experiencing almost equal level of shares in the total

number of two-wheelers. In 2003-04, the share of motorcycles increased to

78 per cent of the total two-wheelers while the shares of scooters and moped

composition of the two-wheeler industry has witnessed sea changes in the

post-reform period. In 1991, the share of scooters was about 50 per cent of

the total 2-wheeler demand in the Indian market. Motorcycle and moped had

been experiencing almost equal level of shares in the total number of two-

wheelers. In 2003-04, the share of motorcycles increased to 78 per cent of

the total two-wheelers while the shares of scooters and mopeds declined to

the level of 16 and 6 per cent respectively. A clear picture of the motorcycle

segment's gaining importance during this period is exhibited by the Figures

1, 2 and 3 depicting total sales, share and annual growth during the period

1993-94 through 2003-04.

National Council of Applied Economic Research (NCAER) had

forecast two-wheeler demand during the period 2002-03 through 2011-12.

The forecasts had been made using econometric technique along with

inputs obtained from a primary survey conducted at 14 prime cities in the


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country. Estimations were based on Panel Regression, which takes into

account both time series and cross section variation in data. A panel data of

16 major states over a period of 5 years ending 1999 was used for the

estimation of parameters. The models considered a large number of macro-

economic, demographic and socio-economic variables to arrive at the best

estimations for different two-wheeler segments. The projections have been

made at all India and regional levels. Different scenarios have been

presented based on different assumptions regarding the demand drivers of

the two-wheeler industry. The most likely scenario assumed annual growth

rate of Gross Domestic Product (GDP) to be 5.5 per cent during 2002-03

and was anticipated to increase gradually to 6.5 per cent during 2011-12.

The all-India and region-wise projected growth trends for the motorcycles

and scooters are presented in Table 1. The demand for mopeds is not

presented in this analysis due to its already shrinking status compared to'

motorcycles and scooters .

It is important to remember that the above-mentioned forecast presents

a long-term growth for a period of 10 years. The high growth rate in

motorcycle segment at present will stabilise after a certain point beyond

which a condition of equilibrium will set the growth path. Another important

thing to keep in mind while interpreting these growth rates is that the

forecast could consider the trend till 1999 and the model could not capture

the recent developments that have taken place in last few years. However,

this will not alter the regional distribution to a significant extent.

It suggests two important dimensions for the two-wheeler industry.

The region-wise numbers of motorcycle and scooter suggest the future


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market for these segments. At the all India level, the demand for

motorcycles will be almost 10 times of that of the scooters. The same in the

western region will be almost 20 times. It is also evident from the table that

motorcycle will find its major market in the western region of the country,

which will account for more than 40 per cent of its total demand. The south

and the north-central region will follow this. The demand for scooters will

be the maximum in the northern region, which will account for more than 50

per cent of the demand for scooters in 2011-12

Table 1: Demand Forecast for Motorcycles and Scooters for 2011-12

2-Wheeler Segment Regions

South West North-Central East & North-East All India

Motorcycle2835

(12.9)4327

(16.8)2624(12.5)

883(11.1)

10669(14.0)

Scooter203

(2.6)219

(3.5)602

(2.8)99

(2.0)1124

(2.08)

Note: Compound Annual Rate of Growth during 2002-03 and 2011-12 is

presented in parenthesis

Source: Indian Automobile Industry: Optimism in the Air, Industry Insight,

NCAER

The present economic situation of the country makes the scenario

brighter for short-term demand. Real GDP growth was at a high level of 7.4

per cent during the first quarter of 2004. Both industry and the service

sectors have shown high growth during this period at the rates of 8.0 and 9.5


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per cent respectively. However, poor rainfall last year will pull down the

GDP growth to some extent. Taking into account all these factors along with

other leading indicators including government spending, foreign investment,

inflation and export growth, NCAER has projected an average growth of

GDP at 6.7 per cent during the tenth five-year plan. Its mid-term forecast

suggests an expected growth of 7.4 per cent in GDP during 2004-05 to 2008-

09. Very recently, IMF has portrayed a sustained global recovery in World

Economic Outlook. A significant shift has also been observed in Indian

households from the lower income group to the middle income group in

recent years. The finance companies are also more aggressive in their

marketing compared to previous years. Combining all these factors, onemay

visualise a higher growth rate in two-wheeler demand than presented in

Table 1, particularly for the motorcycle segment.

There is a large untapped market in semi-urban and rural areas of the

country. Any strategic planning for the two-wheeler industry needs to

identify these markets with the help of available statistical techniques.

Potential markets can be identified as well as prioritised using these

techniques with the help of secondary data on socio-economic parameters.

For the two-wheeler industry, it is also important to identify the target

groups for various categories of motorcycles and scooters. With the formal

introduction of secondhand car market by the reputed car manufacturers and

easy loan availability for new as well as used cars, the two-wheeler industry

needs to upgrade its market information system to capture the new market

and to maintain its already existing markets. Availability of easy credit for

two-wheelers in rural and smaller urban areas also requires more focussed

attention. It is also imperative to initiate measures to make the presence of

Indian two-wheeler industry felt in the global market. Adequate incentives


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for promoting exports and setting up of institutional mechanism such as

Automobile Export Promotion Council would be of great help for further

surge in demand for the Indian two-wheeler industry.

Two wheeler manufacturers:

Two wheeler sections in India have witnessed one of the more

impressive levels of growth vis--vis other segments of the automobile.

Among the leading manufacturers who have made them recognized on the

Indian roads with the presence of their two wheelers are Bajaj Auto, Hero

Honda Motors, Kinetic Motor, Yamaha Motor and TVS Motor. An

important aspect that relates to all such leading manufacturers of the Indian

two wheelers is that beside being the leaders in the Indian two wheeler

market, their product profile includes

contemporary and sleek designed two wheelers that are gradually being

accepted in the global markets too.

BAJAJ AUTO:

Bajaj Auto is one of the oldest and more popular faces of the Indian

two wheeler segment. The company that came into vogue in the 1940s has

its major plant located at Pune while a new plant has come up at Pantnagar

in Uttaranchal. Its product profile includes a range of two wheelers includingscooters and motorcycles. The motorcycles include models like Bajaj

Platina, Bajaj Avenger DTS-1, Bajaj Pulsar DTS-1, Bajaj CT 100, Bajaj

Discover, Bajaj Pulsar 220 DTS-Fi while scooters such as Chetak, Kristal

DTS-I are the leading brands that make up the company's two wheeler


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market. Bajaj Auto has a huge network of dealers and service centers spread

all over the country that helps the potential consumers in identifying the best

possible two wheelers specifying their requirements. In addition to this, the

company has a tie-up with dealers and loan providers and under its own

scheme of Bajaj finance, helps getting those loans for the

purposeofdifferentBajajtwo-wheelers.

HERO HONDA MOTORS:

Hero Honda is the leading two wheeler manufacturer that is

dominating the Indian two wheeler market for quite some time. With a

market share close to 41 percent of the total two wheelers in India, this joint

venture between the Hero Group of India and Honda of Japan, Hero Honda

has quite a number of awards to its credit that include "Bike of the Year"

award for its CBZ X-treme, Most Trusted Company of the Year, Number 1

Standard Motorcycle for its CD Deluxe and Auto Tech of the Year award in

2007 alone. The company has a network of dealers and service centers

spanning the country that takes care of the customers' choice, their service

needs and provide them with the best of Hero Honda's services

TVS:

A range of mopeds, scooters and motorcycles from the motorcycle

manufacturer TVS Motor such as TVS Fiero F2, TVS Fiero FX, Scooty Pep

Plus, TVS Victor Edge, TVS Star, TVS Star City, TVS XL Super, TVS

Apache RTR are some of the two wheelers that have made TVS one of the

lading names to reckon with on the Indian two wheeler scene. The company

has a network of dealers and service centers all across the country that


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ensure the customers have a variety of options, service solutions and advice,

if and when needed for any of their TVS Motor two wheelers.

YAHAMA MOTORS :

Yamaha Motor India is the Indian subsidiary of the Japanese

automobile giant, Yamaha. The company has a limited presence on the

Indian two wheeler scene with models like Gladiator, Yamaha G5, Crux and

Alba. However, its models are backed by the world renowned Japanese

technology and are more fuel efficient though more expensive as compared

to other Indian two wheelers. The company has developed a strong network

of dealers and service centers that covers the important towns and cities in

the country.

The Indian two wheeler market has undergone significant

transformation in recent times and stylish, fuel-efficient and eco-friendly

two wheelers are gaining popularity. In addition to, the markets in Asia,

Africa, Middle East, South America and even parts of Europe are gradually

emerging as new markets for the Indian two wheelers that indicate their

enhanced stature and technological prowess.

The features that deserve attention in respect of the Indian two wheelersegment are :


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The total sales of two wheelers in India has touched a figure of 7.86

million units by march , 2007, up 11.42% from the previous fiscal figures of

7.05 million . production during the period reached 8.63 million units.

The production of two wheelers in India is expected to reach a

staggering 17.85 million units by 2011-12, more than double of the current

production level.

The two wheeler production capacity is to reach 22.31 million units in

2011-12 compared with 10.78 million in 2006-07.

Total investment for new capacity generation in two-wheeler segment

is likely to be more than $2.2 billion (INR 10,000 crores).

Hero Honda , Bajaj Auto and TVS Motor remain the leading players in

terms of sales and popularity of their two wheelers.


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COMPANY PROFILE

BAJAJ GROUP

The Bajaj Group is one of the leading business houses of India. Its

business interests span host of industries such as automobiles (two-wheelers

and three-wheelers), home appliances, lighting, iron and steel, insurance,

travel and finance. The Bajaj brand is well-known in over a dozen countries

in Europe, South America, the US and Asia. The Bajaj Group comprises 27

companies and its flagship company Bajaj Auto is ranked as the world's

fourth largest two- and three- wheeler manufacturer.

Bajaj Group was founded in 1926, at the height of India's movement

for independence from the British. Jamnalal Bajaj, founder of the group, was

a close associate of Mahatma Gandhi. Jamnalal Bajaj's close involvement in

the freedom movement did not leave him with much time for his business. In

1942, his son Kamalnayan Bajaj took charge of the business. He

consolidated the group and diversified into various manufacturing activities.

Rahul Bajaj, the present Chairman and Managing Director of the group took

reins of the business in 1965. Under his leadership the group has achieved

new heights and ranks among the top 10 business houses in India.


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Bajaj Group Companies and their business interests:

Bajaj Auto Ltd: Manufacturers of Scooters, Motorcycles and Three-

wheeler vehicles and spare parts thereof.

Bajaj Electricals Ltd.: Manufacturers of electric fans, highmasts,

lattice closed towers and poles, etc. and marketing of electrical goods

such as general lighting service lamps, special lamps, compact

fluorescent lamps, fluorescent tubes, luminaries, fans and electrical &

non-electrical appliances.

Mukand Ltd.: Manufacturers of stainless, alloy and special steels

including carbon and alloy steels, free cutting steels, semi-free cutting

steels, leaded free cutting steels, cold heading quality steels, spring

steels including vanadium steels, high carbon steels; electrode quality

steels, boiler quality steels; wire rods,wires, castings, machine tools;

E.O.T. and other cranes; bulk material handling equipment for steel

and other industries; specialist in major turnkey projects,highway

construction and international trading; real estate development.

Bajaj Hindusthan Ltd.: Manufacturers of white crystal sugar and

industrial alcohol.

Maharashtra Scooters Ltd.: Manufactures of scooters.

Bajaj Auto Finance Ltd.: Deals in financial services including hire

purchase financing & leasing.

Hercules Hoists Ltd.: Manufacturers of 'INDEF' brand materials

handling equipments such as triple spur gear chain pulley blocks,

chain electric hoists, wire rope, electric hoists, travelling trolleys,

EOT / HOT / stores stacker cranes, roll-out racks.

Bajaj Sevashram Pvt Ltd.: Involved in investment activities.


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Hind Lamps Ltd.: Manufacturers of GLS, fluorescent, miniature

lamps and major components such as glass shells, miniature and

aluminium caps, lead glass, etc.

Bajaj Ventures Ltd.: Involved in manufacturing and trading of

power tools and manufacturing of houseware and parts thereof.

Bajaj International Pvt. Ltd.: Exporters of electrical fans, GLS

lamps, fluorescent tubes, lighting fittings, luminaries, household

appliances and hoists.

Hind Musafir Agency Pvt. Ltd.: Travel Agency.

Mukand International Ltd.: Involved in trading of metals, steels and

ferro alloys.

Mukand Engineers Ltd.: Construction, fabrication and erection of

industrial and infrastructural projects and infotech business.

Mukand Global Finance Ltd.: Financial services: fund based

activities - loans and investments, consumer finance, corporate

finance. Fee based activities - investment banking, corporate advisory

services.

Bachhraj Factories Pvt. Ltd.: Ginning and pressing of cotton bales

at Wardha.

Bajaj Consumer Care Ltd.: Manufacturing and trading of ayurvedic

medicines, hair oil, tooth powder, Shampoos, Pure coconut oil.

Bajaj Auto Holdings Ltd.: Investment company.

Jamnalal Sons Pvt. Ltd.: Investment and finance company.

Bachhraj & Company Pvt. Ltd.: Investment company.

Jeewan Ltd.: Investment company.

The Hindustan Housing Co. Ltd.: Services company

Baroda Industries Pvt Ltd.: Investment company


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Stainless India Ltd.: Manufacturers of stainless steel billets and flats

etc.

Bombay Forging Ltd.: Manufacturers of carbon, alloy and stainless

steel closed die forgings for automobile and general engineering

applications.

Bajaj Allianz General Insurance Company Ltd.: General Insurance

Business.

Bajaj Allianz Life Insurance Company Ltd.: Life Insurance

Business.

Company History:

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.


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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.


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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 Rs 63 million.

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.


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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.

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.

A possible joint venture with Piaggio was discussed in 1993 but

aborted. Rahul Bajaj told the Financial Times that his company was too

large to be considered a potential collaborator by Japanese firms. 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,


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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 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 next year saw the debut of the Kawasaki Bajaj

Caliber, the Spirit, and the Legend, India's first four-stroke scooter. 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, computer-controlled machine 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


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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.

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.

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 beenmostly bought out by a Germaninvestment 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.


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In late 2000, Maruti Udyog emerged as another possible acquisition

target. The Indian government was planning to sell its 50 percent stake in the

automaker, a joint venture with Suzuki of Japan. Bajaj had been approached

by several foreign car manufacturers in the past, including Chrysler

(subsequently DaimlerChrysler) in the mid-1990s.

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.

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; Piaggio SpA.

Board of Directors


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Rahul Bajaj

Madhur Bajaj

Rajiv Bajaj

Sanjiv Bajaj

D.S. Mehta

Kantikumar R. Podar

Shekhar Bajaj

D.J. Balaji Rao

J.N. Godrej

S.H. Khan

Mrs. Suman Kirloskar

Naresh Chandra

Nanoo Pamnani

Manish Kejriwal

P Murari

Niraj Bajaj

Management team

Chairman

Vice Chairman

Managing Director

Executive Director

Director

Director

Director

Director

Director

Director

Director

Director

Director

Director

Director

Director

Rahul Bajaj Chairman

Madhur Bajaj Vice Chairman

Rajiv Bajaj Managing Director

Sanjiv Bajaj Executive Director

S Sridhar CEO (Two Wheelers)

R C Maheshwari CEO (Commercial Vehicles)

Rakesh Sharma CEO (International Business)
http://www.bajajauto.com/profile/profile_rahulbajaj.htmlhttp://www.bajajauto.com/profile/profile_madhur.htmlhttp://www.bajajauto.com/profile/profile_rajiv.htmlhttp://www.bajajauto.com/profile/profile_sanjiv.htmlhttp://www.bajajauto.com/profile/profile_mehta.htmlhttp://www.bajajauto.com/profile/profile_potdar.htmlhttp://www.bajajauto.com/profile/profile_shekhar.htmlhttp://www.bajajauto.com/profile/profile_balajirao.htmlhttp://www.bajajauto.com/profile/profile_godrej.htmlhttp://www.bajajauto.com/profile/profile_khan.htmlhttp://www.bajajauto.com/profile/profile_sumank.htmlhttp://www.bajajauto.com/profile/profile_nchandra.htmlhttp://www.bajajauto.com/profile/profile_pamnani.htmlhttp://www.bajajauto.com/profile/profile_kejriwal.htmlhttp://www.bajajauto.com/profile/profile_murari.htmlhttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/profile/profile_rahulbajaj.htmlhttp://www.bajajauto.com/profile/profile_madhur.htmlhttp://www.bajajauto.com/profile/profile_rajiv.htmlhttp://www.bajajauto.com/profile/profile_sanjiv.htmlhttp://www.bajajauto.com/profile/profile_mehta.htmlhttp://www.bajajauto.com/profile/profile_potdar.htmlhttp://www.bajajauto.com/profile/profile_shekhar.htmlhttp://www.bajajauto.com/profile/profile_balajirao.htmlhttp://www.bajajauto.com/profile/profile_godrej.htmlhttp://www.bajajauto.com/profile/profile_khan.htmlhttp://www.bajajauto.com/profile/profile_sumank.htmlhttp://www.bajajauto.com/profile/profile_nchandra.htmlhttp://www.bajajauto.com/profile/profile_pamnani.htmlhttp://www.bajajauto.com/profile/profile_kejriwal.htmlhttp://www.bajajauto.com/profile/profile_murari.htmlhttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asp


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Abraham Joseph President (Research & Development)

Pradeep Shrivastava President (Engineering)

Eric Vas President (New Projects)

K Srinivas Vice President (Retail Finance)

Kevin P D'sa Vice President (Finance)

Amrut Rath Vice President (Human Resources)

S Ravikumar Vice President (Business Development)

N H Hingorani Vice President (Commercial)

C P Tripathi Vice President (Corporate Social

Responsibility

Company Secretary

J. Sridhar Company Secretary

Committees of the Board :

Audit Committee:

S.H. Khan Chairman

D.J. Balaji Rao Director

J.N. Godrej Director

Naresh Chandra Director

Nanoo Pamnani Director

Shareholders & Investors Grievance Committee :

D.J. Balaji Rao Chairman
http://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asphttp://www.bajajauto.com/bajaj_corporate_bajaj_team.asp


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J.N. Godrej Director

Naresh Chandra Director

S.H. Khan Director

Plants:

Bajaj Auto's has in all three plants, two at Waluj and Chakan in Maharashtra

and one plant at Pant Nagar in Uttranchal, western India.

Waluj Bajaj range of motorcycles and three-wheelers

Chakan Bajaj range of motorcycles

Pant Nagar Bajaj range of motorcycles

Plant Locations:

Bajaj Auto plants are located at:Bajaj Nagar, Waluj, Aurangabad 431 136

MIDC, Plot No A1, Mahalunge Village, Chakan 410 501 Dist. Pune

Plot No. 2, Sector 10 Phase -II - E, Pant Nagar, Sidcul, Rudrapur Dist.

Udhamsingh Nagar Uttranchal

Milestones:

2009 :

April - Bajaj Pulsar 150 & 180 upgrade launched

January - Bajaj XCD 135 DTS-Si


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2008

September - Bajaj Platina 125 DTS-Si launched

August : Bajaj XCD 125 DTS-Si is largest selling 125cc

motorcycle

July : Bajaj Discover 135 DTS-i Upgrade Launched.

June : Bajaj Pulsar 220 bags IMOTY award

2007

December : RE GDi autorickshaw launched

September : Bajaj XCD 125 DTS-Si launched

August : DTS-Si engine launched

July : Revamping of Organisational structure

June : Bajaj Pulsar 220 DTS-Fi launched

April : New Bajaj Auto Plant at Pantnagar,

Uttarakhand

February : 200 cc Pulsar DTS-i launched

January : Bajaj Kristal DTS-i launched

2006

April : Bajaj Platina launched

2005

December : Bajaj Discover launched

June : Bajaj Avenger DTS-i launched

February : Bajaj Wave DTS-i launched

2004

October : Bajaj Discover DTS-i launched


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August : New Bajaj Chetak 4 stroke with Wonder Gear

launched

May : Bajaj CT100 Launched

January : Bajaj unveils new brand identity, dons new

Symbol,logo and brandline.

2003

October : Bajaj Pulsar DTS-i is launched.

October : 107,115 Motorcycles sold in a month.

July : Bajaj Wind 125,The World Bike, is launched

in India.

February : Bajaj Auto launched its Caliber115

"Hoodibabaa!" in the executive motorcycle

2001

November : Bajaj Auto launches its latest offering in the.

premium bike segment 'Pulsar'

January : The Eliminator is launched.

2000 The Bajaj Saffire is introduced

1999 : Caliber motorcycle notches up 100,000 sales

in.

record time of 12 months

.1998

1998 : Production commences at Chakan plant.

June : Kawasaki Bajaj Caliber rolls out of Waluj.

July : Legend, India's first four-stroke scooter rolls.

out of Akurdi.

October : Spirit launched.


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1997 : The Kawasaki Bajaj Boxer and the RE diesel

Autorickshaw are introduced.

1995

November : Bajaj Auto is 50.

Agreements signed with Kubota of Japan for the development of

diesel engines for three-wheelers and with Tokyo R&D for ungeared Scooter

and moped development.

The Bajaj Super Excel is introduced while Bajaj celebrates its ten

millionth vehicle.

One million vehicles were produced and sold in this financial year.

1994 The Bajaj Classic is introduced.

1991 The Kawasaki Bajaj 4S Champion is introduced.

1990 The Bajaj Sunny is introduced

TECHNOLOGY

DTSi:

DTSi stands for Digital Twin Spark Ignition, a Bajaj Auto trademark.

Bajaj Auto holds an Indian patent for the DTSi technology. The Alfa Romeo

Twin-Spark engines, the BMW F650 Funduro which was sold in India from

1995 to 1997 also had a twin-spark plug technology, and the Rotax

motorcycle engines,more recently Honda's iDSI Vehicle engines use a

similar arrangement of two spark-plugs. However very few small capacity
http://en.wikipedia.org/wiki/Spark_Ignitionhttp://en.wikipedia.org/wiki/BMW_F650_singlehttp://en.wikipedia.org/wiki/Spark_Ignitionhttp://en.wikipedia.org/wiki/BMW_F650_single


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engines did eventually implement such a scheme in their production

prototypes.

Patent infringement allegations:

In September 2007, Bajaj Auto filed a claim accusing that the

development ofTVS Flame was in violation of their patent for DTS-I. TVS

Motors countered by threatening to sue Bajaj Auto for libel On February

2008, the Madras High Court in Chennai restrained TVS from launching it

with the twin spark plug technology TVS appealed against this decision,

claiming that crucial evidence was not taken into account and in March2008, launched the Flame with a modified engine containing one spark plug.

The DTSi idea is a simple one to understand - it involved usage of two spark

plugs (instead of one) per engine cylinder.

ExhausTEC:

ExhausTEC stands for Exhaust Torque Expansion Chamber, a

technology patented by Bajaj The technology involves use of a small

chamber connected to the exhaust pipe of the engine to modify the back-

pressure and the swirl characteristics, with an aim to improve the low-end

performance of the bikes. The ExhausTEC technology is claimed to be

highly effective in improving the low- and mid-range torque

AWARDS:

Bajaj pulsar Bike of the year 2008 by Bike India awards.
http://en.wikipedia.org/wiki/TVS_Flamehttp://en.wikipedia.org/wiki/TVS_Motorshttp://en.wikipedia.org/wiki/TVS_Motorshttp://en.wikipedia.org/wiki/Madras_High_Courthttp://en.wikipedia.org/wiki/TVS_Flamehttp://en.wikipedia.org/wiki/TVS_Motorshttp://en.wikipedia.org/wiki/TVS_Motorshttp://en.wikipedia.org/wiki/Madras_High_Court


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Bajaj pulsar Indian motorcycle of tha year.

Bajaj pulsar DTS-Fi bike of the year 2007 by CNBC-TV 18.

Bajaj platina 100cc Bike of the year 2007 by NDTV profit.

Mr. Rajiv Bajaj Man of the year 2005 by Autocar Professional.

MR. Rajiv Bajaj Automotive Man of the year 2005 by Bike India

and NDTV India.

Bajaj CT 100 Motorcycle Total Customer Satisfaction study 2005

by TNS Automotive.

CODE OF CONDUCT FOR AFFIRMATIVE ACTION:

Bajaj Auto Limited (herein after referred to as the "Company")

here by adopts the following Code of Conduct for Affirmative Action. This

will be effective from 1st December 2006.

The Company affirms that its competitiveness is interlinked with the

well being of all sections of the Indian society.

The Company believes that equal opportunity in employment for all

sections of the society is a component of its growth and

competitiveness. It further believes that inclusive growth is a

component of growth and development of the country.

The Company affirms the recognition that liersity to reflect socially

disadvantages sections of the society in the workplace has a positive

impact on business.

The Company will not practice nor support conscious discrimination

in any form.


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The Company does not bias employment away from applicants

belonging to disadvantaged sections of society if such applicants

possess competitive skills and job credentials.

The Company's selection of business partners is not based on any

considerations other than normal business parameters. In case of equal

business offers, the Company will select a business partner belonging

to a socially disadvantaged section of society..

The Company makes all efforts for upskilling and continual training

of all its employees in order to enhance their capabilities and

competitive skills. No discrimination of any type will be shown in this

process.

The Company may have a partnership programme with educational

institution/s to support and aid students from socially disadvantaged

sections of society.

The Company has nominated Mr. Amrut Kumar Rath, Vice President

(HR), to oversee and promote the Affirmative Action policies and

programmes. He will be accountable to the Chairman.

.


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THE SAI MOTOR

PLAZA

The SAI SMP motors was an authoriseddealer of the Bajaj auto mobiles inKakinada...these was established onThe founder of this was

There were more than150 members worked in these . The smp

motors was have the branchs in the areas ofTuni,Amalapuram,Rajoole, and inRajamindheri.The turn over in each show room was tobeen an approxmite upto 2to 3cores...They were an different branchs in it ,like1-ADMINSTRATION.2-SALES DEPARTMENT


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3-MARKETING DEPARTMENT4-SERVICE DEPARTMENT

5-FINANCE DEPARTMENTAMONG THIS THEY MAKE SALESPROMTION BY BOTH ON THROUGHPERSONAL SELLING AND BY USINGMASS MEDIA [ADVERTISING]THESERVICE DEPARTMENTS WAS TO

BEEN DEAL WITH,THE SERVICINGAND THE SMP BAJAJ WAS GIVEINSURANCE AND THE ROAD TAXALONG TO THE CUSTOMERS ,THE

GIVE FINANCE SUPPORT BY

THROUGH GIVING BY BYK LOANS BYTHROUGH THE HDFC BANK.....THE SMP MOTROS WAS TO BEENAWARDED FOR HIS BESTSERVICES,IN THE 2007 AND 2008 .THE MOST SALES OF THE BAJAJ

BYKS IN THE YEAR WAS TO BEENINCREASE INTHE EVERY YEAR....THE SMP SALES WERE WAS TO BEENHIGHLY IN THE MONTHYS OF


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JANUARY,APRIL,MAY,JUNE,JULY,AUGUST,AND

INTHE MONTHS OF THE YEAR ENDES

industrial profile 1

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