Task 1

A Brief Introduction about Bajaj Auto:

Founded in 1926 Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation Private Limited. It started off by selling imported two- and three-wheelers in India. In1959, it obtained license from the Government of India to manufacture two- and three-wheelers and it went public as Bajaj Auto Ltd (BAL) in1960. It started producing at Waluj in Aurangabad. In1986, it managed to produce and sell 500,000 vehicles in a single financial year. In1995, it rolled out its ten millionth vehicle and produced and sold 1 million vehicles in a year. One of the oldest and the largest manufacturer of automobiles in India India's largest and the world's 4th largest two- and three-wheeler maker Bajaj Auto makes motor scooters, motorcycles and the auto rickshaw.

Changed its image from a scooter manufacturer to a two wheeler manufacturer .

The People Associated with Bajaj Auto are :

Rahul Bajaj Madhur Bajaj Rajiv Bajaj Sanjiv Bajaj

Chairman Vice - Chaiman M.D Executive Director

Products
Bajaj mainly specializes in the 2 wheeler Market. It has many products such as: Bajaj Pulsar 135 , 150, 180, 200NS, 220 Bajaj Avenger 200, 220 Discover 100, 110, 125, 135, 150 Platina Boxer (For African Markets)

It also manufactures 3 wheeler vehicles such as: Auto Ricksaws Goods Carrier

Peers
The Main Competitors for Bajaj Auto are: Honda Hero Honda TVS

SWOT Analysis
Strengths: Highly experienced management Product design and development capabilities Extensive R & D focus Widespread distribution network High performance products across all categories High export to domestic sales ratio Great financial support network (For financing the automobile) High economies of scale Weaknesses: Hasn't employed the excess cash for long. Still has to establish a brand to match Hero Honda's Splendor in commuter segment. Not a global player in spite of huge volumes. Not a globally recognizable brand (unlike the JV partner Kawasaki) Opportunities: Double-digit growth in two-wheeler market. More maturity and movement towards higher-end motorcycles. The growing gearless trendy scooters and mopet market. It is also proposing to launch motorcycles from Austrian bike maker KTM, in which Bajaj Auto has over 25 per cent stake.

Threats: The competition catches-up any new innovation in no time. Threat of cheap imported motorcycles from China. Margins getting squeezed from both the directions (Price as well as Cost) TATA Ace is a serious competition for the three-wheeler cargo segment.

Task 2 1.
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 Ms Suman Kirloskar Naresh Chandra Nanoo Pamnani Manish Kejriwal P Murari Niraj Bajaj Chairman, executive Vice Chairman, executive Managing Director, executive Executive Director, executive Non-executive, independent Non-executive, independent Non-executive Non-executive, independent Non-executive, independent Non-executive, independent Non-executive, independent Non-executive, independent Non-executive, independent Non-executive Non-executive, independent Non-executive

2.
No there is no information about how different are the directors in the firm from the managers.

3.
No there is no information on the external measures of the quality of corporate governance of Bajaj Auto Limited.

Task 3

Possiblity Of Conflict The stake of the promoters is quite high @ 50%. The promoters majorly include all the insiders and thus there may be conflict regarding the decision taking in the meetings. The promoters may stress on keeping their motives over and above the needs of the public and the shareholders. As the stake is also that high, the voting regarding any decision may also become rigged. The promoters can direct the meeting like they want.