Company History:: Section - I Bajaj Auto Limited

Company’s Financial Analysis: Bajaj Auto Ltd.
SECTION - I
Company History: Bajaj Auto Limited
The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches
over a wide range of industries, spanning automobiles (two-wheelers and three-
wheelers), home appliances, lighting, iron and steel, insurance, travel and finance.
The Bajaj Group was formed in the first days of India's independence from Britain. Its
founder, Jamnalal Bajaj. 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.
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 Auto rickshaw in 1976 and 1977. Bajaj Auto produced 100,000
vehicles in the 1976-77 fiscal years alone.
The board of directors of Bajaj Auto has approved the proposal to appoint Rajiv Bajaj
as managing director of the company. Rahul Kamalnayan Bajaj, 66, will step down as
managing director of Bajaj Auto passing on the mantle of the company to his eldest
son, Rajiv. Rahul Bajaj will continue as the chairman of the Bajaj conglomerate. Bajaj
Auto is facing increased competition from Honda and Piaggio. Honda has overtaken
Bajaj as India's No.1 scooter maker in the past two years.
Bajaj Auto’s Philosophy
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Bajaj Auto Limited makes scooters for commuters. The company manufactures and
sells small motorcycles, scooters, and three-wheeler vehicles. Motorcycle and scooter
models include Avenger, Discover, Kristal, Platina, and Pulsar. The three-wheelers
are used for both passenger transportation and light delivery. Bajaj's technology
partner, Kawasaki Heavy Industries, has helped the company bring a number of bikes
to the Indian market -- including the Kawasaki Bajaj Eliminator -- India's first heavy
cruiser. Nearly 3 million units of Bajaj's products are annually distributed to more
than 50 countries. Bajaj Auto was founded in 1945.
The development is an ominous sign for the joint venture as more than a year has
passed. With a lot of short showy by Mr. Bajaj and Mr. Carlos Ghosn, chairman of
Renault and Nissan. The formal deal was supposed to be signed in November last
year but was pushed back.
This development is likely to make the combine miss 2011 deadline for launching the
car. The latest set of differences over branding has the potential to further delay the
launch, affecting the ambitions of both Bajaj and Renault. A successful launch is
important for Bajaj to reposition itself as a complete automobile company rather than
a motorcycle manufacturer. On the other hand, India is crucial to Renault's plans of
driving sales and expanding global market share in the backdrop of declining growth
in the western world.
Management
Rahul Bajaj Chairman
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Madhur Baja Vice Chairman

Rajiv Bajaj Managing Director
Sanjiv Bajaj Executive Director
Pradeep Shrivastava President (Engineering)
Rakesh Sharma CEO (International Business)
R C Maheshwari CEO (Commercial Vehicles
S Sridhar CEO (Two Wheelers)
Abraham Joseph President
(Research & Development)
Eric Vas President (New Projects)
C P Tripathi Vice President (Corporate)
Kevin D’sa Vice President (Finance)
K Srinivas Vice President
(Human Resources)
N H Hingorani Vice President (Commercial)
S Ravikumar Vice President
(Business Development)
PROFILE:
Founder Jamnalal Bajaj

Year of Establishment 1926
Industry Automotive - Two & Three Wheelers
Business Group The Bajaj Group
Listings & its codes BSE – Code: 500490; NSE - Code:
BAJAJAUTO
Presence Distribution network covers 50 countries.
Dominant presence in Sri Lanka, Bangladesh,
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Columbia, Guatemala, Peru, Egypt, Iran and

Indonesia.
Joint Venture Kawasaki Heavy Industries of Japan
Registered & Head Akurdi
Office Pune-411035
India
Tel.:+(91)-(20)-27472851
Fax: +(91)-(20)-27473398
Works • Akurdi, Pune 411035
• Bajaj Nagar, Waluj Aurangabad

431136
• Chakan Industrial Area, Chakan, Pune
411501
E-mail rahulbajaj@bajajauto.co.in
Website www.bajajauto.com
Awards Won by Bajaj Auto Ltd
Bajaj Auto Ltd. had several bountiful years with awards galore across its product
line.NFO Customer satisfaction and CNBC-Auto Car Auto Awards, the most coveted
awards in the industry, were all showered on Bajaj Auto.
While ICICI Bank-OVERDRIVE bestowed three awards to Bajaj under various

categories including the Bike Maker of the year, BBC World Wheels showered four
awards including the viewer choice 2wheeler of the year to Pulsar 180 DTSi, BS
Motoring awarded the coveted Bike Of The Year award to Wind 125.
NFO, the leading international marketing research firm awarded Bajaj Pulsar for
Motorcycle Total Customer Satisfaction in the premium segment. The late to confer
the award, CNBC-Auto Car Award gave the "Two Wheeler of The Yea Award" again
to Wind 125.
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The rapid fire winning of awards by Bajaj Auto for almost all its product range from
the entry level Boxer, to the newly launched Wind 125 as well as for the DTS-i
technology - signals the changing face of Bajaj and its endeavor to offer
technologically superior products across the entry, executive and premium Segments.
The winning of awards, which started as a trickle in 2001 has now become a deluge.
Product Award Award Body

Bajaj Discover 135 Bike of the Year 2009 NDTV Profit Car India and
Bike India Awards
Pulsar Ranked First in 'TOP 30 4Ps Power Brand Awards
AUTOMOBILE BRANDS OF
INDIA'
XCD 125 DTS-Si Bike of the Year 2008 Business Standard Motoring
XCD 125 DTS-Si Bike of the Year 2008 CNBC-TV18 Auto car Auto
Awards
XCD 125 DTS-Si Award for motorcycle up to 125cc - NDTV Profit Car India and
2008 Bike India Awards
Pulsar 220 DTS-Fi Bike of the Year 2008 Overdrive
Pulsar 220 DTS-Fi Bike of the Year 2008 NDTV Profit Car India and
Bike India Awards
Pulsar 220 DTS-Fi IMOTY Award-Indian Motorcycle All Auto Mags-Overdrive,
of the Year 2007 Auto Car, BS, Bike Top Gear
Pulsar DTS-Fi Bike of the year 2007 CNBC-TV18 Auto car Auto
Awards
Mr. Rajiv Bajaj Man of the year 2005 Auto car Professional
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Mr. Rajiv Bajaj Man of the year 2005 Bike India

Bajaj CT 100 Motorcycle Total Customer TNS Automotive
Satisfaction Study 2005
Bajaj Discover DTS-i Bike of the Year 2005 Overdrive
Bajaj Discover DTS-i Indigenous Design of the Year Overdrive
Bajaj Wind 125 Bike of the Year 2004 Business Standard Motoring
Bajaj Wind 125 Two Wheeler of the Year 2004 CNBC AUTOCAR
AUTOAWARDS 2004
Bajaj Pulsar DTS-i Bike of the Year 2004 ICICI Bank Overdrive
Awards 2004
DTS-i Technology Auto Tech of the Year 2004 ICICI Bank Overdrive
Awards 2004
BAJAJ AUTO Bike Maker of the Year 2004 ICICI Bank Overdrive
Awards 2004
Bajaj Boxer AT KTEC BBC World Wheels Award for Best BBC World Wheels
Two Wheeler under Rs.30,000/-
Bajaj Pulsar 150 DTS-i BBC World Wheels Award for Best BBC World Wheels
Two Wheeler between Rs.45,000/-
to Rs.55,000/-
Bajaj Pulsar 180 DTS-i BBC World Wheels Award for Best BBC World Wheels
Two Wheeler between Rs.55,000
/-to Rs.70,000/-
Bajaj Pulsar 180 DTS-i BBC World Wheels Viewers Choice BBC World Wheels
Two Wheeler of Year 2003
Bajaj Pulsar Motorcycle Total Customer NFO Automotive
Satisfaction Study 2003
Bajaj Pulsar Bike of the Year 2003 ICICI Bank OVERDRIVE
Awards 2003
Bajaj Pulsar Bike of the Year 2002 Business Standard Motoring
Bajaj Pulsar Most Exciting Bike of the Year2002 Overdrive
Bajaj Eliminator Bike of the Year 2002 Overdrive
Bajaj Eliminator Most Exciting Bike of the Year2001 Overdrive
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Products
Motorcycles
Two-wheeler sales of Indian players are dominated by the domestic market and,
within it, by motorcycles. After growing at a sharp clip from the late 1990s,
motorcycle sales witnessed a 7.8% drop in volume in 2007-08, due to falling domestic
demand as a result of rising interest rates and many private sector banks reducing their
retail lending exposures. 2008-09 saw a modest increase in motorcycle sales of 4%,
driven largely by growth in cash sales. Even so, sales of motorcycles (both domestic
and exports) in 2008-09 has been lower than what it was in 2006-07, before the
slowdown hit this sector. Chart A depicts the data from 1998-99.
Chart A: Sales of two-wheelers (million units)
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Despite the slight uptick in the industry’s sales volume, Bajaj Auto did not maintain
volume growth, for reasons that will be discussed below. From 1.66 million
motorcycles in 2007-08, the company’s domestic sales fell by23% to 1.28 million
units in 2008-09. Some of this was compensated by a 31% increase in exports to
631,383 units. But it was not enough Consequently, Bajaj Auto’s market share
(domestic and exports, combined) fell from 32.7% in 2007-08 to 28% in 2008-09.
Table 1 gives the data.
Table 1: Motorcycle sales, domestic and exports (in numbers)
Year ended Sales (nos. Sales BAL (nos. BAL’s BAL’s

31 March Millions) growth Millions) growth market
share
2003 3.757 31.3% 0.868 32.3% 23.1%
2004 4.317 14.9% 1.024 17.9% 23.7%
2005 5.218 20.9% 1.450 41.6% 27.8%
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2006 6.201 18.8% 1.912 31.9% 30.8%

2007 7.100 14.5% 2.379 24.4% 33.5%
2008 6.544 (7.8%) 2.140 (10.1%) 32.7%
2009 6.806 4.0% 1.908 (10.8%) 28.0%
Source: SIAM and Company data
Motorcycles: Domestic Sales for the Industry
The company classifies motorcycles into three segments, based on consumer

categories and approximate price points. These are:
Motorcycles of Bajaj can be categorized as:
a) Entry segment: These are typically 100 cc motorcycles at a price point in the
neighborhood of Rs.35, 000. Bajaj Auto is in this segment through the Platina.
Here, Bajaj Auto has been a major player and, despite an overall market de-
growth, accounted for 34% of this segment in India in 2008-09.
b) Executive segment: This largely comprises 100 cc to 135 cc motorcycles,

priced between Rs.40, 000 to Rs.50, 000. In this segment with two brands: XCD
and Discover.
c) Performance segment: These are sleek, high performance, with price

points in excess of Rs.50, 000. We are present here with our flagship brand, the
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Pulsar, and our cruiser, the Avenger. We dominate this space, with a domestic
market share in excess of 47%.
If the domestic motorcycle market is segregated as above, it becomes clear that

industry sales showed significant ups and downs in 2008-09.
Products (2 and 3 wheeler)
The month of October 2009 has been an exciting one for Bajaj Auto as the company
witnessed several milestones.
Sample some:
• 135,887 two- and three-wheelers sold

• Highest-ever sale of motorcycles in any month - 82,913 numbers sold
• Cumulative production of the Pulsar crossed 1,00,000 numbers this month; a
total of 18,412 Pulsars have been sold during this month
• Highest-ever three-wheeler sales in any month - 20,676 numbers sold
• Highest-ever exports in any month - 12,768 two- and three-wheelers.
2 Wheeler
The company sold 135,887 two- and three-wheelers in October 2009, including a
record sale of 82,913 motorcycles. The motorcycle growth is propelled by the sale of
over 51,000 Boxers, which reinstates this product's dominance in the entry-level
segment.
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During the month, the company launched the Boxer AR. This product is targeted at
the semi-urban and rural markets and comes with the new 7.7bhp, 91kmpl high-
performance K-Tec engine, reinforced frame, stronger shock absorbers and rugged
styling. The company has sold over 12,000 numbers in the very first month of its
launch.
In addition, on 28 October 2009, the Chakan plant crossed the milestone of a

cumulative production of 100,000 Pulsars. This was achieved within the first 12
months of the launch of the product. The company's plans to enhance capacities for
this model are under way.
Sales figures 2 Wheelers and 3 Wheelers.

The summarized performance for the year is given in the table below:
Particulars Apr-Oct 09 Apr-Oct 09 Growth y-o-y%
Total Motorcycles 4,95,608 3,40,069 45.8
Total 2-Wheelers 7,40,183 6,76,111 9.5
3-Wheelers 1,14,877 93,836 22.4
Total 2&3 Wheelers 8,55,060 7,69,947 11.0
Out of the above 53,097 23,085
130.0
Exports
(Source: Bajaj Annual Report)
1. Bajaj domestic motorcycle sales continued to rise for the 4th consecutive
month since the launch of the Bajaj XCD 135 in February 2009; the XCD
sold about 20,000 units in May 2009.
2. The new Pulsar 150 and Pulsar 180 have been very well received, and
consequently the production of the Pulsars is being progressively increased to
50,000 units per month.
3. Aiding this volume build-up would be the launch of the fastest Pulsar yet in
June 2009, also expected to be the fastest motorcycle made in India.
4. Stagnant commercial vehicle sales continue to reflect subdued economic

conditions.
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5. Exports have almost normalized after the dip in January-March 2009 and are
expected to gradually exhibit positive year-on-year growth.
Three-wheelers
The company’s domestic sales of three-wheelers in 2008-09 were 12% lower

compared to the previous year, and stood at 135,473 units. Export demand grew at 2%
to 139,056 units (see Table 2 above). However that was not sufficient to prevent a
decline in the company’s total three-wheeler sales — which fell by 5.4% to 274,529
units in 2008-09. Given that total industry sales shrank by 1.6% in 2008-09 over the
previous year, while Bajaj Auto’s fell by 5.4%, the company’s market share dropped
by 2.3 percentage points to 55.1%. At this market share however, Bajaj Auto remains
the leading three-wheeler player in India.
Table gives the data.
Passenger vehicle 2007-08 2008-09 Rate of growth

sales:
Industry sales 375,180 415,411 10.7%
Bajaj Auto sales 263,598 264,332 0.3%
Bajaj Auto market share 70.3% 63.6% (6.7%)
Goods carriers
Industry sales 130,826 82,382 (37.0%)
Bajaj Auto sales 26,714 10,197 (61.8%)
Total 3-wheelers:
Industry sales 506,006 497,793 (1.6%)
Bajaj Auto sales 290,312 274,529 (5.4%)
Source: SIAM and Company data.
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Plant
Bajaj Auto’s vehicle manufacturing capacity stands at 3.96 million units —

comprising 3.6 million two-wheelers and 360,000 three-wheelers. The newest plant at
Pantnagar (Uttarakhand) has a capacity to produce 900,000 two-wheelers.
Bajaj Auto Ltd took possession of 250 acres of land at Chakan, allotted for its four-
wheeler project. Bajaj Auto along with captive process vendors will invest Rs. 1750
crores. An additional investment of Rs. 250 crores by vendors, in the existing
facilities is envisaged, for supplying components to the new Plant requirement. The
investment of Bajaj Auto will be entirely funded by internal accruals. Bajaj Auto’s
new plant would be providing direct employment for about 1000 persons. The
commercial production at this plant is expected to commence by early 2009. The plant
is being set up with a capacity to manufacture 500,000 vehicles per annum.
Bajaj Auto's plant-wise capacities (in units):
Plant 2007-08 2008-09

Waluj 1,860,000 1,860,000
Chakan 1,200,000 1,200,000
Pantnagar 900,000 900,000
Total 3,960,000 3,960,000
Source: Bajaj Annual
Report
As mentioned in last year's Annual Report, the company's first plant at Akurdi was
shut down as a vehicle assembly unit from September 2007. The reason for doing so
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was the higher cost of manufacturing, which placed this location at a disadvantageous
position compared to the other facilities of Bajaj Auto. On 25 July 2008, 2,331
workmen from Akurdi responded to a voluntary retirement scheme (VRS) offered by
the company. The overall cost of this VRS was Rs.3.67 billion.
Distribution of Products across plants

Plant Products
Waluj Boxer, Platina, XCD and all three-
wheelers
Chakan Pulsar, Avenger and Discover
Pantnagar Platina, Platina 125 and XCD
Source: Bajaj
Annual Report
Key Deliverables in terms of Sales & Distribution Management
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• Order Tracking-Taking a daily account of the order received from various

dealers and Regional Offices (RO). Orders from dealers are punched in by
dealer themselves. Orders are followed up in the system only if the credit limit
is not crossed. This credit limit is preset into the system depending upon the
dealer and his/her track record.
• Packaging-Packaging in factory is outsourced to third party vendor. These

vendors are generally from the Transport & Logistics partners.
• Dispatching Goods-Goods need to be dispatched via third party vendor TCI.

State corporations and other private players are also part of the vendor list.
• Generating Invoice & Waybill-These documents need to be generated and

dispatched to the respective dealer.
Depot and C&F Agent
The representation below depicts the location of the various member groups of Bajaj
Auto in India.
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For distribution Bajaj Auto has extensively used the mix of Depot & CNF Agents.
This is completely dependent upon the distance of the dealer’s location from the
manufacturing unit. For example, due to the extensive distance between the
manufacturing plant from West Bengal and the North-East, there exists a depot at
Kharagpur with a capacity for housing 8000 two-wheelers. There are similar depots in
Rajasthan, Punjab and Southern India. In our conversation with the management of
the Bajaj Auto showroom, they declined to divulge further details of the locations of
the depots and the total number of depots in the country.
Exports:
The company continues to be the country's largest exporter of two- and three-
wheelers. During 2008-09, Bajaj Auto' international sales achieved an all-time high of
772,519 units of two- and three-wheelers - representing a growth 25% over the
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previous year. The growth was driven by the export of two-wheelers, which increased
by 31% over 2007-08 to achieve sales of 633,463 units in 2008-09.
Table : Bajaj Auto's exports (in numbers):

Product 2007-08 2008-09 Growth in %
Total two-wheelers 482,026 633,463 31
Three-wheelers 136,315 139,056 2
Total vehicles 618,341 772,519 25
Source: Bajaj
Annual Report
The total value of exports was Rs.26.4 billion, representing a growth of 29%.The
business continues to enjoy a healthy geographical spread. Growth in 2008-09 was
primarily driven by expanding Bajaj Auto's footprint in Africa and the Middle East,
where the region's share rose from 30% of the export
business in 2007-08 to 43% in 2008-09. The share of South Asia (excluding India)
stands at 27%; South-East Asia at 11%; and Latin America at 19%.The focus is on
building the Pulsar brand throughout Indonesia.
As a part of the company's policy to be closer to the markets in which it operates,

Bajaj Auto has offices in Monterrey (Mexico), Dubai and Colombo (Sri Lanka) in
addition to its subsidiary PT BAI in Indonesia.
FINANCIAL ASPECTS OF DISTRIBUTION
After looking at the distribution channel and the process flow of vehicles from the
factory to the end consumer, we will now look at the financial aspects. As a part of
the financials, we have looked at the total market spend done by Bajaj Auto Ltd. for
advertisements and sales & distribution expenses. It has identified three key
components of advertising and sales & distribution expenses.
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These three components are:
1. Forwarding, Freight and Packaging - This is the largest component of all. It

includes the transportation charges of the goods from factory to the dealers, packaging
of the two wheelers and three wheelers in container etc.
2. Advertising - The advertising charges include all forms of advertising, i.e. TV ads,
print ads, hoarding and billboards etc.
3. Sales Promotion - The sales promotion expenses includes the discounts which the
company offers from time to time. It also includes other offers and gift vouchers. This
component, as per our understanding, should also include the incentives. However,
through our interaction with the Bajaj dealers, we came to know that the company
does not provide any incentives, and the achievements by the dealers are reflected in
the grading system for dealers for each region. Then again, it may not be the same
case for Hero Honda and therefore this component may include incentives if
applicable.
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Source: Bajaj Annual

Report
The above graph shows the market spend for Bajaj Auto. It has taken the data for
three years to see the trend in the spending.
As seen from the graph, the expenditure for forwarding, freight and packaging has
been increasing over the years and especially for the year 2008-09. This may be due
to the fact that in the last 2 years:
• Bajaj sales from the export market increased by 31% whereas the domestic
sales fell by around 23%. Hence, the transportation costs etc. shoot up due to
the exports.
• Bajaj focused more on executive and premium bikes which are transported in
small lot sizes and the packaging etc are more sophisticated thus resulting in
high forwarding, freight and packaging costs.
The advertising costs for the year have sharply fallen in the year 2008-09. It is mainly
due to the recession that the company has cut down on these costs. The major saving
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was done on the print ads and hoardings. The sales promotion expenses have fallen in
year 2007-08 and again increased in year 2008-09. The increase in year 2008-09 is
because Bajaj has forayed into premium bikes, which is a new segment in India, and
was backed by heavy sales promotions to boost the sales.
Source: Bajaj Annual Report
The above graph shows the percentage breakup of the three components. The highest
cost is the forwarding, freight and packaging, followed by advertising expenditure and
sales promotion expenditure.
The graph shows the advertising and sales & expenditure costs as a percentage of
sales.
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Source: Bajaj
Annual Report
From the above graph it can clearly make out that Bajaj Auto relies more on its sales
& distribution. Hence, it can be safely concluded that Bajaj Auto focuses more on the
push factor for its sale.
Research & Development
o The developments in this area are set out in greater detail in the annexed Management
Discussion and Analysis Report.
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o During the year under review, company continued to invest substantially in R & D
facilities
resulting in enhancement of its infrastructure for design, prototyping & testing.
o Two important products, which demonstrated the technical prowess of the

company, were launched during this year. These were Platina 125 DTS-is,
sporting an enhanced style and XCD 135 DTS-i(Digital Twin Spark ignition), an
up market product.
o Company continues to focus on expanding its design & testing teams, which has
enabled it to make the new generation products.
o R & D has enhanced its internal competencies by installation of advanced machines

in
proto shop and introduction of special equipments in testing areas.
o The company has through internal efforts, designed & launched a sub 100 cc
motorcycle, the “BYK” for the entry-level segment.
o The company has launched Caliber 115 motorcycle, which has received
positive response due to its power & fuel efficiency.
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o The company has upgraded the Boxer series with various new vehicle
features. The Boxer CT/AR series has a newly developed K Tech engine which is
popular among customers.
o The company has designed & developed a 125 cc motorcycle in collaboration

with Kawasaki Heavy Industries Ltd. The product has been designed keeping in
view the global market as well as domestic market.
GLOBAL PRESENCE OF BAJAJ
Bajaj Auto continues to be India’s largest exporter of two and three wheelers. During
2008-09, the company exported 772,519 two and three-wheelers recording a growth
of 25 percent over 2007-08.Exports now constitute 37 percent in terms of volume and
35 percent in value of net sales. The company currently exports to over 30 countries
in Latin America, Africa, the Middle-East, South and South-East Asia. Bajaj Auto
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has a dominant presence in the countries of Sri Lanka, Columbia, Bangladesh, Central
America, Peru and Egypt, and is looking to increase its share in the African market.
The company has commissioned an assembly unit in Nigeria with the help of its
distributor, to cater to the growing demand in the African markets. It already has an
assembly plant in Indonesia and is looking at setting up a plant in Manaus, a Free
Trade Zone, in Brazil by 2010-11, after delaying the decision for six years. A
distributor of Bajaj Auto has a plant in Egypt. They are also planning to set up plants
at Columbia and Iran.
Supply Chain Management
Vendors – Bajaj Auto has a consolidated base of 180 vendors supplying components
to all Bajaj Auto’s plants. A large number of vendors are located either near Pune or
Aurangabad. Those that are far are encouraged to tie up with third party logistics
providers, who along with local vendors supply multiple deliveries daily to Chakan &
Waluj plant. Bajaj Auto has extended the TPM (Total Preventive Maintenance) to
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vendor as well. Around 60% by value of Bajaj vehicle is outsourced. Virtually no

components are imported & 70% of Bajaj Auto’s requirements are sourced from
within the state of Maharashtra. To improve quality, Bajaj Auto has also begun
actively assisting its suppliers in finalizing joint ventures with counterparts in Japan,
Italy, Taiwan & Spain.
Dealers- Bajaj Auto has a network of 422 dealers and over 1,300 authorized service
centers. The company plans to increase the number of dealers to 500 by this financial
year. A large number of these new dealerships are planned in semi-urban & rural
areas.
During the financial year 2007-08, the company extended BASS (Bajaj Auto Service
Standard) to standardize the workshops of 250 dealers & 50 authorized service
centers. These programmers included a uniform external & internal look. This
initiative has improved work hygiene, promoted consistent & better service quality, &
greater productivity. Faster turnaround of serviced vehicles coupled with higher spare
parts sales in converting such workshops into independent profit centers for the
dealers.
Management of Global Supply Chain
With operations spanning to such vast geographies, managing a supply chain globally
becomes more and more complex. In countries where Bajaj perceives a strong market
potential, they establish a tie up with one major industrial establishment eager to
invest in the project. This investment may include setting up strategic manufacturing
or assembly units, apart from a well-established nation-wide network for marketing,
distribution and after sales services. These investors who form alliances with Bajaj
Auto are termed as “Business Partners”.
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Bajaj Auto offers a number of services to its business partners. They include:
• Training in sales, service and spare parts management based on the Bajaj
distribution system.
• Active support for setting up manufacturing facilities overseas including
transfer of technical know-how.
• Assistance in setting up an assembly plant for assembly of vehicles from
complete knocked down (CKD) kits.
• Selecting of machinery and equipment and training of technical personnel, all
in a phased manner as required by the regulations in the recipient country.
• Active support in setting nation-wide dealer network, also involving
identification and recommending suitable partner who would assist the
distributor in Business growth.
Global depository receipts (GDRs)
Bajaj Auto issued and allotted Global Depositor Receipts (GDRs) on 3 April 2008 to
the shareholders of BHIL (formerly BAL) pursuant to the scheme of demerger
sanctioned by the Hon’ble High Court of Judicature at Bombay vide its order dated 18
December 2007 and the underlying shares against each GDR were issued in the name
of the overseas depository, i.e. Deutsche Bank Trust Company Americas (DBTCA).
The company has entered into deposit agreement with DBTCA on 21 August 2008.
The company is in the process of getting the said GDRs listed on the London Stock
Exchange in due course of time.
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Listing on stock exchanges
The shares of the company are currently listed on the following stock exchanges:
Name Address
Bombay Stock Exchange Ltd, Mumbai 1st Floor, Phiroze Jeejeebhoy Towers,
(BSE) Dalal Street, Mumbai 400 001
National Stock Exchange of India Ltd. Exchange Plaza Bandra-Kurla Complex,
(NSE) Bandra (E) Mumbai 400 051
Source: Bajaj
Annual Report
Market price data
Table gives the monthly highs and lows of Bajaj Auto’s shares on the Bombay Stock
Exchange Ltd. (BSE) and National Stock Exchange of India Ltd. (NSE):
Monthly highs and lows of Bajaj Auto Ltd. shares during 2008-09 (Rs.) vis-a-vis BSE
Sensex
Month BSE NSE Closing BSE

High Low High Low
Sensex
Apr-08 * ———— ———— ———— ———— 17,287.31
May-08 945.00 543.00 898.00 538.00 16,415.57
Jun-08 618.00 436.10 615.00 435.00 13,461.60
Jul-08 544.90 395.00 539.00 390.15 14,355.75
Aug-08 612.95 490.00 590.25 501.00 14,564.53
Sep-08 641.00 530.15 641.90 535.25 12,860.43
27
Oct-08 615.05 435.00 617.00 425.00 9,788.06

Nov-08 550.00 307.15 550.00 305.50 9,092.72
Dec-08 444.00 294.65 440.00 262.00 9,647.31
Jan-09 502.00 378.00 503.25 377.00 9,424.24
Feb-09 536.00 445.00 539.00 441.15 8,891.61
Mar-09 635.00 480.10 640.00 477.00 9,708.50
* Equity shares of the company were listed at BSE and NSE on 26 May 2008 and hence there
are no stock quotes for the period up to 25 May 2008.
Distribution of shareholdings
Table 3 gives details about the pattern of shareholdings among various categories as
on 31 March 2009 and 3 April 2008, while Table 3A gives the data according to size
classes as on 31 March 2009.
Distribution of shareholdings across categories:

Categories 31 March 2009 3 April 2008
No. of % to total No. of % to total
shares capital shares capital
Promoters 71,786,036 49.61 72,747,805 50.28
Friends and associates of 16,327,478 11.28 16,454,136 11.37
promoters
GDRs** 181,775 0.13 768,698 0.53
Foreign Institutional 19,980,919 13.81 20,266,586 14.01
Investors
Public Financial 8,316,122 5.75 8,707,469 6.02
Institutions
Mutual Funds 4,926,547 3.41 1,123,175 0.78
Nationalized & other 110,397 0.08 251,704 0.17
28
banks
NRIs & OCBs 650,056 0.45 613,745 0.42
Others 22,404,180 15.48 23,750,192 16.42
Total 144,683,510 100.00 144,683,510 100.00
**Under the deposit agreement, the depository exercises the voting rights on the shares
underlying the GDRs as directed by the promoters of the company.
Recent News on Bajaj Auto

Bajaj-Renault-Nissan to drive small car (ULC)
Bajaj Auto has redrafted its bike strategy for this fiscal that will see the Pulsar and
Discover act as the key growth drivers. The script goes according to plan, it has have
set ourselves a target of 200,000 units from both brands by March 2010. Bajaj Auto
and the Renault-Nissan Alliance to build the car code- named ULC with wholesale
price range starting from 2500 USD
All this is part of a renewed thrust by the company to focus on two key requirements
of the market which, over the years, have pretty much remained constant for either
fuel-efficient commuter bikes or sporty, powerful products. The Discover has now
been positioned to fulfill the former need in a segment where Hero Honda reigns
supreme while the Pulsar has established itself in the sporty slot, with monthly sales
of over 40,000 units.
29
Bajaj Auto Ltd has announced that the company may launch a small car in the year
2010 in India. The second largest two wheeler maker in India will enter the small car
segment in partnership with French car giant Renault and Nissan. The small car
prototype was unveiled today and the company wants to promote the vehicle as
economical and affordable car. The Bajaj Auto’s car will be expensive as it will meet
safety and emission norms. The standard version will come with an air conditioner.
Bajaj Auto has said in a statement that the car will offer a mileage of 34 kilometer per
litter. Bajaj will launch the car in Petrol and Diesel variants. Bajaj has plans to
manufacture the small car at its facility in Chakan near Pune.
30
Bajaj Auto Ltd = 50 per cent

Bajaj Auto, which is yet to sign a joint venture agreement with its partners, Renault
and Nissan. The ULC project was conceived as a three-way alliance where Bajaj
would hold 50 per cent equity.
Renault = 25 per cent

The ULC project was conceived as a three-way alliance where Renault would hold 25
per cent equity.
Nissan = 25 per cent

The ULC project was conceived as a three-way alliance where Nissaan would hold 25
per cent equity.
31
Bajaj Auto, which is yet to sign a joint venture agreement with its partners, Renault
and Nissan. The ULC project was conceived as a three-way alliance where Bajaj
would hold 50 per cent equity with Renault and Nissan accounting for 25 per
cent each. Bajaj-Renault-Nissan will miss its 2011 deadline on its ultra-low-cost
car project. Bajaj Auto managing director Rajiv Bajaj has ordered that the work
done so far on the project be scrapped and has demanded major modifications on
design, positioning and other details, according to a person familiar with the
development.
Bajaj Auto Launches RE600 Cargo Vehicle
Bajaj Auto’s R&D team has created this unique product to deliver the highest mileage
and lowest operating costs in the commercial 3-wheeler category. RE600 offers best
in class mileage which is at least 5 km per liter of diesel more than other vehicles. It
has a robust solid construction and comes at an attractive price point which makes for
the lowest cost of ownership. RE600 is priced at Rs.1, 03,686. The RE 600 is being
launched phase wise across the country from September 2009 onwards.
Advantage of RE600:
 The RE 600 is specially conceived and developed for cargo movement in

congested cities & towns.
32
 It has the lowest turning radius for high maneuverability even on narrow
roads, has twin front suspension.
 A spacious cabin for comfortable long hrs of drive.
 It has high torque for quick pick-up even with heavy loads and has ease of
frequent and quick start-stop cycles.
 Making it the best suited vehicle for in-city operations. The RE 600 has thus
created a new category in the small commercial vehicle segment.
Bajaj Auto to launch Kawasaki Ninja:
The Ninja 250R is considered to be an entry-level sports bike manufactured by

Japanese two-wheeler maker Kawasaki. The motorcycle would be priced between Rs
1.50 lakh and Rs 2 lakh in India. Till the mid of this year, four models of Kawasaki
‘Ninja 250’, sports roadster ‘ER-6n’, super sports bike ‘Ninja ZX6R’
‘Ninja’ model is the most popular model in US, Europe and Japan. Bollywood star
John Abraham’ had used this bike showing some unbelieving stunts in super-duper hit
movie Dhoom. Since then these bikes became the dream bikes for many sports bike
lovers.
Ninja-250 is a very powerful bike containing an eight-valve DOHC, liquid-cooled

250cc fuel injection engine that develops 30bhp of peak power with attached a six-
33
speed gearbox. It generates 30 PS at 10,500 rpm. Its 6-speed transmission makes it a

versatile performer.
Kawasaki is Bajaj’s reliable technical partner since mid 80s and promised to assist
Bajaj in all technical aspects with providing the necessary service training and parts
back-up while Bajaj auto will handle the distribution and marketing department.
Bajaj to stop scooter production, focus on motorcycles

The jingle promised that it would stay with us for today and tomorrow as a Strong
Symbol of a Strong India, and two generations grew up humming the tune. But finally
when the India of the license-permit raj gets to take its seat at the global high table,
the Scoters that got us there is fading away.
Bajaj Auto announced on Wednesday that it is exiting the scooter segment altogether,
bringing the curtains down on its iconic product line. The company had stopped
making the Chetak, once the world’s largest selling scooter, almost three years ago,
and according to its MD Rajeev Bajaj, it will stop production of its non-starter Kristal
series by end of the current fiscal.
“This is a definite watershed moment, because it’s almost like detaching ourselves
from what constitutes middle class India, and the set of values that constituted middle
34
class India,” says Santosh Desai, MD and CEO of Future Brands and a marketing and
advertising expert.
SECTION – III
Impact of Budget 2009-10
In the General Budget 2008-09 proposals, Shri P. Chidambaram has announced

reduction in the excise duty in the growth and employment driving sectors.
 The budget announcements are not likely to have any major impact on the
automobile sector.
 The continued focus on rural development and change in exemption limit in
income tax slabs will marginally benefit two wheeler sales.
 The increase in funds allotted towards irrigation by 75 per cent in 2009-10 will
be marginally favorable for tractor sales.
 On buses and their chassis, excise duty reduced from 16 p.c. to12 p.c.
35
 Excise duty reduced on small cars from 16 p.c. to 12 p.c. and on hybrid cars
lowered from 24 p.c. to the general revised rate of 14 per cent.
 On two wheelers and three-wheelers, duty reduced from 16 p.c. to12 p.c.
 Retention of the excise duty on 2 wheelers, 3 wheelers, small cars and diesel
driven commercial vehicles at 8%.
 Reduction in excise duty applicable to large cars of engine capacity 2000 cc
and above from 20% + Rs 20,000 per vehicle to 20% + Rs 15,000 per vehicle.
Lowering the excise duty on large cars.
SECTION - IV
FINANCIAL ANALYSIS OF BAJAJ AUTO
Liquidity and Solvency ratio’s
This ratio suggests the short-term liquidity position of the firm. The following
ratios are to be calculated.
(i) Current Ratio.
Current Assets = Debtors + Cash/Bank + Marketable Non Trade Investments + Stock

+ Loans & Advances + Prepaid Expenses.
Current Liability = Creditors + Bank Overdraft + O/S Expenses. The ideal ratio is 2:1
36
Year Current Assets Current Liabilities Current Ratio

(Rs. In cr.) (Rs. In cr.)
2008 1780.67 2019.29 0.88 times.
2009 2401.45 2602.35 0.92 times.
Analysis:-Current ratio is higher in 2009 as compared to 2008. There is decreased all

current assets except other receivables which increased in 2009. The net current assets
increased by Rs.238.62 cr. in 2009 and at same time current liabilities increased by
Rs.200.9 cr. in 2009. It means Bajaj Auto Ltd., has sufficient current assets to pay
current liabilities. Short term solvency of the company is satisfactory.
(ii) Acid Test Ratio.
Current Assets = Debtors + Cash/Bank + Marketable Non Trade Investments + Loans

& Advances.
Current Liability = Creditor + O/S Expenses
It is also known as Liquid Ratio or Acid Test Ratio. It measures the ability of the firm
to convert its current assets quickly into cash in order to meet its current liabilities.
Since stock cannot be converted into cash immediately & prepaid expenses can never
be converted into cash they are not considered. Bank overdraft facility is available for
long period of time hence it is also not included. The ideal ratio is 1:1.
Year Quick Assets Quick Liabilities Quick Ratio
37
(Rs. in cr.) (Rs. in cr.)
2008 331.38 2019.23 0.16 times.
2009 495.52 2602.35 0.19 times.
Analysis:-We have seen that the company had a higher current ratio in 2009 and was
able to meet its short term obligations as compared to 2008. Where as the quick ratio
identifies the role played by the inventories in this context. Therefore the ratio shows
that in year 2009 it has increased as compared to 2008 due to the fact that the quick
assets is increased by Rs.164.14 cr. only and current liabilities have increased by
Rs.583.12 cr. The company is able to meet its short term obligations.
(iii) Debt Equity Ratio
____DEBT____
Equity
The Debt equity ratio is an important tool to appraise financial structure of a firm. It
reflects relative contribution of creditors and owners of business in its financing.
Debt/Borrowed Funds = Debenture + Long Term loan + Redeemable Preference

shares.
Equity = Equity share capital + Preference shares other than redeemable + Reserves
and surplus – Losses and Fictitious assets.
Year Debt Equity Debt Equity ratio

2008 1334.34 1587.59 0.84 times.
2009 1570.00 1869.69 0.84 times.
38
Analysis:-
This ratio says that both year 2008 and 2009 as same. In 2009 increased debt by
Rs.236 cr. That is increased in Debenture, Long Term loan, Redeemable Preference
shares. And equity means Equity share capita, Preference shares other than
redeemable, Reserves and surplus, Losses and Fictitious assets increased by Rs.282.1
cr. in 2009 tear.
(A) Management Efficiency ratio’s

This ratio finds how efficient the management is in their decision-making &
utilization of the production capacity & other resources.
(i) Inventory Turnover Ratio.
Year Sales Turnover Inventory Inventory Turnover Ratio

2008 9856.66 349.61 28.19
2009 9310.24 338.84 27.47
Analysis:-
The inventory turnover ratio in the year 2008 was 28.19 which indicate that 28.19
times in a year the inventory of the firm is converted into receivables or cash.
However, in 2009, the inventory turnover ratio slightly decreased to 27.47. This was
due to the fact that the Bajaj Auto Ltd. in 2009 invested more then 0.72 times the
inventory in 2008.
39
(ii) Days Sales Outstanding.
The ratio is indicative of the time lag between credit sales and cash collection.
This helps to find out the efficiency of the Collection/ Receivables department &
analyze the credit policy of the firm & whether it is properly implemented.
Year Receivables Sales DSO

(Rs. in cr.) (Rs. in
cr.)
2008 1099.68 9856.66 40.72 days
2009 1567.09 9310.24 61.44 days
Analysis:-
DSO in year 2008 was 40.72 days which has now increased to 61.44 days which
shows that the company is more defective in collecting receivables now in
comparison of previous year, even the sales has decreased by Rs.546.42 cr. on the
other hand receivables increased which resulted high days sales outstanding.
40
(iii) Fixed assets Turnover.
It measures the efficiency of the company in managing and utilizing its assets.
Year Sales Fixed Assets Fixed Assets Turnover

(Rs. in (Rs. in cr.)
cr.)
2008 8827.15 4906.42 1.79 %
2009 8700.17 5752.26 1.51 %
Analysis:-
According to the calculations above the productivity of fixed assets in year 2009 is
not better than it was in previous years. In 2008, it was 1.79% and now it has been
slightly decreased to 1.51%. This change was brought about by decreased in total
sales by Rs.126.98 cr., where as the fixed assets increased only by Rs.845.84 cr.
41
PROFITABILITY RATIO
Gross Profit Ratio
Year NPAT Net sales Profit Margin

(Rs. in (Rs. in
cr.) cr.)
2008 755.95 8827.15 8.56 %
2009 656.48 8700.17 7.55 %
Analysis:-
The profit margin has decreased from 8.56% in 2008, to 7.55% in 2009. According to
the figures, company has been successful in decreasing their Sales by Rs.126.98 cr. in
2009 but the increases in net income available common stock holders was 111%
which leaded to a decrease in the profit margin.
42
(B) Market Value Ratio.
Price Earning Ratio.
Year Price Per Share Earning Per Share PER

2008 10 52.25 0.19
2009 10 45.37 0.22
Analysis:-
It can be seen from calculations that in year 2009 the ratio is more than doubled from
0.19 to 0.22. This was due to the fact that the price per share over the year has same
with Rs.10 per share where as book value per share increased by just Rs.109.73 to
Rs.129.23.
SECTION - V
Recommendations
43
 The impression of Bajaj in the minds of the public is that it is a moped & a
three-wheeler company, & it is a very orthodox & unhappening image in the
minds of the youth. It should use a powerful brand ambassador & individual
whom the youth can relate with.
 It should aggressively market itself as a motorcycle company & move from its
traditional mindset (Rahul Bajaj had once stated that he had only one
department in his company the dispatch department & that he did not require a
marketing department.)
 Bajaj should aggressively push sales of higher margin products & launch new
products in niche segments.
 Bajaj should also try & push for tie-ups & Joint Ventures in foreign market &
try & increase its export base. (E.g. Tata Motors tie-up with Rover for
marketing of India & Joint Venture with Senegal government for
manufacturing trucks & commercial vehicles.)
 Bajaj should look for possible mergers & acquisitions. (E.g. Maharashtra
Scooters) & try & improve its distribution network & provide it with products
in niche segments & help increase production capacity & provide economies
of scale.
44
 Bajaj should evaluate the process of backward integration as it has huge cash
reserves surplus. This process would help it in acquiring inputs continuously
at lower cost & at regular intervals.
 Increase its dealer network to tap rural growing markets by going in for tie-ups
& offering better margins to dealers.
 The key to Bajaj real success lies in Research & development. How it is able
to use value analysis & value engineering by adding new features to its
existing product line & how it is able to come out with new product for
different niche markets. Analysis of different alternatives like outsourcing, in-
house, purchase & tie-up should be evaluated.
SECTION - VI
45
Annexure to the Bajaj Auto Limited

Profit & Loss account of Bajaj Auto Limited
Particulars -- -- - - - - - - - - - in Rs. Cr. - - - - - - - - - - - - - - - - - - -

----
2007-08 2008-09
Income
Sales Turnover 9,856.66 9,310.24
Excise Duty 1,029.51 610.07
Net Sales 8,827.15 8,700.17
Other Income 170.27 -4.52
Stock Adjustments 67.85 -24.49
Total Income 9,065.27 8,671.16
Expenditure
Raw Materials 6,760.04 6,502.10
Power & Fuel Cost 69.20 60.89
Employee Cost 350.09 366.67
Other Manufacturing 53.72 58.10
Expenses
Selling and Admin 390.15 383.41
Expenses
Miscellaneous Expenses 209.63 226.22
Preoperative Exp -23.04 -14.42
Capitalised
Total Expenses 7,809.79 7,582.97
Operating Profit 1,085.21 1,092.71

PBDIT 1,255.48 1,088.19
Interest 5.16 21.01
PBDT 1,250.32 1,067.18
Depreciation 173.96 129.79
Other Written Off 1.12 0.00
Profit Before Tax 1,075.24 937.39
Extra-ordinary items 59.32 18.72
PBT (Post Extra-ord Items) 1,134.56 956.11
Tax 378.78 301.61
Net Profit After Tax 755.78 654.50

Balance Sheet of Bajaj Auto Limited
Particulars -- -- - - - - - - - - - in Rs. Cr. - - - - - - - - - - - - - - - - - - -

----
46
2007-08 2008-09
Sources Of Funds
Total Share Capital 144.68 144.68
Equity Share Capital 144.68 144.68
Share Application Money 0.00 0.00
Preference Share Capital 0.00 0.00
Reserves 1,442.91 1,725.01
Revaluation Reserves 0.00 0.00
Net worth 1,587.59 1,869.69
Secured Loans 6.95 0.00
Unsecured Loans 1,327.39 1,570.00
Total Debt 1,334.34 1,570.00
Total Liabilities 2,921.93 3,439.69
Application Of Funds
Gross Block 2,994.68 3,350.20
Less: Accumulative 1,726.07 1,807.91
Depreciation
Net Block 1,268.61 1,542.29
Capital Work in Progress 34.74 106.48
Investments 1,857.14 1,808.52
Inventories 349.61 338.84
Sundry Debtors 275.31 358.65
Cash and Bank Balance 54.74 135.68
Total Current Assets 679.66 833.17
Loans and Advances 1,099.68 1,567.09
Fixed Deposits 1.33 1.19
Total CA, Loans & 1,780.67 2,401.45
Advances
Differed Credit 0.00 0.00
Current Liabilities 1,185.19 1,378.20
Provisions 834.04 1,224.15
Total CL & Provisions 2,019.23 2,602.35
Net Current Assets -238.56 -200.90
Miscellaneous Expenses 0.00 183.30
Total Assets 2,921.93 3,439.6
• The company has maintained proper records showing full

Particulars including quantitative details and situation of fixed Assets.
47
• According to the records of the company, the company has been regular in
depositing undisputed statutory dues including Provident Fund, Investor.
• Education and Protection Fund, Employees State Insurance, Income Tax,

Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise duty and other
Statutory dues with the appropriate authorities.
• The company has not taken any loans, secured or unsecured, from companies,
firms or other parties covered in the register maintained under of the
Companies Act, 1956.
• The company, in our opinion, has maintained proper records and contracts
with respect to its investments wherein timely entries of transactions are made.
• The company has not defaulted in repayment of dues to banks. The company
has not borrowed any sums from Financial Institutions nor through
debentures.
• The company has, not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other investments.
48

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Company’s Financial Analysis: Bajaj Auto Ltd.

Bajaj Auto’s Philosophy

Rahul Bajaj Chairman

Madhur Baja Vice Chairman

Founder Jamnalal Bajaj

Columbia, Guatemala, Peru, Egypt, Iran and

• Bajaj Nagar, Waluj Aurangabad

Awards Won by Bajaj Auto Ltd

While ICICI Bank-OVERDRIVE bestowed three awards to Bajaj under various

Product Award Award Body

Mr. Rajiv Bajaj Man of the year 2005 Bike India

Chart A: Sales of two-wheelers (million units)

Table 1: Motorcycle sales, domestic and exports (in numbers)

Year ended Sales (nos. Sales BAL (nos. BAL’s BAL’s

2006 6.201 18.8% 1.912 31.9% 30.8%

Source: SIAM and Company data

Motorcycles: Domestic Sales for the Industry

The company classifies motorcycles into three segments, based on consumer

Motorcycles of Bajaj can be categorized as:

b) Executive segment: This largely comprises 100 cc to 135 cc motorcycles,

c) Performance segment: These are sleek, high performance, with price

If the domestic motorcycle market is segregated as above, it becomes clear that

Products (2 and 3 wheeler)

• 135,887 two- and three-wheelers sold

In addition, on 28 October 2009, the Chakan plant crossed the milestone of a

Sales figures 2 Wheelers and 3 Wheelers.

4. Stagnant commercial vehicle sales continue to reflect subdued economic

The company’s domestic sales of three-wheelers in 2008-09 were 12% lower

Table gives the data.

Passenger vehicle 2007-08 2008-09 Rate of growth

Bajaj Auto’s vehicle manufacturing capacity stands at 3.96 million units —

Bajaj Auto's plant-wise capacities (in units):

Plant 2007-08 2008-09

Distribution of Products across plants

Key Deliverables in terms of Sales & Distribution Management

• Order Tracking-Taking a daily account of the order received from various

• Packaging-Packaging in factory is outsourced to third party vendor. These

• Dispatching Goods-Goods need to be dispatched via third party vendor TCI.

• Generating Invoice & Waybill-These documents need to be generated and

Depot and C&F Agent

Table : Bajaj Auto's exports (in numbers):

As a part of the company's policy to be closer to the markets in which it operates,

FINANCIAL ASPECTS OF DISTRIBUTION

These three components are:

1. Forwarding, Freight and Packaging - This is the largest component of all. It

Source: Bajaj Annual

Source: Bajaj Annual Report

Research & Development

o Two important products, which demonstrated the technical prowess of the

o R & D has enhanced its internal competencies by installation of advanced machines

o The company has designed & developed a 125 cc motorcycle in collaboration

GLOBAL PRESENCE OF BAJAJ

Supply Chain Management

vendor as well. Around 60% by value of Bajaj vehicle is outsourced. Virtually no

Management of Global Supply Chain

Global depository receipts (GDRs)

Listing on stock exchanges

Market price data

Month BSE NSE Closing BSE

Oct-08 615.05 435.00 617.00 425.00 9,788.06

Distribution of shareholdings across categories:

Recent News on Bajaj Auto