Bajaj Auto was founded in 1945.

It is India's second largest two

wheeler manufacturer and the world's 4th largest two and three-
wheeler manufacturer. It is based in Pune. with plants in Akurdi
and Chakan (Pune), Waluj and Pantnagar in Uttaranchal Currently
It holds a market share of 22% over all two wheeler industry and a
phenomenon 71% share in 125- 250 cc category. It has a joint
venture with Kawasaki and 31.72 % stake in Australian based
company KTM

Key markets : Bajaj auto is Dominant player in Indian market .

The best selling market being Punjab, Delhi & NCR, UP ,
Bangalore and Maharashtra. The company exports its products to
Sri Lanka, Bangladesh, Philippines, Latin America, Colombia,
Peru, Mexico, Africa and the Middle East.
Key products- two wheeler

Premium segment Executive segment Entry segment

Pulsar 220 dtsi Xcd 135 Discover 100 dts-si

Pulsar 180 dtsi Discover 135 Platina
Pulsar 150 dtsi Pulsar 135 Kristal
Avenger dtsi Platina 125

Key products – three wheeler

Passenger carrier Goods carrier

Re CNG GC diesel
Re diesel GC CNG
Re petrol Re 600
Mega Max
S1 Fabrication
(body &
chassis)
Ware Casting &
house Welding Paint shop
S2 (raw) (Body & chassis) (body &
chassis)

S3 Ins Insp
pect ecti Factory
Final assembly ion- on- warehouse
1 2

Engine
Ware house Heat assembly
(raw) Treatment

Paint shop
S1 S2 S3
 DEALER /
PRO Customer
BIKING

RURAL
Depot SALES Customer
& OUTLET
CNF

AUTHORIS
ED
SERVICE Customer
CENTER
Key suppliers :

Bajaj auto has approximately 198 suppliers for their raw materials.
Some of the key suppliers are :-

JBM - Frames
MRF & Dunlop – tires
Minda - locks & ignition system
Reinder – headlamps & lights
Endurance – brakes, clutch & Cast wheel
Varroc – Plastic parts & Digital Meter
Max auto components – ignition system and switches
Silco cable – wires and cables
Makino industry – Brake shoes . Brake lining, clutch center
Inder auto industries- Chambers, Gaskets, Cylinder Piston kit.
KBX – disk Brakes assembly
Inventory policy-

Bajaj auto maintains seven days inventory . Demand Estimations

were based on Panel Regression, which takes into account both
time series and cross section variation in data .All the Mediators
are connected with each other through IT linkage to know exact
status of delivery of goods
Manufacturing locations

Akurdi, Pune 411035

This is one of the oldest plant of bajaj auto ltd with production
capacity of 0.6 million vehicles/ year. The plant has been closed in
order to equip for four wheeler production

Bajaj Nagar, Waluj Aurangabad 431136

This is second plant with production capacity of 0.86 million/ year
.products manufactured here are Kristal, XCD and platina and
commerial GC series
Chakan Industrial Area, Chakan , Pune 411501
This is the biggest plant of bajaj auto Production Capacity of 1.2
million/ year , Product manufactured here are pulsar and avenger
and commercial Ge series

Pantnagar , Uttarakhand
The most advanced plant of bajaj auto .It has Capacity of 0.9
million vehicles per year . product manufactured here are platina
and XCD

.
Distribution network

For distribution bajaj auto uses mix of depots and Cnf agents.
This is completely dependent on the distance of manufacturing
location from dealer point .For example due to extensive distance
from manufacturing plant from west Bengal to north-east India,
there exist a depot in Khadakpur with capacity of housing 800
vehicles. There are similar depots in Punjab , Rajasthan and
southern India
Siliguri
Malda
Chakkan
Durgapur
Bankura
. Waluj Khadakpur Asansol
dehranpur

Pantnagar kolkata
Bardhamann
Dealers

Bajaj has total of approx 498 dealers 1500 authorized service

stations and 1400 rural outlets for population of below 25000

Transport and Logistics

This function is not owned by bajaj auto in any form . This is

outsourced to third party vendor . The third party here is TCI along
with some others like OSL , Jamuna trasport and Sumit transport

-Logistics to the vendor is decided by the company

-A Transit insurance compliance is signed between the two parties
-Freight charges are included in product price
IT linkage

Bajaj rides the SAP advantage . In year 2000 ‘Project 110 percent’
was launched to spearhead Bajaj’s growth in the future.
Bajaj auto has linked 386 dealers out of 498 and 165 suppliers out
of 198.
Business information is available to company external community
in real time.

The dealers can get real time information ,unstructured

information like news items, new product releases, dealer
discussion group and internal market place. On operational
activities and also the company can monitor the external members.

The suppliers gets up-to date information on purchase order,

contracts and material schedule
Key competitors (2 wheeler)

Bajaj pulsar 220 Vs Hero Honda karizma Vs YamahR15

70,000 INR (ex) 92,000 INR (ex) 100,300 INR (ex)

Bajaj pulsar 150 Vs Hero Honda Xtreme Vs Yamaha Fz

60,000 INR (ex) 58,501 INR (ex) 65,000 (ex)

Bajaj Xcd 135 Vs Hero Honda Glamour Vs Honda Stunner

44,000 INR (ex) 48000 INR (ex) 51,655 INR (ex)

Bajaj discover Vs Hero Honda Passion Vs Tvs Star city

40,000 INR (ex) 46,526 INR (ex) 42,084 INR
(ex)
Key competitors (3 wheeler)

Bajaj manufactures commercial vehicles for passenger carrier as

well as goods carrier other players in the three-wheeler segment in
India are Mahindra and Mahindra , Piaggio and atul auto.
Bajaj is Facing tough competition by aggressively launched
Mahindra gio

.
STRENGTHS

-Highly experienced management.

-Product design and development capabilities(Redesign)

-Extensive Research & Development focus.

-Widespread distribution network.

-High performance products across all categories.

-High export to domestic sales ratio.

.
-High economies of scale.
WEAKNESS

-Hasn't employed the excess cash for long.

-Still has no established brand to match Hero Honda's Splendor in -

commuter segment. Product development is subsequently not very

strong in this segment.

-Not a global player in spite of huge volumes.

-Sometimes the rate of Redesign is faster than the consumer’s

acceptance
Recommendation

-The company needs to tap the export market more efficiently as

India has great potential of becoming the hub of manufacturing

-Can use the distribution channel of Kawasaki and KTM for foreign
market
THANK YOU