PARAMETERS DEFINING CONDUCT OF BAJAJ AUTO LTD

1. MISSION OF THE COMPANY

Focus on value based manufacturing Fostering team work & enhancing the capability of the team. Continual improvement. Total elimination of waste. Pollution free and safe environment.

2. VISION OF THE COMPANY

Bajaj autos ltd is a company built on dreams. And these dreams inspire them to create innovative products that enhance human mobility and benefit society. They want to attain World class excellence by demonstrating value added products to customers.

3. PHILOSOPHY OF THE COMPANY

Respect for the individual. The Three Joys (buying, selling and creating). Dreams inspire us to create innovative products that enhance mobility and

benefit society. To meet the particular needs of customers in different regions around the world, we base our sales networks, research and development centers and manufacturing facilities in each region. Furthermore, as a socially responsible corporate citizen, we strive to address important environmental and safety issues.

4. OBJECTIVE OF THE COMPANY

Bajaj limited is to cater the market needs of transportation by providing 2 wheelers and 3 wheelers vehicles. Bajaj Auto ltd. Has been producing the catalogue products to cater the changing market requirements. Based on the customer feedback, improvements are being made continuously in existing products.

5. COMPOSITION OF BOARD OF DIRECTORS

Name Rahul Bajaj Madhur Bajaj Rajiv Bajaj Sanjiv Bajaj Pradeep Shrivastava 0 Rakesh Sharma R C Maheshwari Title Chairman Vice Chairman Managing Director Executive Director President (Engineering) CEO (International Business) CEO (Commercial Vehicles)

S Sridhar Abraham Joseph Eric Vas C P Tripathi Kevin Dsa K Srinivas

CEO (Two Wheelers) President(Research & Development) President (New Projects) Vice President (Corporate) Vice President (Finance) Vice President(Human Resources)

6. DIFFERENT PRODUCT RANGE

The companys product range include Avenger 220 DTS-I, Pulsar 200 NS , Pulsar 220, DTS-I, Pulsar 180 DTS-I, Pulsar 150 DTS-I, Pulsar 135 LS, Discover 150, Discover 125 ST, Discover 125, Discover 100, Platina 100 CC, Ninja 250R, Ninja 650R. Bajaj models are strongly associated with advanced design and technology, apart from the established qualities of durability, reliability and fuel-efficiency.

7. PROMOTION AND ADVERTISEMENT STRATEGY

The early 1990s saw a recession in the Indian two-wheeler market. Overall sales of two wheelers declined by 15% in 1991 and 8% in 1992.This period saw a steep rise in fuel prices which resulted in consumers placing greater emphasis on fuel efficiency when purchasing a new two wheeler. However, even as late as 1997-98, the scooter segment was the largest sub segment in

the two wheeler market. Scooters, with 42% of the market (in terms of unit sales), were followed by motorcycles (37%), and mopeds (21%) By the end of FY2000, the numbers clearly indicated that consumer preference had shifted firmly towards motorcycles with four-stroke engines and industry watchers predicted that this trend would continue. Geared scooter sales registered a fall of 41% in 2001. The market has shifted to motorcycles. We will have to follow the trend, says Venu Srinivasan. BAL realized though rather belatedly, that it would have to cater to the changing consumer tastes and preferences, if it had to survive. Rajiv, who later agreed that BAL had been slow in reading the demand pattern, said that the company had failed to anticipate consumer behavior.

8.

DISTRIBUTION NETWORK
Bajaj Auto is restructuring its marketing and distribution network to address the different requirements of the urban and rural markets. The company has recently launched its high-end bike dealership Probiking and is now in the process of categorizing its existing 479 dealership network into urban and rural dealerships. Rajiv Bajaj, MD, Bajaj Auto said, Besides Probiking, which is our channel for high-end bikes, we will split the rest of the twowheeler dealer network into rural and urban. This is being done to cater to the different needs of the rural and urban customer in terms of product, infrastructure, working capital, financing and servicing. As competition hots up in the Indian motorcycle industry, Bajaj Auto Ltd and TVS Motor Company are chalking out aggressive marketing plans to race ahead in this sector. In a bid to regain its leadership position, Bajaj Auto is planning to

expand its distribution network to reach out to a wider target audience. Likewise, TVS Motor Company is all set to extend the number of its dealership and service centers in the near future. Clearly, Bajaj Auto and TVS Motor are shifting gears. On Bajaj Autos distribution strategy, says Bajaj Auto vice president(business & product development) RL Ravichandran: We plan to expand our dealership network and service centres to improve our penetration into smaller towns across the country. In fact, we plan to increase the number of dealerships and service centres by 20 to 25 per cent. With this move, we will be able to cover towns with a population of two to three lakh. Incidentally, the company is all set to unveil its entry-level motorcycle called BYK this month. Priced at Rs 30,000, BYK is positioned as a stylish bike targeted at the entry level audience. Ogilvy & Mather India will be designing the communication strategy for the new bike from the Bajaj stable. As part of its offline promotion strategy, the company recently hosted the Bajaj Boxer Indian Telly Awards 2002 on Star Plus to promote its Bajaj Boxer range.
9.

FINANCE: DEBT COMPOSITION

Debt to Equity breakdown for Honda
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
BAJAJ AUTO LTD D/E = Total Debt/Total Equity =

0.02 times

High Debt to Equity ratio typically indicates that a firm has been barrowing aggressive to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging barrowing against the capital invested by the owner. According to company disclosure Bajaj Auto Ltd. has Debt to Equity of 0.02 times.

10.

HR and TRAINING

The important thing is not to stop questioning - Albert Einstein This aptly sums up what we practice at Bajaj Auto. Learning is a daily activity, well augmented by experienced colleagues who make it all the more enjoyable. Some key initiatives to facilitate a learning environment at Bajaj Auto are: a) Individual-Owned Learning I do it my way Employee develops ones own learning plan, based on mutually identified competency gaps, in present and aspired job in career path. b) User friendly Learning Management Software We provide self-paced and location independent learning by offering 24X7 single window platform for all learning interventions like instructor-led training programs, E-learning modules and informal learning through communities. c) Idea Management and Knowledge sharing

We encourage our employees to explore the unknown and in the process, create value for the company. Kaizen Idea Management and various Knowledge Sharing forums ensure that we hear our employees and channelize their creativity towards product and process innovation.