A Presentation on Export of

Bajaj Auto Ltd

Guided By Prof. Suneet Saxena Submitted By Ruchika Shah 117110590000 Hardik Dave 117110592125

Parul Institute of Management and Research MBA Programme Affiliated To Gujarat Technological University Ahmedabad
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Bajaj Exports

About Company
Bajaj was established in 1945 Indias 2nd largest Motorcycle Maker

Worlds largest Three Wheeler Maker

Incorporated as a trading company

Recorded sales of 2.8 million vehicles in FY-09-10

1948 1959
Imported scooters & three wheelers from Italy

Production License 1959 Technical collaboration with Piaggio of Italy in 1960 1971- collaboration expired

Company History

Bajaj group was started by Mr. Jamnalal Bajaj. On November 29, 1945 Bajaj Auto came into existence as M/s Bachraj Trading Corporation Private Ltd.

It started off by selling imported two- and three-wheelers in India

It started with three wheeler goods carriers in 1971, followed by Bajaj Chetak, Super and Priya and now it manufactures various bikes and scooters.

Awards
Pulsar- AME 2010
Most Efficient Use of Branded Content

Discover DTS-i
CNBC Overdrive 2010 Storyboard Auto Commercial of the Year (Bike)

Bajaj Auto
NDTV Profit Bike Awards 2010 Best Integrated Campaign 2 Wheeler

Kawasaki Ninja 250R

CNBC Overdrive 2010 Bike of the Year

Passenger Carrier

Presence
Distribution network covers 50 countries Dominant presence in Sri Lanka, Mexico, Bangladesh, Columbia, Peru, Egypt, Iran and Indonesia. Largest exporter in three-wheelers 26% growth in total exports over 2003-04 43% growth in total exports over 2004-05

Services- Business Partners

Training in sales,services & spare part management based on 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 CKD kits

Strategies For Export Markets

CBU Completely Built Unit import duty < India CKD Completed Knocked Down import duty > India SKD Semi Knocked Down

Export Pricing
Mfg. cost (say for 1 Bike) = Rs. 24000 Margin (10%) = Rs. 2400 Load transportation to port (JNPT) = Rs. 200 Clearing & forwarding = Rs. 100 FOB price = Rs. 26700 Incentives (DEPB) (10%) = Rs. 2427 After deducting incentive = Rs.24273 FOB Price ( in $) (Say 1$=Rs.45) = $ 539.4 Ocean Fright ($700 / 70 = $10) = $ 10 C&F Price = $ 549.4 CIF Price (Insurance 0.3 % =1.62) =$ 551.02 (This is Price of 1 Bike from Pune to colombo)

Strategies For Export Markets

Packaging
Pricing Transportation

August - 2005 Volumes

August 2005 149,416 164,020 22,782 186,802 23,752 August 2004 106,745 119,896 19848 139,743 13,575 Change % 40 37 15 34 75

MOTORCYCLES

TOTAL 2 WHEELERS 3 WHEELERS TOTAL 2 & 3 WHEELERS Exports out of the above

July - 2005 Volumes

July 2005 MOTORCYCLES 115,216 126,821 22,585 149,406 14,698 July 2004 103,260 120,092 21,651 141,743 15,279 Change % 11.5 5.6 4.3 5.4 -3.8

TOTAL 2 WHEELERS 3 WHEELERS TOTAL 2 & 3 WHEELERS Exports out of the above

June - 2005 Volumes

June 2005 MOTORCYCLES 130,710 141,316 19,966 161,282 15,946 June 2004 97,591 112,643 21,748 134,391 16,379 Change % 33.9 25.5 -8.2 20 -2.6

TOTAL 2 WHEELERS 3 WHEELERS TOTAL 2 & 3 WHEELERS Exports out of the above

April - 2005 Volumes

April2005 MOTORCYCLES 137,858 April-2004 90,532 Change % 52

TOTAL 2 WHEELERS 3 WHEELERS TOTAL 2 & 3 WHEELERS Exports out of the above

147,592
17,453

105,247
16,152

40
8

165,045
19,007

121,399
16,838

36
13

April-August - 2005 Volumes

April-August April-August Change % 2005 2004 687,174 485,791 41 742,502 558,899 33 98,678 841,180 88,943 95,577 654,476 78,875 3 29 13

MOTORCYCLES

TOTAL 2 WHEELERS 3 WHEELERS TOTAL 2 & 3 WHEELERS Exports out of the above

March-2005 Volumes
MOTORCYCLES March2005 134,670 144,776 18,754 163,530 24,404 March2005 94,223 118,680 20,139 138,819 13,625 Change % 42.5 22.0 -6.9 17.8 79.1

TOTAL 2 WHEELERS 3 WHEELERS TOTAL 2 & 3 WHEELERS Exports out of the above

Quality Standards
Quality assured by ARAI
( Automotive Research Association of India Pune)

Emission Norms Bharat Stage II