n 1945, Kamalnayan Bajaj, Jamnalal's son, set up Bachraj Trading

Corporation Ltd.
n 1960, BTCL was renamed Bajaj Auto Ltd. (BAL) and the company
went public.
n the early 1960s, BAL, in collaboration with Piaggio, started
manufacturing Vespa brand scooters at its plant near Pune,
Maharashtra.
Rahul Bajaj became the group's chief executive officer in 1968 after
first picking up an MBA at Harvard.
By 1970, the company had produced 100,000 vehicles.

The technical collaboration agreement with Piaggio of taly

expired in
1977
Piaggio, maker of the Vespa brand of scooters, filed patent
infringement suits to block Bajaj scooter sales in the United
States, United Kingdom, West Germany, and Hong Kong.
Japanese and talian scooter companies began entering the
ndian market in the early 1980s.
The Bajaj M-50 debuted in 1981,
n 1987 his attempt to buy control of Ahsok Leyland failed.
Bajaj Auto produced one million vehicles in the 1994-95 fiscal
year.
The company was the world's fourth largest manufacturer of
two-wheelers,behind Japan's Honda, Suzuki, and Kawasaki.
Bajaj Auto had quadrupled its product design staff to 500.
t also acquired technology from its foreign partners, such
as Kawasaki
(motorcycles), Kubota (diesel engines), and Cagiva
(scooters).
'Honda's annual spend on R & D is more than my turnover'.
n late 1999, Rahul Bajaj made a bid to acquire ten percent
of Piaggio
for $65 million
Employment fell from about 23,000 in 1995-96 (the year
Bajaj suffered
a two-month strike at its Waluj factory) to 17,000 in 1999-
2000.
IRODUCTS:
Il nanufacluiod 12 diffoionl nodoIs
2-vhooIoi pioducls Iifolino Iios lolvoon 1O o 15
yoais
9O of 3- vhooIois voio usod as Iov-cosl
passongoi laxis
1O usod as Iighl connoiciaI vohicIos
Avoiago Iifo lino of 3-vhooIoi pioducls vas 1O yis
ANUIACTURINC: Il is capalIo of pioducing al
a ialo of ovoi 3,OOO vohicIos a day in lvo
AKURDI pIanl onpIoys 5,8OO voikois and
nanufacluiod 4 scooloi nodoIs,-8O noloicycIo
aulo iickshav
WALU} pIanl onpIoys 4,8OO voikois and
nanufacluiod 3 scooloi nodoIs,K-
1OO,4SnolocycIos,ioai ongino aulo iickshav and
sunny nopod
KAATH-AL. gonoiaI nanagoi oxpIainod his
nollo OURCOAL IS CONTINOUS
IIROVLLNT
AKURDI pIanl sIogans ZLRO DLILCTS AND
THINK QUALITY
W TARCLTINC:
W Scoolois laigolod lho IAILY AN agod lolvoon
27 and 38 yoais
W oloi-cycIos laigolod young singIo nan agod
lolvoon 21 and 3O
W opods voio lho choaposl lvo vhooIois avaiIalIo.
W A}A} SUNNY laigolod lo loonagois and vonon
W In 1993 consunois oughl lo luy Iov nainlonanco
noods and a Iong lino al a Iov cosl
W DoaIois loIiovod lhal addilionaI koy succoss facloi
foi 2-vhooIoi nanufacluioi vas SLRVICL iosoaich
AL vas lho onIy conpoliloi
Il nanufacluiod vilh a fuII iango of
coIIaloialion vilh KAWASKI
ajoi conpolilois aio
HONDA,YAAHA,SUZUKI,IIACCIO
}apan pioducls aio naikolod sinco 1984
Thoy voio poicoivod ly indian consunois as
Highoi loch, noio nodoin and lolloi finishod
lhan donoslic pioducls
Ropulalion foi Loss fuoI officioncy, coslIy lo
puichaso and Iinilod spaio pails
HONDA:AL inpoilanl conpoliloi in 1993
Il has a lochnicaI advanlago foaluios Iiko
oIocliic slailoi and nodoin aulonalic diivo
1985-Iaunchod 4 slioko noloi cycIo iosuIlod in
fuoI ocononics foi lho consunoi
1992-naikol Ioadoi in noloi cycIo
1993-ianks 1 in Indian 2 vhooIoi naikol
Il Iaunchod a nov slioan of Iioducls in lho 5O-
15Occ calogoiy
1993-Il vas soId lhiough 218 oxcIusivo doaIois
Kinolic honda lhiough 39O
Il incioasod ils nunloi of doaIois and piovido
lhon vilh avg. naigin of 4.5
YAAHA: TochnicaI Iiconsing vilh LSCORTS
Capluiod 15 of noloicycIo naikol
Iioducl Iino disliilulod lhiough 49O oxcIusivo
Lscoil doaIois
Yanaha had a good naikol in Indian naikol
lul Lscoil Iossos naikol shaio and piofils
Yanaha and Lscoil IikoIy lo foin a Lquily
lasod joinl vonluio
Whoio Lscoil had a sufficionl financiaI
iosouicos

SUZUKI: }oinl vonluio vilh TVS gioup

8 of oloicycIo naikol
Iioducls disliilulod lhiough 337 oxcIusivo
doaIois
Suzuki had a appiopiialo scooloi naikol
Il ioconlIy acquiiod a conlioIIing inloiosl in 4
vhooIoi naikol
1993-Tvs-suzuki lhoio hoId no piofil
Whoio Tvs had a financiaI iosouicos
IIACCIO: LL nanufacluiod scoolois vilh
IIACCIO
Thoy voio siniIai lo AL pioducl
HoId 11 shaio of lho scooloi naikol
1992-Woak naikol
Ioi ANY yoais DLAND ovoicono
IRODUCT
Il onjoyod a pioloclod soIIoi naikol
198O-facod a conpolilion
1993-Incioasod annuaI saIos lo 1 niIIion unils
Achiovod shaio Ioadoiship-
In 2 vhooIoi sul calogoiios
As voII as 3 vhooIoi sognonl
Highoi Ialoui pioduclivily and gioaloi aulonalion
Wido spioad disliilulion nolvoik
TochnicaI oxpoiliso coIIaloialion vilh Kavasaki }apan
WoiIds Iov cosl nanufacluio 2-3 vhooIois
InpIononlod nov lochnoIogy using CAD/CA and
CNC nachinos
High ocononics of scaIo
Lxlonsivo soivico & avaiIaliIily of spaio pails
Cood liand nano
Lacks dosign capaliIily and aliIily lo liansIalo
nov pioducls
Avoiago pioducl lino foi nov nodoIs 4-5yoais
Lack of sufficionl skiII poisonaI in R&D
Lov iosponso of suppIiois
Hugo conpolilion fion IocaI and foioign
pIayois
IinanciaI suppoil
Launching of nov pioducls and vaiianls of
oxisling nodoIs lackod up ly appiopiialo
naikoling offoils.
IuoI officioncy vhich is nuch highoi lhan
conpolilois
ViiluaI zoio nainlonanco anong lho pioducls
EffcctIvc dIstrIbutInn nf Its prnducts tn 330 cxc!usIvcs
dca!crs acrnss thc cnuntry.
Thc dIstrIbutInn systcm was cnmputcrIzcd wIth 30% nf
dca!crs cnnncctcd by mndcm !Ink.
In 90's an addItInna! parts dIstrIbutcrs channc! was
npcncd.
5parc parts wcrc casI!y avaI!ab!c anywhcrc at rcasnnab!c
prIccs.
Abnut 40% nf a!! 2-whcc!crs sparc parts sn!d In IndIa wcrc
madc by BAL
Hoio Honda's svilch slail aulonalic
liansnission 1OOcc scooloi
Conpolilion fion NC's
Covoinnonl ioguIalions
DoaIois nol adjuslod vilh changing ioaIilios
Chango in laslos of consunois
In 1993,AL has dovoIopod a nolvoik of 33O
doaIoiships in India, and 8oo Iiconsod soivico
conloi.
DoaIois nainlainod soivico conlois and spaio pails
invonloiios.
AL logan lo sol up iogionaI dopols, foi
nanagononl of piofilaliIily and lo ioduco liansil
lino.
In 1994, AL pIannod lo oxpand ils doaIoi nolvoik
lo 37O, pailicuIaiIy in iuiaI aioas
India govl. did nol oncouiago lank Ioans foi 2-
vhooIois puichaso.
In 1988 ,AL oslalIishod ajaj Aulo Iinanco
Lld.(AIL) lo piovido consunoi financo.
In 1992,AIL had financod ovoi 1OO,OOO vohicIos.
In 1993,16O of lho 33O doaIois opoialod AIL
consunoi financo schonos
EDI
A
2-
whcc!crs
3-
whcc!crs
BAL
cnrpnratc
BAFL Dca!cr
cnnp
TOTAL
T.V 44.5 O 2.5 1 2 5O
IRLSS 34.5 2 2.5 3 7 49
RADIO 1 O O.O 1 1 3
ACAZI
NL
5 O 1.O 1 1 8
TOTAL 85 2 6.O 6 11 11O
In lho pasl, AL piicing slialogy vas adoqualo
ioluin foi doaIoi and 15 naigin foi
nanufacluiois.
In 1993,slialogy vas Iovoi lho inpul lo gain lho
ponolialion in lho naikol pIaco.
In ovoiy naikol sognonlalion, lhoy adopl
diffoionl piicing slialogy in diffoionl nodoIs lo
caloi lho diffoionl naikol sognonl.
In lho US lho 5Occ naikol vas doninalod ly
japanoso naikol
In LUROIL lho 5Occ naikol vas aIso lho
Iaigosl sognonl
In lhoso counliios pioducl poifoinanco
ioquiiononls voio oxciling
Tho naikol foi 3 vhooIois in lhoso counliios
voio viiluaIIy non oxixlonl.
In soulh oasl Asia inpoils of lvo vhooIois
voio iosliiclod
China vas lho Iaigosl naikol in lho voiId
}apanoso had sol up pIanls in China
ajoi piolIons vilh Afiican counliios vas lho
difficuIly lo accoss lo foioign oxchango
Lalin Anoiica vas an alliaclivo naikol foi 2
vhooIoi naikol
BAL cxccutIvcs wcrc cnnsIdcrcd thrcc nptInns
fnr IntcrnatInna! markcts-
Il shouId focus on donoslic naikol and oxpoil
onIy lo oppoilunislic lasis
Il shouId puiso oxpoil in dovoIoping counliios
Iionolo oxpoils in dovoIoping counliios,
iniliaIIy focusing on lho Iovoi ond OILD
naikol in LUROIL
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