Critical Anaysis of Bajaj Automobiles Limited

EXECUTIVE SUMMARY
The project “Critical Analysis of Bajaj Automobiles Limited” was undertaken to

study the financial status of the company and its progress over the year and also to
gain knowledge about the strengths and weaknesses of the company, etc.
Bajaj Auto is a major Indian automobile manufacturer. It is India’s largest and the
world’s 4th largest two- and three-wheeler maker[citation needed]. It is based in Pune,
Maharashtra, with plants in Akurdi and Chakan (Pune),Waluj (near Aurangabad) and
Pantnagar in Uttaranchal. Bajaj Auto makes and exports motorscooters, motorcycles
and the auto rickshaw. The Forbes Global 2000 list for the year 2005 ranked Bajaj
Auto at 1946. Over the last decade, the company has successfully changed its image
from a scooter manufacturer to a two wheeler manufacturer. Its product range
encompasses scooterettes, scooters and motorcycles. Its real growth in numbers has
come in the last four years after successful introduction of a few models in the
motorcycle segment. The company is headed by Rahul Bajaj who is worth more than
US$1.5 billion.
Today, the company has become a market leader with annual production in excess of
1.35 million units which was about 4000 units in 1961. These days, Bajaj Auto Ltd.
has started offering products in all segments (mopeds & scooterettes, scooters,
motorcycles, three wheelers).
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CHAPTER 1: INTRODUCTION
1.1 INFORMATION OF THE COMPANY

Bajaj Automobiles Ltd is one of the leading two & three wheeler manufacturers in
India. The company is well known for their R&D, product development, process
engineering and low-cost manufacturing skills. The company is the largest exported
of two and three-wheelers in the country with exports forming 18% of its total sales.
The company has two subsidiaries, namely Bajaj Auto International Holdings BV and
PT Bajaj Indonesia.
The company was incorporated on April 30, 2007 as a wholly owned subsidiary of
erstwhile Bajaj Auto Ltd (the holding company) with the name Bajaj Investment &
Holding Ltd. The company received the certificate of commencement of business on
May 7, 2007. The holding company operated in the segments, such as automotive,
insurance and investment, and others. Considering the growth opportunities in the
auto, wind-energy, insurance and finance sectors, the holding company de-merged
their activities into three separate entities, each of which can focus on their core
businesses and strengthen competencies.
The auto business of the holding company along with all assets and liabilities
pertaining thereto including investments in PT Bajaj Auto Indonesia and in a few
vendor companies transferred to Bajaj Investment & Holding Ltd. In addition a total
of Rs 15,000 million in cash and cash equivalents also transferred to Bajaj Investment
& Holding Ltd. As the part of the scheme, Bajaj Holdings and Investment Ltd were
renamed as Bajaj Auto Ltd. The appointed date of this de-merger was closing hours of
business on March 31, 2007.
In April 9, 2007, the company inaugurated their green field plant at Pantnagar in
Uttarakhand. In the first year of operations, the plant produced over 275,000 vehicles.
The companys vehicle assembly plant at Akurdi was shut down from September 3,
2007 due to higher cost of production.
In November 2007, Bajaj Auto International Holdings BV, a wholly owned subsidiary
company acquired 14.51% equity stake in KTM Power Sports AG of Austria, Europes
second largest sport motorcycle manufacturer for Rs 345 crore.
During the year 2007-08, the company launched XCD 125 DTS-Si and the Three-
wheeler Direct Injected auto rickshaw. The Chakan plant completed the cumulative
production of over 2 million Pulsar.
During the year 2009-10, the company expanded the production capacity of
Motorised Two & Three Wheelers by 300,000 Nos to 4,260,000 Nos. The company
launched Pulsar 220 F, Pulsar 180 UG, Pulsar 150 UG, Pulsar 135 LS and Discover
DTS-si in the market.
During the year 2010-11, the company expanded the production capacity of
Motorised Two & Three Wheelers by 780,000 Nos to 5,040,000 Nos. The company
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launched Avenger 220 DTS-i, KTM Duke 125, Discover 150 and Discover 125 in the
market.
The company plans to maintain the capacity of two and three-wheelers at the current
level of 5,040,000 numbers per annum during the year ending 31 March 2012. The 4
wheel vehicle development work is under progress and commercial launch of the first
product from this platform is scheduled for 2012.
In 2012, Bajaj Auto tied up with Japans Kawasaki in Indonesia. In 2013, the
Company has introduced another variant of premium motorcycles under the Bajaj-
KTM joint venture namely Duke 390cc for a price of Rs 1.83 lakh. The company also
received CII Design Excellence Award
In 2014, Bajaj Auto bagged order in Sri Lanka -Peoples Choice Bike of the Year -
CNBC TV18 Overdrive Awards. The Company has also received Bike of the Year
BBC Topgear Awards.
In 2015, Bajaj Auto has introduced the all-new Platina electric start 100 cc bike to the
long-distance commuter.
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1.1.2 HISTORY OF BAJAJ AUTOMOBILES 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
manufacturer and three wheelers manufacturer), home appliances, lighting, iron and
steel, insurance, travel and finance. The group's flagship company, Bajaj Auto, is
ranked as the world's fourth largest three and two wheeler manufacturer and the Bajaj
brand is well-known across several countries in Latin America, Africa, Middle East,
South and South East Asia. Founded in 1926, at the height of India's movement for
independence from the British, the group has an illustrious history. The integrity,
dedication, resourcefulness and determination to succeed which are characteristic of
the group today, are often traced back to its birth during those days of relentless
devotion to a common cause. Jamnalal Bajaj, founder of the group, was a close
confidant and disciple of Mahatma Gandhi. In fact, Gandhiji had adopted him as his
son.
This close relationship and his deep involvement in the independence movement did
not leave Jamnalal Bajaj with much time to spend on his newly launched business
venture. We are celebrating 125th Birth anniversary of Shri. Jamnalal Bajaj on 4th of
November 2014.
His son, Kamalnayan Bajaj, then 27, took over the reigns of business in 1942. He too
was close to Gandhiji and it was only after Independence in 1947, that he was able to
give his full attention to the business. Kamalnayan Bajaj not only consolidated the
group, but also diversified into various manufacturing activities. The present
Chairman of the group, Rahul Bajaj, took charge of the business in 1965. Under his
leadership, the turnover of the Bajaj Auto the flagship company has gone up from
INR.72 million to INR. 120 billion, its product portfolio has expanded and the brand
has found a global market. He is one of India’s most distinguished business leaders,
bike manufacturer india and internationally respected for his business acumen and
entrepreneurial spirit.
Bajaj Auto Limited is an Indian automobile manufacturing company. It manufactures

two and three-wheeler machines. It manufactures and sells motorcycles, scooters and
auto rickshaws. Bajaj Auto Limited is a part of Bajaj Group of industries. The Bajaj
Auto was founded by Jamnalal Bajaj in Rajasthan in the year 1940s. It has its plants
in Mumbai, Pune, Chakan, Waluj, Pantnagar in Uttarakhand. Its oldest plant was in
Akurdi(Pune) which is know transformed into the R&D center.
Bajaj Auto is the world’s 6th largest motorcycles manufacturing company and the 2nd
largest in India. It is the world largest three-wheeler manufacturer. It gave a start to
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the manufacturing of scooters from getting license from Vespa. The most popular
scooter by Bajaj was the Chetak scooter. This scooter had a waiting period of about a
year, and its production lasted for about 34 years. By around 1990’s Bajaj Auto
started focusing more on motorcycles since the market trend was shifting. It also came
as a surprise to all when it announced that the company will withdraw from scooter
manufacturing since the scooter had created the goodwill for Bajaj Auto Limited.
Saffire was the last scooter produced by Bajaj. It then mainly focused on motorcycles
and Bajaj Boxer and Bajaj discover were its commuter brand in the country and the
sales of this motorcycles rised very fast. Then it came with Bajaj Avenger which still
remains the most Affordable cruiser in India. But it was mainly because of Bajaj
Pulsar the name of Bajaj came into existence and cemented its position in the
motorcycle segment in India. It was positioned as the performance bike-maker in
Indian market. The main feature of the bikes where because of its value for money
without compromising on its features, power, technology. The pulsar range of Bajaj
motorcycles has grown a lot and at a steady pace with many iterations and a 400cc
Pulsar version in a power cruiser form is launched in the market in August,2016 in the
form of Bajaj Pulsar CS400.
Bajaj currently sells its products through 2 formats, 1. Bajaj showrooms which sells
all Bajaj bikes.2. Pro-biking showrooms which sells bikes of KTM and Kawasaki.
On May 2015, its market capitalization was ₹640 Billion (US $9.9 Billion), making it
the India’s 23rd largest publicly traded company by market value. The Forbes Global
2000 list for the year 2012 ranked Bajaj Auto at 1,416 Rank.
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1.3 PHILOSOPHY OF THE COMPANY
Bajaj Automobiles Limited recognizes the importance and impact that automobiles
have on society and mankind. It strives to play a role that extends beyond being a
simple manufacturer to become customers’ lifetime companion. It will build
connections with customers by fulfilling its vision to become a “lifetime partner in
automobiles and beyond” and participate in working “together for a better future” as a
constituent of Bajaj Group.
Bajaj Automobiles Limited established a new vision, “Together for a better future.” in
order to fulfill its role and responsibility as a trusted global firm. Bajaj Automobiles
Llimited defined its vision of being a “Lifetime partner in automobiles and beyond” to
come one step closer to its customers and become their beloved brand. A bike is no
longer simply a means of transportation that links people to people; it has become a
life space that occupies a central role in people’s lives. As such, Bajaj Automobiles
Limited seeks to become a lifetime partner in the everyday lives of customers. At this
very moment, It is developing eco-friendly and human-oriented technologies for the
future and setting up optimized global management systems in order to provide the
best experience to its customers.
• Bring a new perspective to automobiles - The company wants to expand the

concept of the automobile from the simple means of transportation that it is
now, to a new space that connects people to their families, work, and society.
By transforming the automobile into a happy space that people can rely on
anywhere and at any time, they aim to add new value to the traditional
methods of mobility.
• Innovative mobility solutions - They also deliver greater benefits and value to
their customers by securing cost competitiveness in the global market. From
product development to after-sales service, they ensure that every process
related to the automobile is in line with providing the ultimate customer
experience.
• Human-centric, eco-friendly technologies and services -Their automotive

business will bring to life the stability and convenience that comes with
innovative technologies. In addition, they continue to realize sustainable
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management by ceaselessly developing new technologies that aim to enhance
energy efficiency. They also utilize cutting-edge IT technology to maximize
connectivity with our customers.
Mission & Values

Bajaj doesn't have a straight vision or mission statement. They define it in terms of
brand identity and brand values.
Brand Identity
 Their Brand is the visual expression of their thoughts and actions.
 It conveys to everyone their intention to constantly inspire confidence.
 Their customers are the primary audience for their brand.
 Their Brand Identity is shaped as much by their belief in Bajaj as it is by their own
vision.
 Everything they do must always reinforce the distinctiveness and the power of their
brand.
 They can do this by living their brand essence and by continuously seeking to
enhance their customers experience.
 In doing so, they ensure a special place for themselves in the hearts and the minds
of their customers.
Brand Values
The brand lives by its values of Learning, Innovation, Perfection, Speed and
Transparency. Bajaj will constantly inspire confidence through excitement
engineering.
 Learning - Learning is how they ensure proactivity. It is a value that embraces

knowledge as the platform for building well informed, reasoned, and decisive actions.
 Innovation - Innovation is how they create the future. It is a value that provokes us
to reach beyond the obvious in pursuit of that which exceeds the ordinary.
 Perfection - Perfection is how they set new standards.It is a value that exhibits our
determination to excel by endeavoring to establish new benchmarks all the time.
 Speed - Speed is how they convey clear conviction. It is a value that keeps us
sharply responsive, mirroring our commitment towards our goals and processes.
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 Transparency - Transparency is how the characterise themselves. It is a value that
makes them worthy of credibility through integrity, of trust through sensitivity and of
loyalty through interdependence.
1.4 THE BUSINESS GROUP AND THE INDUSTRY

Bajaj Group companies:
• Bajaj Auto Ltd. – Manufacturers of Scooters, Motorcycles and Three-wheeler

vehicles and spare parts.
• Bajaj Finance Ltd. – Deals in financial services including hire purchase,
financing & leasing.
• Bajaj Finserv Ltd – Financial Services.
• Bajaj Holdings & Investment Ltd. – Investment Company focusing on new
business opportunities.
• Mukand Ltd. – Manufacturers of stainless, alloy and special steels including
carbon and alloy steels.
• Bajaj Electricals Ltd. - Manufacturers of electric fans, high masts, lattice
closed towers and poles.
• Bajaj Ventures Ltd. – involved in manufacturing and trading of power tools
and manufacturing of housewares and parts.
• Maharashtra Scooters Ltd. k- Manufacturers of Scooters.
• Bajaj Allianz General Insurance Company Ltd. – General insurance business.
• Bajaj Allianz Life Insurance Co Ltd. – Life insurance business.
• Bajaj Financial Solutions Ltd. – Distribution of financial products and
services.
• Bajaj Allianz Financial Distributors]] Ltd. – Distribution of financial products.
• Bajaj Auto Holdings Ltd. – Investment Company.
• PT Bajaj Auto Indonesia (PTBAI) - Bajaj Auto venture in Indonesia.
• Bajaj Auto International Holdings BV – Bajaj Auto venture in Netherlands.
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• Hind Lamps Ltd. – Manufactures GLS, fluorescent, miniature lamps and
major components, such as glass shells, miniature and aluminum caps, lead
glass.
• Mukand Engineers Ltd. – Construction, fabrication and erection of industrial
and infrastructural projects and infotech business.
• Mukand International Ltd. – Trading in metals, steel and ferro alloys.
• Bajaj Sevashram Pvt. Ltd. – Investment activities.
• Jamnalal Sons Pvt. Ltd. – Investment and finance company.
• Rahul Securities Pvt. Ltd.
• Shekhar Holdings Pvt. Ltd.
• Madhur Securities Pvt. Ltd.
• Niraj Holdings Pvt. Ltd.
• Rupa Equities Pvt. Ltd.
• Kamalnayan Investments & Trading Pvt. Ltd.
• Sanraj Nayan Investments Pvt. Ltd.
• Hercules Hoists Ltd. – Manufactures ‘INDEF’ brand materials handling
equipment such as triple spur gear chain pulley blocks, chain electric hoists
and wire rope.
• Hind Musafir Agency Ltd. – Travel agency.
• Bajaj International Pvt. Ltd. – Export electric fans, GLS lamps, fluorescent
tubes, light fittings, etc.
• Bachhraj Factories Pvt. Ltd. – Ginning and pressing of cotton bales.
• Baroda Industries Pvt. Ltd. – Investment Company.
• Jeewan Ltd. – Investment company
• Bachhraj & Co. Pvt. Ltd. – Investment Company.
• The Hindusthan Housing Co. Ltd. – Services Company.
• Hospet Steels Ltd. – Steel plant consisting of Iron Making Division, Steel
Making Division and Rolling Mill Division.
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1.5 The Growth
Exit from scooters

Let us take bit of a flashback into the 70's and imagine a world in B&W. Bajaj
introduced its first indigenous scooter brand - Chetak. Its practicality and reasonable
price made it a blockbuster product for the company. Bajaj's name became
synonymous with scooters, just like Colgate stood for toothpaste. In the 80's the
company spawned few more brands like Priya, Super etc. and the brand slogan
'Humara Bajaj' was ubiquitous. In the absence of a formidable competition, the
company had a near monopoly in two-wheelers.
HeroHonda's-entry-in-1984
HH started offering motorcycles to the Indian customers. Share of motorcycles among

two wheelers increased gradually. Bajaj kept its fingers crossed on the scooter
segment.
Entry of Honda Motorcycles and Scooters India in 2001
HMSI launched Activa gearless scooter which quickly became a success because of
its easy handling, electric start, refined engine and distinct looks. Customers started
migrating towards Honda and Bajaj's geared scooters began to appear ancient.
Undisputed leadership often leads to indifference and ignorance (remember Kodak?).
Bajaj went into a dormant state and failed to wake up to changing market dynamics
until it was too late. It tied up with Kawasaki to enter into motorcycles in 1986 but
found itself lagging behind. The iconic Chetak ran on ventilator support and was
killed in 2005.
In a last minute attempt to salvage volumes, Bajaj came up with its gearless scooter
'Kristal' in 2006 which failed miserably. Once a dominating force, their market share
fell significantly by 2009. MD Rajiv Bajaj decided to vacate the scooter segment
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citing focus on motorcycles. This is where we feel the company left the mine just
before striking gold. Increased acceptance of modern gearless scooters among all age
groups led to a phenomenal growth of this segment. Share of scooters has increased
from 14 per cent in FY08 to about 25 per cent in FY14 and the absence of Bajaj
served the growth pie in a platter to Honda, that too for free!
The idea to completely back off from scooters was not the ideal one because Bajaj
had an extremely strong image of a scooter manufacturer with a high brand recall.
'Humara Bajaj' jingle still resonated with people. That image had to be shed and
converted to Bajaj as a motorcycle maker, which was extremely tough even after
spending truckloads of money on promotion. A new manufacturing plant along with
R&D and product development facilities had to be established, which meant spending
of more money.
Bajaj's dealers which were used to sell scooters now had to be re-trained to sell
motorcycles. Also, the distribution network had to be modified. Add few more
truckloads of money. Cost of lost opportunity. Probably worth more truckloads of
money than the above three combined. If Bajaj stayed and captured even 15 per cent
of the market, it would have earned more volumes than it currently gets from Platina.
Absence from scooter segment will continue to hurt Bajaj as scooters are likely to
grow faster than motorcycles in the years to come.
Entry-into-Motorcycles
Bajaj's motorcycle journey began in 1986 with economy bike KB100 in collaboration
with Kawasaki of Japan. The bike stayed in production for 10 years and spawned
several variants. It was replaced with Boxer in 1997 which was further succeeded by
CT100 in 2004.
Executive commuter bike Caliber was launched in 1998 and managed 1 lakh units
within 12 months. It got succeeded by Wind 125 standard street bike in in 2003. This
bike was rebadged within a year as Discover for the 125cc segment and the 100cc
version was launched as Platina in 2006.
Bajaj entered the Premium bike segment with Pulsar and Eliminator in 2001. The
Pulsar brand turned out to be a huge success for the company. Tens of design changes
and hundreds of variants later it still continues. Eliminator was eliminated in 2005 and
replaced with Avenger in 2005.
Bajaj also has a partnership with Austrian manufacturer KTM in which it also holds a
48 per cent stake. The KTM models available in India are Duke 200, Duke 390,
RC200 and RC390. Next we break down Bajaj's performance in each segment and
check if there is a devil in the details.
Motorcycles-(75-110cc)
This is the segment which brings the highest volumes to the motorcycle market. Even
a few percentage points of market share would translate into numbers in 5 digits.
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Keeping that in mind, Bajaj lost 1.87 per cent of its market share in 2014, even though
the segment witnessed a decent growth of 4.44 per cent.
The company's range of Discover 100/100 M and Platina 100/ 100 ES finds itself
hammered by market leader Hero Motocorp's onslaught through Splendor/ Passion/
HF Deluxe/ HF Dawn range of motorcycles, which sell almost 4 times in volumes.
Clearly Bajaj falls short of offerings here and needs to introduce fresh products if it
wants to capture a larger pie of this segment.
The exports however show a complete role reversal. Bajaj effectively dominates the
market more or less holding on to its share of almost 74 per cent over the past three
years. The Boxer and CT 100 brands of motorcycles, which are exclusively made for
exports have been well received in the foreign markets. In fact, Boxer is the leading
brand in Africa among all competitors. The company's exports grew 3.26 per cent in
FY14 while the total exports in the segment grew by 4.43 per cent.
Motorcycles-(110-125cc)
The fall in Bajaj's market share in this segment can be compared to the fall in crude
oil prices over the past one year, both have nearly halved. Bajaj lost 12.35 per cent of
its market share in 2014, while the segment grew a miniscule 0.39 per cent over the
previous year. Whatever share of pie was lost by Bajaj seems to have been equally
distributed between Hero and Honda. This drastic performance of the company in a
segment where it held one-third of the market needs to be probed deeper. The
Discover brand has been losing its significance despite having given several product
updates. What Bajaj has done is that they have extended the brand in both the upper
150cc segment and the lower 100c segment along with tens of variants. Two things
could have happened here: Brand Dilution - presence in three different segments
confused customers what Discover actually stands for, so they migrate to the
competitors.
Cannibalization - A price sensitive buyer goes for the lower segment for more value
for money and a performance seeking buyer opts for the upper segment rendering the
middle segment of no consequence. The picture was not that bad in the exports where
Bajaj lost 2.63 per cent market share over FY13 though there was an increase in the
absolute numbers by 12.11 per cent over the previous year. The company holds 56.49
per cent of the exports in this segment. TVS and Suzuki, though exporting much
lower numbers are steadily increasing their share.
Motorcycles (125-150cc)
This segment is yet another headache for Bajaj and for the industry as a whole. The
segment volumes have shrunk by 20.67 per cent over the past two years while that for
Bajaj have declined even faster at 36.76 per cent. As a result, Bajaj's market share has
dwindled by a significant 10.42 per cent to land at 40.94 per cent.
A sigh of relief for Bajaj is that they still hold the leadership position in this segment
and are fairly ahead of their closest competitor Honda which holds 26.67 per cent
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share. However, if this downward trend continues for another year their leadership
position may be well within arm's reach of Honda.
The Pulsar 150 has been Bajaj's star product since its inception and its 'performance'
bike image has clicked with the Indian customers. However, the company has given it
the same treatment as the Discover. Pulsar now comes in 5 different engine options -
135/150/180/200/220 cc.
Bajaj has historically followed the strategy of putting more focus on the higher engine
size segments. The company has also launched the Discover 150cc in 2014 to
reinforce their market presence. Though these segments contribute a lower volume as
compared to executive bikes, they are expected to grow significantly in the long term
as the customers move upmarket. If that happens, Bajaj might have a competitive
edge by having a stronger brand and a wider product portfolio.
The situation on the export side looks much worse than the domestic. The segment
returnedto almost the same volumes in 2014 as it had in 2012 but sadly Bajaj's did
not. Their volumes got eroded by 22.32 per cent. As a result, the share of exports
dwindled from 65.51 per cent in FY12 to 51.05 per cent at the end of FY14. The
volume eater for the company here is Yamaha Motors whose share increased from
20.79 per cent to 33.98 per cent over the two years. Here too, Bajaj's leadership
position is under grave danger and the panic button should have been pressed by
now.
This segment has only two players fighting with each other. Bajaj offers the Pulsar
180 and 200NS along with KTM Duke 200 and RC 200 while TVS's Apache RTR is
their lone fighter. Contrary to expection, this lone fighter completely demolishes the
comparatively fresh opposition single handedly. In FY14, TVS snatched away 10.20
per cent market share from Bajaj despite the product onslaught by the latter. This
being a more premium segment with major customers being the urban youth, the
importance of brand is significant. Keeping that in mind, having a strong domestic
brand like Pulsar and a global brand like KTM has not helped Bajaj salvage its
volumes.
On the other hand, exports in this segment have seen stellar growth for the company.
Over the past two years Bajaj's volumes have grown by 171%, much faster than the
overall export growth of 72 per cent. Much of this success is credited to new model
launches namely Pulsar 200NS and KTM RC200.
This segment is a three sided battle among Pulsar & Avenger 220 from Bajaj,
Karizma from Hero and CBR 250R from Honda, all of which are strong and popular
brands. However, it's Bajaj which scores a convincing win over the others. Despite
the segment volumes declining by 6.34 per cent since FY12, Bajaj has increased its
market share from 57.29 to 67.87 percent. In absolute terms, out of 137454 units sold
in 2014, 93290 units belonged to Bajaj. Once a marginal entity, the Avenger has now
caught the fancy of urban Indians who want to ride cruisers. In FY14, the company
sold about 41,000 Avengers and its demand has been increasing within a niche section
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of customers. Bajaj commands a major share of the exports in this segment and
represented 78.63 per cent of the volumes in FY14. However, being an upper segment
the volumes are comparatively low. On top of that, export volumes of the segment
have declined by 56.12 per cent and that of Bajaj have gone down by 64.09 per cent
in the span of two years.
Bajaj is a recent entrant in this segment with the KTM RC390 launch in 2014. The
good news here is that in the first year itself the bike has managed to capture 15.85%
of the market and it is expected to increase more by this year end. With its trademark
orange frame and alloy wheels, the KTM's have become quite a rage among the youth
in urban India. The rest of the segment belongs to the Royal Enfield heavyweights.
RC390 provides a sports bike body style in this segment which otherwise has only
street and cruiser bikes, hence offering a new proposition to attract buyers. Bajaj has
exported more KTM's than it has sold in the domestic market and it has led to more
than four-fold increase in the export volumes of this segment.
Commercial vehicles - three wheelers

Bajaj is the world's largest producer and India's largest exporter of three wheelers.
The company's brand RE (which stand for Rear Engine) range has three wheelers
running on diesel, alternative and hybrid power. In FY14, Bajaj held 39 per cent share
in the domestic market but sales numbers declined. The drop can be attributed to
sluggish economy and lower issue of permits by transport authorities. The
competition from Piaggio and Mahindra is also increasing in this space. Numbers did
grow in exports but slower than the overall market.
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1.6 Marketing Strategy Of Bajaj Automobiles Limited
From the last decade the Bajaj has changed its image, earlier it was known for
producing scooter now Bajaj is focusing on manufacturing a two wheeler bike. Its
number has increased in last decade after targeting the motorcycle segment. In 1959
Bajaj obtain license from the Govt. of India to manufacture 2 –wheeler and 3- wheeler
and in 1960 in went public. In the year 1977 Bajaj managed to produce and sell
100000 vehicles globally during that financial year. In the year 1986 Bajaj managed
to produce and sell 500000 vehicles globally.
MARKET SEGMENTATION, TARGETING AND POSITIONING
• SEGMENTATION - Before the Bajaj pulsar came to the Indian market Bajaj
was known for manufacturing scooter, various attempt was failed because of
hero Honda legacy. It was strategic move by Bajaj when it introduced the
Bajaj pulsar 150cc against CBZ 150 cc. Pulsar proved to be one of the most
successful two wheeler bike and became the threat for the hero Honda rule in
the Indian market. Bajaj has segmented its bike category. From 100 CC To
125 CC bike – Lower And Lower Middle Class family. From 125 CC To 150
CC bike – Middle and Upper Middle Class family. From 150 CC To 220 CC
bike – Upper Middle and Upper Class family.
• TARGETING - Bajaj did the right move by targeting the youth of the India
as in India 65 % of the population is from 18-35. Pulsar was the Bajaj first
bike without Kawasaki label on it. The bike was mainly targeting the male
segment and known for its macho look.
• POSITIONING - Bajaj has positioned Pulsar in the “high style and high
price “category along with the hero Honda Karizma, hero Honda CBZ, Royal
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Enfield. Bajaj also positioned CT 100 in the “low style and low price
“category along with Herohonda Splender , TVS star city.
• BRANDING
BRAND POSITIONING
• Pulsar
 Discover
Rebranding from Hamara Bajaj to Distinctly Ahead
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Earlier Bajaj used “B” logo in a hexagon that was known for” Hamara Bajaj” was
replaced with a more attracting, stylish, vibrant, dynamic look moving from the lower
caps to upper caps which symbolize the rejuvenated Bajaj auto ltd.
The change in the logo was the ongoing change Bajaj has transformed its
facilities like manufacturing process, service and distribution network, created its
benchmark in research and development activities. When customer has changed in
terms of quality and style then change in the identity became the necessary change for
the Bajaj to invite the paradigm shift in the consumer’s perception regarding the
company.
Bajaj pulsar joined hands with MTV India in the year 2009 in order to launch pulsar
MTV stunt mania which was India’s first ever bike stunt reality show. The main
intention of the Bajaj to target the youth of the India and MTV being the youth
centric for the excellent choice.
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1.7 SWOT ANALYSIS OF BAJAJ AUTOMOBILES LIMITED
SWOT Analysis was done to determine the position of Bajaj in the current market set-
up, evaluating its strengths, weaknesses, threats and opportunities available.
Strengths:
• Highly experienced management.
• Product design and development capabilities.
• Extensive R & D focus.
• Widespread distribution network.
• High performance products across all categories.
• High export to domestic sales ratio.
• Great financial support network (For financing the automobile)
• High economies of scale.
• High economies of scope.
Weaknesses:
• Hasn't employed the excess cash for long.
• Still has no established brand to match Hero Honda's Splendor in commuter
segment.
• Not a global player in spite of huge volumes.
• Not a globally recognizable brand (unlike the JV partner Kawasaki)
Threats:
• The competition catches-up any new innovation in no time.
• Threat of cheap imported motorcycles from China.
• Margins getting squeezed from both the directions (Price as well as Cost)
• TATA Ace is a serious competition for the three-wheeler cargo segment.
Opportunities:
• Double-digit growth in two-wheeler market.
• Untapped market above 180 cc in motorcycles.
• More maturity and movement towards higher-end motorcycles.
• The growing gearless trendy scooters and scooterette market.
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CHAPTER 2: RESEARCH METHODOLOGY
Research methodology is the specific procedures or techniques used to identify,

select, process, and analyze information about a topic. In a research paper, the
methodology section allows the reader to critically evaluate a study’s overall validity
and reliability. The methodology section answers two main questions: How was the
data collected or generated? How was it analyzed?
2.1 RESEARCH OBJECTIVES

• Reviewing the performance of a company over the past periods:
To predict the future prospects of the company, past performance is analyzed. Past
performance is analyzed by reviewing the trend of past sales, profitability, cash flows,
return on investment, debt-equity structure and operating expenses, etc.
• Assessing the current position & operational efficiency:

Examining the current profitability & operational efficiency of the enterprise so that
the financial health of company can be determined. For long-term decision making,
assets & liabilities of the company are reviewed. Analysis helps in finding out the
earning capacity & operating performance of the company.
• Predicting growth & profitability prospects:

The top management is concerned with future prospects of the company. Financial
analysis helps them in reviewing the investment alternatives for judging the earning
potential of the enterprise. With the help of financial statement analysis, assessment
and prediction of the bankruptcy and probability of business failure can be done.
• Loan Decision by Financial Institutions and Banks:

Financial analysis helps the financial institutions, loan agencies & banks to decide
whether a loan can be given to the company or not. It helps them in determining the
credit risk, deciding the terms and conditions of a loan if sanctioned, interest rate, and
maturity date etc.
• To study the strength and weakness of the company

Strengths and weaknesses are internal to the company (reputation, patents, location).
You can change them over time. Weaknesses are aspects of your business that detract
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from the value you offer or place you at a competitive disadvantage. You need to
enhance these areas in order to compete with your best competitor.
• Measuring the profitability:

Profitability is the profit earning capacity of the business. This can be measured by
Gross Profit, Net Profit, Expenses and Other Ratios. If these ratios fall we can take
corrective measures.
• Facilitating comparative analysis:

Present performance can be compared with past performance to discover the plus and
minus points. Comparison with the performance of other competitive firms
can also be made.
• Budgeting and forecasting:
Ratio analysis is of much help in financial forecasting and planning. Ratios calculated
for a number of years work as a guide for the future. Meaningful conclusions can be
drawn for future from these ratios.
• Spread awareness about Bajaj Automobiles Limited:
Having knowledge about the product will help build consumers loyalty towards the
product. It will help them in purchase of product by knowing the review about the
product. This will help them gain consumers due to popularity which will lead to
growth, expansion and development of the business which will also affect the share
price of the company.
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2.2 RESEARCH HYPOTHESIS
• Relationship between the Liquidity & Profitability
H0: There is no positive relationship between the Liquidity & Profitability of Bajaj
Automobiles Ltd.
H1: There is positive relationship between the Liquidity & Profitability of Bajaj
Automobiles Ltd.
• Price of product
H0: Customers are satisfied with price of bikes.
H1: Customers are not satisfied with price of bikes.
• Age of respondence
H0: Age has no significance effect on buying behaviour.
H1: Age has significance effect on buying behaviour.
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2.3 SCOPE OF STUDY
Financial statement analysis seeks to evaluate the performance, financial strength, ability
to generate enough cash & the growth outlook of a company. It determining the money
needs in a business can be a tough task. The analyses of the accounts and the economic
prospects of a firm require skilled and experienced professionals to carry out the task. But
the returns are as beneficial and profitable as much as the effort involved.
Financial analysis is the process of identifying the financial strength & weaknesses of the
firm by properly establishing relationship between the items of the balance sheet & profit
& loss account. Financial analysis is the starting point for the making plans, before using
any sophisticated forecasting & planning procedures. A number of tools are available in
the tool kit of the analyst for the purpose certain tools are:
1) Trend analysis
2) Horizontal analysis
3) Cash flow statement analysis
4) Ratio analysis
TREND ANALYSIS:
Trend analysis is an extension of horizontal analysis in that while the latter compares only
two years' position, the former the same for more than two years. Again the methodology
is very simple. The farther or the base year figure is taken as 100 or just 1 & all
successive years' figures are accordingly restated, or indexed When to use: Trend analysis
is valuable when one wants to use historical data to predict future values or to calculate
expected values for comparison to actual current values. Trend analysis is also useful for
identifying unexpected variances that may indicate strategic or operational changes or
entity weaknesses worthy of additional exploration and analysis.
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Advantages:
Trend analysis can:
1) Reveal potentially fruitful areas of audit investigation.
2) Detect significant variations over time.
3) Be easily understood and communicated.
4) Be readily accepted due to its widespread use.
HORIZONTAL ANALYSIS:
Horizontal analysis is very simple tool. It facilitates a quick review of the current year's
performance & financial position of a business over the previous year. The methodology
is to work out increase or decrease in each item of the balance sheet & profit & loss
account of the current year over those of the last year & to express this as a percentage of
the last year's figure. The horizontal analysis is the financial statements of a company of
successive years presented side-by-side
Advantages:
1) The first column gives the difference between the past period and the current period
while the percentage column shows what percentage of the past figure is the figure
denoting the change.
2 It places the facts very simply in front of the shareholder and makes the job of
analyzing the improvements or the lack of it very simple for the shareholder.
CASH FLOW STATEMENT ANALYSIS:
An analysis of cash flow is useful for short-term planning and controlling. A firm needs
sufficient cash to pay debts maturing in the near future, to pay interest and other expenses
as well as to pay dividends to the shareholders. The firm can make projections of cash
inflows and outflows for the near future to determine the availability of cash. This cash
balance can be matched with the firm's need for cash during the period, and accordingly,
arrangements can be made to meet the deficit or invest the surplus cash temporarily.
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Thus, a historical analysis of cash flow projections for the immediate future is very much
necessary for the smooth and proper running of the firm.
A cash flow statement is nothing but a statement of changes occurring in financial

position of a company on basis of cash. It summarizes the causes of changes in cash
position between dates of the two balance sheets. It also indicates the sources and uses of
cash. The cash flow statement is similar to the funds flow statement except that it focuses
attention on the cash instead of working capital or funds. Thus, this statement analysis
changes in non-current accounts as well as current accounts to determine the flow of cash.
STRUCTURE OF THE CASH FLOW STATEMENT:
The cash flow statement is distinct from the income statement and balance sheet because
it does not include the amount of future incoming and outgoing cash that has been
recorded on credit. Therefore, cash is not the same as net income, which, on the income
statement and balance sheet, includes cash sales and sales made on credit. Cash flow is
determined by looking at three components by which cash enters and leaves a company -
Core operations, investing and Financing
A] Cash from Operations: Cash from operations is cash generated from day-to-day
business operations.
B] Cash from Investments: Cash from investments is cash used for investing in assets,
as well as the proceeds from the sale of other businesses, equipment or other long-term
assets.
C] Cash from Financing: Cash from financing is cash paid or received from issuing and
borrowing of funds. This section also includes dividends paid (though sometimes such a
thing is listed under cash from operations).
Advantages:
It is very useful in the evaluation of cash position of the firm
1) A projected cash flow statement can be prepared in order to know the future cash
position of the firm to plan and coordinate its financial operations properly
2) A comparison of historical and projected cash flow statements can be done to find out
various deficiencies and take immediate and effective action
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3) Cash flow statement helps in planning the repayments of loans, replacement of fixed
assets and other similar long-term planning of cash
4) A series of cash flow statements reveals whether the firm's liquidity is improving or
deteriorating over a period of time and in comparison to other firms in the same industry
or in a different industry
5) It is useful for capital budgeting decisions and explains causes for poor cash Positions.
RATIO ANALYSIS:
The most important task of a financial manager is to interpret the financial information in
such a manner, that it can be well understood by the people, who are not well versed and
financial information figures. The technique, by which it is to be calculated, is known as
'Ratio Analysis'. 1) Percentage 2) Rate 3) Proportion Ratio
Analysis is an important technique of financial analysis. It depicts the efficiency or

shortfall of the organization in the form of trend Analysis. Different ratio appeal to
different people managements, having the task of running business efficiency, will
interest in all ratios. A Supplier of goods on credit will be partially interested in liquidity
ratios, which indicate the ability of the business to pay its bills. Existing and future
shareholders will indicate the ability of business to purchase. Existing and future
shareholders will interest in investment ratios, which indicate the level of return that can
be expected on an investment in business. Major customers, intent on having a continuing
source of supply, will be interested in the financial stability, as reveled by the capital
structure liquidity and profitability ratios. Debenture and loan stock holders will be
interested in ability of a business will be interested in the ability of a business to pay
interest, and ultimately to repay capital. A banker, gibing only short-term loans, will be
interested mainly in the liquidity of the business, and its ability to repay those loans.
Steps In Ratio Analysis:
1) Collection of information, which are relevant from the financial statements and then to
Calculate different ratios accordingly.
2) Comparison of computed ratios of the same organization or with the industry ratios.
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3) Interpretation, drawing of the inference and report-writing.
Advantages:
1) Inter-firm comparison, because absolute figure comparison will lead to nowhere
2) Intra-firm comparison for the same reason.
3) Comparison against industry benchmarks.
4) Analysis of chronological performance over a long period.
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2.4 SIGNIFICANCE OF THE STUDY
The process of reviewing and analysing a company’s financial statements to make better
economic decisions is called analysis of financial statements. In other words, the process
of determining financial strengths and weaknesses of the entity by establishing the
strategic relationship between the items of the balance sheet, profit and loss account, and
other financial statements.
The term ‘analysis’ means the simplification of financial data by methodical classification
of the data given in the financial statements, ‘interpretation’ means, ‘explaining the
meaning and significance of the data so simplified.’ However, both’ analysis and
interpretation’ are interlinked and complementary to each other.
The Importance Of Study Of Financial Analysis Helps:
• Finance Manager
Analysis of financial statements helps the finance manager in:
• Assessing the operational efficiency and managerial effectiveness of the company.
• Analyzing the financial strengths and weaknesses and creditworthiness of the company.
• Analyzing the current position of financial analysis,
• Assessing the types of assets owned by a business enterprise and the liabilities which are
due to the enterprise.
• Providing information about the cash position company is holding and how much debt the
company has in relation to equity.
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• Studying the reasonability of stock and debtors held by the company.
• Top Management
Financial analysis helps the top management
• To assess whether the resources of the firm are used in the most efficient manner
• Whether the financial condition of the firm is sound
• To determine the success of the company’s operations
• Appraising the individual’s performance
• evaluating the system of internal control
• To investigate the future prospects of the enterprise.
• Trade Payables
Trade payables analyse of financial statements for:
• Appraising the ability of the company to meet its short-term obligations
• Judging the probability of firm’s continued ability to meet all its financial obligations in
the future.
• Firm’s ability to meet claims of creditors over a very short period of time.
• Evaluating the financial position and ability to pay off the concerns.
• Lenders
Suppliers of long-term debt are concerned with the firm’s long-term solvency and
survival. They analyze the firm’s financial statements
• To ascertain the profitability of the company over a period of time,
• For determining a company’s ability to generate cash, to pay interest and repay the
principal amount
• To assess the relationship between various sources of funds (i.e. capital structure
relationships)
• To assess financial statements which contain information on past performances and

interpret it as a basis for forecasting future rates of return and for assessing risk.
• For determining credit risk, deciding the terms and conditions of a loan if sanctioned,
interest rate, and maturity date etc.
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• Investors
Investors, who have invested their money in the firm’s shares, are interested in the firm’s
earnings and future profitability. Financial statement analysis helps them in predicting the
bankruptcy and failure probability of business enterprises. After being aware of the
probable failure, investors can take preventive measures to avoid/minimize losses.
• Labour Unions
Labour unions analyze the financial statements:
• To assess whether an enterprise can increase their pay.
2.5 SELECTION OF THE PROBLEM:
The topic selected that for the project is “Critical Analysis of Bajaj Automobiles Ltd”.
This topic is selected in order to :
• To know awareness of people towards Bajaj Group.
• To know the preference of Bajaj Group with comparison to other competitive brands.
• To know the factors which affects consumer's buying behaviour while purchasing the
product.
• Swot analysis of Bajaj Automobiles Ltd.
• To study various factors such as quality, price, easy available, etc. Is influencing lot and
influences positively.
• Ideas about to increase the sale of the "Bajaj”.

• The objective of financial statement is to know information about the financial position,
performance & cash flows of an enterprise with the help of analytical tools.
• To know the Market Position Bajaj Automobiles Ltd. by taking Market Value Ratios.
• To know the trade-off between Liquidity & Profitability.
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I have selected survey method and secondary data for collection of data.
2.6 SAMPLING:
Sampling Technique : Non probability sampling
(A non-probability sampling technique is that in
which each element in the population does not
have an equal chance of getting selected).
People who purchase products provided by Bajaj

Sample Unit Automobiles Limited such as Pulsar, Maxima
Cargo, Avenger, Boxer, CT 100B, etc.
Sample Size
: 30
Method
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: Direct interview through questionnaire.
Scale
: Dycpnomic scale and likent scale
2.7 DATA COLLECTION:
What is Data Collection?

For this project there is a need of huge collection of data . Data collection is a standout
amongst the most essential stages in carrying on a research. You can have the best
research plan in the world, however, in the event that you can’t gather the necessary data
you will not have the capacity to complete your venture. Data collection is an extremely
challenging work which needs exhaustive planning, diligent work, understanding,
determination and more to have the capacity to complete the assignment effectively. Data
collection begins with figuring out what sort of data is needed, followed by the collection
of a sample from a certain section of the population. Next, you have to utilize a certain
tool to gather the data from the chosen sample.
Sources of Data Collection

Normally we can gather data from two sources namely primary and secondary. Data
gathered through perception or questionnaire review in a characteristic setting are
illustrations of data obtained in an uncontrolled situation. Secondary data is the data
acquired from optional sources like magazines, books, documents, journals, reports, the
web and more. The chart below describes the flow of the sources of data collection.
Sources of Primary Data Collection

Primary data will be the data that you gather particularly with the end goal of your
research venture. Leverage of Primary data is that it is particularly customized to your
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analysis needs. A drawback is that it is costly to get hold of. Primary data is otherwise
called raw information; the information gathered from the first source in a controlled or
an uncontrolled situation. Cases of a controlled domain are experimental studies where
certain variables are being controlled by the analyst.
The source of primary data is the populace test from which you gather the information.
The initial phase in the process is deciding your target populace. For instance, if you are
looking into the attractiveness of another washing machine, your target populace may be
newly-weds.
Clearly, it’s impracticable to gather information from everybody, so you will need to
focus on the sample size and kind of sample. The specimen ought to be arbitrary and a
stratified random sample is frequently sensible. In our washing machine illustration, sub
populations may incorporate adolescent couples, moderately aged couples, old couples,
and previously wedded couples.
Sources of Secondary Data Collection

You can break the sources of secondary data into internal as well as external sources.
Inner sources incorporate data that exists and is stored in your organization. External data
refers to the data that is gathered by other individuals or associations from your
association’s outer environment.
Examples of inner sources of data incorporate, but are not restricted only to, the
following:
• Statement of the profit and loss
• Balance sheets
• Sales figures
• Inventory records
• Previous marketing studies
If the secondary data you have gathered from internal sources is not sufficient, you can
turn to outside sources of data collection, some outside sources of data collection include:
• Universities
• Government sources
• Foundations
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• Media, including telecast, print and Internet
• Trade, business and expert affiliations
• Corporate filings
• Commercial information administrations, which are organizations that find the data for
you.
CHAPTER 3
REVIEW OF LITERATURE
The project selected is based on Bajaj Automobiles Ltd. company is not only a company but
has also become the most popular brand not only in India but also in other foreign countries.
This project is undertaken to know the consumers liking towards the company and its
products. This project also gives detail about the details of financial statements and cash flow
statements of the Bajaj Automobiles Limited.
Dr. Raj A. Jesu Kulandai, & Prof. Kaviarasu S. John, 2015 found in his study that the
Indian two wheeler industry is expanding and growing up each year and the motorcycle
segment is governed by genuine players viz. Hero, Honda, Bajaj, TVS, Royal Enfield. The
study discovers that buying behaviour of two-wheelers in Chennai city is significantly
influenced by a number of marketing stimuli offered by the manufacturers. It also reveals the
people from low and middle class prefer two wheeler as it matches with their individual and
family requirements. Majority of the respondents have claimed that Fuel-efficient, reliable
brand and availability of spare parts are the most preferential factors for buying g of a two
wheeler. The findings revealed the PrePurchase Analysis, Factors influencing brand
preferences, Brand wise ownership of the sample respondents and Post-Purchase analysis.
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Dr. Ronald Mani & Mr. Debasis Tripathy, 2013 assessed and perceived the behavioural
variables and their effect on the customers buying behaviour of the 300 two wheeler bike
owners from Allahabad, Lucknow and Varanasi cities of Uttar Pradesh. The study is centred
on the purchasing behaviour of the customer that provokes them to buy the two wheeler bike.
The bike associations decided for study were Bajaj Auto, Hero Motocorp, HMSI, Yamaha
Motors and TVS Motors. The promotion was an exceptionally affecting variable for the Bajaj
two wheeler customers, family members were exceedingly impacting element for the Honda
two wheeler customers and friends were profoundly impacting component for the Yamaha
two wheeler customers. Most influencing factor is Design for Yamaha followed by Bajaj,
Honda, Hero MotoCorp and TVS. Mileage as a influencing factor was dominated among
motor bike owners of Bajaj and Hero MotoCorp. For Yamaha bike owner’s speed and
technology was the influencing factor to purchase. All the motor bike owners were happy and
satisfied about their purchase decision and the study concludes that Honda and Bajaj shows
maximum satisfaction whereas TVS remains last.
T.Devasenathipathi & S.Saravanan, 2013 highlighted the issue in the matter of why buyers
delay their purchase decisions. It likewise investigated whether factors of gender and age are
connected with purchase procrastination. A survey was managed from 219 two wheeler users
who had made the purchase of their vehicles within two years of the review. The findings of
the result discovered two major reasons for purchase procrastination, one was the confusion
created in the minds of the customers due to a huge presence of two wheeler variants in the
market and another was the insufficient information given at the sales counter of the dealers.
The consumer segment which was highly affected by the above reasons was from the age
group 31 to 45 years. Further the one way ANOVA test results showed a partial connection
between the factors of gender and age of respondents with purchase procrastination.
S. Franklin John & J. Anand Christopher, 2013 investigated the influence of peers in
purchase decision with reference to the age of two wheeler users. Convenient sampling
technique was employed to get the sample size of 85 respondents from Coimbatore city. The
questionnaire developed by the researchers namely Clement.S. &Venkatapathy. R (2005) has
been used to acquire the information. It involves three segments each part is planned to
measure the unmistakable parameters of and companion impact and decision making process
of two- wheeler purchasing. A descriptive research methodology was adopted and statistical
tools were applied to get the results for the study. The discoveries of the review prompt to the
conclusion that Peer impact appears to affect the purchasing behaviour of the two wheeler
buyers but more in particular consumers belong to the age group of 40-50 years. The study
discovers a favourable impact of peers on the purchase decision making process.
Rajesh Mahrotra & Sachin Kumar Sharma, 2012 evaluated and measured the elements
with a five point scaleand its effect on the two wheeler consumers purchasing behaviour. This
research also concentrates on the market size of different two-wheeler producers those
offering distinctive product portfolios to the customers. Hence customer has a wide choice for
purchasing a two wheeler brand, but the buying decision depends on various aspects like
mileage, engine power, model, price, and weight of the two-wheeler. The exploration finds
that Hero MotoCorp Ltd is a main player in Jaipur city, trailed by Bajaj Auto because of its
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assortment of bike model offerings to the customers. The research highlights mileage and
power as most influencing factors whereas price is least influential as per customer’s
requirement. This study suggests that marketers must offer more varieties of two wheelers to
their prospective customer.
K.Vidyavathi, 2012 deals with perceptions and behaviour of the various consumers of
Automobile owners of Chennai. The author studied how perception of the customer
influences the consumers mind and how this information can be used successfully by
marketers to gain entry into the minds of the consumers. Data was collected from 300
automobile users. The satisfaction level, preferred product attributes and customer profile has
been represented through descriptive statistical tools. The study also focuses on different
characteristics that the Marketers should focus on to pull in the prospective purchasers and
increase the sales. The respondents recognizes that driving comfort and mileage are the most
vital elements considered while deciding on the purchase of an automobile followed by
accessibility of spare parts. Respondents expressed their responses towards their change over
to another brand due to problems faced with the existing brand and for want of highly
technological automobile. Another problem revealed was the change in the hospitality of the
dealer before and after purchase. Therefore, it is suggested that the offerings rendered or to be
rendered need to be properly defined, friendly method and reliability in pre and post sales
need to be upgraded and monitored. The study summarises that all the automobile
manufacturers who understands their consumer and produce products as per the needs and
desires of consumers will succeed in long run. As consumer behaviour plays a vital role there
is need to conduct proper and continuous research in this field as behaviour changes with
time.
R.Renuka & Dr. M. K. Durgamani, 2012 have attempted the review to know the elements
which actuates the customers to buy and its effect on purchase choice of TVS Scooty. The
data was collected by applying judgemental sampling approach from a hundred and five users
of Thanjavur.. The review propose appearance, graphic, colour and design are the most
affecting factors while making a purchase decision for TVS scooty. Factors with highest
customer’s satisfaction were price, break, safety, price-up, tyre quality and factors and with
lowest satisfaction were insurance facility, convenience to handle, engine power, self-starter
facility, brand name, design. Respondents have opined that engine capacity, safety, new
technology, product design, warranty period are the five top most important characteristics.
Hence, the TVS Company should give special consideration to the above product
characteristics to keep-up sales and its reputation.
M. Sathish & A. Pughazhend, 2011 have undertaken the study to know the buying motives
of consumers and their behaviour towards two wheelers. Sample size of 125 from Tirunelveli
city, Tamil Nadu were selected for the study The decision of the customers is highly based
upon the need, purchasing power and the price of the two-wheeler product. The research has
discovered that though the customers are not having the purchasing power they are most in
favour of costly bikes as the customer’s expectations about advanced features are in the
costly bike like aesthetic and value addition in the vehicle. The research study recommends
the two wheeler corporations to provide customers with new versions and unique design. It
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was observed that consumer favour two-wheeler because of its utility, easy handling in the
heavy rough traffic. According to the review HeroHonda, Bajaj and TVS rule the bikes
business and different players Suzuki, Yamaha and LML are furthermore endeavouring to
opponent them by acquiring new variations in the bike segments.
S.Saravanan, N.Panchanatham, & S. Pragadeeswaran, 2009 proposes a research with a

sample of 200 respondents in Cuddalore area. They attempted to decide the purchasing
behaviour of motorbike buyers in the direction of showroom offerings by using technique for
the utilization of consumer stress, emotional competence as independent variable and
demographic variable like sex, age, marital status and the size of the family. The study used
F-test and correlation to get the desired outcomes which portray higher satisfaction level of
students and employees about showroom services. Fundamental a part of the respondents
rank their bike at a the higher perspective on brand image. The investigation prescribes the
associations to buckle down on building up a decent brand image
Ramarao, 2009 examined the necessity for changes in the motorcycle section to face
Challenges in the bike aggressive market. Two wheeler manufacturers are adjusting and
improving their product features, productivity, look, appearance and style. Nowadays a two
wheeler is pleasant technique for conveyance. There are many players in two wheeler market
like Hero Honda, Yamaha, Bajaj, TVS but Hero Honda is an established player. The review
identifies and recognizes the difference in consumer behaviour within two time frames, i.e.,
2004 and 2008.The research suggest the manufacturers to concentrate and direct their focus
towards the non-stop behavioural changes in the purchaser and thereby making upgrades of
their vehicles to reap competitive position.
Kumari Santosh A., Reddy Raghunatha D. , & M L Kameshwari, 2005 examined the
buying behaviour of Bajaj Motorcycles users in the city of Hyderabad. The study attempted
to know the major influencer in purchase decision of motorcycle. Friends and Associates
were the most preferred sources of information for buying a two-wheeler. Findings of the
research disclosed that 90% of the respondents have been satisfied with the performance,
maintenance and after sales provided by the dealers. It also additionally discovered that
93.35% of the respondents could remember the advertisements of motorcycle that they had
seen as of late on TV or read in the newspaper or magazines. . From this it was shown that
the promoting effort was effective and accomplished. The study disclosed the most favoured
and preferred motorcycle by way of majority of the respondents was Pulsor due to its brand
image.
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CHAPTER 4
DATA COLLECTION AND INTERPRETATION
The Data collected is by using primary source of data. The data is collected using survey
method. Survey method includes questions asked to the group of people. Survey was
conducted to know the response of individuals. Response of the respondents towards
Britannia Industries and its products i.e. Critical Analysis Of Bajaj Automobiles Ltd. A
sample of 30 respondents was taken into consideration while conducting the survey.
• Age:
• Below 20
• 20 – 30
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• Above 30
INTERPRETATION:
The above analysis is a part of survey of “Critical Analysis Of Bajaj Automobiles Ltd.” It
refers to the response of different age groups of respondents towards Bajaj Automobiles and
Bajaj products. There is a great response of respondents of the age group 20-30 years and has
almost 43% of the total number of respondents (i.e. 30 respondents). While that of the
response of respondents of the age group above 30 years has 37% of the response from the
total number of respondents. The response of the age group below 20 years has the least
response in this survey i.e. 20%
• Which of the following brands are you aware of:

- Pulsor
- Avenger
- Maxima Cargo
- CT100
INTERPRETATION:
The above analysis is a part of survey of “Critical Analysis Of Bajaj Automobiles Ltd.” It
refers to response of respondents regarding their awareness towards bikes such as Pulsor,
Avenger, Maxima Cargo and CT100. These brands have a great response as they are used by
most youngsters. Bajaj Pulsor is the most known brand among the respondents showing a
high response of 12 respondents. While CT100 is having the least response the awareness
among respondents regarding this brand is less i.e. 5 respondents. Maxima Cargo and
Avenger seem to be great competitors of Bajaj having response of 7 and 6 respondents
respectively.
• According to you, which of the following brand’s products is more popular and product
consumption is more?
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- Pulsor
- Avenger
- Maxima Cargo
- CT100
INTERPRETATION:
The above analysis is a part of survey of “Critical Analysis Of Bajaj Automobiles Ltd.”
According to respondents Pulsor has the most consumption and popularity as shown in the
pie chart i.e. 43%. Maxima Cargo is the next after Pulsor with 27% of popularity and
consumption. While that of Avenger, Avenger is 23% in terms of popularity and
consumption. CT100 has 7% is the least popular and has less consumption compared to the
other bikes.
• What factors influenced you to buy automobiles from Bajaj?
- Speed and Durability

- Price
- Easy Availability
- Mileage
INTERPETATION:
The above analysis is a part of survey of “Critical Analysis Of Bajaj Automobiles Ltd.” There
are various factors that affect purchase of a product. Here, when asked to respondents about
3
9
the factor that influenced them to buy Pulsor a majority of votes came for the Speed and
durability. About 33% of respondents were influenced to buy the product due to its speed.
There was lesser influence of price on purchase of the bikes i.e. 10% of the total respondents.
Easy availability is another factor that influenced respondents to buy Pulsor i.e. 30%. About
27% of the total respondents were influence by the mileage provided by the bike.
• Do you think the prices of Bajaj Automobiles Limited are low compared to other
competitor’s products?
- Yes
- No
INTERPRETATION:
The above analysis is a part of survey of “Critical Analysis Of Bajaj Automobiles Ltd.” Bajaj
Automobiles are well known products due to the taste of product, quality, easy availability of
product, price, etc. Their products are somewhat low priced compared to other competitor’s
product. About 33% of respondents say that the Bajaj Bikes are not low priced compared to
competitors product. While 67% say that Bajaj Bikes are low priced compared to
competitor’s product.
• Who is the biggest competitor of Bajaj Automobiles?
- Honda Motorcycles
- India Yamaha Motors
- TVS Motor Company Ltd.
- Hero MotoCorp Ltd.
INTERPRETATION:
4
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The above analysis is a part of survey of “Critical Analysis of Bajaj Automobiles Ltd.” They
are well known products due to the quality, easy availability of product, price, etc. About
30% of the respondents say that both Honda Motorcycles and Hero MotoCorp Ltd. are tough
competitors of Automobile Industry. Whereas only 25% of the respondents feel that TVS and
Yamaha are the biggest competitor of Bajaj Automobiles Ltd..
• What is the biggest strength of Bajaj Automobiles limited?
- Trust of Customers
- Market Share
- Wide Range of Products.
- Strong distribution Network
INTERPRETATION:
The above analysis is a part of survey of “Critical Analysis of Bajaj Automobiles Ltd.”
Having the trust of consumers is surely the strength and so 17% of respondents feel it’s the
biggest strength of Bajaj Automobiles Ltd.. However, 53% of respondents believe that the
major share in automobile industry is the biggest strength of Bajaj Automobiles Ltd. Whereas
wide range of bikes and also strong distribution network both are the biggest strengths says
17% of the respondents.
• Would you consider investing in the company?
- Yes
- No
4
1
INTERPRETATION:
The above analysis is a part of survey of “Critical Analysis of Bajaj Automobiles Ltd.”
About 67% of respondents would invest in Bajaj Automobiles Ltd. However, a minority of
33% felt they wouldn't consider invcesting in the company.
Profit & Loss account of Bajaj Automobiles Ltd. (in Rs. Cr.)
Particulars Mar 20 Mar 19 Mar 18 Mar 17 Mar 16

INCOME
Revenue From Operations 11,443.9 10,973.4
9,905.63 9,232.30 8,554.36
[Gross] 9 6
Less: Excise/Sevice
0.00 0.00 76.11 270.02 228.92
Tax/Other Levies
Revenue From Operations 11,443.9 10,973.4 9,829.52 8,962.28 8,325.44
4
2
[Net] 9 6
11,599.5 11,054.6
Total Operating Revenues 9,913.99 9,054.09 8,397.23
5 7
Other Income 279.40 206.45 166.37 150.54 124.35
11,878.9 11,261.1 10,080.3
Total Revenue 9,204.63 8,521.58
5 2 6
EXPENSES
Cost Of Materials Consumed 5,901.16 5,513.01 4,906.08 4,839.57 4,331.49
Operating And Direct
0.00 0.00 0.00 0.00 0.00
Expenses
Employee Benefit Expenses 486.69 441.82 401.60 352.61 341.36
Finance Costs 76.90 9.09 7.59 5.45 4.87
Depreciation And
184.81 161.88 142.07 119.27 113.41
Amortization Expenses
Other Expenses 2,342.21 2,317.97 1,903.64 1,834.62 1,828.76
10,018.0
Total Expenses 9,492.22 8,562.00 7,900.63 7,301.12
8
Profit/Loss Before
Exceptional, Extra Ordinary 1,860.87 1,768.90 1,518.36 1,304.00 1,220.46
Items And Tax
Exceptional Items -17.01 0.00 0.00 0.00 0.00
Profit/Loss Before Tax 1,843.86 1,768.90 1,518.36 1,304.00 1,220.46
Tax Expenses-Continued
Operations
Current Tax 447.69 599.78 513.68 401.87 396.66
Less: MAT Credit
0.00 0.00 0.00 0.00 0.00
Entitlement
Deferred Tax 3.01 12.69 0.54 17.80 -0.56
Other Direct Taxes 0.00 0.00 0.00 0.00 0.00
Total Tax Expenses 450.70 612.47 514.22 419.67 396.10
Profit/Loss After Tax And
1,393.16 1,156.43 1,004.14 884.33 824.36
Before ExtraOrdinary Items
Profit/Loss From Continuing
1,393.16 1,156.43 1,004.14 884.33 824.36
Operations
Profit/Loss For The Period 1,393.16 1,156.43 1,004.14 884.33 824.36
Minority Interest 9.03 3.66 0.27 -0.14 -0.04
Consolidated Profit/Loss
1,402.63 1,159.12 1,004.23 884.47 824.54
After MI And Associates
OTHER ADDITIONAL
INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 58.00 48.00 84.00 74.00 69.00
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3
Diluted EPS (Rs.) 58.00 48.00 84.00 74.00 69.00
DIVIDEND AND
DIVIDEND PERCENTAGE
Equity Share Dividend 360.48 360.45 317.91 288.80 231.01
Tax On Dividend 74.09 1.40 0.00 0.00 0.00
Balance Sheet of Bajaj Automobiles Limited (in Rs. Cr.)
Equities And Liabilities

Shareholder's Funds
Equity Share Capital 289.37 289.37 289.37 289.37 289.37
Total Share Capital 289.37 289.37 289.37 289.37 289.37
Reserves and Surplus 19636.12 21490.53 18814.49 16744.76 12977.18
Total Shareholders’ Funds 19925.49 21779.90 19103.86 17034.13 13266.55
Minority Interest 0 0 0 0 0
Non-Current Liabilities
Long Term Borrowings 0 0 120.77 119.90 0
Deferred Tax Liabilities [Net] 346.38 542.66 323.42 313.62 202.80
Other Long Term Liabilities 167.72 169.59 47.96 56.53 188.59
Long Term Provisions 80.50 14.56 112.19 78.13 47.57
Total Non-Current Liabilities 594.60 726.81 604.34 568.18 438.96
Current Liabilities
Short Term Borrowings 0 0 0 0 0
Trade Payables 3,199.70 3786.73 3,244.32 2,235.73 2,027.04
Other Current Liabilities 895.54 946.33 741.37 855.92 641.00
Short Term Provisions 157.97 140.62 125.60 120.93 112.95
Total Current Liabilities 4,253.21 4,873.68 4,111.29 3,212.58 2,780.99
23,819.4
Total Capital And Liabilities 24,773.30 27,380.39 20,814.89 16,486.50
9
ASSETS
Non-Current Assets
Tangible Assets 1,602.03 1,688.69 1,821.22 1,898.61 1,936.38
Intangible Assets 43.09 19.75 0 44.65 89.29
Capital Work-In-Progress 100.44 67.04 68.26 69.17 87.32
Fixed Assets 1,759.21 1,811.96 1,934.80 2,043.96 2,138.34
11,822.8
Non-Current Investments 15,416.20 17,582.88 8,681.39 8,940.65
9
Deferred Tax Assets [Net] 0 0 0 0 0
Long Term Loans And Advances 32.46 31.63 30.64 29.74 29.47
Other Non-Current Assets 968.47 891.26 795.53 668.43 652.79
14,583.8
Total Non-Current Assets 18,176.34 20,317.73 11,423.52 11,761.25
6
Current Assets
4
4
Current Investments 2,779.75 1,576.48 5,765.41 6,050.08 1,319.94
Inventories 1,063.50 961.51 742.58 728.38 719.07
Trade Receivables 1,725.10 2,559.69 1,491.87 953.29 717.93
Cash And Cash Equivalents 308.27 922.81 778.00 293.68 859.52
Short Term Loans And Advances 6.11 6.34 6.26 6.47 7.05
Other Current Assets 714.23 1,035.83 451.51 1,359.47 1,101.74
Total Current Assets 6,596.96 7,062.66 9,235.63 9,391.37 4,725.25
23,819.4
Total Assets 24,773.30 27,380.39 20,814.89 16,486.50
9
Cash Flow of Bajaj Automobiles Limited (in Rs. Cr.)

Net Profit/Loss Before
Extraordinary Items And 1,908.26 1,716.11 1,445.20 1,251.16 1,131.56
Tax
Net Cash Flow From
1,659.68 1,113.65 1,182.58 401.94 877.69
Operating Activities
Net Cash Used In Investing
-1,568.34 -831.10 -822.78 -115.49 -659.37
Activities
Net Cash Used From
-94.25 -326.26 -304.27 -283.80 -228.29
Financing Activities
Foreign Exchange Gains /
0.00 0.00 0.00 0.00 0.00
Losses
Adjustments On
Amalgamation Merger 0.00 0.00 0.00 0.00 0.00
Demerger Others
Net Inc/Dec In Cash And
-2.91 -43.71 55.53 2.65 -9.97
Cash Equivalents
Cash And Cash Equivalents
23.13 66.84 11.31 8.66 17.62
Begin of Year
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5
Cash And Cash Equivalents
20.22 23.13 66.84 11.31 7.65
End Of Year
Key Financial Ratios of Bajaj Automobiles Limited (in Rs. Cr.)
Mar 20 Mar 19 Mar 18 Mar 17 Mar 16

Particulars
PER SHARE RATIOS

Basic EPS (Rs.) 61.75 46.71 78.96 70.31 62.44
Diluted EPS (Rs.) 61.73 46.68 78.92 70.30 62.43
Cash EPS (Rs.) 68.02 52.32 88.93 78.34 69.67
Book Value
[ExclRevalReserve]/Share 177.74 168.10 269.49 215.17 141.68
(Rs.)
Book Value
[InclRevalReserve]/Share 177.74 168.10 269.49 215.17 141.68
(Rs.)
Dividend / Share(Rs.) 35.00 15.00 25.00 22.00 20.00
Revenue from
456.83 436.22 775.02 701.20 662.33
Operations/Share (Rs.)
PBDIT/Share (Rs.) 87.57 77.10 130.48 112.41 102.50
PBIT/Share (Rs.) 81.27 71.48 120.50 104.38 95.26
PBT/Share (Rs.) 79.35 71.42 120.38 104.26 94.30
Net Profit/Share (Rs.) 61.72 46.70 78.96 70.31 62.42
PROFITABILITY RATIOS
PBDIT Margin (%) 19.16 17.67 16.83 16.03 15.47
PBIT Margin (%) 17.78 16.38 15.54 14.88 14.38
PBT Margin (%) 17.36 16.37 15.53 14.86 14.23
Net Profit Margin (%) 13.50 10.70 10.18 10.02 9.42
Return on Net worth / 34.72 27.78 29.29 32.67 44.05
4
6
Equity (%)
Return on Capital Employed

38.79 42.19 29.06 32.36 43.43
(%)
Return on Assets (%) 20.46 19.85 20.48 22.82 24.42
Total Debt/Equity (X) 0.28 0.00 0.00 0.00 0.00
Asset Turnover Ratio (%) 151.47 185.43 201.06 227.65 259.12
LIQUIDITY RATIOS
Current Ratio (X) 1.45 1.94 2.03 1.84 1.06
Quick Ratio (X) 1.16 1.49 1.59 1.29 0.77
Inventory Turnover Ratio
17.34 14.58 15.65 13.96 20.70
(X)
Dividend Payout Ratio (NP)
28.44 26.74 27.86 28.44 32.03
(%)
Dividend Payout Ratio (CP)
25.81 23.87 24.73 25.52 28.70
(%)
Earnings Retention Ratio
71.56 73.26 72.14 71.56 67.97
(%)
Cash Earnings Retention
74.19 76.13 75.27 74.48 71.30
Ratio (%)
VALUATION RATIOS
74,019.0 40,541.6
Enterprise Value (Cr.) 65,849.04 59,594.32 32,082.29
4 9
EV/Net Operating Revenue
5.99 7.06 6.41 4.82 4.04
(X)
EV/EBITDA (X) 31.27 39.95 38.05 30.05 26.08
MarketCap/Net Operating
5.89 7.07 6.41 4.82 4.04
Revenue (X)
Retention Ratios (%) 71.55 73.25 72.13 71.55 67.96
Price/BV (X) 15.13 18.33 18.45 15.72 18.88
Price/Net Operating
5.89 7.07 6.41 4.82 4.04
Revenue
Earnings Yield 0.02 0.02 0.02 0.02 0.02
4
7
Quarterly Results of Bajaj Automobiles Limited (in Rs. Cr.)
Paticulars Sep '20 Jun '20 Mar '20 Dec '19 Sep '19
Net Sales/Income from
3,161.44 3,179.61 2,629.79 2,769.31 2,867.31
operations
Other Operating Income 66.13 40.27 62.15 49.88 28.78
Total Income From
3,227.57 3,219.88 2,691.94 2,819.19 2,896.09
Operations
EXPENDITURE
Consumption of Raw
1,509.29 1,457.40 1,125.07 1,314.27 1,404.88
Materials
Purchase of Traded Goods 515.99 454.83 453.58 387.67 382.17
Increase/Decrease in Stocks -106.44 14.72 80.37 -6.83 -32.17
Power & Fuel -- -- -- -- --
Employees Cost 104.37 104.42 89.65 92.26 94.18
Depreciate 40.63 40.07 39.32 38.44 36.65
Excise Duty -- -- -- -- --
Admin. And Selling
-- -- -- -- --
Expenses
R & D Expenses -- -- -- -- --
Provisions And
-- -- -- -- --
Contingencies
Exp. Capitalised -- -- -- -- --
Other Expenses 583.44 516.75 513.00 550.07 576.68
P/L Before Other Inc. , Int.,
580.29 631.69 390.95 443.31 433.70
Excpt. Items & Tax
Other Income 71.18 87.33 75.21 64.60 130.20
P/L Before Int., Excpt. Items
651.47 719.02 466.16 507.91 563.90
& Tax
Interest 26.72 21.90 20.68 22.13 14.04
P/L Before Exceptional
624.75 697.12 445.48 485.78 549.86
Items & Tax
Exceptional Items -- -- -- -- 35.00
P/L Before Tax 624.75 697.12 445.48 485.78 584.86
Tax 162.44 181.25 64.32 125.43 92.28
P/L After Tax from
462.31 515.87 381.16 360.35 492.58
Ordinary Activities
Prior Year Adjustments -- -- -- -- --
Extra Ordinary Items -- -- -- -- --
Net Profit/(Loss) For the
462.31 515.87 381.16 360.35 492.58
Period
Equity Share Capital 24.07 24.06 24.05 24.05 24.03
Reserves Excluding
-- -- -- -- --
Revaluation Reserves
Equity Dividend Rate (%) -- -- -- -- --
EPS Before Extra-Ordinary
4
8
Basic EPS 19.21 21.45 15.85 14.99 20.50
Diluted EPS 19.20 21.45 15.85 14.98 20.49
EPS After Extra Ordinary
Basic EPS. 19.21 21.45 15.85 14.99 20.50
Diluted EPS. 19.20 21.45 15.85 14.98 20.49
Public Share Holding
No Of Shares (Crores) -- -- -- -- --
Share Holding (%) -- -- -- -- --
Promoters and Promoter
Group Shareholding
a) Pledged/Encumbered
- Number of shares (Crores) -- -- -- -- --
- Per. of shares (as a % of
the total sh. of prom. and -- -- -- -- --
promoter group)
b) Non-encumbered
- Number of shares (Crores). -- -- -- -- --
the total sh. of prom. and -- -- -- -- --
promoter group).
the total Share Cap. of the -- -- -- -- --
company).
4
9
CHAPTER 5
CONCLUSION
This scenario clearly shows that change is a continuous process and a proper
identification and implementation of a change results in organisational growth. Success of
change depends on choosing the perfect change model with fewer resources and can
create maximum outcome. An organisation should anticipate the need for change, utilise
the resources effectively to attain this mission and must integrate this effort into the
planning process. Change agent also has an important role where the desired result
depends on how he manages the particular change. To conclude change is an essential
aspect in growth and development and the overall success depends on how we tackle the
change effectively.
1. Bajaj is purchased more by dailky users who need more average of bikes then
looks.
2. Bajaj is considered to be most fuel efficient on Indian roads.
3. Service and Spare Parts are available throughout the country in local markets.
4. Majority of the respondents prefer Bajaj Bikes as compared to other competitive

brands.
Researches and practices within the spectrum of innovation in companies provide clear
support for the importance of innovation in a company‘s success. It is evident from the
findings that, it is the innovative culture which was ingrained in Bajaj Auto‘s system; in
addition to the understanding of the change a process that has helped Bajaj set new
standards in all projects it was venturing into. The picture that emerges here is the
management of innovation to exploit its potential and BAL is seemed to have managed a
unique way of handling its product portfolio through innovative measures across the
enterprise to improve product profitability which differentiates it from its competitors.
The key to success lies in delighting customers by delivering total solutions by being
proactive and BAL has just did that through its innovative portfolio management. The
company‘s success showcases the dominance of Indian two-wheeler industry within
automobiles in recent times and its growing trend by Innovative capability thereby
showcasing the value that innovation offers a company. As the saying goes, more
opportunities come through listening than telling and Bajaj has seemed to have listened to
what the market needed and eventually has excelled in its offerings so as to succeed in all
of its projects by means of a tough entity called ―Innovation. Increased sales and
increase in market share came along the ride and the company is now giving the leader,
Hero Honda Motors all the run for its money for the No.1 position. This takes the view
5
0
that innovation as part of a company's business culture is seen as a dynamic engine for
both its own growth and that of the industry as is evident from the case of Bajaj auto Ltd
and the Indian two-wheeler industry.
5
1
CHAPTER 6
BIBILIOGRAPHY
Websites:
https://www.moneycontrol.com/financials/bajajauto/balance-sheetVI/ba10
https://www.ukessays.com/essays/india/bajaj-auto-limited.php
https://en.wikipedia.org/wiki/Bajaj_Auto
https://www.bajajauto.com/
marketing91.com/swot-analysis-bajaj-auto-2/
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2
CHAPTER 7
ANNEXURE
The survey questionnaire was as follows:
CRITICAL ANALYSIS OF BAJAJ AUTOMOBILES LIMITED:
• Name: _________________
• Age:
• Below 20
• 20 – 30
• Above 30
• Which of the following brands are you aware of:

- Pulsor
- Avenger
- Maxima Cargo
- CT100
• What factors influenced you to buy automobiles from Bajaj?
- Speed and Durability

- Price
- Easy Availability
- Mileage
• Do you think the prices of Bajaj Automobiles are low compared to other
competitor’s products?
5
3
• Yes
• No
• Who is the biggest competitor of Bajaj Automobiles?
- Honda Motorcycles
- India Yamaha Motors
- TVS Motor Company Ltd.
- Hero MotoCorp Ltd.
• What is the biggest strength of Britannia Industries?
- Trust of Customers
- Market Share
- Wide Range of Products.
- Strong distribution Network
• Would you consider investing in the company?
- Yes
- No
5
4

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EXECUTIVE SUMMARY

The project “Critical Analysis of Bajaj Automobiles Limited” was undertaken to

1.1 INFORMATION OF THE COMPANY

Bajaj Auto Limited is an Indian automobile manufacturing company. It manufactures

• Bring a new perspective to automobiles - The company wants to expand the

• Human-centric, eco-friendly technologies and services -Their automotive

Mission & Values

 Their Brand is the visual expression of their thoughts and actions.

 It conveys to everyone their intention to constantly inspire confidence.

 Their customers are the primary audience for their brand.

 Learning - Learning is how they ensure proactivity. It is a value that embraces

1.4 THE BUSINESS GROUP AND THE INDUSTRY

• Bajaj Auto Ltd. – Manufacturers of Scooters, Motorcycles and Three-wheeler

Exit from scooters

HH started offering motorcycles to the Indian customers. Share of motorcycles among

Entry of Honda Motorcycles and Scooters India in 2001

Commercial vehicles - three wheelers

Rebranding from Hamara Bajaj to Distinctly Ahead

Research methodology is the specific procedures or techniques used to identify,

2.1 RESEARCH OBJECTIVES

• Assessing the current position & operational efficiency:

• Predicting growth & profitability prospects:

• Loan Decision by Financial Institutions and Banks:

• To study the strength and weakness of the company

• Measuring the profitability:

• Facilitating comparative analysis:

• Budgeting and forecasting:

• Spread awareness about Bajaj Automobiles Limited:

H0: Customers are satisfied with price of bikes.

H1: Customers are not satisfied with price of bikes.

H0: Age has no significance effect on buying behaviour.

H1: Age has significance effect on buying behaviour.

3) Cash flow statement analysis

Trend analysis can:

1) Reveal potentially fruitful areas of audit investigation.

2) Detect significant variations over time.

3) Be easily understood and communicated.

4) Be readily accepted due to its widespread use.

CASH FLOW STATEMENT ANALYSIS:

A cash flow statement is nothing but a statement of changes occurring in financial

STRUCTURE OF THE CASH FLOW STATEMENT:

It is very useful in the evaluation of cash position of the firm

Analysis is an important technique of financial analysis. It depicts the efficiency or

Steps In Ratio Analysis:

1) Inter-firm comparison, because absolute figure comparison will lead to nowhere

2) Intra-firm comparison for the same reason.

3) Comparison against industry benchmarks.

4) Analysis of chronological performance over a long period.

The Importance Of Study Of Financial Analysis Helps:

Analysis of financial statements helps the finance manager in:

• Assessing the operational efficiency and managerial effectiveness of the company.

• Analyzing the current position of financial analysis,

Financial analysis helps the top management

• Whether the financial condition of the firm is sound

• To determine the success of the company’s operations

• Appraising the individual’s performance

• evaluating the system of internal control

• To investigate the future prospects of the enterprise.

Trade payables analyse of financial statements for:

• Appraising the ability of the company to meet its short-term obligations