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Bajaj Evolution

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Bajaj Auto History and Evolution Brief about Company 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 and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance. Bajaj Auto is a major Indian automobile manufacturer and.Bajaj Motors was founded in 1945.It is India's largest and the world's 4th largest two- and three-wheeler makerIt is based in Pune, Maharas
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  Bajaj Auto History and EvolutionBrief about Company The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide rangeof industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, ironand steel, insurance, travel and finance.Bajaj Auto is a major Indian automobile manufacturer and.Bajaj Motors was founded in 1945.It is India'slargest and the world's 4th largest two- and three-wheeler makerIt is based in Pune, Maharashtra, with plants in Akurdi and Chakan (Pune),Waluj (near Aurangabad) and Pantnagar in Uttaranchal Bajaj Automakes and exports motorscooters, motorcycles and the auto rickshaw.The company generally has lagged behind its Japanese rivals in technology, but has invested heavily tocatch up. Its strong suit is high-volume production; it is the lowest-cost scooter maker in the world.Although publicly owned, the company has been controlled by the Bajaj family since its founding. Company History The roots of the company can be traced in 1926, with Jamnalal Bajaj, the founder of the group anddisciple of Mahatma Gandhi. Jamnalal's son, Kamalnayan Bajaj, was the one who consolidated thecompany and diversified into many other activities. Jamnalal Bajaj was an industrialist who admired andfollowed the great Mahatma Gandhi. The  precursor to Bajaj Auto had been formed on November 29, 1945 as M/s Bachraj Trading Ltd. It began selling imported two- and three-wheeled vehicles in 1948 and obtained a manufacturing license for ma nufacturing its own motorcycles from the government 11 years later. The next year, 1960, BajajAuto became a public limited companyThe present Chairman of the group, Rahul Bajaj, took charge of the business in 1965.   Rahul Bajaj becamethe group's chief executive officer in 1968 after first picking up an MBA at Harvard. He lived next to thefactory in Pune, an industrial city three hours' drive from Bombay. The company had an annual turno ver of Rs 72 million at the time Rahul Bajaj reportedly adored the famous Vespa scooters made by Piaggioof Italy. In 1960, at the age of 22, he became the Indian licensee for the make; Bajaj Auto began producing its first two-wheelers the next year.In 1970, the company produced 100,000th vehicle and 7 years later, it managed to produce and sell100,000 vehicles. The oil crisis soon drove cars off the roads in favor of two-wheelers, much cheaper to buy and many times more fuel-efficient.In 1971, the company launched a three wheels vehicle and a year later, the first Bajaj scooter, Chetak, born. Based on Vespa, it was named after the legendary horse of Indian warrior Rana Pratap Singh.A number of new models were introduced in the 1970s, including the three-wheeler goods carrier andBajaj Chetak early in the decade and the Bajaj Super and three-wheeled, rear engine Autorickshaw in1976 and 1977. Bajaj Auto produced 100,000 vehicles in the 1976-77 fiscal year alone.The technical collaboration agreement with Piaggio of Italy expired in 1977. Afterward, Piaggio, maker of the Vespa brand of scooters, filed patent infringement suits to block Bajaj scooter sales in the UnitedStates, United Kingdom, West Germany, and Hong Kong. Bajaj's scooter exports plummeted from Rs  133.2 million in 1980-81 to Rs 52 million ($5.4 million) in 1981-82, although total revenues rose five percent to Rs 1.16 billion. Pretax profits were cut in half, to Rs 63 millionThe year 1985 brought a new record for the company, 500,000 being the number of sold motorcycles. Tenyears later, Bajaj rolled out its ten millionth vehicle and sold 1 million vehicles in a year. In 1986, thecompany launched the Bajaj M-80 and the Kawasaki Bajaj KB100 and made a huge party cake for allthose half million of units sold in the financial year. Now, the company manufactures a few models:CT100, Platina, Discover 110cc, 125cc and 135cc, XCD 125, Pulsar 150, 180, 200 and 220 and Avenger.On the list of the company there are a few future models too: Blade, Sonic, Pulsar 300 and Discover 150Under the leadership of Mr Rahul Bajaj, the turnover of the Bajaj Auto,the flagship company,has gone upfrom Rs.72 million to Rs.46.16 billion (USD 936 million), its product portfolio has expanded from one toand the brand has found a global market. He is one of India's most distinguished business leaders andinternationally respected for his business acumen and entrepreneurial spirit. N ew Competition in the 1980s  Japanese and Italian scooter companies began entering the Indian market in the early 1980s. Althoughsome boasted superior technology and flashier brands, Bajaj Auto had built up several advantages in the previous decades. Its customers liked the durability of the product and the ready availability of maintenance; the company's distributors permeated the country.The Bajaj M-50 debuted in 1981. The new fuel-efficient, 50cc motorcycle was immediately successful,and the company aimed to be able to make 60,000 of them a year by 1985. Capacity was the mostimportant constraint for the Indian motorcycle industry. Although the country's total production rose from262,000 vehicles in 1976 to 600,000 in 1982, companies like rival Lohia Machines had difficulty meetingdemand. Bajaj Auto's advance orders for one of its new mini-motorcycles amounted to $57 million. Work on a new plant at Waluj, Aurangabad commenced in January 1984.The 1986-87 fiscal year saw the introduction of the Bajaj M-80 and the Kawasaki Bajaj KB100motorcycles. The company was making 500,000 vehicles a year at this point.Although Rahul Bajaj credited much of his company's success with its focus on one type of product, hedid attempt to diversify into tractor-trailers. In 1987 his attempt to buy control of Ahsok Leyland failed.The Bajaj Sunny was launched in 1990; the Kawasaki Bajaj 4S Champion followed a year later. Aboutthis time, the Indian government was initiating a program of market liberalization, doing away with theold 'license raj' system, which limited the amount of investment any one company could make in a particular industry.A possible joint venture with Piaggio was discussed in 1993 but aborted. Rahul Bajaj told the Financial Times that his company was too large to be considered a potential collaborator by Japanese firms. It washoping to increase its exports, which then amounted to just five percent of sales. The company began byshipping a few thousand vehicles a year to neighboring Sri Lanka and Bangladesh, but soon was reachingmarkets in Europe, Latin America, Africa, and West Asia. Its domestic market share, barely less than 50 percent, was slowly slipping.By 1994, Bajaj also was contemplating high-volume, low-cost car manufacture. Several of Bajaj's rivalswere looking at this market as well, which was being rapidly liberalized by the Indian government.  Bajaj Auto produced one million vehicles in the 1994-95 fiscal year. The company was the world's fourthlargest manufacturer of two-wheelers, behind Japan's Honda, Suzuki, and Kawasaki. New modelsincluded the Bajaj Classic and the Bajaj Super Excel. Bajaj also signed development agreements with twoJapanese engineering firms, Kubota and Tokyo R & D. Bajaj's most popular models cost about Rs 20,000.'You just can't beat a Bajaj,' stated the company's marketing slogan.The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw were introduced in 1997. The next year sawthe debut of the Kawasaki Bajaj Caliber, the Spirit, and the Legend, India's first four-stroke scooter. TheCaliber sold 100,000 units in its first 12 months. Bajaj was planning to build its third plant at a cost of Rs4 billion ($111.6 million) to produce two new models, one to be developed in collaboration with Cagivaof Italy. N ew Tools in the 1990s  Still, intense competition was beginning to hurt sales at home and abroad during the calendar year 1997.Bajaj's low-tech, low-cost cycles were not faring as well as its rivals' higher-end offerings, particularly inhigh-powered motorcycles, since poorer consumers were withstanding the worst of the recession. Thecompany invested in its new Pune plant in order to introduce new models more quickly. The companyspent Rs 7.5 billion ($185 million) on advanced, computer-controlled machine tools. It would need newmodels to comply with the more stringent emissions standards slated for 2000. Bajaj began installing Rs800 catalytic converters to its two-stroke scooter models beginning in 1999.Although its domestic market share continued to slip, falling to 40.5 percent, Bajaj Auto's profitsincreased slightly at the end of the 1997-98 fiscal year. In fact, Rahul Bajaj was able to boast, 'Mycompetitors are doing well, but my net profit is still more than the next four biggest companies combined.'Hero Honda was perhaps Bajaj's most serious local threat; in fact, in the fall of 1998, Honda Motor of Japan announced that it was withdrawing from this joint venture.Bajaj Auto had quadrupled its product design staff to 500. It also acquired technology from its foreign partners, such as Kawasaki (motorcycles), Kubota (diesel engines), and Cagiva (scooters). 'Honda'sannual spend on R & D is more than my turnover,' noted Ruhal Bajaj. His son, Sangiv Bajaj, was workingto improve the company's supply chain management. A marketing executive was lured from TVS Suzukito help push the new cycles.Several new designs and a dozen upgrades of existing scooters came out in 1998 and 1999. These, and asurge in consumer confidence, propelled Bajaj to sales records, and it began to regain market share in thefast-growing motorcycle segment. Sales of three-wheelers fell as some states, citing traffic and pollutionconcerns, limited the number of permits issued for them.In late 1999, Rahul Bajaj made a bid to acquire ten percent of Piaggio for $65 million. The Italian firmhad exited a relationship with entrepreneur Deepak Singhania and was looking to reenter the Indianmarket, possibly through acquisition. Piaggio itself had been mostly bought out by a German investment bank, Deutsche Morgan Grenfell (DMG), which was looking to sell some shares after turning thecompany around. Bajaj attached several conditions to his purchase of a minority share, including a seat onthe board and an exclusive Piaggio distributorship in India.In late 2000, Maruti Udyog emerged as another possible acquisition target. The Indian government was planning to sell its 50 percent stake in the automaker, a joint venture with Suzuki of Japan. Bajaj had beenapproached by several foreign car manufacturers in the past, including Chrysler (subsequentlyDaimlerChrysler) in the mid-1990s.  Employment fell from about 23,000 in 1995-96 (the year Bajaj suffered a two-month strike at its Walujfactory) to 17,000 in 1999-2000. The company planned to lay off another 2,000 workers in the short termand another 3,000 in the following three to four years. Timeline of new releases y   1960-1970 - Vespa 150 - Under the licence of Piaggio of Italy y   1971 - three-wheeler goods carrier  y   1972 - Bajaj Chetak  y   1976 - Bajaj Super  y   1977 - Rear engine Autorickshaw y   1981 - Bajaj M-50 y   1986 - Bajaj M-80, Kawasaki Bajaj KB100 y   1990 - Bajaj Sunny y   1991 - Kawasaki Bajaj 4S Champion y   1994 - Bajaj Classic y   1995 - Bajaj Super Excel   y   1997 - Kawasaki Bajaj Boxer, Rear Engine Diesel Autorickshaw y   1998 - Kawasaki Bajaj Caliber, Bajaj Legend, India's first four-stroke scooter, Bajaj Spirit y   2000 - Bajaj Saffire y   2001 - Eliminator, Bajaj Pulsar  y   2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar  y   2004 - Bajaj CT 100, New Bajaj Chetak 4-stroke with Wonder Gear, Bajaj Discover DTS-i y   2005 - Bajaj Wave, Bajaj Avenger, Bajaj Discover  y   2006 - Bajaj Platina y   2007 - Bajaj Pulsar-200 (Oil Cooled), Bajaj Kristal, Bajaj Pulsar 220 DTS-Fi (Fuel Injection) ,XCD 125 DTS-Si y   2008 - Bajaj Discover 135 DTS-i - sport (Upgrade of existing 135 model) y   2009 - (January) Bajaj XCD 135 cc , Bajaj Pulsar 220 DTS-i , Bajaj Discover 100 DTS-Si. S pinoffs and acquisitions The demerger of Bajaj Auto Ltd into three separate companies is now complete with Bajaj Auto, theautomotive manufacturing company, and Bajaj Finserv, the strategic business undertaking, listing on thestock exchanges on May 26, 2008. The 14.46 crore shares each of Bajaj Auto and Bajaj Finserv will listand be permitted for trading on the Bombay Stock Exchange and the National Stock Exchanges.In November 2007, Bajaj Auto acquired 14.5% stake in KTM Power Sports AG (holding company of KTM Sportmotocycles AG). The two companies have signed a cooperation deal, by which KTM will provide the know-how for joint development of the water-cooled four-stroke 125 and 250 cc engines, andBajaj will take over the distribution of KTM products in India and some other Southeast Asian nations. [5]  Bajaj said it is open to taking a majority stake in KTM and is also looking at other takeover opportunities.On the 8th of January 2008, Managing Director Rajiv Bajaj confirmed the collaboration and announcedhis intention to gradually increase Bajaj's stake in KTM to 25%. What is Bajaj N ow The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946.

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Nov 5, 2017
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