Académique Documents
Professionnel Documents
Culture Documents
ON
“A COMPARITIVE STUDY OF HERO HONDA AND BAJAJ AUTO
COMPANY’’
Submitted to:-
(Lect. DBIMCS)
This Project has been made possible through the direct and
indirect Co-operation of various persons, who have inspired me at
every step of my work. It is a matter of pride for me to
acknowledge my profound gratitude to my respected Director Dr.
Mrs. Shalini Gupta who always facilitates me in gaining practical
knowledge. I am very much obliged and thankful to my esteemed
Project Guide Mr. Kumar Tarun for his valuable Cooperation and
Guidance.
PREFACE
2. Introduction of Project
4. Research Methodology
5. Analysis
6. Conclusion
7. Suggestions
8. Bibliography
9. Questionnaire
Bajaj Auto
Type Public
Founded 1945
Headquart
Pune, India
ers
Key Rahul Bajaj (Chairman), Rajiv Bajaj
people (Managing Director)
Revenue
▲ Rs. 81.063 billion (2005) or USD
1.32 billion
Net
income
▲ Rs. 11.016 billion
Employees 10,250 (2006-07)
Website www.bajajauto.com
Bajaj Auto is a major Indian automobile manufacturer. It is India's largest
and the world's 4th largest two- and three-wheeler maker]. It is based in
Pune, Maharashtra, with plants in Akurdi and Chakan (near Pune),Waluj (near
Aurangabad) and Pantnagar in Uttaranchal. Bajaj Auto makes and exports
motor scooters, 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.
Company's history
Bajaj Auto came into existence on November 29, 1945 as M/s Bach raj
Trading Corporation Private Limited. It started off by selling imported two-
and three-wheelers in India. In 1959, it obtained license from the
Government of India to manufacture two- and three-wheelers and it went
public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it
managed to produce and sell 100,000 vehicles in a single financial year. In
1985, it started producing at Waluj in Aurangabad. In 1986, it managed to
produce and sell 500,000 vehicles in a single financial year. In 1995, it rolled
out its ten millionth vehicle and produced and sold 1 million vehicles in a
year.
According to the authors of Globality: Competing with Everyone from
Everywhere for Everything, Bajaj has grown operations in 50 countries by
creating a line of value-for-money bikes targeted to the different preferences
of entry-level buyers with such high quality that Kawasaki buys Bajaj
products for some of its markets, e.g. Philippines.
Timeline of new releases
It has been reported that Bajaj is headed for a de-merger into two separate
companies: Bajaj Auto and Bajaj Finance. It is expected that the sum of the
parts created will be worth more that the current whole, as was the case in
the de-merger of Reliance Industries. In November 2007, Bajaj Auto acquired
14.5% stake in KTM Power Sports AG (holding company of KTM Sport
motorcycles AG). The two companies have signed a cooperation deal, by
which KTM will provide the know-how for joint development of the water-
cooled 4 stroke 125 and 250 cc engines, and Bajaj will take over the
distribution of KTM products in India and some other Southeast Asian
nations. Bajaj Auto said it is open to take 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 announced
Bajaj Auto's intention to gradually increase their stake in KTM to 25%.
Products
Some of the models that Bajaj makes (or has made including prototypes)
are:
Scooters
Bajaj Kristal DTSi
Cars
Bajaj Lite concept
Bajaj ULC (ultra-low cost)- the Tata Nano competitor.
Motorcycles
Bajaj CT 100
Bajaj Platina
Bajaj Discover 110cc
Bajaj Discover DTS-i 125cc
Bajaj Discover 135cc DTS-i
Bajaj XCD 125 DTS-Si
Bajaj Discover DTS-i 135cc
Bajaj Pulsar 150 DTSi
Bajaj Pulsar 180 DTSi
Bajaj Pulsar 200 DTSi
Bajaj Pulsar 220 DTS-Fi
Bajaj Avenger
Upcoming Models
Bajaj Sonic
Bajaj Discover 150
Bajaj XCD 125 sprint
Discontinued Models
Bajaj Sunny
Bajaj Chetak
Bajaj Cub
Bajaj Super
Bajaj Saffire
Bajaj Wave
Bajaj Legend
Bajaj Bravo
Kawasaki Eliminator
Bajaj Kawasaki Wind 125
Bajaj Kawasaki 4s Champion
Bajaj Kawasaki KB 100 RTZ
Bajaj Boxer
Bajaj Caliber
Bajaj Wind
Low cost cars
Bajaj Auto says its $2,500 car, which it is building with Renault and Nissan
Motor, will aim at a fuel-efficiency of 30 km/liter, or twice an average small
car, and carbon dioxide emissions of 100 gm/km. It is a Tata Nano
competitor. The Bajaj venture will have an initial capacity of 400,000 units,
while Tata expects eventual demand of 1 million Nanos.
A
B
B
·
A
C
C
B
a
j
a
j
A
u
t
o
B
H
E
L
B
h
a
r
a
t
P
e
t
r
o
l
e
u
m
B
h
a
r
t
i
A
i
r
t
e
l
·
C
i
p
l
a
D
a
b
u
r
D
r
.
R
e
d
d
y
'
s
L
a
b
o
r
a
t
o
r
i
e
s
G
A
I
L
G
l
a
x
o
S
m
i
t
h
K
l
i
n
e
G
r
a
s
i
m
I
n
d
u
s
t
r
i
e
s
G
u
j
a
r
a
t
A
m
b
u
j
a
C
e
m
e
n
t
s
H
C
L
T
e
c
h
n
o
l
o
g
i
e
s
H
D
F
C
H
D
F
C
B
a
n
k
H
e
r
o
H
o
n
d
a
M
o
t
o
r
s
·
H
i
n
d
a
l
c
o
I
n
d
u
s
t
r
i
e
s
H
L
L
H
i
n
d
u
s
t
a
n
P
e
t
r
o
l
e
u
m
I
C
I
C
I
B
a
n
k
I
n
d
i
a
n
P
e
t
r
o
c
h
e
m
i
c
a
l
s
I
n
f
o
s
y
s
J
e
t
A
i
r
w
a
y
s
I
T
C
L
i
m
i
t
e
d
L
&
T
M
T
N
L
M
a
h
i
n
d
r
a
&
M
a
h
i
n
d
r
a
M
a
r
u
t
i
U
d
y
o
g
N
a
t
i
o
n
a
l
A
l
u
m
i
n
i
u
m
C
o
m
p
a
n
y
O
N
G
C
O
r
i
e
n
t
a
l
B
a
n
k
o
f
C
o
m
m
e
r
c
e
P
N
B
R
a
n
b
a
x
y
L
a
b
o
r
a
t
o
r
i
e
s
R
e
l
i
a
n
c
e
C
o
m
m
u
n
i
c
a
t
i
o
n
s
R
e
l
i
a
n
c
e
E
n
e
r
g
y
R
e
l
i
a
n
c
e
I
n
d
u
s
t
r
i
e
s
S
a
t
y
a
m
S
i
e
m
e
n
s
S
B
I
·
S
A
I
L
S
u
n
P
h
a
r
m
a
c
e
u
t
i
c
a
l
s
S
u
z
l
o
n
T
C
S
T
a
t
a
M
o
t
o
r
s
T
a
t
a
P
o
w
e
r
T
a
t
a
S
t
e
e
l
·
V
S
N
L
W
i
p
r
o
Z
e
e
Board of Directors
Rahul Bajaj Chairman
Madhur Bajaj Vice Chairman
Rajiv Bajaj Managing Director
Sanjiv Bajaj Executive Director
D.S. Mehta Director
Kantikumar R. Podar Director
Shekhar Bajaj Director
D.J. Balaji Rao Director
J.N. Godrej Director
S.H. Khan Director
Mrs. Suman Kirloskar Director
Naresh Chandra Director
Nanoo Pamnani Director
Manish Kejriwal Director
P Murari Director
Niraj Bajaj Director
Remuneration committee
D.J. Balaji Rao Chairman
S.H. Khan
Naresh Chandra
Registered under the Companies Act, 1956
REGISTERED OFFICE Akurdi, Pune 411 035
WORKS Akurdi, Pune 411 035
Bajaj Nagar, Waluj Aurangabad 431 136
Chakan Industrial Area, Chakan, Pune 411 501
Plot No. 2, Sectoe 10, Pant Nagar, Rudrapur
Top
Board of Directors
Rahul Bajaj Chairman
Madhur Bajaj Vice Chairman
Rajiv Bajaj Managing Director
Sanjiv Bajaj Executive Director
D.S. Mehta Director
Kantikumar R. Podar Director
Shekhar Bajaj Director
D.J. Balaji Rao Director
J.N. Godrej Director
S.H. Khan Director
Mrs. Suman Kirloskar Director
Naresh Chandra Director
Nanoo Pamnani Director
Manish Kejriwal Director
P Murari Director
Niraj Bajaj Director
Remuneration committee
D.J. Balaji Rao Chairman
S.H. Khan
Naresh Chandra
B
o
a
r
d
o
f
D
i
r
e
c
t
o
r
s
Board of Directors
Rahul Bajaj Chairman
Madhur Bajaj Vice Chairman
Rajiv Bajaj Managing Director
Sanjiv Bajaj Executive Director
D.S. Mehta Director
Kantikumar R. Podar Director
Shekhar Bajaj Director
D.J. Balaji Rao Director
J.N. Godrej Director
S.H. Khan Director
Mrs. Suman Kirloskar Director
Naresh Chandra Director
Nanoo Pamnani Director
Manish Kejriwal Director
P Murari Director
Niraj Bajaj Director
Remuneration committee
D.J. Balaji Rao Chairman
S.H. Khan
Naresh Chandra
Top
Cost cutting measures have worked in favour of improving margins at Bajaj Auto
The company has been running a lean operation with two-thirds of its employees
retiring
It has also rationalized its suppliers from 855 down to 200 only over the last decade
Bajaj Auto is now looking to boost its bottom line with savings from export and raw
materials. The company is likely to save over Rs50 crore on this account in the next
quarter.
With raw material prices softening, the company hopes to save Rs1000 per bike.
The back of the envelope figure for this works to a saving of Rs30 crore this quarter
An additional saving of Rs24 crore comes from exports, thanks to the duty
entitlement passbook (DEPB) benefits, which have been scaled up from 6 per cent
to 9 per cent
Bajaj Auto Ltd.
Established in 1945, Bajaj Auto Ltd. was incorporated as a trading company. Till
1959, they imported scooters and three-wheelers from Italy and sold them in India.
The company got a production license in the year 1959 and fastened a technical
collaboration with Italian PIAGGIO in 1960.
Bajaj Auto Ltd. is one among India's top ten companies in terms of market
capitalization and among the top five in terms of annual turnover.
The company started producing scooters in the year 1961 and followed three-
wheelers production in 1962. Its collaboration with Piaggio expired in 1971 and
since then, their scooters and three-wheelers are being sold with the brand name
“BAJAJ”.
The first production unit is located at Satara, Maharashtra. The unit continues to
collect scooters from CKDs supplied by the Company. These scooters are marketed
through the Company's distribution network and under the Company's brand name.
In 1984, the second production plant was set up at Aurangabad, Maharashtra. This
plant started scooter production in 1986, three-wheeler production in 1987 and
scooterettes and motorcycle facilities were commissioned in 1990 & 1991
respectively.
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).
TWO WHEELERS
>> MOTORCYCLE
Bajaj Avenger 180 CC
Bajaj CT 100 99.27 CC
Bajaj Discover DTSi 135 CC
Bajaj Kawasaki Caliber 111.6 CC
Bajaj Kawasaki Boxer 111.6 CC
Bajaj KB 125 123 CC
Bajaj 4S Champion 99.35 CC
Bajaj Platina 99.27 CC
Bajaj Pulsar DTSi
Pulsar 180 DTS-i UG 180 CC
Pulsar 150 DTS-i UG 150 CC
Pulsar 200 Cc 200 CC
Pulsar 220 DTS-Fi 220 CC
Bajaj Wind 125 124.6 CC
Bajaj XCD 125 CC
>> SCOOTERS
Bajaj Bravo 145 CC
Bajaj Chetak 145.45 CC
Bajaj Classic SL 145.45 CC
Bajaj Legend 150 CC
>> SCOOTERETTES/MOPEDS
Bajaj Blade DTSi 100 CC
Bajaj Cagiva CRX 145 CC
Bajaj Fusion 145 CC
Bajaj Kristal DTSi 100 CC
Bajaj M 80 Electronic 74.08 CC
Bajaj Rave 74.08 CC
Bajaj Saffire 74.4 CC
Bajaj Spirit 100 CC
Bajaj Sunny 59.86 CC
Bajaj Sunny Spice 59.86 CC
Bajaj Wave DTSi 109.7 CC
AWAITED MODELS
Sonic DTSi Motorcycle
Group Companies
Bajaj Auto is the flagship of the Bajaj group of companies. The group comprises of 35 companies and
was founded
in the year 1926. The companies in the group are:
Bajaj Auto Ltd. Mukand International Ltd.
Mukand Ltd. Mukand Engineers Ltd.
Bajaj Electricals Ltd. Mukand Global Finance Ltd.
Bajaj Hindustan Ltd. Bachhraj Factories Pvt. Ltd.
Maharashtra Scooters Ltd. Bajaj Consumer Care Ltd.
Bajaj Auto Finance Ltd. Bajaj Auto Holdings Ltd.
Hercules Hoists Ltd. Jamnalal Sons Pvt. Ltd.
Bajaj Sevashram Pvt Ltd. Bachhraj & Company Pvt. Ltd.
Hind Lamps Ltd. Jeevan Ltd.
Bajaj Ventures Ltd. The Hindustan Housing Co Ltd.
Bajaj International Pvt Ltd. Baroda Industries Pvt Ltd.
Hind Musafir Agency Pvt Ltd. Stainless India Ltd.
Bajaj Allianz General Insurance Company Ltd. Bombay Forgings Ltd.
Bajaj Allianz Life Insurance Company Ltd. Bajaj Holdings & Investment Limited
Bajaj Finserv Limited Bajaj Financial Solutions Limited
Bajaj Financial Solutions Ltd. Bajaj Allianz Financial Distributors Ltd.
Sanraj Nayan Investments Pvt. Ltd. P T Bajaj Auto Indonesia (PTBAI)
Bajaj Auto International Holdings BV,
-
Netherlands (BAIBHV).
Hero Honda Motors Ltd.
Hero Honda Motors Ltd. is a result of the joint venture between India's Hero Grou
Japanese Honda Motors Company in the year 1983. This joint venture has not only created the wo
single largest two wheeler company but also one of the most successful joint ventures worldwide.
Honda is globally known of being the most fuel-efficient and the largest CBZ selling Indian motorc
company. This is a relationship so harmonious that Hero Honda has managed to achieve indigeniz
over 95 percent, a Honda record worldwide.
The below chart shows the golden years in the history of HERO HONDA :-
1985 CD-100
1989 SLEEK
1991 CD-100 SS
1994 Splendor
1997 Street
1999 CBZ
2001 PASSION
2002 DAWN, AMBITION
2000- 2001- 2002- 2003-
Particulars 2004-05
01 02 03 04
Total Income 3191 4539 5195 5997 7563
Profit before Tax 377 694 885 1072 1217
Profit after Tax 247 463 581 728 810
Total Debt 66 116 134 175 202
Net Fixed Assets 454 491 517 589 715
OPBIT*/Net sales-% 13.2 15.0 16.7 16.8 15.7
OPBT**/Net Sales*(%) 11.7 13.9 15.5 15.6 14.6
Dividend Per Share ( Rs) 3.0 17.0 18.0 20 20
Dividend Payout (%) 26.7 75.5 69.8 61.9 56.3
INTRODUCTION
OBJECTIVES
1. The objective of the study is to analyze the perception and
expectations of people towards these two wheeler companies.
RESEARCH METHODOLOGY
Definition of Research
The word research is derived from the Latin word meaning to know.
It is a systematic and a replicable process, which identifies and defines problems,
within specified boundaries. It employs well-designed method to collect the data
and analyze the results. It disseminates the findings to contribute to general
knowledge.
Sample size
For carrying out any research or study on any subject it is very
difficult to cover even10% of the total population. Therefore the sample size has to
be decided for a meaningful conclusion. For designing the sample size, it is thought
properly to cover a very small percentage of population in various age groups. The
method will be used for sample technique is non probability convenience sampling
method. The sample size is restricted to only 90 respondents.
Sample area
Sample area for the study is taken from Mandi Gobindgarh and amloh
Tools used
To know the response the questionnaire method in sample survey is used. If
one wishes to find what people think or know, the logical procedure is to ask them.
This has lead marketing researchers to use the questionnaire technique for
collecting data more than any other method. Tool used are tabulation method along
with percentage.
Secondary data: secondary data is collected from internet, journals and magazine
ANALYSIS
AND
INTERPRETATION
90 60 30
Percentage 66% 34%
➢Finding
Out of total 90 respondents (to whom questionnaire was distributed) 66%
said they have Hero Honda’s motor bike and 34% said they have Bajaj
autos.
Q2. Rank the following factors which you consider while buying a motorbike.
(a) Mileage (b) Fuel efficiency (c) price (d) comfort and safety.
90 30 20 30 10
➢ Finding
Out of 90 respondents 33% see the factor of mileage while purchasing a bike,
20% see the fuel efficiency, 33% said price and 12% consider comfort and
safety.
90 60 30
Finding
Out of total 90 respondents (to whom questionnaire was distributed)
67% prefer Hero Honda Brand and 33% prefer Bajaj autos.
(b) Styling.
90 70 20
%age 70% 30%
Q4. Rank the following two wheeler companies on the basis of technology and
pricing?
(a) Pricing
90 55 35
90 73 17
90 70 20
(d) Engineering.
➢Finding
Out of total 90 respondents (to whom questionnaire was distributed)
67% said that HeroHonda has good engineering and 33% said Bajaj
autos have best.
Q5. Rank the following two wheeler companies on the basis of features and
services.
a) Maintenance cost
90 50 40
b) Resale value
90 77 13
Finding
90 60 30
%age 67% 33%
Finding
1. Hero Honda
(a) Splendor (b) CBZ model (c) Karizma (d) passion (e) ambition
90 30 10 4 30 16
%age 34% 11% 4% 33% 18%
Finding
Out of total 90 respondents (to whom questionnaire was distributed)
34% said they have Splendor, 11% have CBZ , 4% have Karizma, 33%
have Passion and 18% said they have Ambition.
2.Bajaj autos
(A) Kawasaki (b) pulsar (c) Platina (d) Bajaj discover (e) Bajaj CT 100
90 10 45 20 10 05
Finding
Out of total 90 respondents (to whom questionnaire was distributed)
11% said they have Kawasaki bike, 50% have Pulsar, 22% platina,
11% Discover and 6% have CT 100
90 35 10 5 30 10
Finding
Out of total 90 respondents (to whom questionnaire was distributed)
39% said they have heard from friends, 11% from word of mouth, 6%
from Magazines, 33% from newspaper and 11% from other sources.
conclusion
Suggestions
Books:
New Delhi.
Web Resources:
www.bajajautos.com
www.herohonda.com
Questionnaire
Name -
Q2. Rank the following factors which you consider while buying a motorbike.
(a) Mileage (b) Fuel efficiency (c) price (d) comfort and safety.
(b) Styling.
Q4. Rank the following two wheeler companies on the basis of technology and
pricing?
(a) Pricing
(d) Engineering.
Q5. Rank the following two wheeler companies on the basis of features and
services.
a) Maintenance cost
b) Resale value
1. Hero Honda
(a) Splendor (b) CBZ model (c) Karizma (d) passion (e) ambition
2. Bajaj autos
(a) Kawasaki (b) pulsar (c) Platina (d) Bajaj discover (e) Bajaj CT 100