STRATEGIC PURSUITS OF

FAMILY-MANAGED COMPANIES
Bajaj Auto Ltd.
V/s
Reliance Industries Ltd.

BAJAJ AUTO LTD.
Year went public: 1960
Revenue in 1960: Rs 72 million
Rahul Bajaj became CEO: 1968
Product (1968): Scooters
Revenue (1991): Rs 12,199 million
Products (1991): Scooters (major), Motor cycles (minor), Three-wheelers
Market position: No. 1 in India and No. 3 in scooters in the world
Revenue in 2000: Rs 42,155 million

BAJAJ AUTO LTD.
Products: Motor cycles (nearly 50 per cent of two-wheelers), Scooters
(nearly 50 per cent of two-wheelers), Three-wheelers
Market position: No. 1 but threatened by nearest competitor Hero Honda
Revenue in 2008: Rs 30,973 million
Products: Motor cycles only in two-wheelers, three-wheelers
Market position: No. 2 in India behind Hero Honda
Current chairman (executive): Rahul Bajaj
Current CEO: Rajiv Bajaj (son of Rahul Bajaj)

STRATEGY
Cost efficiency- Market leader during mid 20
th
century due
Limited range of products-focus on a particular segment
Never ventured into cars - Maruti already established itself as a major player
Absence of proper distribution network abroad
Longer time to develop new models
No proper utilization of funds
Rahul Bajaj has been harping on the Swadeshi mantra

RESULT
Lost the Market Leadership
not penetrate the international market
Didnt Venture into more segments

RELIANCE INDUSTRIES LTD.
Year went public: 1977
Revenue 1977: Rs 670 million
Dhirubhai Ambani became CEO: Right from inception
Products: Textiles
Revenue 1991: Rs 21,050 million
Products: Textiles, Yarn, Petrochemicals
Market position: No. 1 in India in most areas
Revenue in 2000: Rs 203,010 million

RELIANCE INDUSTRIES LTD.
Products: Textiles (minor), Petrochemicals (major)
Position: Market leader in most of the products
Revenue in 2008: Rs 13,92,690 million
Products: Almost the entire value chain from textiles back to
petroleum and oil-drilling
Market position: No. 1 in India in almost every area and within No. 5 in the
world in most of the product categories.
Current chairman and CEO: Mukesh D Ambani (became chairman in 2002 after the
demise of D H Ambani)

RELIANCE INDUSTRIES LTD.
Deep insights into the future direction of economic and industrial development of the country
Influence from the western side
Understanding of the kinds of resources, raw materials and markets
Saw the future not in terms of problems but opportunities
Very best practitioners of insightful, perceptive, and courageous strategic management

STRATEGY
Reliance creates the future for itself rather than wasting time sobbing over governmental control and
insensitivity of government policies.
RIL identifies the opportunities offered by the marketplace and the environment
RIL seizes opportunities which are emerging, unlike Bajaj that wait and adapt to the anticipated changes.

RESULT
RIL has become one of the top five producers globally in most of its product categories.
Apparels
Petroleum refining and exploration
Acquisition of a number shale gas assets abroad
Diversified into retail
Healthcare research
Communications
THANK YOU