Financial management at Bajaj Auto
| Case Code: FINA004 Case Length: 21 Pages Period: 2003 - 2004 Pub Date: 2004 Teaching Note: Not Available |
Price: Rs.300 Organization: Bajaj Auto Industry: Automobile Countries: India Themes: - |
Abstract Case Intro 1 Excerpts
Excerpts
The Indian Two-wheeler Industry
Two-wheelers had become the standard mode of transportation in many of India's large urban centers. Use of two-wheelers in the rural areas had also increased significantly in the 1990s. The birth of the Indian two-wheeler industry could be traced to the early 1950s, when Automobile Products of India (API) started manufacturing scooters in the country. While API initially dominated the scooter market with its Lambrettas, it was Bajaj which rapidly emerged as the unchallenged leader in the scooter industry. A number of government and private enterprises who entered the scooter segment, had disappeared from the market by the turn of the century. The License Raj that existed prior to economic liberalization (1940s-1980s) in India, did not allow foreign players to enter the market, making it an ideal breeding ground for local players...
Background Note
The Bajaj group was founded by Jamnalal Bajaj in the 1930s. His eldest son Kamalnayan established Bajaj Auto, the flagship of the Bajaj group, in 1945, as a private limited company. From 1948 to 1959, Bajaj imported scooters and three wheelers from Italy and sold them in India...
Financial Management
Bajaj earned bulk of its revenue from the automotive business. In 2003, motorcycles dominated the automotive segment, accounting for 55 % of its revenues...
Looking Ahead
In the motorcycles segment, 'Boxer' had performed well and had increased its market share to 45% in the entry-level market, which was estimated at 102,000 units (35% of total motorcycle sales). But growth was primarily led by 'Pulsar', the premium-end motorcycle...
Exhibits
Exhibit I : Comparative Valuation of the Leading Companies
Exhibit II: Two Wheelers Industry: Changing Dynamics
Exhibit III: Comparative Analysis: Motorcycle Sales
Exhibit IV: Bajaj: Major Models
Exhibit V: Bajaj vs. Competitors: Major Models in Different Segments in 2003
Exhibit VI: Bajaj: Operating Working Capital
Exhibit VII: Bajaj: Investment of Surplus Funds
Exhibit VIII: Income from Investments
Exhibit IX: Return on Operating Capital
Exhibit X: Dividend Payouts (%)
Exhibit XI: Bajaj: Equity Holding, December 2003
Exhibit XII: Bajaj: Capital History
Exhibit XIII: Bajaj: Ratios
Exhibit XIV: Common size Income statement
Exhibit XV: Common size Balance Sheet
Exhibit XVI: Comparative Income Statement
Exhibit XVII: Comparative Balance Sheet
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