After Posting Impressive Numbers in The Last Fiscal, BAJAJ auto HAS a slew of New Projects to keep it on top of The Game.
For Bajaj Auto, India’s second-largest two wheeler, the past two years have been extremely eventful. In 2009, when Rajiv Bajaj, MD, Bajaj Auto, decided to pull the plug on the high-volume generating 100cc segment bike, the decision was seen as being knee-jerk by many industry observers even though it was made under the assumption that volumes from the 100cc segment would fall from 61% to 25%. The company clocked sales of 1,60,000 units in October 2009 as compared to 2,50,000 units in the same month a year ago, registering a 35% fall in sales. The months that followed saw quite a few strategic business shifts at Bajaj Auto.
To start with, Bajaj once again surprised itself and the industry by making a comeback into the entry-level segment with the launch of a new product Discover. The company followed this up by announcing its exit from the scooters segment and its decision to drop the parent brand from its product portfolio. The last two decisions once again set tongues wagging in the industry and caught many offguard, including Rajiv’s father, Rahul Bajaj, Chairman, Bajaj Auto. But by the end of FY2010-11, Rajiv Bajaj was standing tall and even the critics were offering him grudging admiration.
Numbers don’t lie. And for Bajaj Auto, the numbers really wax eloquent. The company declared revenue for last fiscal stood at Rs170 billion and its net profit soared to Rs36 billion at a whopping growth rate of 41%. In fact, there were plenty of other reasons to cheer about. The company’s bike sales crossed 3.3 million units in the last fiscal, showing a stellar growth of 35%. Similarly, in the CV segment, the growth recorded was 28% with sales of over 4.36 lakh units. All this at a time when input costs were hardening and inflation picking up. Not only did Bajaj Auto come out with flying colours, its rich product mix, higher volumes, and effective cost management enabled the company to declare an industry high operating EBITDA margin of 20.4% for FY11.
To start with, Bajaj once again surprised itself and the industry by making a comeback into the entry-level segment with the launch of a new product Discover. The company followed this up by announcing its exit from the scooters segment and its decision to drop the parent brand from its product portfolio. The last two decisions once again set tongues wagging in the industry and caught many offguard, including Rajiv’s father, Rahul Bajaj, Chairman, Bajaj Auto. But by the end of FY2010-11, Rajiv Bajaj was standing tall and even the critics were offering him grudging admiration.
Numbers don’t lie. And for Bajaj Auto, the numbers really wax eloquent. The company declared revenue for last fiscal stood at Rs170 billion and its net profit soared to Rs36 billion at a whopping growth rate of 41%. In fact, there were plenty of other reasons to cheer about. The company’s bike sales crossed 3.3 million units in the last fiscal, showing a stellar growth of 35%. Similarly, in the CV segment, the growth recorded was 28% with sales of over 4.36 lakh units. All this at a time when input costs were hardening and inflation picking up. Not only did Bajaj Auto come out with flying colours, its rich product mix, higher volumes, and effective cost management enabled the company to declare an industry high operating EBITDA margin of 20.4% for FY11.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age WomanIIPM's Management Consulting Arm-Planman Consulting
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Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
