A Project

On
BAJAJ vs HERO HONDA
Of
Resaerch Methodology

Submitted to
UNIVERSITY OF MUMBAI

Submitted By
MANDAR A. BHOIR
Roll No. 63

MASTERS IN COMMERCE - MANAGEMENT (Sem III)

UNDER THE GUIDANCE OF:

Prof. Anjum Mam

RIZVI COLLEGE OF ARTS, SCIENCE, COMMERCE

Bandra (West), Mumbai
Academic Year
2014-2015

DECLARATION

Myself, Bhoir Mandar Ashok of Rizvi College of Arts, Science & Commerce studying
M.COM-Sem-III hereby declare that I have completed this project on BAJAJ vs HERO
HONDA in Academic Year 2014- 2015.

The information submitted in this project is true & original to the best of my knowledge.

DatePlace-MUMBAI

(BHOIR MANDAR ASHOK)

CERTIFICATE

This is to certify that MANDAR BHOIR student of M.Com-III class, Roll No. 63 of the
academic year 2014-15 studying at Rizvi College of Arts, Science & Commerce, has successful
completed the project entitled BAJAJ vs HERO HONDA

____________________

Prof. Anjum Mam

______________________

Prof. Qamar Sir

(M.Com Co-ordinator)

___________________

______________________

External Examiner

Dr. Farooqui M.Z

(Principal)

ACKNOWLEDGMENT

I owe a great many thanks to a great many people who helped and supported me during
this project.

My deepest thanks to the Guide of this project Professor Anjum Mam, for guiding and
correcting various documents of mine with attention and care. He has taken pain to go through
the project and make necessary correction as and when needed.

I would also thank my Institution and my faculty members without whom this project
would have been a distant reality. I also extend my heartfelt thanks to my family and wellwishers.

INDEX

History if BAJAJ
Profile
Key Persons
BAJAJ
o Company History
History of Hero Honda
Board of Directors
HERO HONDA
o Company Profile
Just in Time
Ancillaration
Dealer Network
Financial Planning
Quality
Diversification

Analysis and Interpretation

History of BAJAJ
Bajaj Auto limited is one of the largest two wheeler manufacturing company
in India apart from producing two wheelers they also manufacture three wheelers.
The company had started way back in 1945. Initially it used to import the two
wheelers from outside, but from 1959 it started manufacturing of two wheelers in
the country. By the year 1970 Bajaj Auto had rolled out their 100,000th vehicle.
Bajaj scooters and motor cycles have become an integral part of the Indian milieu
and over the years have come to represent the aspirations of modern India. Bajaj
Auto also has a technical tie up with Kawasaki heavy industries of Japan to
produce the latest motorcycles in India which are of world class quality The Bajaj
Kawasaki eliminator has emerged straight out of the drawing board of Kawasaki
heavy industries. The core brand values of Bajaj Auto limited includes Learning,
Innovation, Perfection, Speed and Transparency.

Bajaj Auto has three manufacturing units in the country at Akurdi, Waluj
and Chakan in Maharashtra, western India, which produced 2,314,787 vehicles in
2005-06. The sales are backed by a network of after sales service and maintenance
work

shops

all

over

the

country.

Bajaj Auto has products which cater to every segment of the Indian two
wheeler market Bajaj CT 100 Dlx offers a great value for money at the entry level.
Similarly Bajaj Discover 125 offers the consumer a great performance without
making a big hole in the pocket

PROFILE:

Founder
Year of Establishment
Industry
Business Group
Listings & its codes
Presence

Joint Venture
Registered & Head Office

Works

E-mail
Website

Jamnalal Bajaj
1926
Automotive - Two & Three Wheelers
The Bajaj Group
BSE Code: 500490; NSE - Code: BAJAJAUTO
Distribution
network
covers
50
countries.
Dominant presence in Sri Lanka, Bangladesh,
Columbia, Guatemala, Peru, Egypt, Iran and Indonesia.
Kawasaki Heavy Industries of Japan
Akurdi
Pune - 411035
India
Tel.: +(91)-(20)-27472851
Fax: +(91)-(20)-27473398
Akurdi, Pune 411035
Bajaj Nagar, Waluj Aurangabad 431136
Chakan Industrial Area, Chakan, Pune 411501
rahulbajaj@bajajauto.co.in
www.bajajauto.com

KEY PERSONS:
Board of Directors
Rahul Bajaj

Chairman

Madhur Bajaj

Vice Chairman & Whole-Time Director

Rajiv Bajaj

Managing Director

Sanjiv Bajaj

Executive Director

D.S. Mehta

Whole-Time 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

Committees of the Board

Audit Committee
S.H. Khan

Chairman

D.J. Balaji Rao

J.N. Godrej
Naresh Chandra
Nanoo Pamnani

Shareholders & Investors Grievance committee

D.J. Balaji Rao
J.N. Godrej
Naresh Chandra
S. H. Khan

Chairman

Remuneration committee
D.J. Balaji Rao

Chairman

S.H. Khan
Naresh Chandra
Registered under the Indian Companies Act, VII of 1913
REGISTERED OFFICE

Akurdi, Pune 411 035

WORKS

Akurdi, Pune 411 035

Bajaj Nagar, Waluj Aurangabad 431 136
Chakan Industrial Area, Chakan, Pune 411 501

Bajaj Autos Ltd.

Bajaj Auto Limited

Type

Public

Founded

1945
Pune, India

Headquarters
Key people
Revenue

Rahul Bajaj (Chairman)

Rs. 1,01,063 billion (2006) or USD 1.87
billion

Net income

Rs. 17,016 billion

Employees

???

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 Waluj near

Aurangabad, Akurdi and Chakan, near Pune. Bajaj Auto makes motorscooters, motorcycles and
the auto rickshaw.

Contents

1 Company's history
o 1.1 Timeline of new releases
2 Scooters
3 Motorcycles
4 Upcoming Models
5 New Image
6 Forbes Global 2000 Ranking - 2005
7 External links
8 References

Company's history

Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj 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 threewheelers 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.

Timeline of new releases

1971 - three-wheeler goods carrier

1972 - Bajaj Chetak
1976 - Bajaj Super
1977 - Rear engine Auto rickshaw
1981 - Bajaj M-50
1986 - Bajaj M-80, Kawasaki Bajaj KB100
1990 - Bajaj Sunny
1994 - Bajaj Classic
1995 - Bajaj Super Excel
1997 - Kawasaki Bajaj Boxer, Rear Engine Diesel Auto rickshaw
1998 - Kawasaki Bajaj Caliber, Legend(India's first four-stroke scooter)
2000 - Bajaj Saffire
2001 - Eliminator, Pulsar
2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar
2004 - Bajaj CT 100, New Bajaj Chetak 4-stroke with Wonder Gear, Bajaj Discover
DTS-i
2005 - Bajaj Wave, Bajaj Avenger, Bajaj Discover
2006 - Bajaj Platina
2007 - Bajaj Pulsar-200

Some of the models that Bajaj makes (or has made) are:

Scooters
o
o
o
o
o
o

Bajaj Sunny
Bajaj Chetak
Bajaj Cub
Bajaj Super
Bajaj Wave
Bajaj Legend

Motorcycles
o
o
o
o
o
o
o
o
o

Kawasaki Eliminator
Bajaj Pulsar
Bajaj Kawasaki Wind 125
Bajaj Boxer
Bajaj CT 100
Bajaj Platina
Bajaj Caliber
Bajaj Discover
Bajaj Avenger

Upcoming Models
o
o
o
o

Bajaj Pulsar 220 DTS-Fi

Bajaj Krystal
Bajaj Blade
Bajaj Sonic

New Image
The company, over the last decade has successfully changed its image from
a scooter manufacturer to a two wheeler manufacturer, product range ranging from
Scooterettes to Scooters to Motorcycle. Its real growth in numbers has come in the
last 4 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.

History of HERO HONDA

India has the largest number of two wheelers in the world with 41.6 million vehicles.
India has a mix of 30 percent automobiles and 70 percent two wheelers in the country. India was
the second largest two wheeler manufacturer in the world starting in the 1950s with the birth of
Automobile Products of India (API) that manufactured scooters. API manufactured the
Lambrettas but, another company, Bajaj Auto Ltd. surpassed API and remained through the turn
of the century from its association with Piaggio of Italy (manufacturer of Vespa).
The license raj that existed between the1940s to1980s in India, did not allow foreign companies
to enter the market and imports were tightly controlled. This regulatory maze, before the
economic liberalization, made business easier for local players to have a sellers market.
Customers in India were forced to wait 12 years to buy a scooter from Bajaj. The CEO of Bajaj
commented that he did not need a marketing department, only a dispatch department. By the year
1990, Bajaj had a waiting list that was twenty-six times its annual output for scooters.
The motorcycle segment had the same long wait times with three manufacturers; Royal Enfield,
Ideal Jawa, and Escorts. Royal Enfield made a 350cc Bullet with the only four-stroke engine at
that time and took the higher end of the market but, there was little competition for their
customers. Ideal Jawa and Escorts took the middle and lower end of the market respectively.
In the mid-1980s, the Indian government regulations changed and permitted foreign companies
to enter the Indian market through minority joint ventures. The two-wheeler market changed
with four Indo-Japanese joint ventures: Hero Honda, TVS Suzuki, Bajaj Kawasaki and Kinetic
Honda. The entry of these foreign companies changed the Indian market dynamics from the
supply side to the demand side. With a larger selection of two-wheelers on the Indian market,
consumers started to gain influence over the products they bought and raised higher customer
expectations. The industry produced more models, styling options, prices, and different fuel
efficiencies. The foreign companies new technologies helped make the products more reliable
and with better quality. Indian companies had to change to keep up with their global
counterparts.

BOARD OF DIRECTORS
No. Name of the Directors

Designation

Mr. Brijmohan Lall Munjal

Chairman & Whole-time Director

Mr. Pawan Munjal

Managing Director

Mr. Toshiaki Nakagawa

Jt. Managing Director

Mr. Takao Eguchi

Whole-time Director

Mr. Satyanand Munjal

Non-executive Director

Mr. Om Prakash Munjal

Non-executive Director

Mr. Tatsuhiro Oyama

Non-executive Director

Mr. Masahiro Takedagawa

Non-executive Director

Mr. Narinder Nath Vohra

Non-executive & Independent Director

10

Mr. Pradeep Dinodia

Non-executive & Independent Director

11

Gen.(Retd.) Ved Prakash Malik

Non-executive & Independent Director

12

Mr. Analjit Singh

Non-executive & Independent Director

13

Dr. Pritam Singh

Non-executive & Independent Director

14

Ms. Shobhana Bhartia

Non-executive & Independent Director

15

Dr. Vijay Laxman Kelkar

Non-executive & Independent Director

Hero Honda Motorcycle Ltd.

Type
Founded
Headquarters

Public company BSE:HEROHONDA M

January 19, 1984 in Gurgaon, Haryana, India
Haryana, India
Om Prakash Munjal, Founder

Key people

Industry
Products
Revenue
Website

Mr. Brijmohan Lall Munjal, Chairman

Mr. Toshiaki Nakagawa, Joint Managing
Director
Mr. Pawan Munjal, Managing Director
Automotive
Motorcycles, Scooters
U$ 2.8 billion
http://www.herohonda.com/site/home/home.asp

HERO HONDA HEADQUARTERS

Hero Honda Motorcycles Limited is an Indian manufacturer of motorcycles and scooters. Hero
Honda is a joint venture that began in 1984 between the Hero group of India and Honda from
Japan. It has been the world's biggest manufacturer of 2-wheeled motorized vehicles since 2001,
when it produced 1.3 million motorbikes in a single year. Hero Honda's Splendor is the world's
largest selling motorcycle. Its 2 plants are in Dharuhera and Gurgaon, both in Haryana, India. It
specializes in dual use motorcycles that are low powered but very fuel efficient.

[ Company Profile ]
Hero, is the brand name used by the Munjal brothers in the year 1956 with the flagship
company Hero Cycles. The two-wheeler manufacturing business of bicycle components had
originally started in the 1940s and turned into the worlds largest bicycle manufacturer today.
Hero, is a name synonymous with two-wheelers in India today. The Munjals roll their own steel,
make free wheel bicycle critical components and have diversified into different ventures like
product design. The Hero Group philosophy is: To provide excellent transportation to the
common man at easily affordable prices and to provide total satisfaction in all its spheres of
activity. The Hero group vision is to build long lasting relationships with everyone (customers,
workers, dealers and vendors). The Hero Group has a passion for setting higher standards and
Engineering Satisfaction is the prime motivation, way of life and work culture of the Group.
In the year 1984, Mr. Brijmohan Lal Munjal, the Chairman and Managing Director of Hero
Honda Motors (HHM), headed an alliance between the Munjal family and Honda Motor
Company Ltd. (HMC). HHM Mission Statement is: We, at Hero Honda, are continuously
striving for synergy between technology, systems, and human resources to provide products and
services that meet the quality, performance, and price aspirations of our customers. While doing
so, we maintain the highest standards of ethics and societal responsibilities, constantly innovate
products and processes, and develop teams that keep the momentum going to take the company
to excellence in the new millennium. This alliance became one of the most successful joint
ventures in India, until the year 1999 when HMC had announced a 100% subsidiary, Honda
Motorcycle & Scooter India (HMSI). This announcement caused the HHM stock price to
decrease by 30 percent that same day. Munjal had to come up with some new strategic decisions
as, HMSI and other foreign new entry companies were causing increased intensity of rivalry for
HHM.
== Growth == The business growth of Hero Honda has been phenomenal throughout its early
days. The Munjal family started a modest business of bicycle components. Hero Group expanded
so big that by 2002 they had sold 86 million bicycles producing 16000 bicycles a day. Today

Hero Honda has an assembly line of 9 different models of motorcycles available. It holds the
record for most popular bike in the world by sales for Its Splendor model. Hero Honda Motors
Limited was established in joint venture with Honda Motors of Japan in 1984, to manufacture
motorcycles. It is currently the largest producer of Two Wheelers in the world. It sold 3 million
bikes in the year 2005-2006. Recently it has also entered in scooter manufacturing, with its
model PLEASURE mainly aimed at girls. The Hero Group has done business differently right
from the start and that is what has helped them to achieve break-through in the competitive twowheeler market. The Group's low key, but focused, style of management has earned the company
plaudits amidst investors, employees, vendors and dealers, as also worldwide recognition.
The growth of the Group through the years has been influenced by a number of factors:

[ Just-in-Time ]
The Hero Group through the Hero Cycles Division was the first to introduce the concept of justin-time inventory. The Group boasts of superb operational efficiencies. Every assembly line
worker operates two machines simultaneously to save time and improve productivity. The fact
that most of the machines are either developed or fabricated in-house, has resulted in low
inventory levels. In Hero Cycles Limited, the just-in-time inventory principle has been working
since the beginning of production in the unit and is functional even till date.. This is the Japanese
style of production and in India; Hero is probably the only company to have mastered the art of
the just-in-time inventory principle.

[ Ancillarisation ]
An integral part of the Group strategy of doing business differently was providing support to
ancillary units. There are over 300 ancillary units today, whose production is dedicated to Hero's
requirements and also a large number of other vendors, which include some of the better known
companies in the automotive segment. Employee Policy:

Another Striking feature within the Hero Group is the commitment and dedication of its workers.
There is no organized labor union and family members of employees find ready employment
within Hero. The philosophy with regard to labor management is "Hero is growing, grow with
Hero." When it comes to workers' benefits, the Hero Group is known for providing facilities,
further ahead of the industry norms. Long before other companies did so, Hero was giving its
employees a uniform allowance, as well as House Rent Allowance (HRA) and Leave Travel
Allowance (LTA). Extra benefits took the form of medical check-ups, not just for workers, but
also for the immediate family members.

[ Dealer Network ]
The relationship of Hero Group with their dealers is unique in its closeness. The dealers are
considered a part of the Hero family. A nation-wide dealer network comprising of over 5,000
outlets, and have a formidable distribution system in place. Sales agents from Hero travels to all
the corners of the country, visiting dealers and send back daily postcards with information on the
stock position that day, turnover, fresh purchases, anticipated demand and also competitor action
in the region. The manufacturing units have a separate department to handle dealer complaints
and problems and the first response is always given in 24 hours.

[ Financial Planning ]
The Hero Group benefits from the Group Chairman's financial acumen and his grasp on
technology, manufacturing and marketing. Group Company, Hero Cycles Limited has one of the
highest labor productivity rates in the world. In Hero Honda Motors Limited, the focus is on
financial and raw material management and a low employee turnover.

[ Quality ]
Quality at Hero is attained not just by modern plants and equipment and through latest
technology, but by enforcing a strict discipline. At the Group factories, attaining quality
standards is an everyday practice - a strictly pursued discipline. It comes from an amalgamation
of the latest technology with deep-rooted experience derived from nearly four decades of hard

labor. It is an attitude that masters the challenge of growth and change - change in consumers'
perceptions about products and new aspirations arising from a new generation of buyers.
Constant technology up gradation ensures that the Group stays in the global mainstream and
maintains its competitive edge. With each of its foreign collaborations, the Group goes onto
strengthen its quality measures as per the book. The Group also employs the services of
independent experts from around the world to assist in new design and production processes.

[ Diversification ]
Throughout the years of enormous growth, the Group Chairman, Mr. Lall has actively looked at
diversification. A considerable level of backward integration in its manufacturing activities has
been ample in the Group's growth and led to the establishment of the Hero Cycles Cold Rolling
Division, Munjal and Sunbeam Castings, Munjal Auto Components and Munjal Showa Limited
amongst other component-manufacturing units.
Then there were the expansion into the automotive segment with the setting up of Majestic Auto
Limited, where the first indigenously designed moped, Hero Majestic, went into commercial
production in 1978. Then came Hero Motors which introduced Hero Puch, in collaboration with
global technology leader Steyr Daimler Puch of Austria. Hero Honda Motors was established in
1984 to manufacture 100 cc motorcycles.
The Hero Group also took a venture into other segments like exports, financial services,
information technology, which includes customer response services and software development.
Further expansion is expected in the areas of Insurance and Telecommunication.
The Hero Group's phenomenal growth is the result of constant innovations, a close watch on
costs and the dynamic leadership of the Group Chairman, characterized by a culture of
entrepreneurship, of right attitudes and building stronger relationships with investors, partners,
vendors and dealers and customers

Analysis and Interpretation

Q1) Which bike do you have?
Hero Honda
Bajaj
Any other

47
38
15

Hero honda
Bajaj
Any other

Q2) Which Model do you Have?

Hero Honda
Splender
Passion
Karizma
Any other

Bajaj
CT 100
Discover
Pulsar
Any other

21
13
7
6

7
12
11
8

No of Persons

25
20

Hero Honda
Splender

15

Passion
10

Karizma
Any other

5
0
1
Model Nam e

14

No of Persons

12

Bajaj

10

CT 100

Discover

Pulsar

Any other

2
0
1
Model Nam e

Q3) For how long do you own a bike?

0-1 year
1-2 year
2-3 year
above 3 year

34
29
26
11

40
30

0-1 year

No of
20
Persons
10

1-2 year
2-3 year
above 3 year

0
1
No of years

Q4) How do you come to know about this Motor Bike?

Newspaper

Hero Honda
4

Bajaj
2

Television

23

16

Magazine

Friends &
Relative

18

19

No of Persons

25
20

New spaper

15

Television

10

Magzine
Friends & Relative

5
0
Hero Honda

Bajaj

Name of Company

Q5) Does Advertisement Influence your decision

in choosing a Motor Bike?
Yes
No
Cant say

87%
5%
8%

Yes
No
Cant say