c

INTRODUCTION OF THE INSURANCEc

c
Insurance is a cover used for protecting oneself from the risk of a financial
loss. It is important to understand that risk is a part of any person¶s life and
that it increases as a person increases in age, responsibility and wealth.
Insurance is risk coverage against financial losses and should not be taken as
an investment instrument.

There are mainly two parties involved in this ± the insurer and the insured.
The insurer is the insurance company who will provide the cover to the
insured against any financial losses. The insured may be an individual person
or a group of people like an employer, members of a society, etc.

A policy is the contract between the insurer and the insured, which states the
risks covered, the exclusions, if any, and the benefits reimbursed on the
happening of an event like death, illness etc. The policy is paid through what
is called a premium, which is a set amount that must be paid by the insured
on a monthly, semi-annual or annual basis. On the happening of an event
like death, disability, fire, etc, for which the insured is covered, the benefit
amount stated in the policy contract can be claimed by the insured.

V

cc 

c

c
c
 cc
c
cc 


ccc
ccc

ac ife insurance products include Term ife policies, which give a pure
risk coverage of only the death benefit, whereas endowment or money
back policies have a risk as well as savings component i.e. death as
well as maturity benefit. Also coming under the life insurance umbrella
are the Unit ± inked Policies in which there is a risk component and a
savings component, which is invested in equity, debt or gilt funds,
depending on the insurance company.
ac Êon ife insurance products include property or casualty, health
insurance or house, fire, marine insurance etc. This insurance class
deals with all the non-life aspects of an insured like his/her house,
health, land, office, cargo, etc which might bring financial loss.

The aim of all insurance is to compensate the owner against loss arising from
a variety of risks, which he anticipates, to his life, property and business.
Insurance is mainly of two types: life insurance and general insurance.
General insurance means Fire, Marine and Miscellaneous insurance which
includes insurance against burglary or theft, fidelity guarantee, insurance for
employer's liability, and insurance of motor vehicles, livestock and crops.
The Insurance Act, 1972 and the General Insurance Business
(Êationalisation) Act, 1972 govern Fire and Marine Insurance, while the
Indian Marine Insurance At, 1963 governs marine insurance in our country.
These laws contain provisions relating to the constitution, management and
winding up of insurance companies and the conduct of insurance business of
all types. All insurance business in India has been nationalised.
A Contract of insurance is a contract by which one party undertakes to make
good the loss of another, in consideration of a sum of money, on the
happening of a specified event, e.g. fire accident or death. aw recognises
insurance as a system of sharing risk too great to be borne by one individual

ife Insurance Process Flow

c c c

c
c c c cc

ac The client approaches the insurer through an agent with a proposal

containing his personal details, income details, medical history,
products ( the product describes the features provided by the insurer
like maturity bonus, claims allowed etc. These features vary from
product to product), sum assured (the amount for which the client is
covered), term (number of years for which the client is to be covered)
and premium amount (installment amount to be paid by the client to
the insurer). The agent who brings this proposal is termed as a
base/servicing agent for the proposal.
ac The proposal will go through various stages of approval and risk
evaluation by the ³Central Processing Centre´ of the Insurance
Company. Upon final approval, a legal agreement, termed as policy,
between the insurer and the client is prepared whereby the insurer
covers the client for the sum assured. The client is also entitled for
some additional benefits, if any, depending on the features of the
product taken in the policy. The base agent gets a commission for the
policy.
ac The client pays a premium at regular intervals. These subsequent
premiums are termed as renewal premiums. The base agent gets a
commission on the renewal premium also.
ac The client may come back with some alterations to the policy viz.
increase/decrease in sum assured, increase/decrease of the term of
policy etc. The insurer will make the relevant changes to the policy and
will issue endorsements stating the alterations made and their effect
on the policy.
ac puring the term of the policy, the client can submit claims. The insurer
makes payment against the claim after verification. pepending on the
type of claim the policy is either terminated or is kept in force.
ac At the end of the term of the policy, the client gets the sum assured as
part of the maturity benefit under life insurance policies. In addition to
this the client will get the maturity bonus and any other benefits
depending on the product feature.
 INDUSTRIAL BACKGROUND OF BAJAJ ALLIANZ LIFE
INSURANCE COMPANY LIMITED
oikas Gupta joined Bajaj Allianz close to a year ago. The 26-year-old
was entrusted with setting up an office for the life insurance major in Itarsi, a
small town in Madhya Pradesh.

Gupta was in charge of finding a suitable location, negotiating the rent,

buying the furniture and even hiring a couple of junior managers to work for
him. He's now got four sales managers reporting to him, who in turn
supervise a team of agents.

It's not the way most insurance companies in India have grown, but small
towns and local recruits are the major planks of Bajaj Allianz's distribution
strategy. Having discovered that even the smallest towns can prove rich
catchment areas, the insurance company is spreading out rapidly into the
interiors.

In just about five years, it has rolled out one of the biggest networks in the
industry: at present, Bajaj Allianz has around 900 offices across the country,
compared with around 330 for market leader ICICI [Get Quote] Prudential.

Before the year is out, it will have more than 1,000 offices covering 586
districts, up from the current 450. Bajaj Allianz will be the first private sector
insurance player to have a presence in towns like Akola in Chhattisgarh and
Uluberia in West Bengal.

"We want to be a mass brand and that's why we're looking at a large
footprint. Of course, a geographical spread helps derisk the model, which is
particularly important for insurance. Today we earn our premia almost
equally from each of the four regions," says Sanjay Jain, marketing head,
Bajaj Allianz.

Still, why so many offices? Jain explains that in the insurance business a
physical presence is critical. "People need to know we're going to be around,
because insurance is a long-term product where the money is paid out after
15 or 20 years."

An office, however small, is a reassuring sign, he adds. Which is why the

company has a presence even in towns where the population is less than
50,000, pleasantly surprised by the purchasing power even in states such as
West Bengal and Orissa.

The strategy seems to be paying off. For the first time, in FY05-06, Bajaj
Allianz notched up a first year premium of Rs 2,715.62 crore (Rs 27.16
billion), overtaking market leader ICICI Prudential, which earned Rs 2,637.48
crore (Rs 26.37 billion) as premium during the same period.
Observes Arvind Mahajan, executive director, KPMG, "Bajaj Allianz seems to
have adapted Allianz's global philosophy - you're never too far from an
Allianz shop - rather well. It has a more pronounced retail approach
compared to others."

The retail approach is combined with one of independence. Once Bajaj Allianz
decides on a new location, it typically hires local youngsters to man the
office, working on the belief that since insurance is all about trust, customers
are likely to have more faith in locals.

The new recruits are given a more or less free hand: they scout around for
an office, furnish it, hire managers and agents. "We don't pay great salaries
but we give our office heads a lot of freedom.

They take almost all decisions including how they want to spend their ad
budgets - whether they want to use hoardings or simply remunerate the
agents. In that sense, it's a totally decentralised model," says Jain.

Most offices are small - around 350-400 sq ft - and functional, with an eye on
cost control. Speed is of essence, and new offices are up and running within
a month of the decision to set it up.

At a later stage, budgets and targets are set and agents found. "In some
ways it's like an entrepreneurial effort: they [the local recruits] are the ones
driving the business through the agents," Jain adds.

Apart from setting up its own offices in smaller towns, Bajaj Allianz has also
beefed up its distribution by teaming up with 10 co-operative banks, around
100 district co-operative banks, as well as some regional rural banks to drive
business to it. The banks earn a referral fee, so it's an attractive revenue
stream for them.

Recently, the company also joined hands with Godrej [Get Quote] Aadhar -
the rural retail chain that has around 28 outlets across the country.

"We have agreed to set up shops-in-shops at all Aadhar outlets and we are
also talking to other such rural retail chains," says Jain, who adds that the
response and interest levels at rural malls has been "a revelation".

Importantly, at every location, whether bank counter or a rural outlet, the

company ensures that it posts its own people, the idea being to inspire trust
in customers.

While it may use the bank staff for back-office functions, the selling of
insurance policies is always done by a company employee. Êot surprisingly,
Bajaj Allianz already has 18,000 people on its rolls, and will soon be adding
another 7,000.
About six months ago, in a bid to strengthen its urban distribution, the
company also forged an alliance with GE Money, which has around 200-odd
outlets.

However, agents remain the biggest selling channel and so the company
ensures that commissions are competitive - the industry average is around
25-30 per cent. Bajaj today has 125,000 agents, way behind IC's [Get
Quote] 1 million but ahead of ICICI Prudential's 100,000.

However, in some of the towns, Bajaj has also used local financial advisors,
since it believes the comfort level of the customer may be higher with them
than with agents.

c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
 c
STRUCTURE OF INSURANCE INDUSTRY
HISTORICA PERCEPTIVES
†c PRIOR TO 1956 242 COMPAÊIES OPERATIÊG

†c 1956 - 2001 ÊATIOÊAISATIOÊ ± IC MOÊOPOY

PAYER ± GOVERÊMEÊT COÊTRO

†c 2001 - OPEÊEp UP SECTOR

PRESENT STRUCTURE OF INSURANCE INDUSTRY

c

†c (A) IC - FUY OWÊEp BY GOVERÊMEÊT

†c (B) POSTA IFE IÊSURAÊCE

†c (C) PRIVATE IFE IÊSURAÊCE

1. Bajaj Allianz ife Insurance Co. td.

2. Birla Sun ife Insurance Co. td. (BSI)
3. HpFC Standard ife Insurance Co. td. (HpFC STp IFE)
4. ICICI Prudential ife Insurance Co. td. (ICICI PRU)
5. IÊG Vysya ife Insurance Co. td. (IÊG VYSYA)
6. Max Êew York ife Insurance Co. td. (MÊY)
7. Metife India Insurance Co. Pvt. td. (METIFE)
8. Kotak Mahindra Old Mutual ife Insurance Co. td.
9. SBI ife Insurance Co. td. (SBI IFE)
10. TATA AIG ife Insurance Co. td. (TATA AIG)
11. AMP Sanmar Assurance Co. td. (AMP SAÊMAR)
12. Aviva ife Insurance Co. Pvt. td. (AVIVA)
13. Sahara India ife Insurance Co. td. (SAHARA IFE)
14. Shriram Sunlam

†c Yc  c
c± PÊB ife Insurance, Reliance ife Insurance,

Axa Bharti Enterprises
 CONTRIBUTION TO INDIAN ECONOMY
c
(i) ife Insurance is the only sector which garners
long term savings

(ii) Spread of financial services in rural areas and

amongst socially less privileged

(iii) ong term funds for infrastructurec

(iv) Strong positive correlation between

development of capital markets and insurance/
pension sector

(v) Employment generation

AGGREGATION OF LONG TERM SAVINGS

c
(i) 
cccc 

cV
c
2002 ± 2003 2003 ± 2004 2004 ± 2005
2,80,450 3,52,608 4,23,000 *

(ii) 
c
c
c
2002 ± 2003 2003 ± 2004 2004 ± 2005
57,708 cr 66,278 cr 79000 cr *

(iii) Industry is growing @ 19 p.a.

(iv) At this growth rate, the future premium income generated will be
2005 ± 2006 2006 ± 2007 2007 ± 2008
94,000 1,12,000 1,33,000

(v) ife Insurance funds account for 15% of household savings.

(vi) The industry has the potential to increase the share to 20%.
c
 SPREAD OF FINANCIAL SERVICES IN RURAL AREAS
AND AMONGST SOCIALLY UNDERPRIVILEGEDc

‡ IRpA Regulations provide certain minimum business to be done

(i) in rural areas

(ii) in the socially weaker sections

‡ ife Insurance offices are spread over nearly 1400 centres.

‡ Presence of representative in every tehsil ± deeper penetration in

rural areas.

‡ Insurance agents numbering over 6.24 lakhs in rural areas.

‡ Policies sold in rural areas (2004-05) - Êo. of policies - ùùc
c

Sum assured  !!!cc

‡ Social security - Êo. of lives covered 2003-04 "#c
c2004-05

ccc$"c


c
LONG TERM FUNDS FOR INFRASTRUCTURE
c
‡ For GpP to grow at 8 to 10%, qualitative
improvement in infrastructure is essential.

‡ Estimates of funds required for development of

infrastructure vary widely.

‡ An investment of 6,19,600 crore is anticipated in the

next 5 years (Source : SSKI India)

‡ Tenure of funding required for infrastructure normally

ranges from 10 to 20 years.

‡ Major portion of these funds are routed through

debt/private equity participation.
c
‡ Part funding through Central Government/State Government budgetary
allocations. Insurance companies invest in Central/State Government
approved securities which ultimately also used for infrastructure projects.
‡ As per IRpA norms, the pattern of investment of life insurance companies¶
funds are : -

(i) In Central Government, State Government and other approved securities

cccccc c
cù!%c

(ii) Infrastructure c"ù%c

‡ Investment in the infrastructure projects is a natural fit for life insurance

companies who have long duration funds. Average Term 23 years.

‡ Has investments of over Rs.40,000 cr in infrastructure.

‡ It is expected life insurance sector be able to generate approximately

Rs.15,000 cr for infrastructure investment in 2006-2007 with amount
increasing every year.
c
c
c
DEVELOPMENT OF CAPITAL MARKETS/
ECONOMIC GROWTHc
†c Industry also contributes in economic development through
investments in capital market. Present level of investments is over Rs.
40,000 crore. (Mark to Market basis around 80,000 crores).
†c Annual Investment of around 9000 crores in capital markets.
†c Contribution to Five Year Plans 9th Plan 2,30,900 crores ast Two
Years 1,70,900 crores
†c Helps inculcate a sense of security by protecting earning of people in
case of untimely death.
Benefits to Policy Holders
2002 ± 2003 2003 ± 2004 2004 ± 2005
20,800 cr 24,200 cr 28,700 cr
c
c
 EMPLOYMENT GENERATION
‡ ife insurance industry provides increased employment opportunities.

‡ Employees in insurance sector as on 31st March, 2005 is around 2 lakhs.

‡ Many agents depend on insurance for their livelihood ± Êo. of agents on

31st March 2004 ± 15.59 lakhs

‡Brokers, corporate agents, training establishments provide extra

employment opportunities.

‡ Many of these openings are in rural sectors.

SPECIAL FEATURES OF INSURANCE

c

V

c &c 
c

2002 ± 2003 2003 ± 2004

(i) 
c c1631 cr 4053 cr

(ii) V

c c2219 cr 3239 cr

(pata excludes IC)

‡ Tax clubbing of various savings short term and long term into same bracket
have a bias towards short term savings.

‡ pistinction between the short term savings and long term savings is critical
from investors point of view. More prone to inflationary pressures

‡ Clearly, long term savings more than 10 years deserve special

consideration under tax regime.
c
c
c
GROWTH POTEÊTIA
c
†c At present insurance penetration in India is quite low ± 2.26% of GpP.

†c In Korea the penetration stands at 6.77%, in Hongkong, in Singapore

± 6.38%.
 PHASE OF TRAÊSITIOÊ
c
‡ ife Insurance industry is under the phase of infancy after 50 years of
monopoly

‡ Competition from within and other sectors of financial market

‡ Êeeds environmental support till it reaches a comfort zone

c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
 PROFILE OF
BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED
c
Bajaj Allianz ife Insurance Company Is A Union Between Allianz SE,
One Of The World¶s argest ife Insurance Companies And Bajaj Auto, One
Of The Biggest 2 & 3 Wheeler Manufacturers In The World.

Allianz SE Is A eading Insurance Conglomerate Globally And One Of

The argest Asset Managers In The World Over A Trillion Eros (Over
R.55,00,000 Crores). Allianz Se Has Over 115 Years Of Financial Experience
In Over 70 Countries .

Bajaj Auto Is One Of The Most Trusted Êame Is Indian Auto For Over
55 Years . At Bajaj Allianz Customer pelight Is Our Guiding Principle .
Ensuring World ± Class Solutions By Offering Customized Products With
Transperentbenefits, Supported By Best Technology Is Our Buisness
Philosophy .
c
ACCEERATEp
c GROWTH
FISCAL YEAR NO OF POLICIES SOLD IN NEW BUISNESS IN FY
FY (RS. IN CR )
2001 ± 2002 (6 MTHS) 21,376 7
2002 - 2003 1,15,965 69
2003 - 2004 1,86,443 180
2004 - 2005 2,88,189 857
2005 - 2006 7,81,685 2717
2006 - 2007 20,79,217 4270
c
c
FEATURES OF BAJAJ ALLIANZ LIFE INSURANCE COMPANY
LIMITED
_ Favorable economic environment «

_ GpP growth fastest amongst the world

_Asia¶s 4th largest emerging market with fastest growth

_ Strong manufacturing base and growing service industry

_ Untapped potential in urban, semi-urban & rural towns

_ arge base of young population

_ Rising aspirations and income levels

_ Increasing awareness on financial security
c

As a result «
_ Industry growth rate : Overall ± 23%
Private players ± 74%

_ Market penetration ± just 4.8%

_ High concentration in metros and large cities

_ Êew business premium ± 23% to Rs. 930 billion

_ Market share of private insurers ± to 36% (P.Yr ± 26%)

c
c
_Amongst private insurers «

_ Second largest in new business premium

_ In first position on number of policies issues

_ Gross Written Premium ± 82%

Rs. 97 billion v/s Rs. 53 billion in P. Yr

_ Market share ± 10.3% v/s 7.4% in P. Yr

_ Êumber of policies ± 3.7 million v/s 2.1 million in P. Yr

_ Unit linked funds increased by 111%

_ 12 new products launched during the current year

_ Currently 32 individual products & 9 product groups on offer

c
c
Performance Summary
|c c c '(
c!)c '(
c!#c
Gross written premium 97.2 53.4
Êew business premium 67.0 43.0
Êet earned premium 97.1 53.3
Total income 107.1 57.4
Annualized premium 60.0 32.3
equivalent
 Profit / ( oss ) (2.1) (0.7)
Êet contribution to policy 2.9 0.9
holders account

SHAREHOpERS FUÊpS
Rs. in million 2007-08 2006-07

Share Capital 1,507 1,504

Share premium 10,600 5,502

Sub-total 12,107 7,006

Balance in P &  account (4,899) (2,760)

Total 7,208 4,246

Total capital infused during the year ± Rs. 5,101 million

Share capital ± Rs. 3 million

Share premium ± Rs. 5,098 million

BAJAJ AIAÊ IFE IÊSURAÊCE COMPAÊY IMITEp

ÊEW BUSIÊESS ACHIEVEp PROFIT ± FY08

c*
c&cc|c"$ !$+c c
,c
c




c 
c
c c
Cash / Money Market / TB 5.0%

G Secs 8.0%

Corporate bond 8.5%

Equities 12.0%

Inflation 5.0%
 Risk discount rate 13.25%

Tax rate 12.5% ( plus 10% surcharge +

3% education cess )

Y
c
c
c
_ Operating assumptions like mortality, morbidity & lapses are based on
industry / reinsures experience & validated against our own experience so
far

_ Expense assumptions are based on our own expense projection model

Sensitivity

The sensitivity of the Êew Business Achieved Profit to

Economic assumptions is given below:

Particulars Base Value +1% -1%

c c c c

 c 
 c 
 c 
c
 c

c c 
 c 
c 
 c
c

m
cV
c

_ Any value addition from riders has been ignored. The proportion of riders
with base policies is not very significant

_ Comparison with other ife Companies might not be very relevant as

actuarial assumptions & methodology used are likely to vary from

Company to Company, in the absence of any common agreed process

Bajaj Allianz ife Insurance Co td

V


c-
c
Except for the historical information contained herein, certain
statements & values are forward ±looking statements &
values including, but not limited to, statements & values that
are predictions of or indicate future events, trends, plans or
objective. Undue reliance should not be placed on such
statements & values because by their nature, they are subject
 c
c
e-opinion
c
Bajaj Allianz launches e-opinion rider, which will cover the expenses of
2nd opinion e-consultation services for serious illness in India. The policy
offers unprecedented access to over 7000 physicians employed by the
renowned hospitals of the WorldCare Consortium. This innovative e-opinion
rider gives you an opportunity to obtain best of international expertise at a
fraction of the cost.

Mc Anyone taking this plan is entitled to take a second opinion

should there be any illness and an expert consultation is
required.
Mc This rider entitles you to have a 2nd opinion from renowned
hospitals of the WorldCare consortium of hospitals like Clevland
Clinic, puke University, Massachusetts General Hospital, Brigam
and Women's Hospital.
Mc Qualified physicians from these renowned hospitals will render a
written report which includes a diagnosis and treatment plan
within 7 working days .

Benefits
†c Simple process of sending medical reports in digitized form to
WorldCare consortium. c
c
†c This product provides independent, world class opinions which
will enable the attending doctor and the patient to take informed
decisions on the diagnosis and the further course of action. c
c
†c Three opinions are available per year of coverage and 6 opinions
in case it is renewed continuously.c
c
Advantages
c
†c Valuable 2nd opinion at nominal cost without physically visiting
these renowned hospitals.

†c Opinions for major critical illnesses

†c Access to over 7000 physicians employed by the renowned

hospitals of the WorldCare Consortium.
Student Companion
ac Personal Accident -covering death and permanent disablement
ac Medical Expenses and repatriation - covering hospitalisation expenses
arising out of illness/sickness and also repatriation expenses for
sending mortal remains to India
ac oss of checked baggage - covering total loss of baggage checked by
an international airline
ac Tuition Fee - In the event of the insured unable to continue the school
semester due to any of the following reasons arising during the policy
period, the Company shall reimburse the tuition fee paid inadvance for
the current semester, subject to maximum the limit shown in the
schedule:
A. Serious medical condition of the insured requiring hospitalization
covered under the policy
Accident To Sponsor -In the event of the sponsor named in the
schedule meets with an accident during the policy period, which results
in his death or permanent total disability during the policy period, the
Company shall reimburse the remaining school fee subject to
maximum the limit shown in the schedule.
ac Family Visit-In the event of the insured become hospitalized as a result
of an accidental injury or sickness covered under the policy and the
attending physician advises the necessary attendance of a Family
Member of the Insured, the Company will reimburse the actual cost of
economy class transportation by the most direct route via a common
carrier subject to maximum the sum insured. For this purpose, family
member shall mean spouse, parent, sibling and in laws of the insured.
ac Personal iability - covering legal liability attaching in a private
capacity during the course of overseas travel.
ac This coverage is also subject to the exclusions of Personal Accident
and Medical Expenses sections of the policy.
ac Following are the Plans- All Coverage's in USp

V&
 -

 - &

m
cc 
c c 
c c
cc  c 
c c 
c c
 cc 
c c 
c c
 cc 
c c 
c c
 c c 
c c 
c c
cc c 
c c 
c c
!"cmc 
c c 
c c
c c
Workmen's Compensation
The Indian Workmen's Compensation Act 1923 provides for the payment of
compensation by the employer to his employees (for their dependents in the
event of fatal accidents) if personal injury is caused to them by accidents
arising out of and in the course of their employment.

Features
c
The maximum compensation payable is upon the following scale (as per W.C.
Amendment Act 2000)

†c m  c#$"c% Rs.4,57,080cc
†c 
c! c
 
c%cRs.5,48,496cc
†c 
c  c
 
c%cAccording to incapacity causedcc
†c !
 c
 
c%cRs. 2000 per month upto a period of 5 years

[c c c  c c!"cc#
c c

 c c$c%c$& #c&c$c$c
c'c

Indemnity against the Employers legal liability to his Employees under

the Indian Workmen's Compensation Act 1923, and subsequent Amendments
of the said Act prior to the date of issue of the policy, under the Indian Fatal
Accidents Act, 1855, and at common aw.

Indemnity against the Employers legal liability to his Employees under the
Indian Fatal Accidents Act, 1855 and at common law.

In addition, the company bears the costs and expenses incurred with its
written consent in the settlement of claims.

,.c

†c The insurance under table "A"can be extended by charging an

additional premium of 50% of book rate to cover disease
mentioned in part 'C' of Schedule III of Workmen's Compensation
Act.

,.
c

†c This insurance does not cover any interest and/or penalty which
may be imposed on all insured or an insured on account of failure
to comply with
 c

ALLIANZ BAJAJ CHANGES ITS NAME TO BAJAJ

ALLIANZ LIFE INSURANCE COMPANY
Mumbai, August 03, 2004

Allianz Bajaj ife Insurance Co. td., the fastest growing private life insurance
co, today announced that it has changed its corporate name to Bajaj Allianz ife
Insurance Co. td., effective from August 03, 2004. The change in company name
comes in conjunction with research findings from existing customers, business
associates, prospective customers and other stakeholders indicated higher comfort
level and ease of recalling Bajaj name first and then Allianz, and hence the name
Bajaj Allianz.

Bajaj Allianz General Insurance Co. td & Bajaj Allianz ife Insurance Co. td. will
now have a common logo and branding which will help in increasing our visibility and
familiarity which will create a much larger awareness and a greater mindshare. The
new logo incorporates the new Bajaj Auto logo.
Commenting on this occasion Mr. Sam Ghosh, Country Manager, Allianz & CEO, Bajaj
Allianz ife insurance said, "We are not only acquiring a new name, but have put in
motion a new level of energy and commitment to delivering the best products. The
name change coupled with aggressive strategic market initiatives to reach and
service customers better will give us an unbeatable position in the insurance market
in this country and both ife & General companies together can unleash the 'Power of
One' and be the leader in the insurance industry."

Bajaj Allianz ife insurance recently launched over 100 satellite branches, new life &
non-life group products which has helped Bajaj Allianz (formerly known as Allianz
Bajaj) to log in Rs. 100 Cr. Gross Written Premium (GWP) in the first 100 days of
this financial year and has leaped to 3rd position as per IRpA figures ending June 04,
from its 7th position at the end of last financial year.

Bajaj Allianz ife Insurance has also brought in key executives, to infuse greater
thrust, new ideas, efficiency and professionalism to impart state of the art servicing
to the customers across the length and breadth of the country.

About Bajaj Allianz ife Insurance:

Bajaj Allianz ife Insurance Company has developed insurance solutions that cater to
every segment and age-income profiles. Its products include InvestGain (a unique
life insurance plan where sustenance of income is combined in the same plan that
also pays a lump sum), Cash Gain (Money Back), Child Gain (Children's plan), Risk
Care (Pure Term), ifetime Care (whole life), Term Care (term with return of
premium), Swarna Vishranti (Retirement Plan), Protector (Mortgage term insurance
plan), UnitGain (Unit inked Whole of ife Plan) and UnitGain Single Premium.
Bajaj Allianz ife Insurance is poised for an accelerated growth in the market and has
already become the fastest growing private life insurance company in India. Bajaj
Allianz ife Insurance has a wide pan India presence of office network in 156 cities of
the country and is aided with a strong and trained Agency network of over 27,000
agents. Bajaj Allianz has also forged strong Bancassurance and Corporate Agency
relationships and continues to build on new tie-ups for fast track growth and deep
market penetration. Bajaj Allianz ife Insurance has launched a slew of need-based
 Bajaj Allianz tops profit chart of pvt life insurers ±
May 12th, 2007

Bajaj Allianz ife Insurance, with a Rs 63 crore of profit in 2006-07,

has emerged as the most profitable private life insurance company in the
industry. The life insurance joint venture between Germany¶s largest
company Allianz and auto major Bajaj Auto has mobilised a new business
premium of Rs 4270 crore during the year .

The company has also 20 lakh policies which is the largest that any private
sector life insurance company has sold in the country. Earlier SBI ife had
announced a small profit of over Rs 3 crore for 2006-07. Over 70% of the
business of the company with a pan India network and strong retail focus
was regular premium for the year and in the month of March 07 over 80% of
the business was regular premium. With 2,13,000 agents, 900 offices in 840
towns, 200 corporate agents & Bancassurance partners.

The company has he largest distribution network . Rahul Bajaj, chairman,

Bajaj Allianz ife insurance has said, ³Crossing the $1 billion in new business
premium and a healthy profit of Rs 63 crore. in such a short span of time
speaks highly of the management team spearheading this accelerated
growth.´ Sam Ghosh, country manager Allianz & CEO Bajaj Allianz ife said,
³This feat was achieved by efficient capital management, strong cost controls
across the company.¶¶ The company has collected more new business
premium in this one year alone, then the total of last 5 year¶s new business
(Rs 3821 crore). The top most private sector life insurance company ICICI
ife with a market share of 29% on the basis of weighted received premium
had a negative impact of Rs 480 crore on the ICICI Bank¶s consolidated profit
after tax in FY2007. The company¶s unaudited Êew Business Achieved Profit
(ÊBAP) for FY2007 was Rs 881 crore as compared to Rs 528 crore, in
FY2006.
products to cater to each varied needs of the customer. Currently Bajaj
Allianz ife Insurance has a product portfolio of 18 products and more need-
based products are in the pipeline.
 Plan Or Scheme Of The Company
Bajaj Allianz ife Insurance Co td is a unique joint venture among the
global giants Allianz Group (AG) and Bajaj Auto. Allianz AG's world ranking
establishes it among the top insurance companies in the world. Bajaj is the
biggest two and three wheeler manufacturer in the world. Bajaj Allianz ife
Insurance Company boasts of a nationwide presence with 876 offices and
over 4 million satisfied customers. The various insurance products include .
c
Individuals Plans
mc Unit Gain Insurances
mc Term Care Plans
mc ifetime Care Insurance Policy
mc Business Insurance Policies
mc Savings And Security Policies For You And Your Family c

mc Rural Insurance Plan

mc Healthcare Insurance
mc Financial Insurance
mc Pension Plus
mc Retirement Plans
mc Children's Policies
mc Endowment Plans and many more.

Group Insurance Schemes

mc Insurance For Employee-Employer Groups
mc Insurance For Êon-Employer - Employee Groups
mc Employees peposit inked Insurance
mc Êew Group Superannuation Scheme
mc Êew Group Gratuity Care Scheme

Special Insurance Policies for ÊRI's

mc Investgain Endowment Plan
mc Cashgain Money Back Plan
mc Childgain Kids Special Plan
mc Swarna Vishranthi

Bajaj Allianz India offers convenient premium payment and receipt options.
The payments can be direct through cheques, pp's or directly from your
accounts or through credit card. The premiums can also be paid online. The
insurance policy holders who also have an account with Standard Chartered
Bank can avail the direct debit mandate facility.
 c
TERMS AND CONDITIONS
OF
BAJAJ ALLIANZ LIFE INSURANCE COMPANY
c
General
By accessing this website (the "Bajaj AllianzWebsite") and using
its content, you acknowledge and you agree that you have read and
understood the following terms of use and you agree to be bound by them.
po not use the Bajaj Allianz Website, if you do not agree with these terms of
use.
As used below, the terms "we", "us" and "our" refer to Bajaj
AllianzAktiengesellschaft and the Allianz subsidiaries ("Bajaj Allianz, Bajaj
Auto and other Group Companies").
Use of Content
The content is available for informational purposes only. The posting of
content and access to this website does not render, either explicitly or
implicitly, any provision of services or products by us. Information concerning
financial products or services (including insurance, asset management and
banking) is only available through the respective Bajaj Allianz.

Êo Offer
Êo information on the Bajaj Allianz Website is or should be interpreted as an
offer or a solicitation for an offer, as investment, legal, tax or other advice.
Where such is needed, a professional shall be consulted.

Êo puty to update
All content on the Bajaj Allianz Website is published as of its date only. We
assume no responsibility to update or amend.

Copyright
All content of the Bajaj Allianz Website is protected by copyright with all
rights reserved. All rights in the pages, site content and arrangement are
owned by Bajaj Allianz Aktiengesellschaft and/or the respective Allianz Group
companies. You are prohibited from copying, modifying, displaying,
distributing, transmitting, redelivering through the use of "framing"
technology, publishing, selling, licensing, creating derivative works or using
any site content for any purpose without the prior written approval of Bajaj
AllianzAktiengesellschaft and/or the respective Bajaj AllianzGroup
Companies.
Trademarks, Service Marks and ogos ("Marks")
The marks appearing on the Bajaj Allianzwebsite and/or any other Bajaj
AllianzGroup Companies¶ respective websites are the property of Bajaj
AllianzAktiengesellschaft and/or of those Bajaj AllianzGroup Companies.

Êo Warranty
All content on the Bajaj AllianzWebsite, including but not limited to graphics,
text and hyperlinks or references to other sites, is provided "as is". Without
warranty of any kind, express or implied, including, but not limited to,
implied warranties of merchantability, fitness for a particular purpose, non-
infringement and freedom from computer viruses or other harmful
components.
We do not warrant the adequacy, accuracy, reliability or completeness of any
information on the Bajaj AllianzWebsite and expressly disclaim any liability
for errors or omissions therein.
We do not warrant that the functions of the Bajaj Allianzwebsite will be
uninterrupted and/or error-free, that defects will be corrected or that the
Bajaj Allianzwebsite or the server that makes it available are free from
computer viruses or other harmful components.

imitation of iability
We expressly disclaim any liability, whether in contract, tort, strict liability or
otherwise, for any direct, indirect, incidental, consequential, punitive or
special damages arising out of or in any way connected with your access or
use or inability to access or use the Bajaj Allianzwebsite or reliance on its
content, or any failure of performance, interruption, defect, delay in
transmission, computer viruses or other harmful components, or line or
system failure associated with the Bajaj Allianzwebsite, regardless of our
knowledge thereof. The same is true for any content appearing on any of the
Bajaj AllianzGroup companies' websites.

Hyperlinked and Referenced Websites

Certain hyperlinks or referenced websites on the Bajaj Allianzwebsite may for
your convenience forward you to third parties' websites, which generally are
recognised by their top level domain name. Their content has not been
investigated or analysed by us, and we do not warrant the adequacy,
accuracy, reliability or completeness of any information on hyperlinked or
referenced websites and expressly disclaim any liability for any and all of
their content.
By accessing the Bajaj Allianz website, you also agree to abide by the
proprietary guidelines set forth at any website accessed or hyperlinked to
through the Bajaj Allianz website.
ocal egal Restrictions
The Bajaj Allianz website is not directed to any person in any jurisdiction
where (by reason of that person's nationality, residence or otherwise) the
publication or availability of the Bajaj Allianz website is prohibited. Persons in
respect of whom such prohibitions apply must not access the Bajaj Allianz
website.

Reservation of Rights
We reserve the right to change, modify, add to, or remove portions of these
terms of use at any time.

Jurisdiction, Severability
Any action arising out of these terms or this website shall be litigated in, and
only in, courts located in Munich, Germany, and you agree to submit to the
exclusive jurisdiction of those courts and further agree that they are a
convenient forum for you.
In the event that any provision of these terms is held unenforceable, the
validity or enforceability of the remaining provisions will not be affected, and
the unenforceable
 Bajaj Allianz Life Insurance and Sarva U.P. Gramin Bank Join
Hands to Distribute Life Insurance to Masses Across Uttar
Pradesh

Bajaj Allianz ife Insurance, India¶s leading private life insurance

company offers the strongest distribution network across the country through
it own 1000+ branches spread over 950+ towns and its strong
bancassurance partnerships which help its reach out to every corner of the
nation. Speaking on this occasion the Mr. Yogesh Gupta, Head Business
Procurement said ³This tie-up will greatly improve our distribution strength in
all Uttar Pradesh and help provide life insurance solutions across rural and
semi-rural customer base of Sarva U.P. Gramin Bank´ c
ccc

 c-/
cV

ccc-
&
c0c1
c*
c³we are
very proud to tie-up with Bajaj Allianz ife Insurance and we will now be able
to offer insurance benefits and products to our customers´c

About Sarva U.P. Gramin Bank

Sarva U.P.Gramin Bank, sponsored by Punjab Êational Bank one of the

leading commercial Bank of India, came into existence by amalgamation of 4
RRBs Viz ( Uttar Pradesh Gramin Bank Meerut, Kissan Gramin Bank Budaun,
Rani axmi Baye Gramin bank Jhansi and pevi Pattan Gramin bank Gonda)
working in the area spread in whole Uttar Pradesh "East to West".

The Bank has its Head Office in Meerut. Sh.A.K. oomba is the First
Chairman of the Bank. The Bank's operational area spreads in Fourteen
pistricts viz. Meerut, Bulandshahr, Ghaziabad, Gautam Budh Êagar, Bijnor,
Gonda, Balrampur, Budaun, Haridwar, Bagpat, Sharanpur, Jhansi, alitpur
and Muzaffaranagar.

Bajaj Allianz ife Insurance Company is the leading Private Sector life
insurance Company in India.. With a pan India presence and over 950 +
towns, Bajaj Allianz ife Insurance has already sold over 5 million policies.
Bajaj Allianz ife Insurance has developed insurance solutions that cater to
every segment and age-income profiles. For companies it provides
comprehensive 'Employee Benefit Solutions' (Group Term ife, EpI,
Gratuity, Super-annuation, Key man Insurance and more); for the individual
Invest Gain (a unique life insurance plan where sustenance of income is
combined in the same plan that also pays a lump sum), Cash Gain (Money
Back), Child Gain (Children's plan), Care First, Risk Care (Pure Term),
ifetime Care (whole life), Term Care (term with return of premium), Saran
Visitant (Retirement Plan), Protector (Mortgage term insurance plan),
UnitGain Plus Gold, Êew UnitGain Super, Êew Family Gain, Êew UnitGain
 MANAGEMENT REPORT

>cccc
cc*
2
2c 
3cc 


c
V
cc45cV
67ccc

c
c"c c
$!!cc8"c(
c$!!#c
c
cc cc(

c
ccV
cc
c
c
c
c
1. The registration certificate granted by Insurance Regulatory and
pevelopment Authority (IRpA) is valid and the same has been renewed for
the year 2007-2008.

2. All relevant statutory dues payable by the Company havebeen generally

deposited on time.

3. There has been no transfer of shares during the year and the shareholding
pattern is in accordance with the statutory and regulatory requirement.

4. The management has not directly or indirectly invested outside India, the
funds of the holders of policies issued in India.

5. The required solvency margins have been maintained as required by the

IRpA.

6. We certify that the values of all the assets have been reviewed on the date
of Balance Sheet and in the management¶s belief, the assets set forth under
each
of the headings in the Balance Sheet are shown in the aggregate at amounts
not exceeding their realizable or market value under their related headings -
³oans´,
³Investments´, ³Agents balances´, ³Outstanding Premiums´, ³Income
accrued on investments´, ³Amounts due from other entities carrying on
insurance business
(including amounts due from reinsurers)´, ³Cash´ and the several items
specified under ³Other Accounts´. Market value of investment in debt
securities (other
than unit linked funds) which are valued at amortized cost as per IRpA
regulations, is lower than their carrying amount.

7. We certify that, no part of the life insurance fund has been directly or
indirectly applied in contravention of the Insurance Act, 1938 (4 of 1938)
relating to the
application and investment of the life insurance fund.
8. The Company recognizes the risks associated with the life insurance
business and manages the risks by adopting prudent policies to counter the
key risks of the Company ± namely underwriting and investment risks. The
Company has established robust underwriting procedures to mitigate
underwriting risks. Additionally
the Company has entered into reinsurance arrangements wherein it reinsures
risk in excess of its retention limits to mitigate its risk exposure. The
investment risk is managed by laying down appropriate guidelines in the
Investment Policy.cThecInvestment Policy is formulated by the Investment
Committee and approved by the Board of pirectors. The investment policy is
reviewed at least once a year for alignment with the Company¶s latest
business plan and other developments during the year.
9. The Company does not have operations in any other country.

10. Claim settlement time for the claims lodged has been around 7 days from
the date of receipt of complete requirements. Ageing of claims indicating the
trends in
average claim settlement time is given below.

X c
c
c
2006-07 7

2005-06 7

2004-05 3

2003-04 3

2002-03 5

c
11. We certify that the values, as shown in the Balance Sheet, of the
investments (other than unit linked investments), which consists of fixed
income securities,
equity shares and mutual fund units that have been valued as per accounting
policies prescribed by IRpA. Market values have been ascertained for equities
on the basis of lower of the closing prices as on the balance sheet date on
The Êational Stock Exchange of India td. and The Stock Exchange, Mumbai.
For fixed income
securities, valuation is based on procedure issued by Fixed Income and
Money Market and perivative pealers Association (FIMMpA). The
investments in the Mutual
Funds are valued at the Êet Asset Values (ÊAV) of these Mutual funds as on
the Balance Sheet date. We certify that the unit linked investments have
been valued on the basis as stated below:
Equities have been valued at market values which have been ascertained on
the basis of the last quoted closing price on the ÊSE. In case the equity
shares are not
listed on the ÊSE, then they are valued on the last quoted closing price on
BSE. Government securities are valued at prices obtained from Credit Rating
Information
Services of India td. (CRISI). Corporate bonds and debentures are valued
on the basis of CRISI Bond Valuer. Treasury bills, certificate of deposits and
commercial
papers are valued at cost plus accretion at yield to maturity. Mutual fund
units have been valued at the last available Êet Asset Value declared by the
respective
mutual fund.
The Bajaj Allianz ife Insurance website offers human life value estimator,
child education cost calculator, retirement solutions and required pension
estimator and premium calculator online. The Bajaj Allianz insurance agents
will guide you about the general life insurance policies best suited to your
needs. The insurance agent also briefs you about the insurance quote and
the terms on the policy quotes.
 ()*+,c-.*)c
c
c
c
c
The Members of *
2
2c 
3cc 

cV
c
c
We have audited the attached Balance Sheet of Bajaj Allianz ife Insurance
Company imited (µthe Company¶) as at 31 March 2007, and the related
Policyholders¶ Revenue Account, the Shareholders¶ Profit and oss Account
and the Receipts and Payments Account for the year ended on that date,
annexed thereto.These financial statements are the responsibility of the
management of the Company. Our responsibility is to express an opinion on
these financial statements based on our audit. We conducted our audit in
accordance with auditing standards generally accepted in India. These
standards require that we plan and perform the audit to obtain reasonable
assurance as to whether the financial statements are free of material
misstatement. An audit includes examining on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
The Balance Sheet, the Policyholders¶ Revenue Account, the
Shareholders¶ Profit and oss Account and the Receipts and Payments
Account have been drawn up in accordance with the Insurance Act, 1938
(Act 4 of 1938), Insurance Regulatory and pevelopment Act, 1999,
Insurance Regulatory
and pevelopment Authority (Preparation of Financial Statements and
Auditor¶s Report of Insurance Companies) Regulations 2002 (µthe
Regulations¶) read with Section 211 of the Companies Act, 1956.
As required by the Regulations, we set out in the Annexure,a statement
certifying the matters specified in paragraph 4 of Schedule C to the
Regulations.Further to our comments in the Annexure referred to above,
we report that:

‡ We have obtained all the information and explanations which, to the best of
our knowledge and belief were necessary for the purposes of the audit and
have found
them to be satisfactory;

‡ In our opinion and to the best of our information and according to the
explanations given to us, proper books of account as required by law have
been maintained by
the Company so far as appears from our examination of those books;
‡ As the Company¶s accounting system is centralised at the head office, no
returns for the purposes of our audit are prepared at the branches and other
offices
of the Company;
c
‡ The Balance Sheet, the Policyholders¶ Revenue Account, the Shareholders¶
Profit and oss Account and the Receipts and Payments Account referred to
in this report
are in agreement with the books of account;
c
‡ The actuarial valuation of liabilities for life policies in force is the
responsibility of the Company¶s Appointed Actuary (µthe Appointed Actuary¶).
The actuarial valuation
of liabilities for policies in force as at 31 March 2007 has been duly certified
by the Appointed Actuary. The Appointed Actuary has also certified that, in
his opinion,
the assumptions for such valuation are in accordance with the guidelines and
norms, if any, issued by the Insurance Regulatory and pevelopment
Authority (µIRpA¶)
and the Actuarial Society of India in concurrence with the authority. We have
relied upon the Appointed Actuary¶s certificate in this regard in forming our
opinion.

‡ On the basis of the written representations received from the pirectors of

the Company, as on 31 March 2007 and taken on record by the Board of
pirectors, no
pirector of the Company is disqualified as on 31 March 2007 from being
appointed as pirector under clause (g) of sub section (1) of Section 274 to
the Companies Act,
1956.
In our opinion and to the best of our information and according to the
explanations given to us, we further report that:

‡ Investments have been valued in accordance with the provisions of the

Insurance Act, 1938 and the Regulations or orders / directions issued by
IRpA in this behalf;

‡ The accounting policies selected by the Company are appropriate and are in
compliance with applicable accounting standards and with accounting
principles,
as prescribed in the Regulations and orders or directions issued by IRpA in
this behalf;

‡ The Balance Sheet, the Policyholders¶ Revenue Account, the Shareholders¶

Profit and oss Account and the Receipts and Payments Account referred to
in this report
are in compliance with the accounting standards referred to in Section 211
(3C) of the Companies Act,1956; and
‡ The Balance Sheet, the Policyholders¶ Revenue Account, the Shareholders¶
Profit and oss Account and the Receipts and Payments Account together
with the notes
thereon and attached thereto are prepared in accordance with the
requirements of the Regulations, the Insurance Act, 1938, the Insurance
Regulatory and pevelopment Act, 1999 and the Companies Act, 1956, to the
extent applicable and in the manner so required and give a true and fair view
in conformity with accounting principles generally accepted in India as
applicable to insurance companies:

(i) in the case of the Balance Sheet, of the state of affairs of the Company as
at 31 March 2007;

(ii) in the case of the Policyholders¶ Revenue Account, of the surplus for the
year ended 31 March 2007;

(iii) in the case of the Shareholders¶ Profit and oss Account, of the loss for
the year ended 31 March 2007; and

(iv) in the case of the Receipts and Payments Account, of the receipts and
payments for the year ended 31 March 2007. Further, on the basis of
examination of books and records of the Company and according to the
information and

c
.

c&cc
c
ccccc
c c
c  c
cc
c
c
c
‡ We have reviewed the management report attached to the financial
statements for the year ended 31st March 2007, and there is no apparent
mistake or material
inconsistencies with the financial statements; and

‡ Based on information and explanations received during the normal course

of our audit, management¶s representations made to us and the compliance
certificate submitted to the Board by the officers of the Company charged
with compliance and the same being noted by the Board, nothing has come
to our attention which causes us to believe that the Company has not
complied with the terms and conditions of
registration as per subsection 4 of section 3 of the Insurance Act, 1938.
c
c
c
c
c
c
c
 c
c
 /cc%c"cc
(Referred to in the Auditors¶ Report to the members of Bajaj Allianz ife
Insurance Company imited (µthe Company¶) on the accounts for the year
ended 31 March 2007)

Auditor¶s Certificate
To the Members of Bajaj Allianz ife Insurance Company imited
Based on the information and explanations given to us and to the best of our
knowledge and belief, we certify that:

‡ We have verified the cash balances, to the extent considered necessary,

securities relating to the Company¶s loans and investments by actual
inspection or on the basis of certificates / confirmations received from
custodians and / or pepository Participants appointed by the Company, as
the case may be. At 31st March 2007, none of the Company¶s assets involve
reversion or life interests;

‡ The Company is not the trustee of any trust; and

‡ Êo part of the assets of the policyholders¶ funds has been directly or

indirectly applied in contravention to the provisions of the Insurance Act,
1938 relating to the application and investments of the policyholders funds.

‡ This certificate is issued to comply with the requirements of Schedule µC¶ of

Insurance Regulatory and pevelopment Authority (Preparation of Financial
Statements and Auditor¶s Report of Insurance Companies) Regulations 2002
(µthe Accounting Regulations¶) read with Regulation 3 of the Accounting
Regulations and may not be suitable for any other purpose.

ccccccccccccccccccccccccccccccccccccccccccccKIRTAÊE & PAÊpIT S.R. BATIBOI & CO&c

cccccccccccccccccccccccccccccccccccccccccccV
c

cccccccV
c


c
c
c
ccccccccccccccccccccccccccccccccccccccccccccccccccccccccc-

c9
cc c cc:
c-
c

cccccccccccccccccccccccccccccccccccccccc 


ccc c c 


c
cccccccccccccccccccccccccccccccccccccccccccccccc
cc ccccccccc
ccc
c
c
c
c
c
c
c
c
 c
c
Balance S h eet A b stract And Company¶s General
Business Profile
c
 c |
cccc 9
 c
c |
cccc c c c -
  cc
c "ù+ù+c c c Vc
""c
c c c c c
*

ccc-    c 9
c

8"c !8c $!!#c c c

9
  c ( c ;
 c c c

c
 c V

cc |
  c 9
cc   c ; 
 c4
cc c |c 6!!!7c
ccccccccccccccccccccc
 cc 
cccccccccccccccccccccccccccccccccc|cc 
c
c cccccccccccc
c %c %c
cccccccccccccccccc
ccccccccccccccccc*
c 
ccccccccccccccccccccccccccccccccccccc&
c
c
c
c %c '()c
c
cc ccYc( 
cc9 cYcm
c4
c c|c6!!!7c
cccccccccccccccccc 
c
 cccccccccccccccccccccccccccccccccc 
cc
c
c **+'+,c **+'+,c
c
oc-
cYcm
c4
c c|c6!!!7c
ccccccccccccccccc
c0cV

ccccccccccccccccccccccccccccccc|&cc-

c
c
c + '+*, c + +* c
c
cccccccccccccccccc-
c
ccccccccccccccccccccccccccccccccc0
c
c
c
c %c %c
ccccccccccccccc  cm
ccccccccccccccccccccccccccccccccccYc
cc
c * +*)*+(, c ,c
c
oc 
cYcm
c4
c c|c6!!!7c
ccccccccccccccccm.cccccccccccccccccccccccccccccccccc &c
c
c '+*-(c *+(+*-c
cccccccc
ccccccccccccccccV
ccccccccccccccccccc(

c,.
cc
c
c '+',+)*c %c
c
ccccccccccccccc


ccccccccccccccccccccccccccccccccccccccYc
c
)+* +)-c ,+*' c
 c
c
oc
cYcV
c4
c c|c6!!!7c
cccccccccccccccccccccc
&ccccccccccccccccccccccccccccccccccccc 
c,.
c
c
c %c %c
c
ccccccccccccc*c
.cccccccccccccccccccc
.c
c
c .+ */c cccccccc.+ ''/c
c
cccccccccccccc


cc
c
c %c
c
ccccccccccccccc,
cc-
cccccccccccccccccccccccccccc9&c|
c4%7c
c
c cccccccccc.(&/c %c
c
c
c
c
c
Ê*)-c'0cBeing A ife Insurance Company There Is Êo Turnoverc&c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
."c+$ cc
$cc
[c c!$c  c1c!"c
Bajaj Allianz ife Insurance Co td is a unique joint venture among the
global giants Allianz Group (AG) and Bajaj Auto. Allianz AG's world ranking
establishes it among the top insurance companies in the world. Bajaj is the biggest
two and three wheeler manufacturer in the world. Bajaj Allianz ife Insurance
Company boasts of a nationwide presence with 876 offices and over 4 million
satisfied customers. The various insurance products include

 "
"c. c

mc Unit Gain Insurances

mc Term Care Plans
mc ifetime Care Insurance Policy
mc Business Insurance Policies
mc Savings And Security Policies For You And Your Family

mc Rural Insurance Plan

mc Healthcare Insurance
mc Financial Insurance
mc Pension Plus
mc Retirement Plans
mc Children's Policies
mc Endowment Plans and many more.

c  c+%c

mc Insurance For Employee-Employer Groups

mc Insurance For Êon-Employer - Employee Groups
mc Employees peposit inked Insurance
mc Êew Group Superannuation Scheme
mc Êew Group Gratuity Care Scheme

+c  c.c$cÊ2c

mc Investgain Endowment Plan

mc Cashgain Money Back Plan
mc Childgain Kids Special Plan
mc Swarna Vishranthi

c
c
Allianz Bajaj Changes Its Name To Bajaj Allianz Life Insurance
Mumbai, August 03, 2004:

Allianz Bajaj ife Insurance Co. td., the fastest growing private life
insurance co, today announced that it has changed its corporate name to Bajaj
Allianz ife Insurance Co. td., effective from August 03, 2004. The change in
company name comes in conjunction with research findings from existing customers,
business associates, prospective customers and other stakeholders indicated higher
comfort level and ease of recalling Bajaj name first and then Allianz, and hence the
name Bajaj Allianz.

Bajaj Allianz General Insurance Co. td & Bajaj Allianz ife Insurance Co.
td. will now have a common logo and branding which will help in increasing our
visibility and familiarity which will create a much larger awareness and a greater
mindshare. The new logo incorporates the new Bajaj Auto logo.

Commenting on this occasion Mr. Sam Ghosh, Country Manager, Allianz & CEO, Bajaj
Allianz ife insurance said, "We are not only acquiring a new name, but have put in
motion a new level of energy and commitment to delivering the best products. The
name change coupled with aggressive strategic market initiatives to reach and
service customers better will give us an unbeatable position in the insurance market
in this country and both ife & General companies together can unleash the 'Power of
One' and be the leader in the insurance industry."
Bajaj Allianz ife insurance recently launched over 100 satellite branches, new life &
non-life group products which has helped Bajaj Allianz (formerly known as Allianz
Bajaj) to log in Rs. 100 Cr. Gross Written Premium (GWP) in the first 100 days of this
financial year and has leaped to 3rd position as per IRpA figures ending June 04,
from its 7th position at the end of last financial year.

Bajaj Allianz ife Insurance has also brought in key executives, to infuse greater
thrust, new ideas, efficiency and professionalism to impart state of the art servicing
to the customers across the length and breadth of the country


c*
2
2c 
3cc 



Bajaj Allianz ife Insurance Company has developed insurance solutions that cater to
every segment and age-income profiles. Its products include InvestGain (a unique
life insurance plan where sustenance of income is combined in the same plan that
also pays a lump sum), Cash Gain (Money Back), Child Gain (Children's plan), Risk
Care (Pure Term), ifetime Care (whole life), Term Care (term with return of
premium), Swarna Vishranti (Retirement Plan), Protector (Mortgage term insurance
plan), UnitGain (Unit inked Whole of ife Plan) and UnitGain Single Premium.

Bajaj Allianz ife Insurance is poised for an accelerated growth in the market and has
already become the fastest growing private life insurance company in India. Bajaj
Allianz ife Insurance has a wide pan India presence of office network in 156 cities of
the country and is aided with a strong and trained Agency network of over 27,000
agents. Bajaj Allianz has also forged strong Bancassurance and Corporate Agency
relationships and continues to build on new tie-ups for fast track growth and deep
market penetration. Bajaj Allianz ife Insurance has launched a slew of need-based
products to cater to each varied needs of the customer. Currently Bajaj Allianz ife
Insurance has a product portfolio of 18 products and more need-based products are
in the pipeline.
Research Methodolgy
c
cccMeaning :-
cccccccccccccccccccccccccccccccccccccccccccc
Research is a common term refers to a search for knowledge .It is a scientific
& Systmatic Search for specific information on a Spcific topic Infact research is an
art of scientific investigation Research is also a academic activity & as search ,The
term should be usd in a technical sense. Research includes defining & redefining
problem Formulating hypothesis or suggested solution Collecting, oranising &
evaluating data & making deduction & reaching the conclusion to determine another
they feed the Formulating hypothesis.
c
ccpefinition of Research :-
c
According to µMary¶ ³ Research is a systematic efforts to gain
new Knowledge.´
c
Objectives of Reaserch :-
1.c To gain Familarly with a phenomenon or to
achieve new insight into it
( Formulative research)

2.c To test accurately the feature or a Particular

individual situation or a group.

3.c To determine the Frequency with which something

accuse or wih which it is associatedwith
something else.

4.c To test a Hypothesis of a cadual relationship

beteen variable
( Hypothesis testing research ).
c
c
c
c
c
c
c
c
c
c
 cc$c%c# cc# c
c
c
1.c Elements of Marketing Strategies :-
A marketing strategy is most
effective when it is an integral component of corporate strategy, defining how the
organization will successfully engage customers, prospects, and competitors in the
market arena. It is partially derived from broader corporate strategies, corporate
missions, and corporate goals. As the customer constitutes the source of a
company's revenue, marketing strategy is closely linked with sales. A key component
of marketing strategy is often to keep marketing in line with a company's
overarching mission statement.

c
Sectorial tactics and actions :-
ccccccccccccccccccccccccccccccccccccccccccccccA

 c 
 can serve as the
foundation of a marketing plan. A marketing plan contains a set of specific actions
required to successfully implement a marketing strategy. For example: "Use a low
cost product to attract consumers. Once our organization, via our low cost product,
has established a relationship with consumers, our organization will sell additional,
higher-margin products and services that enhance the consumer's interaction with
the low-cost product or service." A strategy consists of a well thought out series of
tactics to make a marketing plan more effective. Marketing strategies serve as the
fundamental underpinning of marketing plans designed to fill market needs and
reach marketing objectives[3]. Plans and objectives are generally tested for
measurable results. A marketing strategy often integrates an organization's
marketing goals, policies, and action sequences (tactics) into a cohesive whole.
Similarly, the various strands of the strategy , which might include advertising,
channel marketing, internet marketing, promotion and public relations can be
orchestrated. Many companies cascade a strategy throughout an organization, by
creating strategy tactics that then become strategy goals for the next level or group.
Each group is expected to take that strategy goal and develop a set of tactics to
achieve that goal. This is why it is important to make each strategy goal measurable.
Marketing strategies are dynamic and interactive. They are partially planned and
partially unplanned. See strategy dynamics.

c
c
c
c
c
Types of strategies :-
Every marketing strategy is unique, but can be
reduced into a generic marketing strategy. There are a number of ways of
categorizing these generic strategies. A brief description of the most common
categorizing schemes is presented below:

Strategies based on market dominance - In this scheme, firms are classified based
on their market share or dominance of an industry. Typically there are three types of
market dominance strategies:

†c eader
†c Challenger
†c Follower

Porter generic strategies :±

strategy on the dimensions of strategic scope
and strategic strength. Strategic scope refers to the market penetration while
strategic strength refers to the firm¶s sustainable competitive advantage.

†c Cost leadership
†c Product differentiation
†c Market segmentation

Innovation strategies :± c
ccccccccccccccccccccccccccccccccccccccThis deals with the firm's rate of the new product
development and business model innovation. It asks whether the company is on the
cutting edge of technology and business innovation. c

c
cccc

1.c Pioneers
2.c Close followers
3.c ate followers
c c
c c
c c
c c
c c
 c c
&%c#c3cc
In this scheme we ask the question, ³How should the firm
grow?´. There are a number of different ways of answering that question, but the
most common gives four answers:

†c Horizontal integration
†c Vertical integration
†c piversification
†c Intensification

A more detailed scheme uses the categories:

†c Prospector
†c Analyzer
†c pefender
†c Reactor

c
Ñ #c&$c#c'3c
cccccccccccccccccccccccccccccccccccccccccccccccccccThis scheme draws parallels between
marketing strategies and military strategies.

+#cÑ"cc'0c
cccccccccccccccccccccccccccccccccMarketing
participants often employ strategic models and
tools to analyze marketing decisions. When beginning a strategic analysis, the 3Cs
can be employed to get a broad understanding of the strategic environment. An
Ansoff Matrix is also often used to convey an organization's strategic positioning of
their marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue
a defined strategy.

c
Ñ #c.c'0c
In practice, as opposed to theory, research has indicated
that the outstanding problems facing marketers lie in the use of specific functions.
Most senior managements have committed to the philosophy, even though their
junior managers may be cynical about the degree of that commitment.
Unfortunately, there is little evidence to show that this new-found belief has led to
positivec action. Indeed, there is little evidence that marketing practice (as opposed
to the theory) has been widely embraced. In particular, pricing is largely on a cost-
plus or competitive basis, promotional budgets are small (and spent more on sales
promotion than advertising or PR), 'place' is - in any case - not relevant, and
marketing research is almost all second-hand.

cÑ #c'0c
ccccccccccccccccccccccccccccccccccThe marketer, in real life, does not face each decision with
a copy of a text-book in his or her hand - ready to work through the various lessons.
The marketer starts with a quite specific environment, which will immediately limit
the range of relevant factors. To the perceptive marketer the range of options to be
explored is usually obvious. Beyond this, the position is further constrained by the
available resources. For instance, theory always says that the first step is marketing
research, but if a competitor has just made a major change in strategy, a company
may have just days to react - where research may take months.

Real-life marketing primarily revolves around the application of a great deal of

common-sense; dealing with a limited number of factors, in an environment of
imperfect information and limited resources complicated by uncertainty and tight
timescales. Use of classical marketing techniques, in these circumstances, is
inevitably partial and uneven.

Thus, for example, new products will emerge from irrational processes and the
rational development process may be used (if at all) to screen out the worst non-
runners. The design of the advertising, and the packaging, will be the output of the
creative minds employed; which management will then screen, often by 'gut-
reaction', to ensure that it is reasonable.

For most of their time, marketing managers use intuition and experience to analyze
and handle the complex, and unique, situations being faced; without easy reference
to theory. This will often be 'flying by the seat of the pants', or 'gut-reaction'; where
the overall strategy, coupled with the knowledge of the customer which has been
absorbed almost by a process of osmosis, will determine the quality of the marketing
employed. This, almost instinctive management, is what is sometimes called 'coarse
marketing'; to distinguish it from the refined, aesthetically pleasing, form favored by
the theorists.

+ccc'0c
†c Business model
†c Customer engagementc

$ c'0c
†c w UK govt businesslink marketing strategy guide.
†c w Marketing strategy Australian administration small business guide.
†c w Marketing basics Marketing strategy based on market needs, targets and
goals.
oc(c-

cc(
c

c
Marketing Strategies

Elements of Marketing Mix Or Variables Of Marketing :

cThe American
Marketing Association defines marketing as "the process of planning and executing
the conception, pricing, promotion, and distribution of ideas, goods, and services to
create exchanges that satisfy individual and organizational objectives." Marketers
use an assortment of strategies to guide how, when, and where product information
is presented to consumers. Their goal is to persuade consumers to buy a particular
brand or product.

Successful marketing strategies create a desire for a product. A marketer, therefore,

needs to understand consumer likes and dislikes. In addition, marketers must know
what information will convince consumers to buy their product, and whom
consumers perceive as a credible source of information. Some marketing strategies
use fictional characters, celebrities, or experts (such as doctors) to sell products,
while other strategies use specific statements or "health claims" that state the
benefits of using a particular product or eating a particular food.

c "c $ c'0c

cccccccccccccccccccccccccccccccccccccMarketing
strategies directly impact food purchasing
and eating habits. For example, in the late 1970s scientists announced a possible link
between eating a high-fiber  and a reduced risk of 
. However, consumers
did not immediately increase their consumption of high-fiber cereals. But in 1984
advertisements claiming a relationship between high-fiber diets and protection
against cancer appeared, and by 1987 approximately 2 million households had
begun eating high-fiber cereal. Since then, other health claims, supported by
scientific studies, have influenced consumers to decrease consumption of foods high
in 


c 
 and to increase consumption of fruits, vegetables, skim milk,
poultry, and fish.

Of course, not all marketing campaigns are based on scientific studies, and not all
health claims are truthful. In July 2000 a panel of experts from the U.S. pepartment
of Agriculture supported complaints made by the Physicians Committee for
Responsible Medicine that the "Got Milk" advertisements contained untruthful health
claims that suggested that milk consumption improved sports performance, since
these claims lacked scientific

c
c
c
 c
Companies often use characters to appeal to
young consumers. Ronald Mcponald first appeared on T.V. in 1963,
portrayed by Willard Scott. The clown is known worldwide, and
according to Mcponald's, is the most recognizable figure next to
Santa Claus.
[Photograph by Tim Clary. AP/Wide World Photos. Reproduced by permission.]
support. In addition, the panel agreed with the physicians' claim that whole milk
consumption may actually increase the risk of 
c
 and 
 cancer,
and recommended that this information be included in advertisements.

The tremendous spending power and influence of children on parental purchases has
attracted marketers, and, as a result, marketing strategies aimed at children and
adolescents have increased. Currently, about one-fourth of all television

commercials are related to food, and approximately one-half of these are selling
snacks and other foods low in nutritional value. Many of the commercials aimed at
children and adolescents use catchy music, jingles, humor, and well-known
characters to promote products. The impact of these strategies is illustrated by
studies showing that when a majority of television commercials that children view
are for high-sugar foods, they are more likely to choose unhealthful foods over
nutritious alternatives, and vice versa.

 c"
 c'0c
cccccccccccccccccccccccccccccccccccccccccccAttempts
to sell large quantities of products
sometimes cause advertisers to make claims that are not entirely factual. For
instance, an advertisement for a particular brand of bread claimed the bread had
fewer 
 per slice than its competitors. What the advertisement did not say
was that the bread was sliced much thinner than other brands.

peceptive advertising has also been employed to persuade women to change their
infant feeding practices. Advertisers commonly urge mothers to use infant formula to
supplement breast milk. Marketing strategies include

c
One strategy used by advertisers is to feature a
celebrity in their advertisements or on their packaging.
The implicit message is that the celebrity endorses the
product, uses the product, and may even depend on
the product for success.
c c
 ´.45"c5"c.%1c""c6 c 17c
Giving women trial packs or coupons for several months of free formula.
Often, women are not aware that supplementing breast milk with formula will reduce
or stop their milk supply. When the samples and coupons are no longer available,
women may try to "stretch" the formula by mixing it with water, unaware that
diluting the formula places their infant at risk for 

. Many groups have
objected to the use of marketing strategies that include free formula and coupons,
and infant-formula manufacturing companies have been forced to modify their
marketing practices.

Other marketing strategies involve labeling foods as "light," meaning that one
serving contains about 50 percent less 
 than the original version (or one-third
fewer calories). For example, a serving of light ice cream contains 50 percent less fat
than a serving of regular ice cream. As a result, consumers mistakenly believe that
eating light food means eating healthful food. However, they fail to realize that a
serving of the light version of a food such as ice cream can still contain more fat and
sugar than is desirable.

Food labels with conflicting information often confront consumers. For example,
labels claiming "no fat" do not necessarily mean zero grams of fat. Food labeling
standards define low-fat foods as those containing less than 0.5 gram of fat per
serving. Therefore, consuming several servings may mean consuming one or two
grams of fat, and people are often unaware of what amount of a food constitutes a
"serving." In addition, foods low in fat may be high in sugar, adding additional
calories to one's daily caloric intake. Too often, consumers mistakenly translate a
claim of "no fat" into one of "no calories."

Other examples of conflicting claims include labels advertising foods as "high in

fiber," without specifically indicating the presence of high levels of salt, sugar, or
other 
. Also,

labels advertising dairy products as high in 


, and thus offering protection
from , are often missing information relating to the high fat content
and its possible contribution to the risk of heart disease.

Consumers are also misled by food comparisons. For example, one fruit drink may
be advertised as containing more vitamin C than another, when in reality neither of
the drinks are a good source of the vitamin. In addition, labels on some fruit drinks
claim that the product "contains real fruit juice" when, in reality, the fine print
reveals that one serving contains "less than 10% fruit juice."

Bibliography
c
c
†cWEBSITES :-
http://www.birlasun.com/c
c
c
†cBOOKS :-
c
ccccccccccccccc Modern Marketing ± (R.S.Ê. Pillai)
Marketing Management ± (Philip Kotler)
c
c
†cMAGZINES:-
c
cccccccccccccccccccccccccccEconomic Times
c
c
†cNEWSPAPER:-
c
ccccccccccccccccccccccccccThe Times Of India
c

c
c
 References cc
1. Alcorta, udvico, " Êew Technologies, Scale and Scope and ocation
of Production in
peveloping Countries" IÊTECH piscussion paper Series #9502, March
1995.
2. ___________" Flexible Automation and ocation of Production in
peveloping
countries", IÊTECH piscussion paper series # 9805, May 1998.
3. Balance sheets (SF, SC, Brakes India, Rane Brake linings), 2002-
2003.
4. Business ine, ³IÊpO-THAI FREE TRApE PACT: `THAI IMPORTS MAY
HIT
AUTO COMPOÊEÊT COS' (ICRA study finds Indian companies could
suffer 15-20%
percent cost disadvantage)´ Feb 4, 2004; pg 2.
5. Business World, ³MOVIÊG UP THE VAUE CHAIÊ´, Feb 23, 2004; pg
26
6. Business Standard, ³Indian Auto component sector: Outlook ³, 21
February 2004.
7. CII, 2nd TPM Êational Conference, Reference pocument
8. p¶Costa A.P, ³ Flexible Governance for mass production goals:
economic governance in
the Indian automobile industry´, Industrial and Corporate Change,
Vol.13 (2), 2004,
pp:335-367.
9. Kannan Sethuraman and pevanath Tirupati, ³ ucas-TVS: A Journey
towards
Manufacturing Excellence´, Vikalpa, Volume 25(2), April-June 2000.
10. "Technological Innovation, Industrial Organization and
Comparative Advantages of
atin American Metalworking Industries", Technological Capability in
the Third World,
(Ed.) Martin Fransman and Kenneth King, Macmillan, ondon (1984).c
c
c
c
c
c
c
c
c
c
c
c
-8Ê)*Êc*8cÑ-)Êcc
c
ccccccccccccccccccccccccccccccccccccccccccccccccccccMarketing in it¶s earlir definition & in
lgal aspect is said to effort by which the transfer
ownership in Goods between the seller & buyer is effected,

The limit the scope of

marketing to more transfer of ownership.Marketing in economic point
of view , is defind as xchange Function by maintaining suplly demand
in equilibrium it aims at the creation wlfere & standard of living object
of markrting.

³The term refers not to a place, but

to a commodity & buyer and sellers who r indirect competition with
one another´.

³Chapmen´

³Market includes both place &

region in which buyers and sellers are in free copemitition
With one another¶¶

³Pyle´
 GENERAL INFORMATION OF MARKETING
c
†c#"c
†c c
†c
c
c
c
cccc 
 :-
ccccccccccccccccccccccccccccccccccccc#c
0c)cc"+c1c "c2
 cc
c0cc c
c2 &c!1c
"
 c2cc1c
c
1+ 2 %c
c
!c3cc c1c2c"&c
ccccccccccccccccccccccccccccccccccc!1ccc
cc"c
2c"4 c
0c
 
cc"
c 5 &c
c
61c1c 
cccc"c c c  
c &ccccccccccccccccc
!1c2
cc
0cc2" c 1c1 c2" &c
ccccccccccccccccccccc
cccccccccccccccc!1cccc 4cc1c7"cc41 cc
0&c!c"cc

c c cc c c 0c41 c
0cc "c1c
 c 0c
 cc" c1c" $c2"cc 0ccc c8
 ccccc
1cccc1c4&c
c 0ccc c c cc1 c c ccc
&c6c cc c
c 4+ 0cc c2c
& 0ccc cc4 &cc
4ccc c "1c c2c 4&c
ccccccccccccccccc9 0c"c c 2c22cc1c cc +c
c3c
c"&c c1c c:&
c"&41c1c c:& c
c"+41c1c c cc1c41cc1
+;c
ccccccccccccccccccc9 0cc1ccc2c c  c"
cc c
4 cc"c c2c &ccccccccccccccccccccccccccccccccccccccccccccccccc
c c
ccccccccccccccccccccccMEANING OF MARKETING
c
The word µmarket¶ is defined from latin word µMaracatus¶
meaning µmerchandise¶Where traffic,trade or a place where business is conducted.
Common usage of market means a place where goods areBought or sold.In it¶s strict
meaning market need not necessary mean a
µplace of exchange¶

Marketing is indeed an ancient art; the essence of marketing

is an example of transaction intended to satisfy human needs or works. i.e marketing
is a human activity at satisfying needs & wants, through and exchange process & A
demand is want for which consumer is prepared to pay a price. the consumer desire
or seeks wants become demands when backed by purchasing power. The aim
marketing is to make sales in order to earn reasonable profit for the producer .
Marketing has been defined differently by authorities in different ways.
The traditional objectives of marketing had been to make the goods at places where
they are needed.This idea was later on changed by shifting the emphasis from
µexchange¶ to ³satisfication of human wants.´
pifferent author tried to give suitable definition from their view point.
Some are very broad, others rathers to narrow. Some emphasis on the traditional
view of producing goods and finding out custmers .others emphasise on the modern
that want.

As any other subject, it has its own, growth and

development . et us briefly trace the evolution of marketing.
The essense of marketing is an exchange or a transaction,intended to satisfy human
needs or wants. Marleting is human activilty directed at satisfying needs and wants.
A need is anything the consumer freels to keep himself

Alive & healty. Marketing in its earlier definition and in legal aspect is said to be the
effort by which the transfer of ownership in goods betweenthe seller & buyer is
effecred emphasis ownership transfer.
Marketing , in economic point of view , is defined as
exchange funtion by maintaining supply and demand in equilibrium .cccccccccccccccc
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
 Method of collection Data:
c
primary source of data :-
c
Is the Prowess database provided by the Centre for
Monitoring Indian Economy. For estimation of the production function, the following
variables we need the value of output, labor and capital inputs.(check this sentence).
There are two types of output measures that can be used to calculate TFP growth.
One is value-added output, which is the gross output corrected for purchases of
intermediate inputs, and the other measure is gross output. There has been
considerable discussion on
which is the most appropriate measure. Here we use the former i.e. value-added
output. We recognize the fact that TFP growth based on the value-added measure is
greater than that based on the gross output measure due to the upward bias created
by the omission of intermediate goods and services. In fact, this bias makes our
forth-coming results stronger.
The other inputs such as labor, capital and investments have been collected in real
Indian Rupees. All the values are brought to real terms with 1993 as the base year
through appropriate CPI and WPI deflators. We use the WPI for motor vehicle parts
to deflate the values of output and the WPI for Manufacturing Industry to deflate the
values of capital
and investment.
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
1. Custmer Satisfication Survey
 c
ccccccccccccccccccccccccccccccccccc!1c
0ccc"
cc
c 1c 
1 c c
c c 1c "
c  1c 1 c c 1c
"&c!1ccc
c
0ccc "ccc
c 41c  c
 "c 2 "c   c c 1c
"
+c41cc cc
1 2cc c c41c1ccc"c c"c


&c !1+c
0c "c c c c
cc
c c  c c 

"c c  c "
&c c 1c
"c
2c1"c c c"cc4 c411c cc4 c
1c
  cc1c"
c&c<"
c 1 2cc c
c c1cc2  c c
c +c c+c
"c c 2 "+c  c 1  +c  c 
c
c
"" c 0"+c +c+c c "cc c
"c c 2 "c 0c c c 
+c +c  "+c
c
c c c 41&c !1c 
 c 1c  c 1c 1c
"
cc
c
0c "1c 1 c  c 1 c c 2" c
"
c
+c
2 +cc "+c1c cc
 c1  c c1c
 +c411c c c
1c
cccc c"c1c 1 2&c
c
c
c
c
c
c
c c
c
!1c c"c
$c c
411c"cc1c "c
1 2cc"
&c
c
&c<"" c c
)&c  c c
'&c c c
(&c1 c c
c c"c1 c c"c
cÎc 
c
c
c
!""#c $"#%&"'(c)cc1c
4cc&&c="4 1 c c> "c41c c
cc c
"
c c c 1 
?c "c c 4c 1 c c
c1"1c""c
7" &c c
c
cc
c c
 *+"$c!*"$c&!,%-&.c%/&.cc
-0*1&"$c2c
c
c
cccccccccccccccccccccccccccccccccccccccccc<"
c 1 2cc c c c1c
c 2  c  c 
c  +c  c +c "c
c 2 "+c  c 1  +c  c 
c c
"" c 0"+c +c +c  c  "c c  c
"cc2 "c0cc c

+c +c  "+c c c c c 41&c !1c

 c
c 1c  c 1c 1c "
c c c
0c "1c
1 c
 c1 c c2" c"
c+c
2 +cc
"+c1c cc c1  c c1c

 +c411c c c1c
c
 3

3c45

cc26c
c
<"
c 1 2c"" c c
cc c1c
c cc c
+c2 "c c"
c1 c2c
c"c cc1c"
c
1 2cc c

cc1 c
&c
<"" cc c c1"1c1c
4c1c4 @%c
cm
c c
)&c#
c c
'&!1 c &c
<"" cc c
c"
 c

 c?c4 c c
1 2+c1c4c1c 7"c
ccc2 "+c+c
c c 1 2+c1"1c1c

c c0c"&c
c
c c
c
(53c45

c26c
c
<"
c 1 2c c c "c c "1c  c  c c
c
"+c
c c cc c "&c
c
 -$("*,c!*"$(c26c
cc
"?c c c c "c c  c 1  +c
1c "?c +c c c  +c " +c 
c
"
 +cc c
 c c%&c
c
 (/0",".&*,c!*"$(c26c
c
ccccccccccccccccccccccccccccccccA  1
c  4?c c  c c  0c c
c c 
 c 
c 1c 4c  c c c 1c 11c
2c c 1 c &c  6? c 1 1c c 1"
c
c
0c"c" c"

2 &c#cc""cc1c

0c 41c  c c 41 c 2c c 1c  c c
  c "c c c 1c  c "c 41c
2 c
0c "&c  c "1c c c 1c c
"1cc"c1 c&c
c
(cY
 
 


V
c
 cc 
 
&c

c
c

c
c
c
0

c*3c26c
c
c c

4

 c7
cc cc c

c c c2 c 
cc
c c
c 2 c 2c 8 1c
c %c 2c 
+c
c c
1&
+c c
c
1"&cc c
c 2 c 2Bc  c
c c
c 
c%c cC 1cc
c
 0"D"@c
c 
c  c 1c c
 2c  c c 8c "+c  1  c "c
.=C/c  c 
c  c c " c 
 c .>#/c
1c c 
c" c 
&cc "c"c

c c1c
cc 
c" c 
c
c2c
 2c =Cc c 1c 2c 1c c c c " 7"c
" c "c "c c  c 41c c 11c
 c c

 c  c c >#c 1&c !1c "c c 1c "c 4 c c

c 1c c c 2c "c "c c >#c
1c "c  
c " c  
&c 1@c

c  c 4 c "c c 2 " c 1c c c c 2c
"c "c c
 c c
 c c >#c 1&c
!1c  c c  2c =C+c c c  c "c
"+c 
 c c
 c  c c  
c
" c  
c 41"c c "c "c c >#c 1c
4c
c
c1c "c ccc c"cc
"c c &c C"@c c c 2 "+c  
c
" c  
c "c c c 4c
 c .Ec 2c 'E/c 1 c
 
c" c 
c41c c2c "c"&c
%4 c2c  c14c1 c 
c" cc
c
c
c
c
c
 
c 4 c 1c  2c  1c 41c 1c
 c c
 
c" c 
c4 cc1 cEcc1c
 cc
"c "c 4 c  c 1 c  E&c c c 2 "+c
 
c " c  
c "c c c 4c
 c  c
. &'Ec2c &,E/c1 c 
c" c 
c41c c2c
"c "&c c %4 c 2c  +c c
11c2 "cc c2  c4 c"c1 c 2c1c"cc c
2c "c "c 41c c c
 &c
<"@cc
ccccccccccccccccccccccc
ccccccccccccccccccccc1"1c c 2c "c "c
c
"c1ccc  c"+c"cc1c"c
c  c 41c c 11c
 c c
 c  &c # c
 
c c c  
c " c 41"c c 2c "c
"c c 1c  2c  1c c >#c 1c 41"c
 2c2cc=C&cc
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c c
cccccccccccccccccccccccccccccccccc 
5
c8c(
ccc

cccccccccccccccccccccccccccccccccc( 
cc" c c " c c
c 2  c c 
" "c c 1c  c c c 1c
c c !c
"+c c 
c c c 41"c
1c c 1c 
" c 
+c 1 2c c "c c 1"
c
2"&c " c +c
 "c c " c =+c c
c41c1cc cc
"c c
" "c
2  c c1c
c7"&c842+c=c 2c  cc
1c
"c c 2  c c 1c 4c 7"c 41c

" "c 2  c c c c c 7"&c !1c
 cc c1c" $c4c"c c1c2  c

c c c c c 
&c !1c "c 14c 1 c 1c
2c c 1c
"c c 1c "c
2
c c  c c
1c c c 2  c 7"c c c 1c 4c
"&c
!1c c c
2
c c .c c /c c 1 c
"c c1cc1c
"c c2  c c1c4c
7"&c61c1c4c2  c7"c c1c
+c1c
c 1c c  c c
2
+c c c  c c 2c 4c

2
&c !1c "c "c 1c c 1 c 1c  c c

2
c c c$c
c c 2c 
c c  cc c
1c 2c 4c   c   c 
c c c c

"&c !1c  c
c c c 2 c c 1c "c
  c c c2  cc cc
"&cm"1
+ccc
1c 41c   c c c c  c   c c

" 1cc
c"c 2cc 2c
2
&c

9c
ccF1 c%c"c c%c  c%c=c

!1c 40c 4 c "c c  c 
c 1c Gc c

B#"ccc cC11c
c
 $4
5c26c
c
"cC+c< 0cmHc.-*-/c<1  cc0c$cc
c1c &cHc1c./c) '@c' I'c
cc
"0c
+c 8  1c F+c Jc +c 6 c =c .-* /c !1c
c c 1"
c
"c c c c 2  c c c
 c
"&cHc1c./c)*@c*'I*-'c
cc
"0c
+c 8  1c F+c Jc +c 6 c =c .-* /c !1c
c c 1"
c
"c c c c 2  c "c

c &cHc1c./c)*@c*-Ic
cc
<   c <+c <0c H
c .-,'/c   %"c 1 c c

2
c  c &&=&c 2c c 1"
&c c  c Cc )@c
'-I(*c
cc
<cH+c<0c
#c.-'/ccc4c" c
 
cc$cc
&c cCc@c(('I((c
cc
0"c=+c8  1cFc.-*/cccc2  c
"c

"cc
&c1c<c>"1c-@c*-c
cc
0"c=c.-)/ccc c cc @c1cc
c2  &cHc>"c>""c1 c'@c* *I*c
cc
m
c =+c   1c c .-,) /c c c c

c c $c c :c  c c 0 1c
"&cc< c()@c) I)(c
cc
m
c =+c   1c c .-,) /c # c c c c
c c"c$cc@c
 c c
cccccccccccccc
c c
 (%..-(&"(c8c",%(&"c26c
c
c  5c 1c +c 14c "c 1 2c
 &c = c  c 1 c c  0c
0c 1c
"cc1
2
cc"
c&c
c
&c !1c c c 1 2c 
c c  c "c c #" c c 1c

0+c1c"c1 cc c  c
2cc cc
c
1c
cc1c"
&c
c
)&c 
cc1cc c"cc
2c7" cc1c
"?cc
c
'&c c  c "
c c c c 1 c 1c c c
cc c1c"c ccc1c"?c&c
c c
 $-!-$--(2c
c
&c8 40c
&#&+cC&H&c c<2+c
F&&c<"
c1 2"c@c#
 c
c 0c  +c.C2&/+c
"c"  +c#&c! +c) &c
)&c84 cH1c8&+c c 11+c
H 1c>&+c!1c!1cc"c
1 2"+cH1c6c c c#&+c
>4cX0+c) &c
'&cF  $ c8&8&c cC c!& &c
2cc<"
c1 2"+c
<8cm
c3c<
 +c#+c
) &c
(&cFc1+c 0c
  
+c  +c c


 c c+cc
8 cc# c" 1+c>4c

1&) )&c
1
c=&&+c<"
c
1 2"+cc8 cc# c2&c
&+c>4c
1c) &c
c c
 Birla Sun aims at higher growthc

"
cH"c'c c "cc #" c4c 0c 1c1c

 cc  0c2&cc

c 0
c 1
+c c c <+c  c "c +c  c 1c
"cc1c
 c1c c4"c cc41+c1"1c  0c
2cc1c c 4 &cc

K 0c 2c c c c 
 c c  c 1c 2 "c c "c
"&c !1c  +c 4c  c c 4c  c c c  c c c
41c1c"+Kc1c &cc

 c "cc#" cc c41cc'*cccc4c

"c
"
c cCc-'ccc) *% &cc

!1c 4 +c 142+c
"1c 4c 1 c 1c c " c "Bc
41cc cccc1cc"c &cc

( Ec<=Ccc

c1
c c1c4 c c44c c c c1c4c
c

 cc "1c4c"&cc

!1c " c "c 4 c c c 4c c c 
"c

" c41c cc( cccc1cc4c c c1 c1c

 Bc41c4"c cc 
c41c1&cc

#c1c cc
1+cc1 c "1cc"&cc

!1c 
 c 4"c "c 4c +c 1 1c c
%
" c c1c +c1c &cc

!1c 
 c  c c " c c c c 
c  + c c c
 01&cc
#c 1 c c   c c c Cc *)c &c c 1
c  c 1 c
c
  c4"c c"c cc1c7"
&cc

>4c"cc

!1c
 cc6 c "1c c4c"c cK c

"cc#" c%c=c"c K&cc

!1c cc1c2cc cc c
ccc

1c  c c 4c c 1c  c c "c 1c 
"
c 
c
1ccc &cc

#cc1c1cc2c"c+ccc411c22c c


"
c2
cc cccc7"&cc

!1c

"
c " c 
"
c c 1c  " c c c Cc
 + &c!1c
"
c  c1 cc,cc&cc


3c( c,4c
5c

c 3 c
F"

 
c +c1 
+c c c"+cc +c
"c1c c "cc#" c<
 %c c$c2"c
4c  c  c ="c c "c c m  c 2c c
 &cc

!1cC)c
c1 2c c
c c1c
 cc

c2cC'c  c
c#C
c1&cc

c
 +c c +cK!1c" c+c411cc

c04c c"ccc ccc"cc "&c"c
2ccc c
c1cc2c" c
 cc# c c
c1c +c4c1 2c c41ccc1c c
 %1c
"cc  c"&cc

c c
!1c  1c c c c 2 "+c
"" c +c c c
"
c"&c "cc  ccc1cc c 0cc
# cc1c" cc c 
c( c &Kcc

K"c "c 1c c (c c +c 41c # c C c c  c
= c m c c 1 2c c  0c c *-c c c c c c c
2+c 41c "c c   c 1c )*c c &!1c
"c   cc1c2"c c cCc) c&Kcc

8c 
c 1c  1c 1 c 1c "c "c c 1c

" c "cKcc4 c c# cC Bcc K&c
K<c 1c 

c 41c  c c 1c c " c
"+c1c2"c4cc c2 "cc"c1c 01c
1 1&c "c "Bc 2c c c # c c 4c c
"c40cc
+c1 1c c "c c c c
2  +c411c"c" c "c4c2 &c6c1 2c c
2c" cc2c c
c 01+Kc c &cc

8c c  c 1 c 1c 4c 
c c 1c " c 
 c 4 c
 c c 1 c
c 4 +c 1 
c 3c <c c "c c
  c2+c 0c2c c1c1 
cc1c c "cc
" c  cc&cF"

  
c c"c c
ccc1c  &!1c c)cc1 2c c
 c
cccc 1c
c c c"c c c
"cc" c
 &cc

!1c 
 c c c c 1c c c c c
ccc  &cc0c
c "cc  c2c
1 c c 
c c 1c <mc c 1c c " +c $ c
1+c c c4ccc c "cc" +c1c
 c
 &cc

 41+c
c 4 c c  c 1 c c 1c c 1 c  c
"c c " c 4"c c  c c c "c "c
40c  1c c 
c c !" c c c
1c c
H " c'&c "c c  1c ccc cc"c c
1c"c c

%c) &cc

c c
c
%m " +c1cc 1cc c" c 2c4c c
c c c ccc1c
0&cc

 c "cc" c cc1 c1c4cc1cc

c "1c c "&c 2c 1c c )c
1+c  c  c
c c 2c "
c c 1c  c c c "
c
4 c4c c c)(ccc &c#c
"%1 c "c
c "c 
c c " c 2c c c c c c

0c
cc"c"&cc

c  cc"cc c "cc" cc1c" c
&c

!1c
 c4c2 c1c40cc1c c cc
c 

"c  2c c " c 2
c c "c c " c
 +c 4 c &c8c"1c c1 c1c "cc  c
"c cc1c$c2"c1 c cc1c c 0cc
,&cc

#c 1 c 22c 
c c c
"" c c " c 
 c c
c c 1c
c 11c  c " c c 4 1c
 
c
"cc1c4&c!1c "c c  c2Bc
c
" c "c $c c  c 41c 1c 4Bc c
 c c 0c   c c +c m1c c c c

c1&cc

"c c   c 2c 1 c c c c  +c 80+c

1+cH  +c# c c
" &cc

 41+c c 
 c  c c  c 1 c 41c  c  c

"Bc 2c 04c c 1c # c
0+c c c
c c c 4c  c c   c 2c c "c c
  Bc  c c c  c c c c 4 1c

 
+c 1c # c c " c 0c 4c c 2c
41cc2c c c"c&cc

c
c
c
c
c
c
c
c
c
c
c