MIRA INFORM
REPORT
|
Report
Date : |
02.05.2007 |
IDENTIFICATION DETAILS
|
Name : |
BAJAJ AUTO LIMITED |
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Registered
Office : |
Mumbai - |
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Country
: |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
29.11.1945 |
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Com.
Reg. No.: |
4656 |
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CIN
No.: [Company
Identification No.] |
U35911MH1945PTC004656 |
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Legal
Form : |
Public
Limited Liability Company The
company’s shares are listed on the stock exchanges. |
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Line
of Business : |
Manufacturers and Marketers of Motorised Two Wheelers and
Three Wheelers upto 350 CC Capacity and special purpose Machine Tools. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Aa |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for
credit transaction. It has above average (strong) capability for payment of
interest and principal sums |
Large |
|
Maximum
Credit Limit : |
USD
190800000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject is an old, well established and the flagship
company of the reputed Bajaj Group engaged in manufacturing and marketing
Bajaj Scooters, Motor Cycles, Three Wheelers and Spare Parts. The company’s
performance in terms of production, turnover and profits has been good during
the financial year 2003-04. Trade relations are fair. Payments are Correct
and as per commitments. It can be considered good for business dealings at usual
trade terms and conditions. Maximum credit line upto Eur 3 millions can be granted for
a single transaction. |
LOCATIONS
|
Registered
Office : |
Mumbai - |
|
Tel.
No.: |
91-20-27406603
/ 27406063 / 27406281/ 27406137 |
|
Fax
No.: |
91-20-27407380
/ 27407392 |
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E-Mail
: |
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Website
: |
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Plants
: |
v
v
Bajaj Nagar, Waluj, v
MIDC, Plot No. A1, |
DIRECTORS
|
Name : |
Mr. Madhur Bajaj |
|
Designation
: |
Vice Chairman |
|
Date
of Birth/Age : |
53 years |
|
Qualification
: |
B.Com., MBA |
|
Experience
: |
26 years |
|
Date
of Appointment : |
21-06-1986 |
|
Previous
Employment : |
Bajaj International Private Limited, Chief
Executive |
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|
|
|
Name : |
Mr. Rahul Bajaj |
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Designation
: |
Chairman and Managing Director |
|
Date
of Birth/Age : |
67 years |
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Qualification
: |
B.A. (Hons), LLB, MBA (Harvard) |
|
Experience
: |
46 years |
|
Date
of Appointment : |
01-04-1970 |
|
Previous
Employment : |
Bajaj Tempo Limited, Dy. General Manager |
|
|
|
|
Name : |
Mr. Rajiv
Bajaj |
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Designation
: |
Managing
Director |
|
Date
of Birth/Age : |
39 years |
|
Qualification
: |
B. E.
Mechanical, M Sc ( M S E) |
|
Experience
: |
15 years |
|
Date
of Appointment : |
19.12.1990 |
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|
|
|
Name : |
Mr. Kantikumar R. Podar |
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Designation
: |
Director |
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|
Name : |
Mr. Shekhar Bajaj |
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Designation
: |
Director |
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|
Name : |
Mr. D. J. Balaji Rao |
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Designation
: |
Director |
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|
Name : |
Mr. D. S. Mehta |
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Designation
: |
Whole-time Director |
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|
Name : |
Mr. J. N. Godrej |
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Designation
: |
Director |
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|
Name : |
Mr. S. H. Khan |
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Designation
: |
Director |
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|
Name : |
Mr. Suman Kriloskar |
|
Designation
: |
Director |
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|
Name : |
Mr. Nanoo Pamnani |
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Designation
: |
Director |
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|
|
|
Name : |
Mr. Sanjiv Bajaj |
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Designation
: |
Executive Director |
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Date
of Birth/Age : |
36 years |
|
Qualification
: |
B.E. (Mechanical), M.Sc. (M.S.E.), MBA (Harvard) |
|
Experience
: |
11 years |
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Date
of Appointment : |
01.08.1994 |
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Other personnel :-
|
|
|
Mr. Ranjit
Gupta |
Vice President (Insurance) |
|
Mr. C. P.
Tripathi |
Vice President (Operations) |
|
Mr. N. H.
Hingorani |
Vice President (Commercial) |
|
Mr. P. B.
Menon |
Vice President (Projects) |
|
Mr. Kevin
D’sa |
Vice President (Finance) |
|
Mr. Klaus
Biskup |
President ( |
|
Mr.
Pradeep Shrivastava |
Vice President (Engineering) |
|
Mr. S
Sridhar |
Vice President (Marketing and Sales – 2 Wheelers) |
|
Mr. V S
Raghavan |
Vice President (Corporate Finance) |
|
Mr. S
Ravikumar |
Vice President (Business Development) |
|
Mr. K
Srinivas |
Vice President (Human Resources) |
|
Mr.
Abraham Joseph |
General Manager (Research and Development) |
|
Mr. J.
Sridhar |
Company Secretary |
MAJOR SHAREHOLDERS
Category
|
No. of shares
|
% of shareholding
|
|
Promoters and Persons acting in Concert |
30144292 |
29.79 |
|
Friends and Associates of Promoters |
16996549 |
16.80 |
|
GDRs |
2320561 |
2.29 |
|
Foreign Institutional Investors |
19648242 |
19.42 |
|
Public Financial Institutions |
5442659 |
5.38 |
|
Mutual Funds |
2360340 |
2.33 |
|
Nationalised and other banks |
190844 |
0.19 |
|
NRIs and OCBs |
622989 |
0.62 |
|
Other |
23457034 |
23.18 |
|
Total |
101183510 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturers and Marketers of Motorised Two Wheelers and
Three Wheelers upto 350 CC Capacity and special purpose Machine Tools. |
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Products
: |
Generic
Names of the Principal Products/Service of the company:
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Exports
to : |
Africa, |
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Imports
from : |
Europe and |
PRODUCTION STATUS
The
company’s production capacity for the year ended 31.03.2006 was as under:-
|
Class of Goods |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Motorised Two Wheelers and Three Wheelers upto 350 CC
Engine Capacity |
Nos. |
1639350 |
3180000 |
2291110 |
GENERAL INFORMATION
|
No. of
Employees : |
480 |
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Bankers
: |
Ø
Central Bank of Ø
State Bank of Ø
Citibank N.A. Ø
Standard Chartered Grindlays Bank Ø
Bank of Ø
ICICI Bank Ø
HDFC Bank Ø
Danamon |
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Facilities : |
Secured Loans : From
Banks, against hypothecation of Stores, Raw Materials, Finished Goods, Stock
in Process and Book Debts Cash Credit : Rs.0.200 millions Unsecured Loans (Rs. In millions) :
|
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
150,000,000 |
Equity Shares |
Rs.
10/- each |
Rs.
1500.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
10,11,83,510 |
Equity Shares |
Rs.
10/- each |
Rs.1011.835
millions |
FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
1011.800 |
1011.835 |
1011.835 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3]
Reserves & Surplus |
46695.500 |
40331.662 |
35924.422 |
|
|
4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
47707.300 |
41343.497 |
36936.257 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
0.200 |
0.000 |
0.000 |
|
|
2]
Unsecured Loans |
14671.300 |
12269.926 |
10057.235 |
|
TOTAL
BORROWING
|
14671.500 |
12269.926 |
10057.235 |
|
|
DEFERRED
TAX LIABILITIES |
1902.100 |
1398.965 |
1228.236 |
|
|
|
|
|
|
|
TOTAL
|
64280.900 |
55012.388 |
48221.728 |
|
|
|
|
|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
11141.600 |
11149.762 |
12063.074 |
|
Capital work-in-progress
|
241.800 |
83.566 |
82.715 |
|
|
|
|
|
|
|
INVESTMENT
|
58569.700 |
45605.757 |
38554.406 |
|
|
DEFERRED
TAX ASSETS |
1026.300 |
0.000 |
0.000 |
|
|
Lease Adjustment Account Plant and Machinery |
175.000 |
175.000 |
175.000 |
|
|
Technical Know-how |
13.400 |
40.551 |
76.732 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
2729.300
|
2241.747
|
2025.617 |
|
|
Sundry Debtors
|
3015.500
|
1763.452
|
1339.481 |
|
|
Cash & Bank Balances
|
820.900
|
1086.809
|
793.705 |
|
|
Other Current Assets
|
721.300
|
685.311
|
454.832 |
|
|
Loans & Advances
|
21273.700
|
20120.100
|
15916.825 |
Total Current Assets
|
28560.700
|
25897.419
|
20530.460 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
12288.700
|
7850.705
|
6725.968 |
|
|
Provisions
|
23158.900
|
20088.962
|
16534.691 |
Total Current Liabilities
|
35447.600
|
27939.667
|
23260.659 |
|
Net
Current Assets
|
(6886.900)
|
(2042.248)
|
(2730.199) |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
64280.900 |
55012.388 |
48221.728 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
74693.800 |
|
52702.614 |
|
|
Other Income |
6369.700 |
5988.200 |
|
|
|
Total
Income |
81063.500 |
63227.800 |
52702.614 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
15807.400 |
10864.400 |
9604.201 |
|
|
Provision for Taxation |
4791.100 |
3196.300 |
2289.128 |
|
|
Profit/(Loss) After Tax |
11016.300 |
7668.100 |
7315.073 |
|
|
|
|
|
|
|
|
Earnings
in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
8990.300 |
6949.500 |
5560.470 |
|
|
Other Earnings |
448.800 |
341.900 |
|
|
Total
Earnings |
9439.100 |
7291.400 |
5560.470 |
|
|
|
|
|
|
|
|
Imports
: |
|
|
|
|
|
|
Raw Materials |
722.500 |
512.100 |
|
|
|
Stores & Spares |
25.200 |
63.600 |
|
|
|
Capital Goods |
897.800 |
300.200 |
923.031 |
|
|
Others |
1628.000 |
636.500 |
|
|
Total
Imports |
3273.500 |
1512.400 |
923.031 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
53246.000 |
40896.800 |
|
|
|
Interest |
3.400 |
6.700 |
42686.329 |
|
|
Depreciation & Amortization |
1910.000 |
1853.700 |
|
|
|
Other Expenditure |
10118.400 |
9314.300 |
|
|
Total
Expenditure |
65277.800 |
52071.500 |
42686.329 |
|
QUARTERLY RESULTS
|
Particulars |
30.06.2006 (1st Qtr.) |
30.09.2006 (2nd Qtr.) |
31.12.2006 (3rd Qtr.) |
|
Sales
Turnover |
22026.600 |
24359.700 |
25682.300 |
|
Other
Income |
945.600 |
1424.300 |
1613.200 |
|
Total
Income |
22972.200 |
25784.000 |
27295.500 |
|
Total
Expenditure |
18523.600 |
20833.800 |
22169.300 |
|
Operating
Profit |
4448.600 |
4950.200 |
5126.200 |
|
Interest |
7.300 |
20.000 |
2.200 |
|
Gross
Profit |
4441.300 |
4930.200 |
5124.000 |
|
Depreciation |
481.200 |
491.700 |
472.100 |
|
Tax |
1300.000 |
1250.000 |
1200.000 |
|
Reported
PAT |
2660.100 |
3188.500 |
3451.900 |
200606 Quarter 1
Notes
Expenditure includes (Increase)/Decrease in stock in Trade
Rs 224.00 million Materials Rs 15319.90 million Staff Cost Rs 855.80 million
Other expenditure Rs 2085.70 million Expenses capitalised Rs (65.70) million
Tax indicates Provision for Taxation (including Deferred Tax & Fringe
Benefit Tax) Extra Ordinary items indicates Export incentives accrued in
previous year written off EPS is Basic and Diluted 1. During this quarter, the
Company has written off export incentives of Rs 103.90 million that had accrued
and was accounted during the last year, due to reduction of incentive under
Target Plus Scheme announced by Government of India in the current quarter with
retrospective effect. 2. Gross Written Premium (GWP) for the quarter ended June
30, 2006 of general and life insurance business is Rs 4501.40 million and Rs
7321.90 million respectively. The corresponding figures for the quarter ended
June 30, 2005 was Rs 3168.80 million and Rs 2396.70 million respectively. 3.
For the purpose of consolidated financials the net result of the insurance
business revenue accounts together with shareholders income and transfers (See
Note 4) in accordance with the reporting framework of IRDA amounting to a net
loss of Rs 38.10 million prior to elimination of inter segment revenue of Rs
11.20 million for the quarter ended June 30, 2006 has been included in a manner
consistent with the parent's reporting format as was done for the previous
periods. However, for reporting segment information, segment revenues for both
insurance businesses represent the premiums earned and other income. 4. The
consolidated accounts for the quarter ended June 30, 2006 includes a sum of Rs
404 million representing the transfer from shareholders' account to
policyholders' account to fund the deficit in the policyholders account in the
life insurance business (Corresponding previous quarter Rs Nil). 5. The results
for the quarter ended June 30, 2006 have been subjected to 'Limited Review by
the auditors. 6. Figures for previous year / period have been regrouped
wherever necessary. 7. The above results have been taken on record in the
meeting of Board of Directors held on July 15, 2006.
200609 Quarter 2
Notes
Expenditure includes (Increase)/Decrease in stock in Trade
Rs 68.40 million Materials Rs 17623.40 million Staff Cost Rs 725.90 million
Other expenditure Rs 2345.20 million Expenses capitalised Rs (55.10) million
Tax indicates Provision for Taxation (including Deferred Tax & Fringe
Benefit Tax) Extra Ordinary items indicates Compensation paid under Voluntary
Retirement Schemes Prior period adjustments indicates Other(net) EPS is Basic
and Diluted Status of Investor Complaints for the quarter ended September 30,
2006 Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 06 Complaints disposed off during the quarter 06 Complaints
unresolved at the end of the quarter Nil 1. Gross Written Premium (GWP) for the
quarter and half year ended September 30, 2006 of general insurance business is
Rs 3919.7 million and Rs 8421.1 million respectively. The corresponding figure
for the quarter and half year ended September 30, 2005 was Rs 3053.6 million
and Rs 6222.40 million respectively. Gross Written Premium (GWP) for the
quarter and half year ended September 30, 2006 of life insurance business is Rs
8784.4 million and Rs 16106.3 million respectively. The corresponding figure
for the quarter and half year ended September 30, 2005 was Rs 5364.7 million
and Rs 7761.4 million respectively. 2. For the purpose of consolidated
financials the net result of the Insurance business revenue accounts together with
shareholders income and transfers to policyholders revenue account in
accordance with the reporting framework of IRDA, amounting to a net loss of Rs
434.5 million prior to elimination of inter segment revenue of Rs 17.6 million
for the half year ended September 30, 2006, has been included in a manner
consistent with the parent's reporting format as was done for the previous
periods. However, for reporting segment information, segment revenues for both
insurance businesses represent the premiums earned and other incomes. 3. The
consolidated financial results exclude the Indonesian joint venture company
viz. P T Bajaj Auto
200612 Quarter 3
Notes
Expenditure includes (Increase)/Decrease in stock in Trade
Rs (46.80) million Materials Rs 18902.60 million Staff Cost Rs 757.10 million
Other expenditure Rs 2491.70 million Expenses capitalised Rs (58.50) million
Tax indicates Provision for Taxation (including Deferred Tax & Fringe
Benefit Tax) Extra Ordinary items indicates Compensation paid under Voluntary
Retirement Schemes Prior period adjustments indicates Other(net) EPS is Basic
and Diluted Status of Investor Complaints for the quarter ended December 31,
2006 Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 06 Complaints disposed off during the quarter 06 Complaints
unresolved at the end of the quarter Nil 1. Gross Written Premium (GWP) for the
quarter and nine months ended December 31, 2006 of general insurance business
is Rs 4594.10 million and Rs 13015.20 million respectively. The corresponding
figure for the quarter and nine months ended December 31, 2005 was Rs 3330.4
million and Rs 9552.80 million respectively. Gross Written Premium (GWP) for
the quarter and nine months ended December 31, 2006 of life insurance business
is Rs 10981.30 million and Rs 27087.60 million respectively. The corresponding
figure for the quarter and nine months ended December 31, 2005 was Rs 8077.80
million and Rs 15839.2 million respectively. 2. For the purpose of consolidated
financials the net result of the insurance business revenue accounts together
with shareholders income and transfers to policyholders revenue account in
accordance with the reporting framework of IRDA, amounting to a net loss of Rs
641.80 million prior to elimination of inter segment revenue of Rs 74 million
for the nine months ended December 31, 2006, has been included in a manner
consistent with the parent's reporting format as was done for the previous
periods. However for reporting Segment information, segment revenues for both
insurance businesses represent the premiums earned and other income. 3. PT.
Bajaj Auto
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
0.30 |
0.29 |
0.27 |
|
Long Term
Debt-Equity Ratio |
0.30 |
0.29 |
0.26 |
|
Current
Ratio |
0.83 |
0.87 |
0.92 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
3.04 |
2.41 |
2.04 |
|
Inventory |
34.48 |
30.78 |
26.53 |
|
Debtors |
35.86 |
42.32 |
36.18 |
|
Interest
Cover Ratio |
4648.62 |
1622.01 |
1022.34 |
|
Operating
Profit Margin(%) |
20.67 |
19.37 |
20.95 |
|
Profit
Before Interest And Tax Margin(%) |
18.44 |
16.55 |
17.65 |
|
Cash
Profit Margin(%) |
15.08 |
14.50 |
16.74 |
|
Adjusted
Net Profit Margin(%) |
12.85 |
11.68 |
13.43 |
|
Return On
Capital Employed(%) |
27.27 |
21.63 |
21.94 |
|
Return On
Net Worth(%) |
24.74 |
19.59 |
21.10 |
STOCK PRICES
|
Face Value |
Rs. 10.00/- |
|
High |
Rs. 2475.00 |
|
Low |
Rs. 2425.00 |
LOCAL AGENCY FURTHER
INFORMATION
HISTORY
Subject was incorporated on 29th November, 1945
at Pune in
Subject, the flagship of the Bajaj group, manufactures and
markets Bajaj scooters, motorcycles, three-wheelers and spare parts.
Incorporated in 1945 as a private limited company, it went public in 1960.
Currently the company has three plants at Akurdi, Waluj and Chakan with a
combined installed capacity to produce 2520000 nos. of two wheelers and
threewheelers. Further the company has a capacity to produce 65.20 MW of
Windpower.
In 1974-75, it co-promoted a joint-sector company,
Maharashtra Scooters. A lant was set up at Satara and production of Priya
scooters commenced in 1976.
In 1983-84, the company signed a technical know-how agreement with
The company which was popular for its Scooters got into manufacturing of
motorcycles(4-stroke) in 1990-91 in collaboration with Kawasaki Heavy
Industries of Japan. The company has product offering in all segments of
motorcycles industry with Boxer range and BYK in Entry Level segment, Caliber
in Executive Category, Pulsar in Premium & Eliminator in Super Premium
category. Currently it has garnered around 23 % market share of Indian
Motorcycle industry.
The new product Pulsar 150 cc and 180 cc motorcycle which
were launched during 2001 had received a good response in the market. In the
same category the company was planning to launch a 125 cc motorcycle with
Kawasaki Heavy Industries Limited which is in the final stage of development
and is expected to be launched in the current financial year. A rear engine
diesel goods carrier is also under testing stage and will be launched in early
of 2003. The upgradation for Chetak 4S and Legend was done to meet the
stringent requirements of US regulations and the company has started supplying
the same to
All the three phases of the windmill project, involving the installation of 112
windmills with a total capacity of 39.2 MW at Satara, were completed during
2000-2001. Phase IV of the above project with an installed capacity of 20 MW in
Ahmednagar district was completed in December 2001. The Vankusavda, Satara
District Windmill project was also completed in March 2002. After commissioning
of all the phases the total annual power generation is around 116 million
units. The total investment made for the wind mill project at Satara and
Ahmednagar districts was Rs. 2.942 billion.
With the opening of the insurance sector, the company has entered into joint
venture agreements with Allianz AG, Germany, to set up two separate companies -
Bajaj Allianz General Insurance Company Limited and Allianz Bajaj Life
Insurance Company Limited Bajaj Auto and Allianz had signed two separate joint
venture agreements for these two businesses and have respectively committed 74%
and 26% of the initial share capital of Rs 1100 millions in case of the general
insurance venture and Rs 1500 millions in case of the life insurance venture.
The Allianz Bajaj Life Insurance Company has received its licence from IRDA and
started its operations in August 2001. It has received Rs. 1.17 billion from
Allianz AG as goodwill. The Life Insurance commenced its operations October,
2001.
Milestones
|
September, 2004 |
Bajaj Discover DTS-i launched |
|
August, 2004 |
New Bajaj Chetak 4 stroke with Wonder Gear launched |
|
May, 2004 |
Bajaj CT100 Launched |
|
January, 2004 |
Bajaj unveils new brand identity, dons new symbol, logo and
brandline |
|
October, 2003 |
Pulsar DTS-i is launched. |
|
October, 2003 |
107,115 Motorcycles sold in a month. |
|
July, 2003 |
Bajaj Wind 125,The World Bike, is launched in |
|
February, 2003 |
Bajaj Auto launched its Caliber115 "Hoodibabaa!" in
the executive motorcycle segment. |
|
November, 2001 |
Bajaj Auto launches its latest offering in the premium bike
segment ‘Pulsar’. |
|
January, 2001 |
The Eliminator is launched. |
|
2000 |
The Bajaj Saffire is introduced. |
|
1999 |
Caliber motorcycle notches up 100,000 sales in record time of 12
months. |
|
|
Production commences at Chakan plant. |
|
June 7th,
1998 |
Kawasaki Bajaj Caliber rolls out of Waluj. |
|
July 25th,
1998 |
|
|
October, 1998 |
Spirit launched. |
|
1997 |
The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw are
introduced. |
|
November 29, 1995 |
Bajaj Auto is 50. |
|
|
Agreements signed with Kubota of Japan for the development of
diesel engines for three-wheelers and with Tokyo R&D for ungeared Scooter
and moped development. |
|
|
The Bajaj Super Excel is introduced while Bajaj celebrates its
ten millionth vehicle. |
|
|
One million vehicles were produced and sold in this financial
year. |
|
1994 |
The Bajaj Classic is introduced. |
|
1991 |
The Kawasaki Bajaj 4S Champion is introduced. |
|
1990 |
The Bajaj Sunny is introduced. |
|
1986 |
The Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles are
introduced. |
|
|
500,000 vehicles produced and sold in a single financial year. |
|
November 5, 1985 |
The Waluj plant inaugurated by the erstwhile President of India,
Shri Giani Zail Singh. |
|
|
Production commences at Waluj, |
|
January 19, 1984 |
Foundation stone laid for the new Plant at Waluj, |
|
1981 |
The Bajaj M-50 is introduced. |
|
1977 |
The Rear Engine Autorickshaw is introduced. |
|
|
Bajaj Auto achieves production and sales of 100,000 vehicles in
a single financial year. |
|
1976 |
The Bajaj Super is introduced. |
|
1975 |
BAL & Maharashtra Scooters Limited joint venture. |
|
1972 |
The Bajaj Chetak is introduced. |
|
1971 |
The three-wheeler goods carrier is introduced. |
|
1970 |
Bajaj Auto rolls out its 100,000th vehicle. |
|
1960 |
Bajaj Auto becomes a public limited company. Bhoomi Poojan of
Akurdi Plant. |
|
1959 |
Bajaj Auto obtains licence from the Government of India to
manufacture two- and three-wheelers. |
|
1948 |
Sales in |
|
November 29, 1945 |
Bajaj Auto comes into existence as Bachraj Trading Corporation
Private Limited. |
BUSINESS
Subject is engaged in the business as manufacturers and
marketers of Motorised Two Wheelers and Three Wheelers upto 350 CC Capacity and
special purpose Machine Tools.
Introduction of new products:
Upgrading of current products for improved performance and reliability. *
Launching of variants in the current products for meeting specific customer
needs. * Developments in engine and vehicle aggregates to meet new motor
vehicle regulations and tightening emission norms.
During the year, the R & D efforts culminated in significant new product
successes for the company.
In May 2004, the company launched its CT 100 - a bike that is technologically
designed to give the benefits of the value segment, but at an entry level
price. The CT 100 with its improved performance, reliability and features
enabled the company to regain its leadership position in the price segment.
In November 2004, the company launched upgraded versions of both Pulsar 150 and
180, with additional features such as ExhausTEC, alloywheels and Nitrox Gas
Shock Absorber. With this, the company has maintained its leadership position
in the premium segment, notwithstanding growing competition in this
category.
Further, in September 2004, a totally new model, the 125 cc 'Discover' was
launched in the 'value' segment. The Discover has been awarded 'Bike of the
Year, 2005' and 'Best Indigenous Design of the Year 2005' by Overdrive
magazine.
The year also saw the launch of a new ungeared 110 cc scooter powered by a DTSi
engine called 'Wave'. The scooter has been launched in
All vehicles manufactured by the company meet the 2005 pollution norms and the
Central Motor Vehicle Regulations (CMVR).
New Projects
New plant at Pantnagar, Uttaranchal The company has
currently three manufacturing plants situated in the State of
Keeping in mind the increasing demand for the company's
products, the company is planning to set up a manufacturing base in north
Excise benefits and corporate tax concessions are available
on meeting certain conditions.
In line with the company's lean manufacturing systems, a
"Bajaj Auto Cluster" of about 16 vendors will be created in the
Pantnagar Industrial Area.
The company has reserved around 225 acres of land at the
Pantnagar Industrial Area for the company's plant and the auto cluster. It is
proposed The company is setting up a
Special Economic Zone (SEZ) After considering the
desirability of setting up a Special Economic Zone (SEZ), the company has decided
to set up a SEZ at Waluj,
Over the past few years, Bajaj Auto Limited ('Bajaj Auto',
'BAL' or 'the Company') has focused on technology development, product
development in anticipation of market needs, scaling up its manufacturing
facilities, implementing best-in-class production systems, rationalising
vendors, slashing costs while upgrading quality, restructuring dealerships and
distribution channels.
These capabilities enabled the company to create exciting
new products, which have set benchmarks in style, in design, in technology. The
company's products are creating a customer pull at all price points and the
company has now transformed from being a price warrior to a price leader.
The results of the above are there for its customers and
shareholders to see. In 2005-06, Bajaj Auto's sales of motorcycles grew by
almost 32 per cent versus a market growth of under 19 per cent.
And market share has risen from 24 per cent in 2003-04 to
almost 31 per cent in 2005-06.
Given below are the highlights of the company's financial
results for 2005-06
• Sales increased by 30 per cent – from Rs. 65.42 billion in
2004-05 to an all-time corporate high of Rs. 85.50 billion in 2005-06.
• Net sales (net of excise duty) increased by 30 per cept -
from Rs. 57.24 billion in 2004-05 to Rs. 74.69 billion in 2005-06.
• Total turnover grew by 28 per cent – from Rs. 63.23
billion in 2004-05 to Rs. 81.06 billion in 2005-06.
• Operating EBITDA (earnings before interest, taxes,
depreciation and amortisation) increased by 47 per cent - from Rs. 9.30 billion
in 2004-05 to Rs. 13.69 billion in 2005-06. This translates to an operating
EBITDA margin of 17.9 per cent of operating income, which is 220 basis points higher
than the previous year. This is the highest operating margin in the industry.
• Profit before tax (PBT) rose by 46 per cent – from Rs.
10.86 billion in 2004-05 to Rs. 15.81 billion in 2005-06.
• Profit after tax (PAT) increased by 44 per cent - from Rs.
7.67 billion in 2004-05 to Rs. 11.02 billion in 2005-06.
• Earnings per share (EPS) grew from Rs. 75.60 in 2004-05 to
Rs. 111 in 2005-06. This years Management Discussion and Analysis begins with
markets, the company's sales across segments, operations and finally to the
financials and margins.
Naresh Chandra
Naresh Chandra (born in 1934) graduated from
He held important positions in the states of Uttar Pradesh
and Rajasthan during the period 1 956-1 965. He was deputed to the Government
of India in 1965 to occupy certain important positions. He subsequently went
back to Rajasthan in 1973 and became the Chief Secretary to the Government of
Rajasthan during 1985-86. He has also held several senior positions in
Government of India, including as Home Secretary (1990) and Cabinet Secretary
(1990-92). He has led delegations of Government of India to a number of
countries.
He has held directorships in many Government corporations as
well as private companies. On retirement, he served as the Senior Advisor to
the Prime Minister of India (1 992-95). He also served as Governor of Gujarat (1995-96).
Later, he served in
Directorships
• ACC Limited
• Avtec Limited
• Balrampur Chini Mills Limited
• Bajaj Auto Limited
• Electrosteel Castings Limited
• Hindustan Motors Limited
• Linde Process Technologies (
• Tata Consultancy Services Limited
• Vedanta Resources Pic.,
Committee positions
• ACC Limited
• Bajaj Auto Limited
• Balrampur Chini Mills Limited
• Hindustan Motors Limited
• Tata Consultancy Services Limited
• Vedanta Resources Pic.,
Nanoo Pamnani
Nanoo Pamnani (born in 1945) is B.A. (Hons) and B.Sc.
(Economics), London School of Economics. He began his career with Citibank in
Between 1982 and 1995, he was in charge of Citibank's
operations and businesses in various countries, including
He was appointed as Chairman of Citicorp Finance (
In 2002, he was appointed to the position of Chairman,
Citibank N A,
Directorships
• Bajaj Auto Limited
• Citibank Savings Inc.
• e-Serve International Limited
• Polaris Software Lab Limited
Committee positions
• Bajaj Auto Limited
Kantikumar R Podar
Kantikumar R Podar (born in 1935), graduated from Sydenham
College of Commerce and Economics,
Contingent liabilities
not provided for in respect of (31.03.2006) :
(Rs. In millions)
|
Sales Bills Discounted |
18.000 |
|
Claims against the Company not acknowledged as debts |
2373.600 |
|
Guarantees given by the Company to Housing Development
Finance Corporation Limited - for loans to Employees |
21.900 |
|
Excise and Customs demand - matters under dispute and
Claims for refund of Excise Duty, if any, against Excise Duty Refund received
in the earlier year |
626.200 |
|
Income-Tax matters
under dispute |
|
|
Appeal by Company |
1232.400 |
|
Appeal by Department |
1880.100 |
|
Sales Tax matters under dispute |
3112.500 |
|
Claims made by temporary workmen |
|
|
Pending before various courts in respect of similar
matters adjudicated by the Supreme Court in the past. The matter is
contingent on the factsand evidence presented before the courts/adjudicating
authorities and not necessarily likely to be influenced by the Supreme Courts
order |
Liability Uncertained |
|
The Company has imported Capital Goods under the Export
Promotion Capital Goods Scheme, of the Government of India, at concessional
rates of duty on an undertaking to fulfill quantified exports against which
remaining future obligations aggregate to USD 151.45 million (Previous Year
USD 189.66 million). Minimum Export obligation to be fulfilled by the Company
under the said scheme, by 31st March, 2006 has been fulfilled. Non
fulfillment of the balance of such future obligations in the manner required,
if any, entails options/rights to the Government to confiscate capital goods
imported under the said licences and other penalties under the above-referred
scheme. |
-- |
Fixed
Assets :
Land
Freehold
v
Land
Leasehold
v
Buildings
v
Waterpumps,
v
Reservoirs
and Mains
v
Plant
8 Machinery
v
Dies
& Jigs
v
Electric
Insta lations
v
Factory
Equipments
v
Furnitures
Fixtures
v
Electric
Fittings
v
Vehicles
S Aircraft
v
Wind
Energy Generators
v
Leased
Assets:-
v
Plant
& Machinery
v
Dies
8 Moulds
The company
has joint venture with :-
Ø
Cagiva Motor
Ø
Kawasaki Heavy
Industries Limited,
Ø
Kubato
Corporation,
It imports
its requirements from Europe and
It exports
its products to Africa,
It is in trade terms with :-
·
Bajaj Trading
Company
·
Anant Trading
Company
·
Kushagra Trading
Company
·
Madhur
Securities Private Limited
·
Bajaj
International Private Limited
·
Bachhraj and
Company Private Limited
·
Jamnalal Sons
Private Limited
·
Sikkim Janseva
Pratisthan Private Limited
·
Niche Financial
Services Private Limited
·
Benchmark Asset
Management Company Private Limited
·
Baroda
Industries Private Limited
·
Bachhraj
Factories Private Limited
Awards
|
Bajaj Discover DTS-i - Bike of the Year 2005 |
2005 |
OVERDRIVE Awards 2005 |
|
Bajaj Discover DTS-i - Indigenous Design of the Year 2005 |
2005 |
OVERDRIVE Awards 2005 |
|
BAJAJ AUTO - Bike Maker of the Year 2004 |
2004 |
ICICI Bank OVERDRIVE Awards 2004 |
|
DTS-i Technology - Auto Tech of the Year 2004 |
2004 |
ICICI Bank OVERDRIVE Awards 2004 |
|
Bajaj Pulsar DTS-i Bike of the Year 2004 |
2004 |
ICICI Bank OVERDRIVE Awards 2004 |
|
Wind 125 Two Wheeler of the Year 2004 |
2004 |
CNBC AUTOCAR Awards 2004 |
|
Wind 125 Bike of the Year 2004 |
2004 |
Business Standard Motoring |
|
Bajaj Pulsar 180 DTS-i BBC World Wheels Viewers Choice Two
Wheeler of Year 2003 |
2003 |
BBC World Wheels Award 2003 |
|
Bajaj Pulsar 180 DTS-i BBC World Wheels Award for Best Two
Wheeler between Rs 0.055 million to Rs 0.070 million |
2003 |
BBC World Wheels Award 2003 |
|
Bajaj Pulsar 150 DTS-i BBC World Wheels Award for Best Two
Wheeler between Rs. 0.045 million to Rs. 0.055 million |
2003 |
BBC World Wheels Award 2003 |
|
Bajaj Boxer AT KTEC BBC World Wheels Award for Best Two Wheeler
under Rs. 0.030 million |
2003 |
BBC World Wheels Award 2003 |
|
Bajaj Pulsar - Motorcycle Total Customer Satisfaction Study |
2003 |
NFO Automotive |
|
Bajaj Pulsar - Bike of the year |
2003 |
ICICI Bank OVERDRIVE Awards 2003 |
|
Bajaj Pulsar - Most exciting bike of the year |
2002 |
OVERDRIVE Awards |
|
Bajaj Eliminator - Bike of the year |
2002 |
OVERDRIVE Awards |
|
Bajaj Eliminator - Most exciting bike of the year |
2001 |
OVERDRIVE Awards |
Press clipping
January 16,
2004
Bajaj plans new
offerings
Corporate
Bureau in
The country’s second biggest two-wheeler maker, Bajaj Auto,
today said it was working on a new two-wheeler project which would be unveiled
in June this year, and said it had a target to sell over 200,000 vehicles in
2004-05.
The new products, which would be unveiled this year, would help
it increase its marketshare in the local as well as overseas markets, Bajaj
Auto Joint Managing Director Rajiv Bajaj said at a press conference at the Auto
Expo, where the company also launched a new corporate identity and new logo
called ‘Flying B’.
Bajaj said that the company would record its highest-ever
motorcycle sales in this financial year at over 1 million units. Four new
two-wheeler launches are expected soon, he added.
The company also expects to register an over 50 per cent
growth in exports to about 160,000 units in 2003-04.
Bajaj also announced that the first bikes badged ‘Bajaj’
would be launched in the Philippines in February through an arrangement with
Kawasaki which would be selling three motorcycles BYK, Caliber 115 and Wind 125
in that market.
“In essence, this will be the first step towards our selling
two-wheelers in the Southeast Asian countries,” Bajaj said.
He added that the three motorcycles would be assembled from
knocked down kits and sold by 600 dealers in the
In the last financial year, Bajaj exported 94,000 vehicles.
In the first nine months of the current financial year, the company sold close
to 110,000 units.
In value terms, exports would increase to Rs. 5000 millions
during 2003-04 and to over Rs. 6500 millions in 2004-05, he added.
Bajaj said exports to
There is also a proposal to make three-wheelers in
The company’s Vice-President (Business Development And
Marketing) RL Ravichandran said two new motorcycles would be launched in 2004.
A 100cc model, which will provide 100 kmpl under standard
test conditions, the other powered by a modern DTSi engine in July.
The company, he said, will also launch two scooters - one, a
four-stroke 125cc upgraded Chetak model, the other a 110cc automatic model ‘Wave'.
Bajaj Auto brand image
set for overhaul
January, 2004
BUSINESS LINE
S. Muralidhar
CHENNAI
THE ubiquitous, familiar, hexagonal blue and
white logo of Bajaj Auto is set to fade away into history.
With ambitions of becoming an Indian multinational
company and after discovering in-house talent at developing new technology for
its new motorcycles, Bajaj Auto (BAL) is now all set to overhaul its brand
image and corporate identity.
The 59-year old institution, which is the one of
the country's largest two-wheeler and three-wheeler manufacturers, is set to go
through a complete image makeover, including a new brand logo and corporate
brand identity to disseminate a more modern outlook for the company.
Bajaj seems to have had compelling reasons to plan
a revamp of its branding strategy. Some of these are the rapid rise of the
company's motorcycle sales, its plans to go global with proposed assembly
plants in one or two South Asian countries, the increasingly lower age profile
of its average customer and the need to pithily showcase its in-house design
and technological capability.
Bajaj's current logo, which is more than 40
years old, is being replaced by a new, more dynamic insignia, to better reflect
these attributes. The new identity is expected to be very dynamic and represent
style and technology. Company sources said that the new logo, which will
continue to sport the blue colour, will however, continues the lineage of Bajaj
from the hexagonal form.
The new blue colour is said to represent precision
and stability.
The job of revamping and redesigning the
company's brand image, corporate identity and the logo's various manifestations
has been done by Elephant Design, a Pune-based, multidisciplinary design office
that has created, redefined and repositioned several brands across a wide range
of industry segments. The new logo and repositioning was preceded by a
nationwide market research to ascertain the new identity's acceptance among
customers and others.
Elephant Design has been associated with Bajaj
for a few years now and had successfully designed and implemented the `Planet
Bajaj' interim identity. They had also designed and implemented BAL's retail
identity project across the company's showrooms, service centres and product
manuals.
Sources said that while the Planet Bajaj
identity helped Bajaj showcase its manufacturing strengths in the whole range
of two wheeler categories, since it was traditionally being looked upon as just
a scooter manufacturer.
Now, with the induction of modern manufacturing
technology and infrastructure, high-tech, aggressively styled products in its
portfolio, sustained research and development and younger consumers, the change
in identity is expected to recognise all these changing values and present an easier
interface for the world to understand the new Bajaj.
The company’s fixed assets of important value include land
(freehold), land leasehold, buildings, waterpumps, reservoirs and mains, plant
and machinery, dies and jigs, electric installations, factory equipments,
furnitures and fixtures, electric fittings, vehicles and aircraft and wind
energy generators.
Corporate Information
Corporate Announcements
|
Company |
BAJAJ AUTO LIMITED |
|
NSE
Symbol |
|
The company
has been awarded with "ISO 9001" Certification.
CMT
REPORT [Corruption,
Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts,
1] INFORMATION ON DESIGNATED PARTY
No
exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset Declaration :
No
records exist to suggest that the property or assets of the subject are derived
from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or
conviction registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with Government :
No record exists to
suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report
:
No press reports / filings exists on the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the
terms and conditions that could be included in the agreement with the subject.
FOREIGN
EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 40.90 |
|
|
1 |
Rs. 81.29 |
|
Euro |
1 |
Rs. 55.47 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP
CAPITAL |
1~10 |
9 |
|
OPERATING
SCALE |
1~10 |
9 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT
LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
This
score serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial condition (40%) Ownership background
(20%) Payment record (10%)
Credit history (10%) Market trend (10%) Operational size
(10%)
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the
strongest capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for
credit transaction. It has above average (strong) capability for payment of
interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy.
General unfavourable factors will not cause fatal effect. Satisfactory
capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight
in credit consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and
principal sums in default or expected to be in default upon maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be
exercised |
Credit not recommended |