Business
information report
1. Summary Information
|
|
|
Country |
India |
|
Company Name |
BAJAJ AUTO LIMITED (w.e.f. 05.03.2008) |
Principal Name 1 |
Mr. Madhur Bajaj |
|
Status |
Good |
Principal Name 2 |
Mr. Rahul Baja |
|
|
|
Registration # |
25-130076 |
|
Street Address |
Bajaj Auto
Limited Complex, Mumbai - Pune Road, Akurdi, Pune - 411 035, Maharashtra |
||
|
Established Date |
30.04.2007 |
SIC Code |
-- |
|
Telephone# |
91-20-27472851/
27406603 / 27406063 / 27406281/ 27406137 |
Business Style 1 |
Manufacturers and
Exporter of two and three wheelers. |
|
Fax # |
91-20-27407380 /
27407392 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
-- |
|
|
# of employees |
Not Divulged |
Product Name 2 |
-- |
|
Paid up capital |
1446835100 |
Product Name 3 |
-- |
|
Shareholders |
Bodies Corporate 45.59% |
Banking |
Central Bank of India |
|
Public Limited Corp. |
-- |
Business Period |
4 years |
|
IPO |
-- |
International Ins. |
- |
|
Public |
-- |
Rating |
A (63) |
|
Related
Company |
|||
|
Relation - Group Company |
Country
|
Company
Name |
|
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
25,547,400,000 |
Current Liabilities |
42,749,700,000 |
|
Inventories |
4,462,100,000 |
Long-term Liabilities |
13,385,800,000 |
|
Fixed Assets |
14,795,900,000 |
Other Liabilities |
16,900,000 |
|
Deferred Assets |
0 |
Total Liabilities |
56,152,400,000 |
|
Invest& other Assets |
40,630,400,000 |
Retained Earnings |
27,836,600,000 |
|
|
|
Net Worth |
29,283,400,000 |
|
Total Assets |
85,435,800,000 |
Total Liab. & Equity |
85,435,800,000 |
|
Total Assets (Previous Year) |
58,814,400,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
115,085,000,000 |
Net Profit |
17,036,300,000 |
|
Sales(Previous yr) |
84,369,400,000 |
Net Profit(Prev.yr) |
6,564,800,000 |
MIRA
INFORM REPORT
|
Report Date : |
31.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
BAJAJ AUTO LIMITED (w.e.f. 05.03.2008) |
|
|
|
|
Formerly Known as: |
BAJAJ HOLDINGS AND INVESTMENTS LIMITED |
|
|
|
|
Registered Office : |
Bajaj Auto
Limited Complex, Mumbai - |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
30.04.2007 |
|
|
|
|
Com. Reg. No.: |
25-130076 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1446.800
millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L65993PN2007PLC130076
|
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
PNEB05807E |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AADCB2923M |
|
|
|
|
Legal Form : |
Public Limited
Liability Company. The company’s shares are listed on the stock exchanges. |
|
|
|
|
Line of Business : |
Manufacturers and
Exporter of two and three wheelers. |
|
|
|
|
No. of Employees : |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 117134000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well
established and a reputed company having fine track. Financial position of
the company appears to be sound. Trade relations are reported as fair. Business
is active. Payments are reported to be regular and as per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION DECLINED BY
|
Name : |
Mr. Das |
|
Designation : |
Finance Manager |
|
Contact No.: |
91-20-27472851 |
LOCATIONS
|
Registered/ Head Office/ Factory 1 : |
Bajaj Auto
Limited Complex, Mumbai - |
|
Tel. No.: |
91-20-27472851/ 27406603
/ 27406063 / 27406281/ 27406137 |
|
Fax No.: |
91-20-27407380 /
27407392 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 2 : |
Bajaj Nagar, Waluj, |
|
|
|
|
Factory 3 : |
MIDC, Plot No.
A1, |
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|
|
|
Factory 4 : |
Plot No. 2,
Sector -10, IIE Pant Nagar, Udham Singh Nagar – 263 531, |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Rahul Bajaj |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Madhur Bajaj |
|
Designation : |
Vice Chairman |
|
|
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|
Name : |
Mr. Rajiv Bajaj |
|
Designation : |
Managing Director |
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|
|
|
Name : |
Mr. Sanjiv Bajaj |
|
Designation : |
Executive
Director |
|
|
|
|
Name : |
Mr. Kantikumar R.
Podar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Shekhar Bajaj |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D.J. Balaji
Rao |
|
Designation : |
Director |
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|
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|
Name : |
Mr. D.S. Mehta |
|
Designation : |
Whole-time Director |
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|
|
|
Name : |
Mr. J.N. Godrej |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S.H. Khan |
|
Designation : |
Director |
|
|
|
|
Name : |
Ms. Suman
Kriloskar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Naresh Chandra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Nanoo Pamnani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Manish Kejriwal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. Murari |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Niraj Bajaj |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Pradeep Shrivastava |
|
|
Designation : |
Chief Operating Officer |
|
|
|
|
|
|
Name : |
Mr. Abraham Joseph |
|
|
Designation : |
President (Research and Development) |
|
|
|
|
|
|
Name : |
Mr. S. Sridhar |
|
|
Designation : |
President
(Motorcycle Business) |
|
|
|
|
|
|
Name : |
Mr. R.C. Maheshwari |
|
|
Designation : |
President (Commercial
Vehicle Business) |
|
|
|
|
|
|
Name : |
Mr. Rakesh Sharma |
|
|
Designation : |
President
(International Business) |
|
|
|
|
|
|
Name : |
Mr. Eric Vas |
|
|
Designation : |
President (New
Projects) |
|
|
|
|
|
|
Name : |
Mr. K. Srinivas |
|
|
Designation : |
President
(Retail Finance) |
|
|
|
|
|
|
Name : |
Mr. Kevin D'sa |
|
|
Designation : |
President
(Finance) |
|
|
|
|
|
|
Name : |
Mr. S. Ravikumar |
|
|
Designation : |
Senior Vice
President (Business Development and Assurance) |
|
|
|
|
|
|
Name : |
Mr. Amrut Rath |
|
|
Designation : |
Vice President
(Human Resources) |
|
|
|
|
|
|
Name : |
|
|
|
Designation : |
Vice President
(Commercial) |
|
|
|
|
|
|
Name : |
Mr. C.P. Tripathi |
|
|
Designation : |
Vice President (CSR) |
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|
|
|
|
|
Name : |
Mr. J. Sridhar |
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|
Designation : |
Company Secretary |
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|
|
|
|
|
Name : |
Mr. Das |
|
|
Designation : |
Finance Manager |
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Category of
Shareholder |
Total No. of
Shares |
% of total No.
of Shares |
|
|
|
As a % of
(A+B+C) |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
12,808,410 |
4.43 |
|
|
131,924,922 |
45.59 |
|
|
144,733,332 |
50.02 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
144,733,332 |
50.02 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
7,545,648 |
2.61 |
|
|
907,626 |
0.31 |
|
|
14,304,955 |
4.94 |
|
|
46,274,849 |
15.99 |
|
|
69,033,078 |
23.86 |
|
|
|
|
|
|
25,001,243 |
8.64 |
|
|
|
|
|
|
16,461,883 |
5.69 |
|
|
32,593,028 |
11.26 |
|
|
1,324,322 |
0.46 |
|
|
1,322,440 |
0.46 |
|
|
1,850 |
- |
|
|
32 |
- |
|
|
75,380,476 |
26.05 |
|
Total Public shareholding (B) |
144,413,554 |
49.91 |
|
Total (A)+(B) |
289,146,886 |
99.92 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
220,134 |
0.08 |
|
|
220,134 |
0.08 |
|
Total (A)+(B)+(C) |
289,367,020 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and
Exporter of two and three wheelers. |
||||
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|
|
||||
|
Products: |
|
PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
2009-10 (Nos.)
|
|
(I) Motorised Two
Wheelers and Three Wheelers upto 350 cc Engine capacity |
|
|
(i) Licensed
Capacity (Including two
Wheelers c.k.d packs-200,000 Nos.) (a) |
1,639,350 |
|
(ii) Installed Capacity (b) |
4,260,000 |
|
(iii) Production |
2,864,519 |
|
|
|
|
(II) Special Purpose Machine Tools |
|
|
(i) Licensed Capacity (a) |
80 |
|
(ii) Installed Capacity (b) |
80 |
|
(iii) Production |
3 |
Notes:
(a) Licensed
Capacity is stated as per the Original License held by the erstwhile subject
(pre-demerger). However, the Company’s products are exempt from Licensing
requirements under New Industrial Policy in terms of notification no. s.o. 477
(E) dated 25th July, 1991.
(b) As certified by the President (Engineering) and being a technical
matter, accepted by the Auditors as correct.
GENERAL INFORMATION
|
No. of
Employees : |
Information declined by the management |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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|
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|
Auditors : |
|
|
Name : |
Dalal and Shah Chartered Accountants |
|
|
|
|
Cost Auditors : |
A.P. Raman Cost Accountant |
|
|
|
|
Holding company, subsidiaries and fellow subsidiary : |
|
|
|
|
|
Associates, joint ventures and investing parties : |
|
|
|
|
|
Group Companies : |
|
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
150000000 |
Equity Shares |
Rs.10/- each |
Rs.1500.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
*144683510 |
Equity Shares |
Rs.10/- each |
Rs.1446.800
millions |
|
|
|
|
|
Notes
*Of the above:-
1. 101,183,510 Equity shares were
allotted as fully paid-up pursuant to the scheme of arrangement of demerger of erstwhile
Bajaj Auto Limited (now Bajaj Holdings and Investment Limited)
2. 1,805,071 Equity Shares thereof
are deemed to be issued by way of Euro Equity Issue represented by Global
Depository Receipts (GDR) evidencing Global Depository Shares outstanding on
the record date. Outstanding GDRs at the close of the year were 127,902.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1446.800 |
1446.800 |
1446.800 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
27836.600 |
17250.100 |
14429.100 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
29283.400 |
18696.900 |
15875.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
129.800 |
0.000 |
69.500 |
|
|
2] Unsecured Loans |
13256.000 |
15700.000 |
13273.900 |
|
|
TOTAL BORROWING |
13385.800 |
15700.000 |
13343.400 |
|
|
DEFERRED TAX LIABILITIES |
16.900 |
41.900 |
109.800 |
|
|
|
|
|
|
|
|
TOTAL |
42686.100 |
34438.800 |
29329.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
14795.900 |
15260.300 |
12580.800 |
|
|
Capital work-in-progress |
415.200 |
220.600 |
347.400 |
|
|
|
|
|
|
|
|
INVESTMENT |
40215.200 |
18085.200 |
18571.400 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
Technical Know-how |
0.000 |
162.600 |
105.300 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4462.100
|
3388.400
|
3496.100
|
|
|
Sundry Debtors |
2728.400
|
3586.500
|
2753.100
|
|
|
Cash & Bank Balances |
1014.100
|
1368.700
|
560.700
|
|
|
Other Current Assets |
1059.700
|
1256.800
|
799.500
|
|
|
Loans & Advances |
20745.200
|
13652.300
|
8887.700
|
|
Total
Current Assets |
30009.500
|
23252.700 |
16497.100
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
15712.000 |
7999.800 |
8787.500
|
|
|
Other Current Liabilities |
4550.500
|
4134.300
|
1645.000
|
|
|
Provisions |
22487.200
|
12241.500
|
8340.400
|
|
Total
Current Liabilities |
42749.700
|
24375.600 |
18772.900
|
|
|
Net Current Assets |
(12740.200)
|
(1122.900)
|
(2275.800)
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
1833.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
42686.100 |
34438.800 |
29329.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
115085.000 |
84369.400 |
86632.900 |
|
|
|
Other Income |
5349.800 |
4953.200 |
5055.500 |
|
|
|
TOTAL (A) |
120434.800 |
89322.600 |
91688.400 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials |
80704.400 |
64634.700 |
66203.700 |
|
|
|
Other Expenses |
12736.500 |
11692.200 |
11553.000 |
|
|
|
Expenses capitalized |
(156.700) |
(144.200) |
(230.400) |
|
|
|
Expenditure
incurred for Voluntary Retirement of employees |
1833.000 |
1833.000 |
1023.600 |
|
|
|
Valuation losses
of derivative hedging instruments |
(218.000) |
218.000 |
0.000 |
|
|
|
TOTAL (B) |
94899.200 |
78233.700 |
78549.900 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
25535.600 |
11088.900 |
13138.500 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST (D) |
59.800 |
210.100 |
51.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
25475.800 |
10878.800 |
13086.900 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1364.500 |
1297.900 |
1739.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
24111.300 |
9580.900 |
11347.300 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
7075.000 |
3016.100 |
3787.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
17036.300 |
6564.800 |
7559.500 |
|
|
|
|
|
|
|
|
|
|
Prior Period Expenses |
(9.000) |
(19.800) |
(1.700) |
|
|
|
|
|
|
|
|
|
|
Adjustments on revaluation of deferred tax assets |
(26.200) |
-- |
-- |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1702.700 |
2821.000 |
4172.300 |
|
|
|
Proposed Dividend |
5787.300 |
3183.000 |
2893.700 |
|
|
|
Corporate Dividend Tax thereon |
961.200 |
541.000 |
491.800 |
|
|
BALANCE CARRIED
TO THE B/S |
8549.900 |
-- |
-- |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of exports |
32457.500 |
26384.000 |
20458.000 |
|
|
|
F.O.B. Value of exports - goods traded in |
0.700 |
20.000 |
20.100 |
|
|
|
Forwarding charges exports recovered |
179.700 |
344.400 |
265.600 |
|
|
|
Interest |
33.300 |
57.700 |
16.300 |
|
|
|
Royalty |
7.400 |
10.900 |
13.700 |
|
|
|
Technical Know how |
0.000 |
2.000 |
0.000 |
|
|
|
Asset |
0.000 |
0.000 |
3.400 |
|
|
|
Other Earnings |
10.900 |
0.100 |
0.600 |
|
|
TOTAL EARNINGS |
32689.500 |
26819.100 |
20777.700 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials: - Steel and Non-Ferrous Material |
341.700 |
732.600 |
465.600 |
|
|
|
- Components |
2456.100 |
1668.700 |
2277.200 |
|
|
|
Machinery Spares |
51.400 |
58.000 |
74.200 |
|
|
|
Capital Goods |
321.100 |
3003.200 |
416.800 |
|
|
TOTAL IMPORTS |
3170.300 |
5462.500 |
3233.800 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
117.70 |
45.20 |
54.20 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
38900.600 |
43418.200 |
41770.800 |
41999.700 |
|
Total Expenditure |
31131.300 |
34446.500 |
33277.600 |
33384.700 |
|
PBIDT (Excl OI) |
7769.300 |
8971.700 |
8493.200 |
8615.000 |
|
Other Income |
816.700 |
837.100 |
994.600 |
1009.700 |
|
Operating Profit |
8586.000 |
9808.800 |
9487.800 |
9624.700 |
|
Interest |
6.300 |
6.500 |
3.600 |
0.500 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
7245.500 |
|
PBDT |
8579.700 |
9802.300 |
9484.200 |
16869.700 |
|
Depreciation |
318.200 |
299.500 |
310.203 |
300.500 |
|
Profit Before Tax |
8261.500 |
9502.800 |
9174.000 |
16569.200 |
|
Tax |
2360.000 |
2682.000 |
2502.900 |
2565.300 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
5901.500 |
6820.800 |
6671.100 |
14003.900 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
5901.500 |
6820.800 |
6671.100 |
14003.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
14.15
|
7.34 |
8.24 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
20.95
|
11.35 |
13.10 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
53.81
|
24.88 |
23.59 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.82
|
0.51 |
0.71 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.92
|
2.14 |
2.02 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.70
|
0.95 |
0.88 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
31.03.2010 (Rs. in millions) |
31.03.2009 (Rs. in millions) |
31.03.2008 (Rs. in millions) |
|
Sundry
Creditors: |
|
|
|
|
- Dues to Micro and Small enterprises |
61.600 |
30.000 |
13.800 |
|
- Other than dues to Micro and Small enterprises |
15650.400 |
7969.800 |
8773.700 |
|
|
15712.000 |
7999.800 |
8787.500 |
HISTORY
Subject is one of the two and three wheeler manufacturers in
CAPACITY EXPANSION
AND NEW PROJECTS
The company plans to
increase its capacity of two and three wheelers from the current 4,260,000
numbers per annum to 4,980,000 numbers per annum by 31 March 2011.
The 4 wheel
vehicle development work is under progress and commercial launch of the first
product from this platform is scheduled for 2012.
The
techno-economic feasibility of the 4-wheeler Project and related agreements
between partners, Bajaj, Renault and Nissan will be concluded at a suitable
stage of this platform development.
SUBSIDIARIES
PT. Bajaj Auto
Product portfolio
will be expanded under Pulsar brand with Pulsar 135 LS in the first quarter of
2010-11.
During the year,
sales and service showrooms were expanded to cover 23 provinces, across 7 major
islands.
In an effort to
bring down the customs duties, the subsidiary has localised some of the
assembly operations. It would continue to pursue the localisation of sub-
assemblies further in 2010-11.
With the addition
of Pulsar 135 LS to the model line up and with increased local sub-assembly
operations, the subsidiary would be in a position to reduce its losses in
2010-11.
Bajaj Auto
International
During the year,
BAIHBV invested further Euro 250,290 to increase its stake in KTMPS to 31.92%.
The first product
developed under the joint development program between KTM and BAL was showcased
in Milan Motorshow in November 2009 and was received well. The product will go
on sale in 2010-11.
Reinforcing its
commitment to KTM and signifying the strategic importance of KTM brand and
products, Bajaj invested a further Euro 20 Million in April 2010 in KTM through
BAIHBV taking its stake in KTM to 35.67%.
MANAGEMENT
DISCUSSION AND ANALYSIS
2008-09 was a very
difficult year for the world economy. The stock, money and financial markets
crashed, and with it the real sectors, in what was the worst global depression
since the 1930s. Every developed country suffered negative GDP growth. And with
it, economic and social pain.
Among the major
emerging markets,
Discretionary
purchases were hit the hardest. It is not surprising, therefore, that
automobile and two-wheeler sales tapered off. The good news for
After three quarters
of declining growth, both nations stemmed the rot, and got back into their
stride. To be sure, GDP growth was muted compared to the past. However, for
In
Subject did very
well. It sold over 2.5 million motorcycles and, in doing so, the Company earned
21.7% EBITDA margin, which was the highest in the industry. Bajaj Auto’s
performance highlights for 2009-10 are given below:
Highlights for
2009-10 versus 2008-09: Bajaj Auto standalone
·
2009-10 has been a record year for Bajaj Auto in
terms of highest ever sales, exports, profits and margins.
·
Net sales and other operating income grew by 35% to
Rs.119.21 billion.
·
The year saw record sales of 2.85 million units –
over 2.5 million motorcycles and 340,937 three-wheelers.
·
Exports rose by 15% to 891,002 units.
·
The Company’s operating EBITDA stood at Rs.25.93
billion – a growth of 116% over last year. The operating EBITDA margin was
21.7% of net sales and other operating income for 2009-10.
·
Operating profit before tax (PBT) grew by 170% to
Rs.22.89 billion.
·
Profit after tax (PAT) grew by 160% to Rs.17.03
billion.
·
Surplus cash and cash equivalents in the Company’s
balance sheet as on 31 March 2010 stood at Rs.32.6 billion, versus Rs.9.3
billion on 31 March 2009.
It needs to be
emphasised that the Company’s excellent operational and financial performance
is not merely due to increasing overall growth in motorcycle demand in
The ‘front end’ is
guided by the Company’s strategy of differentiation, to continuously specialise
its brand positioning in motorcycles. In the process, Bajaj Auto has positioned
its motorcycle brands in the utility, price, value and sports categories. The
basic proposition is that while products may generate market share, it is
brands that provide pricing power and create higher profits.
The ‘back end’ – R
and D, quality, production efficiency, logistics and throughput — is guided by
TPM, which the Company calls ‘The Prime Mover’ towards excellence.
2009-10 saw the
coming together of the front end and the back-end. It is this alignment which
has resulted in Bajaj Auto growing faster than the market, gaining market
share, and earning the highest profit rate in the industry.
MARKETS
Motorcycles: Overall
There are two
tales of motorcycles in
From 7.10 million units
in 2006-07, motorcycle sales fell to 6.54 million units in 2007-08, and then
rose very marginally to 6.81 million
units in 2008-09. The year has been outstanding. Sales has increased by 24.1% —
the best ever growth since 2002-03, and over a much higher base. Indeed, sales
in 2009-10 was 18.9% higher than even the previous peak during 2006-07.
Motorcycles continue to account for over 80% of total two-wheeler sales. For
the Company, therefore, it is the two-wheeler that matters.
The Company sold
over 2.5 million motorcycles in
Here, too, Bajaj
Auto’s motorcycle sales in 2009-10 grew faster than the market – 39.7% for the
Company, versus 25.8% in the aggregate.
Motorcycles: Domestic Sales
Over the last five
years, the Company’s management has been communicating about the change in
consumer preferences for motorcycles. The gist of it has been:
·
Indian consumers - urban as well as a rural - have
become better off. They have been enjoying greater purchasing power than
before; and have begun to demand greater design inputs, better looks, feel,
comfort and adventure for the products that they buy. And are willing to pay
for these attributes.
·
As a consequence, the consumers are upgrading.
Across the board, a motorcycle is becoming a lifestyle statement. Boring and
fuel efficient no longer works; exciting and fuel efficient does – rapidly so,
in ever increasing strides.
·
In addition, there is a growing body of motor-bike
users who want to purchase powerful models for the pure thrill of biking.
The data prove
this very clearly. Consider the following product segmentation:
·
Commuter Standard (STD):
Comprising
Bajaj Auto’s Platina; Hero Honda’s CD series; and TVS’ Star.
·
Commuter Deluxe (DLX): The key brands
here are Bajaj Auto’s Discover; Hero Honda’s Splendor, Passion and Glamour;
Honda Motorcycle and Scooters India’s (HMSI’s) Shine; and TVS’ Fiero.
·
Sports: This includes
Bajaj Auto’s Pulsar; Hero Honda’s CBZ, Hunk and Karizma; HMSI’s Unicorn and
Stunner; TVS’s Apache; and Yamaha’s R15 and FZ16.
Commuter STD
For
It is not just a
matter of falling segment share. The Commuter STD category comprises low
pricing power, low margin, low profit products. Bajaj Auto believes that there
is more brand premium to be reaped — and higher profits generated — by being a
significant player or leader in the other two categories.
Commuter DLX
Unlike the
Commuter STD segment, this category is not only growing every year, but also
constitutes the major chunk of
With the launch of
Bajaj Auto’s Discover DTS-Si, the Company is selling an average of 80,000
vehicles per month in this category. Discover is now a one million plus brand.
Sports
This segment is
showing rapid growth. From 9% market share in 2005-06, it has risen to 17% in
2009-10. According to many, this will be the fastest growing segment in the
times to come, given the disproportionate growth of purchasing power in the
hands of middle-class urban
With its Pulsar
range, Bajaj Auto has grown faster — from 21% of its total volume of
motorcycles in 2005-06 to 31% in 2009-10. Bajaj Auto is the clear market leader
in this category.
This is an
exciting segment in more ways than one. It is about aspiration; power; freedom;
enjoyment; and the sheer pleasure of riding a great bike. The Company believes
that for
In this category,
the new Pulsar 135 LS has been very successful in the market. Designed in the
Pulsar character of aggression, the bike has been crafted with an eye to
detail. Its light sports nature has bought more people into Pulsar fold, who
would otherwise have been intimidated by the full size Pulsars. Together with
the 135 LS, the Pulsar will also become a one million brand.
The strategic
shift in favour of the bigger and sportier Discover and Pulsar models has not only
created a powerful image for the Company’s offerings, but also generated higher
margins.
Motorcycles: Awards
Bajaj Auto has won
several awards for its motorcycles in the course of the year — recognition of
the Company’s commitment to brands, advertising, technology and product appeal.
These are given below:
|
AWARDS |
MODEL |
AWARD BODY –
AWARD |
|
For Product and Technology |
Pulsar 135LS |
ET NOW-Zigwheels, Bike of the Year ET NOW-Zigwheels, Technology of the Year — 4 Valve UTV Bloomberg-AutoCar, Bike of the Year UTV Bloomberg-AutoCar, Viewer’s Choice Bike of the Year |
|
|
|
|
|
|
DISCOVER DTS-Si |
ET NOW-Zigwheels, 100cc Bike of the Year ET NOW-Zigwheels, Most Value for Money Bike of the Year NDTV Profit-Car |
|
|
|
|
|
|
|
Indian Motorcycle of The Year, 2009 ET NOW-Zigwheels, 250cc Bike of the Year NDTV Profit-Car NDTV CNBC-Overdrive, Bike of the Year Business Standard Motoring, Bike of the Year 2010 |
|
|
|
|
|
For Brand and Communication |
Bajaj Auto |
Global Youth Marketing Forum 2010: Most Popular Two-Wheelers Among Youth |
|
|
|
|
|
|
Bajaj Auto |
Brand Equity: 2nd Most Trusted Brand for Auto Two-Wheelers |
|
|
|
|
|
|
Discover DTS-Si |
NDTV |
|
|
|
|
|
|
Discover DTS-Si |
CNBC- Overdrive, Best Storyboard Commercial |
|
|
|
|
|
|
Discover DTS-Si |
Auto |
|
|
|
|
|
|
Pulsar |
Silver Effie for Pulsar Mania Ad |
|
|
|
|
|
|
Pulsar |
ABBY: Best film in Auto Category for the ‘Fastest Indian’ |
|
|
|
|
|
|
Pulsar Mania |
AME Award for Effective Use of Branded Content: Pulsar MTV StuntMania |
|
|
|
|
|
|
XCD 135 |
ABBY: Best film in Auto Category for the ‘Twisted Sisters’ |
Exports:
Bajaj Auto
continues to be the country’s largest exporter of two and three-wheelers.
During 2009-10, the Company’s international sales achieved an all-time high of 891,002
vehicles – which was 15% more than the sales recorded in the previous year.
In 2009-10,
exports accounted for Rs.32.46 billion (US$ 682 million), or 28% of the
Company’s total net sales.
It is worth noting
that three-wheeler exports now account for almost 50% of total three-wheeler
sales.
The increased
presence in Africa was primarily due to growth in
Sales in South
Asia (excluding
Although the
Company’s sales to
Three-Wheelers
In 2008-09, Bajaj
Auto had witnessed a 12% drop in domestic sales. 2009-10 saw a reversal. Like
motorcycles, the Company’s domestic sales of three-wheelers also picked up.
Thanks to this, as well as growing export demand, the overall decline of
three-wheeler sales that occurred in 2008-09 has become a thing of the past.
2009-10 saw a 24%
growth in the number of Bajaj Auto three-wheelers sold - up from 274,529 units
in 2008-09 to
340,937 in 2009-10.
As always, the Company remains the leading three-wheeler player from
Operations
Plants
During the first
half of 2009-10, a number of improvement activities were initiated at the shop
floor level across all plants of the Company. Thanks to these initiatives,
Bajaj Auto could produce 32% higher volume of output without any significant
investments.
Pantnagar
Bajaj Auto’s
production at its Pantnagar plant, Uttarakhand, has been on the rise. In
2009-10, it produced 577,947 vehicles, up by 82% compared to 2008-09. Average
production at Pantnagar for January-March 2010 was 60,000 per month versus
30,000 per month a year earlier. The plant is now geared to produce 80,000
units per month in April-June 2010, and then ramp up to 120,000 vehicles per
month by September-December 2010. Keeping this in mind, the supply chain
activities are also getting geared up.
To maximise tax
benefits available at Uttarakhand, the Company has shifted products like
Discover and Pulsar 135 to Pantnagar.
Waluj
Waluj celebrated
its 25th birthday in 2009-10. It also started production of the Discover and
successfully ramped up the output. Waluj is now the export hub of Bajaj Auto.
Of the 891,002 units of two- and three-wheelers exported in 2009-10, about 80%
was produced at Waluj. The plant is now ready to meet even higher exports - up
to 1 million units of two-wheelers and three-wheelers.
Waluj won an
award: ‘Plant Best In Class Manufacturing Leadership Award for Two- Wheelers’
by the Stars of Industry Group.
Chakan
Given its core
competence in high-end products, Chakan produced various upgrade versions of
Pulsar. It is now ready to deliver the new KTM bikes. Chakan was awarded the
‘Super Platinum Award for Manufacturing Excellence’ by Economic Times-Frost and
Sullivan.
Subsidiaries
Bajaj Auto International
As mentioned
earlier, a 100%
Reinforcing its
commitment to KTM and signifying the strategic importance of KTM brand and
products, Bajaj Auto, through
With this, the
total investment in KTM stands at €140.03 million.
The first product
developed under the joint development programme between KTM and Bajaj Auto was
showcased at the Milan Motorshow in November 2009, and was received well. The
product will go on sale in 2010-11.
PT Bajaj
PT BAI was
incorporated in 2006-07 as a subsidiary in
The subsidiary
assembles and markets Pulsars in
AUDITED
STAND-ALONE FINANCIAL RESULTS
(Rs.
in millions)
|
Particulars |
Quarter Ended 31.03.2011 |
Year Ended 31.03.2011 |
|
Sales in numbers
|
9481980 |
38239540 |
|
|
|
|
|
Gross Sales |
42990 |
169320 |
|
Less: Excise Duty |
2470 |
9340 |
|
Net
Sales |
40520 |
159980 |
|
Other Operating Income |
1480 |
6110 |
|
Total Income |
42000 |
166090 |
|
|
|
|
|
Expenditure |
|
|
|
a) (Increase) / Decrease in stock in trade and work in
progress |
(1760) |
(830) |
|
b) Consumption of raw materials |
30300 |
113130 |
|
c) Purchase of traded goods |
1230 |
5680 |
|
d) Employees cost |
1300 |
4770 |
|
e) Depreciation |
300 |
1230 |
|
f) Other expenditure |
2410 |
9660 |
|
g) Expenses capitalized |
(90) |
(170) |
|
h) Total |
33690 |
13347 |
|
|
|
|
|
Profit from operations before other income, interest and
exceptional Items |
8310 |
32620 |
|
Other income |
1010 |
3660 |
|
Other Expenses |
-- |
-- |
|
Other Income (Net) |
-- |
-- |
|
Profit before interest and exceptional Items |
9320 |
36280 |
|
Interest |
0 |
20 |
|
Profit
after Interest but before Exceptional Items |
9320 |
36260 |
|
Exceptional
Items |
|
|
|
Surplus on pre-payment of sales tax deferral liability /
loan |
8270 |
8270 |
|
Provision for diminution in value of investment in PT. Bajaj
Auto Indonesia |
(1020) |
(1020) |
|
Expenditure
incurred for Voluntary Retirement of employees |
0 |
0 |
|
Valuation losses
of derivative hedging instruments |
0 |
0 |
|
Profit
(+)/Loss(-) from Ordinary Activities before tax |
16570 |
43510 |
|
Tax expense |
2570 |
10110 |
|
Net
Profit (+)/Loss(-) from Ordinary Activities after tax |
14000 |
33400 |
CONTINGENT
LIABILITIES NOT PROVIDED FOR IN RESPECT OF:
|
Particulars |
31.03.2010 (Rs.
In millions) |
|
(i) Sales Bills Discounted |
-- |
|
(ii) Claims against the Company not acknowledged as debts |
4112.800 |
|
(iii) Guarantees
given by the Company to banks, on behalf of its subsidiary, PT Bajaj Auto |
233.500 |
|
(iv) Guarantees
given by the Company to Housing Development Finance Corporation Limited - for
loans to Employees |
4.500 |
|
(v) 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 |
681.200 |
|
(vi) Sales Tax matters under dispute |
2764.500 |
|
(vii) 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 facts and evidence presented
before the courts / adjudicating authorities and not necessarily likely to be
influenced by the Supreme Courts order |
Liability
unascertained |
FIXED ASSETS:
·
Land Leasehold
·
Land Freehold
·
Buildings
·
Water pump
·
Reservoirs and Mains
·
Plant and Machinery
·
Dies and Jigs
·
Electric Installations
·
Factory Equipments
·
Furniture Fixtures
·
Electric Fittings
·
Vehicles and Aircraft
·
Wind Energy Generators
Leased Assets:
·
Dies and Moulds
WEBSITE DETAILS:
THE COMPANY:
The Bajaj Group is
amongst the top 10 business houses in
His son, Kamalnayan Bajaj, then 27, took over the reigns of business in 1942.
He too was close to Gandhiji and it was only after
Awards and Accolades
|
2005 |
|
|
2004 |
|
|
2003 |
|
|
2002 |
|
|
2001 |
|
Milestones
|
2005 |
Bajaj Avenger and Bajaj Wave launched. |
|
2004 |
Bajaj Discover DTS-i, New Bajaj Chetak 4 stroke with Wonder
Geaf and Bajaj CT100 launched.
Bajaj also unveils new brand
identity, dons new symbol, logo and brand line. |
|
2003 |
Pulsar DTS-i and Bajaj
Wind 125-The World Bike was launched. In the executive motorcycle segment,
its Caliber 115 "Hoodibabaa!" was launched. 107,115 Motorcycles
sold in a month. |
|
2001 |
Launches Pulsar and Eliminator. |
|
2000 |
Bajaj Saffire was introduced. |
|
1999 |
Caliber motorcycle notches up 100,000 sales in record time of 12
months. Production commences at Chakan plant. |
|
1998 |
Kawasaki Bajaj Caliber rolls out of Waluj. |
Listed below are
snapshots of monthly sales performance for the Year 2011:
Sales in numbers
for the month of January 2011
2nd February 2011
|
Product |
For January 2011 |
Upto January 2011 |
For January 2010 |
Upto January 2010 |
|
Motorcycles |
275,622 |
2,825,994 |
232,939 |
2,027,298 |
|
Other 2 Wheelers |
- |
27 |
110 |
4,703 |
|
Total 2 Wheelers |
275,622 |
2,826,021 |
233,049 |
2,032,001 |
|
Three Wheelers |
37,961 |
363,318 |
32,969 |
277,624 |
|
Grand Total |
313,583 |
3,189,339 |
266,018 |
2,309,625 |
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 records 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.45.10 |
|
|
1 |
Rs.74.27 |
|
Euro |
1 |
Rs.64.35 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
63 |
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 EXPLANATIONS
|
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 |
Capability to overcome financial difficulties seems comparatively below
average. |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.