AN IMMERSION STUDY REPORT ON BAJAJ AUTO LIMITED

1. 1
AN IMMERSION STUDY REPORT ON
BAJAJ AUTO LIMITED
Submitted to
SHREE CHIMANBHAI PATEL INSTITUTE OF
MANAGEMENT & RESEARCH
In partial fulfilment of the requirement of the award for the
degree of
MASTER OF BUSINESS ADMINISTRATION
In
GUJARAT TECHNOLOGICAL UNIVERSITY
Submitted by
KOMAL BHESDADIA
ADIL KASMANI
NILESH PARMAR
ROHIT SUTHAR
KUNAL SHAH
[Batch: 2015-2017]
MBA SEMESTER III

2. 2
STUDENT DECLARATION
We following student’s hereby declare that the practical school project report titled “AN
IMMERSION STUDY REPORT ON BAJAJ AUTO LIMITED” is a result of our own work
and our indebtedness to other work publications, references, if any, have been duly
acknowledged.
Enrollment No. Name Signature
157680592009 Komal Bhesdadia
157680592064 Adil Kasmani
157680592090 Nilesh Parmar
157680592134 Rohit Suthar
157680592144 Kunal Shah
Place: Date:

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INDEX
Ch No. Particulars Page No.
1 Overview of company
2 Subject Group A
2.1 Strategic Management
2.2 Legal Aspects of Business
2.3 International Business
3 Subject Group B
3.1 Security Analysis & Portfolio Management
3.2 Management of Financial Services
3.3 Strategic Financial Management
4 Bibliography

4. 4
CH 1
OVERVIEW OF COMPANY

5. 5
OVERVIEW OF BAJAJ AUTO
Type Public Company
Industry Automotive
Founded November 29, 1945
Founder Jamnalal Bajaj
Headquarters Pune, India
Key People Rahul Bajaj (Chairman)
Rajiv Bajaj (MD)
Products Motorcycles, Three-Wheeler Vehicles And Cars
Revenue ₹226.8759 Billion (US$3.4 Billion) (2015–16)
Net Income ₹35.6254 Billion (US$530 Million) (2015–16)
Number Of Employees
9,119 (March 2014)
Parent
Bajaj Group
Website
www.bajajauto.com
Source: http://profit.ndtv.com/stock/bajaj-auto-ltd

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COMPANY BACKGROUND
Bajaj Auto Limited is an Indian two-wheeler and three-wheeler manufacturing company.
Bajaj Auto manufactures and sells motorcycles, scooters and auto rickshaws. Bajaj Auto is a
part of the Bajaj Group. It was founded by Jamnalal Bajaj in Rajasthan in the 1940s. It is
based in Pune, Mumbai, with plants in Chakan (Pune), Waluj (near Aurangabad)
and Pantnagar in Uttarakhand. The oldest plant at Akurdi (Pune) now houses the R&D centre
'Ahead'.
Bajaj Auto is the world's fourth-largest manufacturer of motorcycles and the second-largest
in India. It is world’s largest three-wheeler manufacturer. The company is well known for
their R&D, product development, process engineering and low-cost manufacturing skills.
On 31 March 2013, its market capitalisation was INR 520 billion (US$ 9.57 billion), making
it India's 23rd largest publicly traded company by market value. The Forbes Global 2000 list
for the year 2012 ranked Bajaj Auto at 1,416.
The company was incorporated on April 30, 2007 as a wholly owned subsidiary of erstwhile
Bajaj Auto Ltd (the holding company) with the name Bajaj Investment & Holding Ltd. The
company received the certificate of commencement of business on May 7, 2007.
VISION STATEMENT
To attain world class Excellency by demonstrating value added products to customers.
MISSION STATEMENTS
 To attain world class Excellency by demonstrating value added products to customers.
Mission: Focus on value based manufacturing.
 Continual Improvement
 Total elimination of wastes
 Pollution free & safe environment.

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HISTORY
Bajaj Auto came into existence on 29 November 1945 as M/s Bachraj Trading Corporation
Private Limited. It started off by selling imported two- and three-wheelers in India.
In 1959, it obtained a license from the Government of India to manufacture two-wheelers and
three-wheelers and it became a public limited company in 1960.
In 1970, it rolled out its 100,000th vehicle. In 1977, it sold 100,000 vehicles in a financial
year. In 1985, it started producing at Waluj near Aurangabad.
In 1975 Bajaj Auto & Maharashtra Scooters entered into a joint venture.
In 1977 Bajaj Auto introduced rear engine autorickshaw and achieved production and sales of
100,000 vehicles in a single financial year.
In 1984– On January 19, the foundation stone laid for the new plant at Waluj, Aurangabad.
In 1995 on November 29, Bajaj Auto turned into a 50–year old company. It signed
agreements 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 celebrated its ten millionth vehicles. The same year one million
vehicles were produced and sold by company in that financial year.
In 2007– RE GDi autorickshaw, Bajaj XCD 125 DTS–Si, Bajaj Pulsar 220 DTS–Fi, 200 cc
Pulsar DTS–I and Bajaj Kristal DTS–i were launched. The company also underwent through
revamping of its organisational structure.
In 2011 Bajaj Auto ties–up with SBI for inventory finance to dealers & in 2012 Bajaj Auto
tied up with Japan’s Kawasaki in Indonesia.

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PRODUCTS
Bajaj manufactures and sells motorcycles, scooters, auto-rickshaws and most recently, cars.
Bajaj Auto is India’s largest exporter of motorcycles and three-wheelers. Bajaj Auto’s
exports accounted for approx. 35% of its total sales. 47% of its exports are made to Africa.
Boxer motorcycle is the largest selling single brand in Africa.
MOTORCYCLES
Motorcycles in production are the Platina, Discover, Pulsar and Avenger and CT100. Bajaj
also distributes motorcycles in India for other manufacturers, such as the Kawasaki Ninja
250R, the Ninja 650R and new for 2012, the KTM Duke 200 "KTM Duke 200". Retrieved 24
November 2016 & KTM Duke 390 "KTM Duke 390". Retrieved 24 November 2016
In FY 2012-13, it sold approx. 3.76 million motorcycles which accounted for 31% of the
market share in India. Of these, approx. 2.46 million motorcycles (66%) were sold in India
and remaining 34% were exported.
THREE WHEELERS
It is the world's largest manufacturer of 3-wheelers and accounts for almost 84% of India’s
three-wheeler exports. During the FY 2012-13, it sold approx. 480,000 three-wheelers which
was 57% of the total market share in India.
LOW COST CARS
In 2010, Bajaj Auto announced cooperation with Renault and Nissan Motor to develop a
US$2,500 car, aiming at a fuel efficiency of 30 kilometres per litre.

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ACQUISITIONS
Bajaj Auto bought a controlling stake in the Tempo Firodia company, renaming it "Bajaj
Tempo". Germany's Daimler-Benz, a long-time collaborator with Firodia because of their
ownership of the original Tempo works in Germany, owned 16% of Bajaj Tempo. Daimler
sold their stake back to the Firodia group in 2001, meaning that they once again held a
controlling interest, with BAL retaining 24% of the shares. The name of the company was
changed to Force Motors in May 2005, dropping "Bajaj" as well as "Tempo".
KTM Power Sports AG
In November 2007, Bajaj Auto acquired 14.5% stake in KTM Power Sports AG (holding
company of KTM Sportmotorcycles AG). The two companies have signed a cooperation
deal, by which KTM will provide the know-how for joint development of the water-cooled
four-stroke 125 and 250 cc engines, and Bajaj will take over the distribution of KTM
products in India and some other Southeast Asian nations. As on 31 March 2013, Bajaj Auto
held 47.96% stake in the company.
DEMERGER
The demerger of Bajaj Auto Ltd into three corporate entities—Bajaj Finserv Ltd (BFL), Bajaj
Auto Ltd (BAL), and Bajaj Holdings and Investment Ltd (BHIL)—was completed with the
shares listing on 26 May 2008.
AWARDS
 Bajaj Auto was awarded the NDTV Profit Business Leadership Award 2010 at the
hands of the Hon'ble Finance Minister Shri Pranab Mukherjee on 1st September 2010.
 Bajaj Auto’s Bajaj Pulsar DTS–Fi won bike of the year in 2007 by CNBC–TV18
Autocar Auto Awards.
 Bajaj Platina 100 cc won bike of the year 2007 by NDTV Profit Bike India.
 Bajaj Auto’s Chakan Plant won Super Platinum Award For manufacturing Excellence
in 2006–07 by Frost and Sullivan.
 Bajaj CT 100 bagged Motorcycle Total Customer Satisfaction Study in 2005 by TNS
Automotive.

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CH. 2
SUBJECT GROUP A

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IMMERSION STUDY
OF
STRATEGIC MANAGEMENT
AT
BAJAJ AUTO
ON
STRATEGY APPLICATION

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STRATEGIC MANAGEMENT
Strategic management is the continuous planning, monitoring, analysis and assessment of all
that is necessary for an organization to meet its goals and objectives.
Strategic management is the management of an organization’s resources to achieve its goals
and objectives. Strategic management involves setting objectives, analyzing the competitive
environment, analyzing the internal organization, evaluating strategies and ensuring that
management rolls out the strategies across the organization. At its heart, strategic
management involves identifying how the organization stacks up compared to its competitors
and recognizing opportunities and threats facing an organization, whether they come from
within the organization or from competitors.
The strategic management process involves analyzing cross-functional business decisions
prior to implementing them. Strategic management typically involves:
 Analyzing internal and external strengths and weaknesses.
 Formulating action plans.
 Executing action plans.
 Evaluating to what degree action plans have been successful and making changes when
desired results are not being produced.
Strategic Management gives a broader perspective to the employees of an organization and
they can better understand how their job fits into the entire organizational plan and how it is
co-related to other organizational members.
One of the major role of strategic management is to incorporate various functional areas of
the organization completely, as well as, to ensure these functional areas harmonize and get
together well. Another role of strategic management is to keep a continuous eye on the goals
and objectives of the organization.

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STRATEGIC APPLICATION AT BAJAJ AUTO
DIVERSIFIED BUSINESS MODEL
Bajaj Auto has a dominant position in the 125+cc premium motorcycle category (high-
margin segment) and in passenger three wheelers. Also the company Exports to countries like
Africa, Middle East, & Latin America which enables the company to maintain superior
margins & highest profitability compared to the industry peers. Overall the company has
healthy regional mix & product mix that drive overall volumes & help it to sustain margins.
Diversification is a corporate strategy to enter into a new market or industry which the
business is not currently in, whilst also creating a new product for that new market. This is a
risky section, as the business has no experience in the new market and does not know if the
product is going to be successful. The notion of diversification depends on the subjective
interpretation of “new” market and “new” product, which should reflect the perceptions of
customers rather than managers. Indeed, products tend to create or stimulate new markets;
new markets promote product innovation.
Product diversification involves addition of new products to existing products either being
manufactured or being marketed. Expansion of the existing product line with related products
is one such method adopted by many businesses. Adding tooth brushes to tooth paste or tooth
powders or mouthwash under the same brand or under different brands aimed at different
segments is one way of diversification. These are either brand extensions or product
extensions to increase the volume of sales and the number of customers

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BUSINESS LEVEL STRATEGY OF BAJAJ AUTO
In the long 64 years of its business life in India Bajaj Auto has changed its business level
strategy from time to time as it evolved through the difficulties of the demand of the market.
In the very early stage the company was in a joint technical collaboration with Italy’s Piaggio
&Company.
Bajaj Auto then used to manufacture and market Piaggio’s Vespa Brand Scooters. For the
first 20 years of its history Bajaj Auto didn’t feel to introduce any new product due to the
great demand of Vespa Scooters. As the agreement with Piaggio expired in 1971, Bajaj Auto
launched three wheeler goods carrier in1971.
In 1972 a new model named ‘Chetak ’was launched. Thereafter came a timeline of new
releases like Bajaj super, Bajaj M-50. After the two-wheeler industry was liberalized Bajaj
Auto collaborated with Japan’s Kawasaki Motors. Models like Kawasaki-Bajaj KB 100,
Bajaj Sunny were released.
Bajaj Auto Ltd. has always targeted the middle class Indian to expand their market. When the
global MNCs like Honda Motors, Yamaha and Suzuki started their business in India by
merging with various Indian business groups Bajaj Auto felt an immediate threat.
They changed their business tagline from ‘You just can’t beat a Bajaj’ to ‘Hamara Bajaj’. In
1998, the environment became more complicated. Hero-Honda was gearing up to contest
Bajaj Auto’s dominance in the scooter market. There was a million dollar question to the
managers of Bajaj Auto: What products should it make to dominate India’s two and three
wheeler companies.
In 1996, the major challenges the company was facing were
 Share in customer’s mind,
 Product differentiation,
 Customer satisfaction,
 Customer retention
 Cost control.

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To complete the transition of a new Bajaj Auto, the management team gave priorities
 In accessing new technologies,
 Introducing new models, making a strong presence in the rapidly growing motorcycle
market, creating a marketing culture,
 Revamping manufacturing practices,
 Focusing on quality,
 Improving the supply chain and to integrate into a conservative corporate culture.
STRATEGIES FOR THE OVERSEAS MARKETS
Bajaj Auto looks at external markets primarily with three strategies.
 A market where all BAL need to do is distribute through CKD or CBU routes.
 Markets where BAL need to create new products.
 Markets where BAL need to enter with existing products and probably with a good
distributor or a production facility or a joint venture.
Earlier, most of the products that Bajaj exported were scooters and some motorcycles.
However, in its target markets, like in India, the shift was towards motorcycles. With the
expansion in Bajaj's own range to almost five-six platforms of motorcycles, it had a better
offering to export, also the reason for its stronger showing. For the last fiscal, 60 per cent of
its exports were two-wheelers and the rest three-wheelers. Of the two-wheeler exports, close
to 90 per cent were motorcycles.

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IMMERSION STUDY
OF
LEGAL ASPECTS OF BUSINESS
AT
BAJAJ AUTO
ON

17. 17
LAW
Law is a system of rules, usually enforced through a set of institutions. It shapes politics,
economics and society in numerous ways and serves as the foremost social mediator in
relations between people. Law governs a wide variety of social activities.
People living in an organized society have to follow certain common rules and the state has to
enforce these rules. Law is the sum of these rules which regulate the life of people.
Otherwise, peaceful living is impossible.
Law is a rule of external human action enforced by a sovereign political authority.
LEGAL ASPECTS OF BUSINESS
Legal aspects are an indispensable part of a successful business environment in any country.
They reflect the policy framework and the mindset of the Governmental structure of that
country. They ensure that every company is functioning as per the statutory framework of the
country. Every enterprise must take into account this legal set up while framing the basic
aims and objectives of its company. This is because; it is necessary for efficient and healthy
functioning of the organisation and helps it to know about the rights, responsibilities as well
as the challenges that it may have to face.
When starting up a new business it is very important to look at the legal aspects which will
influence the company in the future. In this part of the information file there will be the most
important legal aspects for running a student company. First there is the selection of business
form, in which there will be a comparison between the different possible forms. Afterwards a
description of how the student company will work with contracts and partners. And finally
there is an explanation of the typical legal aspects such as profit tax and dividend.

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IMMERSION STUDY
OF
INTERNATIONAL BUSINESS
AT
BAJAJ AUTO
ON
INTERNATIONAL BUSINESS PRACTISES

19. 19
INTERNATIONAL BUSINESS
International business is defined as commercial transactions that occur across country
borders.
International business comprises of all commercial transactions that take place between two
or more regions, countries and nations beyond their political boundaries. Usually, private
companies undertake transactions for profit; governments undertake them for profit and
for political reasons. The term "international business" refers to all those business activities
which involve cross-border transactions of goods, services, resources between two or more
nations. Transactions of economic resources include capital, skills, people etc. for
international production of physical goods and services such as finance, banking, insurance,
construction etc.
International business grew over the last half of the twentieth century partly because of
liberalization of both trade and investment, and partly because doing business internationally
had become easier. In terms of liberalization, the General Agreement on Tariffs and Trade
(GATT) negotiation rounds resulted in trade liberalization, and this was continued with the
formation of the World Trade Organization (WTO) in 1995. At the same time, worldwide
capital movements were liberalized by most governments, particularly with the advent of
electronic funds transfers.
OBJECTIVES
 Sales expansion,
 Resource acquisition,
 Risk minimization,
 Diversification of their revenue stream

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INTERNATIONAL BUSINESS PRACTISES OF BAJAJ AUTO
Bajaj is India's largest exporter of two and three-wheelers. “It exports to 62 countries and
enjoys No.1 or No.2 position in 20 of them. During FY2015, exports accounted for 46.2% of
the Company’s net sales,” the annual report states. It also notes strong market share
improvements across South Asia, West Asia, Latin America and Africa.
Its “Discover” and “Pulsar” models continued to gain market share in the key markets like
Colombia, Central America, Egypt, Sri Lanka and Bangladesh, while “Boxer”, the cheapest
model, continued to not only hold the market share in Africa, but gained at the expense of
Chinese brands in the East African and Nigerian markets, the report says.
Bajaj Auto, India’s third largest two-wheeler manufacturer, is exploring Russia's yet small
but rapidly growing motorcycle market. Bajaj has already finalized a distributor in Russia and
has recently shipped several containers.
"We estimate the commuter motorcycle segment to be at about 25,000 units pa. This may
increase with improvements in the economy. We will target the commuter segment of
motorcycles particularly in the 125 cc to 250 cc range," Rakesh Sharma, President
International Business, Bajaj Auto Ltd told in the interview with RIR.
According to the company’s latest Annual report, in FY2015, Bajaj Auto sold over 3.29
million motorcycles in India and abroad, 15.5 per cent lower than in 2014, due largely to lack
of consumer demand. However, Bajaj's exports increased by 14 per cent to 1.81 million units,
worth over US$ 1.5 billion in 2015.
The maker of Pulsar and Avenger motorcycle brands has reported a decline in exports
volume in the last few months because of political and economic uncertainties in some of its
export markets, particularly in oil-producing emerging markets. Bajaj plans to maintain its
leadership in the export market by expanding into newer markets-a plan that some analysts
are skeptical about given the current stress on emerging market economies and their
currencies.

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Rakesh Sharma, president of international business at Bajaj Auto, said the company is
executing an aggressive expansion plan to get into newer countries. This, coupled with the
recent market share gains, will hold the firm in good stead and minimize the impact of any
macroeconomic headwinds.
Exports, which account for more than four out of 10 motorcycles made by the company, have
been under pressure lately. In the eight months from April to November, Bajaj’s motorcycles
exports dropped 3.7% to 1.04 million units from a year earlier, according to Society of Indian
Automobile Manufacturers or Siam. Even in December, exports fell 12% to 145,000 units,
Bajaj said in a statement on 4 January.
This is due to factors including shortage of foreign exchange and currency devaluation in
emerging markets such as Egypt and Nigeria in Africa. Africa accounts for 45% of Bajaj
Auto’s total exports. A fall in commodity prices has led to a lower inflow of foreign currency
into these markets, which, in turn, is preventing dealers from stocking up.
THE KTM CONNECT
For the US and China markets, Bajaj Auto will partner with KTM, the company it bought
equity in 2012 and in which it has a 48 percent stake. Autocar Professional first broke the
news about Bajaj Auto's China entry plan in its January 15, 2014 issue. KTM has a JV with
China’s Hangzhou-based CF Moto. In the US market, Bajaj will look at launching the bigger
Pulsars (400cc), but that could be 2-3 years away.
Last year, Bajaj Auto had a share of over 66 percent in motorcycle exports from India. “Some
companies may want to be either a regional or domestic player. Each company has finite
resources. We want to be a global player," says Bajaj.

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BAJAJ AUTO GLOBALY
Bajaj is present in over 50 countries all over the globe
Dominant presence in Africa, Latin America and South Asia with increasing market share
every year
Market leader in motorcycles in Colombia, Central America, Sri Lanka, Bangladesh,
Philippines, Nigeria, Uganda and Kenya
891,002 units exported in 2009-10, an increase of over 15 % over the previous year
Largest exporter of three wheeled commercial vehicles in the world: 164,887 units exported
in 2009-10, a rise of 19% over 2008-09
OVERSEAS MARKET SHARE
Source: http://www.slideshare.net/project-on-bajaj-auto-ltd

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CH 3
SUBJECT GROUP B

24. 24
IMMERSION STUDY
OF
SECURITY ANALYSIS & PORTFOLIO
MANAGEMENT
AT
BAJAJ AUTO
ON
INDUSTRY ANALYSIS
USING
FIVE FORCE MODEL

25. 25
SECURITY ANALYSIS
The analysis of various tradable financial instruments is called security analysis. Security
analysis helps a financial expert or a security analyst to determine the value of assets in a
portfolio.
PRTFOIO MANAGEMENT
The stream which deals with managing various securities and creating an investment
objective for individuals is called portfolio management. Portfoilo management refers to the
art of selecting the best investment plans for an individual concerned which guarantees
maximum returns with minimum risks involved.
INDUSTRY ANALYSIS
Industry analysis is a tool that facilitates a company's understanding of its position relative to
other companies that produce similar products or services. Understanding the forces at work
in the overall industry is an important component of effective strategic planning. Industry
analysis enables small business owners to identify the threats and opportunities facing their
businesses, and to focus their resources on developing unique capabilities that could lead to a
competitive advantage.
Industry analysis—also known as Porter’s Five Forces Analysis—is a very useful tool for
business strategists. It is based on the observation that profit margins vary between industries,
which can be explained by the structure of an industry.
The Five Forces primary purpose is to determine the attractiveness of an industry. However,
the analysis also provides a starting point for formulating strategy and understanding the
competitive landscape in which a company operates.

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FIVE FORCE MODEL

27. 27
RIVALRY AMONG EXISTING FIRMS
Rivalry among existing firms for Bajaj Auto is High.
The two-wheeler industry is categorized by intense competition mainly between the three
majors – Bajaj Auto, Hero Honda & T V S Motor Co. There are also some small players who
are gaining market share such as LML & Kinetic. The industry is constantly witnessing price-
cuts, freebies & product launches.
The industry rivalry is extremely high with any product being matched in a few months by
competitor.
This instinct of the industry is primarily driven by the technical capabilities acquired over
years of gestation under the technical collaboration with international players.
THREAT OF NEW ENTRANTS
Threat of new entrants is High.
The barriers to entry & exit are high. The three big players dominate the two-wheeler sector -
Bajaj Auto, Hero Honda & T V S Motor Co.
The investment required to compete with these giants would be significant. Thus it is very
difficult for newcomers to enter this sector. The industry attractiveness is low not due to
profit margin but due to intense & well established competitors
The market runs on high economies of scale.
The need for technical expertise is high.
Owning a strong distribution network is important and is very costly.

28. 28
BARGAINING POWER OF SUPPLIERS
Bargaining power of suppliers for Bajaj Auto is Poor.
The two-wheeler industry they rely on only a few selected vendors. Thus the bargaining
power is poor. Around 60%-90% of the product is outsourced thus the suppliers have a direct
impact on the company’s cost & profitability.
Suppliers of auto components are fragmented and are extremely critical for this industry since
most of the component work is outsourced.
Proper supply chain management is a costly yet critical need.
BARGAINING POWER OF BUYERS
Bargaining power of buyers for Bajaj Auto is High.
The bargaining power of the buyers is high. There are a variety of products available to
customers to choose from. The customer is treated “as a king”.
The marketers have segmented the market into three categories namely entry level, executive
& premium category. It has been observed that companies which have ignored the customers
have suffered – Bajaj Auto, which once operated without a marketing department, but instead
had a dispatch department. However the rules of the game have changed. The customer
should be the focus of all activities. All activities Production & Marketing should be done
keeping the consumer in mind
Buyers in automobile market have more choice to choose from and the increasing
competition is driving the bargaining power of customers uphill.
With more models to choose from in almost all categories, the market forces have
empowered the buyers to a large extent.

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THREAT OF SUBSTITUTE PRODUCT
Threat of Substitute Product for Bajaj Auto is moderate.
The two-wheeler industry faces direct competition from the automobile sector. With the
increase in disposable income & increase in bank finance people prefer to have cars rather
than two wheelers.
Thus the demand for cars affects the demand for two-wheelers. If the demand for cars fall the
demand for two-wheelers will rise.
Although there is no substitute to this industry, but as the competition increases new variants
may come up from the rival. Also the launch of TATA NANO may act as substitute to this
industry.

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IMMERSION STUDY
OF
MANAGEMENT OF FINANCIAL SERVICES
AT
BAJAJ AUTO
ON
LOAN PROCEDURE

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FINANCIAL SERVICES
Financial services can be defined as the products and services offered by institutions like
banks of various kinds for the facilitation of various financial transactions and other related
activities in the world of finance like loans, insurance, credit cards, investment opportunities
and money management as well as providing information on the stock market and other
issues like market trends. Financial services companies are present in all economically
developed geographic locations and tend to cluster in local, national, regional and
international financial centres.
MANAGEMENT OF FINANCIAL SERVICES
A system that aims at establishing and providing a regular, smooth, efficient and cost
effective linkage between depositors and investors is known as financial system. The
functions of financial system are to channelize the funds from the surplus units to the deficit
units. An efficient financial system not only encourages savings and investments, : 2 : it also
efficiently allocates resources in different investment avenues and thus accelerates the rate of
economic development. The financial system of a country plays a crucial role of allocating
scare resources to productive uses. Its efficient functioning is of critical importance to the
economy. Financial Management means planning, organizing, directing and controlling the
financial activities such as procurement and utilization of funds of the enterprise. It means
applying general management principles to financial resources of the enterprise.
FINANCIAL CONCEPTS
 Financial assets
 Financial intermediaries
 Financial markets
 Financial rates of return
 Financial instruments

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LOAN PROCEDURE IN BAJAJ AUTO
PRODUCT PORTFOLIO
The Auto Finance division, Bajaj Auto Finance, has been in operations since 1987 and has
served more than 30 lakh customers across India. We offer our customers vehicle loans for
the purchase of their favourite Bajaj Motorcycles among all variants namely Pulsar, Avenger,
Discover, Platina and the latest V besides KTM and Kawasaki motorcycles. We also provide
easy and attractive financing schemes for the wide range of Bajaj RE three wheelers.
BENEFITS OF BAJAJ AUTO LOAN
We create loans that help you focus on buying the best motorcycle or a three wheeler without
worrying about running cash flow. Read on to know more about the benefits of this loan:
3% foreclosure charges
A foreclosure charge of only 3% on the principal outstanding amount is applicable if you
choose to foreclose before the 12th EMI billing.
Partial foreclosure
In some cases, partial foreclosure is also permitted, thereby allowing you to shorten the loan
period if you want to or lower the remaining EMI amounts.
Transparent process
Within 10 days of taking your loan, you will receive a Welcome call & an SMS that covers
all the necessary details of your loan from loan amount, due dates, EMI amount, and contact
details.

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Friendly call centre helpline with over 10 languages
Our call centre allows you to interact with us in your preferred language enabling better and
friendly communication.
Easy pay-in-cash option
For small towns, where customers prefer not to open bank accounts, we have the facility to
collect loan repayment in cash.
Special preapproved offers/ prime lending program
Our existing customers get special preapproved offers from time to time. Customers with
exceptional credit track record get special schemes.
ELIGIBILITY
Here are a few basic eligibility criteria you must fulfil before availing this loan:
 Should be at least 21 years old (at the time of application) and less than or equal to 65
years (at the end of the loan tenor)
 Should be residing in the city for at least one year
 Should be working for at least one year
 Should have a landline number either at the residence or at office
FEES AND CHARGES
INTEREST RATES
The interest rates for finance of Bajaj, KTM, Kawasaki motorcycles and Bajaj three wheelers
are based on the following parameters:

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 Borrower’s profile;
 Geography of residence;
 Loan amount;
 Bajaj Auto product for which finance is sought.
Depending on the above factors, customers are categorized into the following bands - high,
medium and low. The current interest rates across these bands are:
 High > 30%
 Medium 27% to 30%
 Low < 27%
DOCUMENTS REQUIRED
PROOF OF IDENTITY
Copy of any one document listed below -
 Passport, or
 Photo credit card - front & reverse, or
 Voters ID card, or
 Driving license, or
 PAN card, or
 Company ID card of MNC/ public Ltd. / PSU/ Govt. company, or
 Aadhar card
ADDRESS PROOF
Copy of any one document listed below -
 Passport, or
 Voters ID card, or
 Driving license, or
 Rental agreement, or

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 Telephone bill, or
 Electricity bill, or
 Gas connection bills,
 Ration Card, or
 Sale deed, or
 Property purchase agreement, or
 Credit card billing statement (latest), or
 LIC policy, or
 Letter from company or company provided accommodation (list of the company's as
per the Banks List- ID card of MNC/ Public Ltd., / PSU/ Govt. company containing
the residence address), or
 Address proof in the name of the applicant's spouse or parents name is acceptable.
INCOME PROOF
 Latest salary slip for Government employees; if salary slip is not available, only
salary certificate to be accepted with deductions.
 Other relevant documents will be required depending upon the segment and profile of
the applicant.
 Please contact your Bajaj Auto Finance representative at the nearest Bajaj Auto dealer
to avail a loan.
FINANCIAL FITNESS REPORT
We launched the Financial Fitness Report (FFR) for our Salaried customers in December
2013.
Through this report we would educate and create financial and credit awareness among
Salaried customers, one of our many value added services we provide. We have partnered
with a firm called Credit Vidya who possesses the expertise in preparing the FFR for our
customers.
The FFR is a concise, crisp, customized and easy to understand report, available at just
Rs.749, for select existing customers, covering the following:

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 A customers’ credit score
 Demystifying the credit score for the customer and informing him about his
performance across various components of the score
 Key monetary ratios & savings potential which would provide awareness to a
customer about his financial leverage
 Recommendations to the customer with respect to his credit behaviour.
 DO’s & DON’T’s of good credit behaviour.
AGREEMENTS AND T&C
CREDIT BUREAU REPORTING
Bajaj Auto Financing Limited is a member of Credit Bureaus like CIBIL (Credit Information
Bureau India Limited). Your loan and repayment details are shared with Credit Bureaus
periodically as per RBI (Reserve Bank of India) guidelines. Late payment or any payment
default shall be reported to the Credit Bureaus and will affect your credit worthiness. Credit
Bureaus are referred to by all banks and NBFC’s authorized by RBI before providing
credit/finance options to customers. Maintaining a clear repayment track record helps to
improve your credit worthiness and avail future loans easily.
VEHICLE REGISTRATION CERTIFICATE
Registration of your vehicle is mandatory. A copy of the Vehicle Registration Certificate with
hypothecation in favour of Bajaj Finance Limited, issued by the local RTO (Regional
Transport Office) must be furnished within 30 days of taking your loan to the Bajaj Auto
Finance representative at the Bajaj Auto dealership from where you purchased your vehicle.
Kindly note that a No-Objection Certificate and Form 35 (NOC) cannot be issued by Bajaj
Auto Finance without submission of the Vehicle Registration Certificate.

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IMMERSION STUDY

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OF
STRATEGIC FINANCIAL MANAGEMENT
AT
BAJAJ AUTO
ON
STRATEGIC FINANCIAL MANAGEMENT
Strategic financial management refers to specific planning of the usage and management of a
company's financial resources to attain its objectives as a business concern and return

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maximum value to shareholders. Strategic financial management involves precisely defining
a company's business objectives, identifying and quantifying its resources, devising a plan for
utilizing finances and other resources to achieve its goals, and establishing procedures for
collecting and analyzing data, making financial decisions, and tracking and
analyzing variance between budgeted and actual results to identify problems and take
appropriate corrective actions.
Strategic Financial Management refers to both, financial implications or aspects of various
business strategies, and strategic management of finances.
STRATEGIC FINANCIAL DECISIONS
 Investment decisions
 Financing Decisions
 Liquidity Decisions
 Dividend Decisions
 Profitability Decisions
4 BIBLIOGRAPHY
http://www.google.com

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http://profit.ndtv.com/stock/bajaj-auto-ltd
https://www.scribd.com/doc/61798486/Porter-5-Forces-Bajaj
www.bajajauto.com
www.business-standard.com › Companies › Company Overview
http://ndtv.com
https://www.scribd.com/doc/98872925/Case-Study-of-Bajaj-Auto-Ltd
http://www.lawteacher.net/legal-aspects-of-a-business
www.yourdictionary.com/international-business
http://www.referenceforbusiness.com/management/Gr-Int/International-Business.html
http://www.investopedia.com/terms/s/strategic-financial-management.asp