Bajaj Auto manufacturing Facilities Machining Unit - 1

Located on the Delhi-Jaipur Highway on 39 -40 milestone, Bajaj Motors Limited is certified from TUV GmBH, Germany. Since its inception in 1986, BAJAJ MOTORS has its specialization in machining of Auto components specifically Precision Engine Components.

Export Orientation is the hallmark of this plant. This unit has started production since March 2006.

Forging Unit

Fully equipped with all facilities, The Forging plant is located at Gurgaon. The plant started its commercial production in the Year 2001. It is a TS-16949, ISO-14001 certified from TUV GmBH, Germany

Foundry Unit

Casting Plant of Bajaj Motors Ltd. established in 2006, at Bhora Kalan, Binola Industrial area, Gurgaon, India spread over an area of 6 acres and is a backward integration.

The specialization of Bajaj Motors Casting Plant is Shell Moulding and Green Sand casting.

Machining Unit 2

Located at Pantnagar Industrial Area (Uttrakhand), was started in 2007 and is spread over an area of 5 Acres. It is equipped with a Forging Plant and Precision Auto Components manufacturing.

Machining Unit 3

Located at Industrial Park IV in Haridwar (Uttrakhand), was started in 2010. It is a state of art Precision Auto Components manufacturing Facility.

Machining Unit 4

Located at Sector -8 IMT Manesar, Gurgaon

Manufacturing process

A new initiative called ‘Lean on Investment’ was launched in-house as well as with suppliers to minimize investments for capacity augmentation. This resulted in reducing the investment needed by H 78 crore both in-house and across the supply chain. In FY2014, the Waluj plant, which is the export hub of Bajaj Auto produced 1.81 million motorcycles (with 1.13 million export) and 0.45 million of three-wheelers (with 0.26 million exports). The Pantnagar plant produced 0.93 million motorcycles. And the Chakan plant, having core competencies in manufacturing high end sports bikes, produced 0.69 million vehicles.

Infrastructure facilities:Bajaj Auto Ltd. has well designed infrastructure facilities. They highly care of clarity and arrangement. The whole plant has divisional area like, offices, operation house, godown, and packing department. Bajaj Auto Ltd. l has modern technological machines, from this it can produce products. These machinery arranged in operation department systematically. The production process is step by step so as per this the machinery also arrange Bajaj provide all the best facilities to their employees, like parking, canteen, rest room, and also proper working conditions. They greatly care of their employees. They pay on monthly basis and also give bonus on special occasions. In this way Philips can compete with best plant, machinery, technology and human relationship

Distribution Detail

For distribution Bajaj auto uses mix of depots and Cnf agents. This is completely dependent on the distance of manufacturing location from dealer point .For example due to extensive distance from manufacturing plant from west Bengal to north-east India ,there exist a depot in Khadakpur with capacity of housing 800vehicles. There are similar depots in Punjab, Rajasthan and southern India.

Dealers

Like mentioned above, the company has a network of 498 dealers and over 1,500 authorized service centers and 162 exclusive three-wheeler dealers spread across the country. Around 1,400 rural outlets have been created in towns with population of 25,000 and below. The current dealer network is servicing these outlets. Dealers can be classified under 3 heads. They are as follows:

• COCO-

These are Company Owned & Company Operated showrooms. These concepts exist only for Pro-Biking showrooms. Here Bajaj Auto has tried showcasing their muscle power in high end biking segment. The concept has evolved very fast and now there are 52 Pro-Biking showrooms in the country. The company itself does not take any order from the customer in these showrooms. The giant dealer of the region who is acting as a logistics partner for the pro-biking concept takes the order on behalf of the company and fulfils the customer requirement.

• CODO-

These are Company Owned & Dealer Operated showrooms. In case of this concept, showrooms are owned by the company but the operations in the showroom are managed by the dealer. This is generally the case where Bajaj wants to provide the dealer financial benefits considering the high working capital requirement of the company.

• DODO-

These are Dealer Owned & Dealer Operated. These dealers are fewer in number because they are generally the giant dealers who are the financial muscle for the company. In our talks, the management indicated that the top management wants to do away with this concept. The reason behind this is that the bargaining power increases in the hands of the dealer, which puts the company in an knotty situation.

National Level Partnerships

There is an existing generic channel which is used for segmentation of this category of two-wheelers and three wheelers.

Transport & Logistics This function of distribution is not owned by the company in any form. This is outsourced in toto to the third party vendors. The third party here is Transport Corporation of India (TCI) and a few other private vendors. The fleet to be transported is custom-designed for Bajaj Auto by the vendor. Key Facts

• There are twenty vendors all across India

OSL

Jamuna Transport

Sumit Transport

• A Transit Insurance Compliance Letter (TICL) is signed between the two parties

• The local level sub-dealer sometimes gets to decide the last mile logistics, as he can decide to pick up the vehicles himself or have it transported to him

• Logistics of the vendor is decided by the company

• Freight charge is built-in in the product price

Bajaj selects those suppliers who provides majority of the required raw materials together. The company believes in situation so if any suppliers do not keep their requirement so at that time Bajaj left the contract.

Products manufactured at these locations are distributed as shown below

R&D: New Products Discover 100 M: The Discover 100 M is the new entry level Discover and exemplifies core values of performance blended with great fuel economy. It has been designed to complement the styling aspects creating an appeal for customers. The Discover 100 M is powered by a high performance four-valve air cooled 100 cc DTSi engine, with a four-speed gear box suitably synchronized to the power characteristics of the engine. It has best-in-class fuel efficiency. Its relatively compact size has enhanced the handling character of the vehicle. Discover 100 M uses Nitrox twin shock absorbers for great ride comfort. Careful engineering of the product has resulted in offering a very attractive price to the customer

Discover 125 M

The Discover 125 M is the quintessential Discover 125. Built on the compact M platform, it is a great blend of performance and affordability. This engine provides for a powerful drive while maintaining high fuel efficiency for which the Discover brand is known. With a four-speed gear box suitably mated to the power characteristics of the engine, Discover 125 M’s agile handling chassis and suspension make it an ideal city bike

Pulsar 200 NS

After the successful launch of Pulsar 200 NS in May 2012, this model has been well received in markets like Colombia. In FY2014, it was launched in Indonesia under the joint brand of Kawasaki Bajaj. The bike has been well received. New colour, decals and graphics have been introduced on the 200 NS to make look even more exciting.

KTM Duke 390 with ABS

The joint venture between KTM and Bajaj Auto saw yet another successful launch in the form of the KTM Duke 390. With its trademark orange frame and alloy wheels typical to KTM, the bike lives upto the ‘Ready to Race’ tag of the KTM brand. It is selling very well in export markets as well as in India.

Three-wheelers: RE

All variants of the RE range of three-wheelers — comprising the small, medium and large platforms and covering petrol, gaseous and diesel engines — have been put through a complete upgrade. These have been updated with much better driver comfort through revised ergonomics, smart looks, improved engine performance and revised gear ratios leading to excellent drivability and upto 15% improvement in fuel economy. Moreover, the DTSi technology has been employed in the spark ignited engine versions, while a five-speed gear box has been deployed in the diesel engine versions