2020

Literature survey of an entrepreneur

Prepared by
Suman Chaudhary
Hemant Keharal
Angel Maharjan
Intaf Answari
Kawach Dhakal

Rahul Bajaj

LACM – Hattiban, lalitpur

Third year BBA section “A”

Submitted to Sashi Bajracharya

3/9/2020

0|Page
Contents
Introduction.....................................................................................................................................1
Early life............................................................................................................................................2
Entrepreneur as a career..................................................................................................................2
Personal Life.....................................................................................................................................3
Contribution.................................................................................................................................4
Business undertakings......................................................................................................................5
SWOT ANALYSIS:..............................................................................................................................6
Concluding remarks:.........................................................................................................................7
References........................................................................................................................................8

1|Page
Introduction
Rahul Bajaj (born 10 June 1938) is an Indian billionaire businessperson and
philanthropist. He is the chairman of the Indian conglomerate Bajaj Group and a member
of parliament. Bajaj comes from the business house started by Jamnalal Bajaj. He was
awarded the third-highest civilian award Padma Bhushan in 2001. In a recent interview
for the Creating Emerging Markets project at the Harvard Business School, Bajaj
provides a devastating critique of Indian industrial policies before the liberalization in the
1990s.

Early life
India’s great industrialist Rahul Bajaj was born on 10 June 1938, in Bengal Presidency of
British India. His origin is from Marwari family, Kolkata. Rahul Bajaj is son of
Kamalnayan Bajaj and Savitri Bajaj; and is grandson of Jaman Lal Bajaj, who was the
founder of Bajaj Group.
Rahul Bajaj spent most of his childhood in Mumbai and completed his schooling from
Cathedral School and John Cannon School in Mumbai. He did his Bachelor of Arts
degree from Stephen’s College in Delhi in 1958, specializing in Economics. He did his
Master’s in Business Administration from Harvard Business School in1964, USA. He
pursued law, for a while he worked at Bajaj Electricals and as a junior purchase officer in
Mukand steel and Iron.

Entrepreneur as a career
After completing his MBA at Harvard in USA, Rahul Bajaj returned to India with plans of
extension of business. Rahul Bajaj started working as the CEO of Bajaj Group at the
young age of twenty-six in 1965. He established Bajaj Group as top player in India with
his tremendous efforts and seamless hard work. After thoroughly understanding the
business environment as a whole, he set up factories at Akurdi and Waluj.
Rahul Bajaj was very much inspired by the famous Vespa scooters made by Piaggio of
Italy and became the Indian licensee for the make in 1960. Bajaj Auto began
manufacturing their first two-wheelers in the following year. In 1977 Piaggio of Italy,
maker of Vespa scooters filed patent infringement suit and blocked the sales of Bajaj
scooters in United stated, United Kingdom, West- Germany and Honkong, after the
expiration of technical collaboration agreement with the company. The export of Bajaj
scooters was negated from Rs 133.2mn in year 1980-81 to Rs 54mn in year 1981-82. By
the year 1970-1977, Bajaj Autos produced 100,000 vehicles, including the three-wheeler
goods carrier early in the decade, the Bajaj Super and three-wheeled rear engine Auto
rickshaw later.
In 1980’s although it was tough time to get licenses and permits, Rahul as a man with
will power succeeded in establishing factories at Akurdi and Waluj. In 1980, Bajaj Auto
was India’s topmost scooter manufacturing company. After enjoying a decade of
success, Bajaj Chetak was launched. The sale of two-wheelers was at its peak due to oil
crisis and two-wheelers were cheaper in price, maintenance and more fuel-efficient as
compared to cars. There was a very high demand for Chetak and the waiting time for the
scooter was unbelievably high as 10yrs. In 1996, Bajaj Auto was the only large Indian
company without any foreign investment or partnership.

2|Page
The initialization of liberalization in India posed great challenges for Bajaj Auto, like
threat of cheaper imports and FDI’s from top companies like Honda. In early 1990’s,
when Rahul Bajaj was chairman of Bombay Club, he was one among people who
strongly opposed liberalization. All the top players (Honda, Suzuki, Yamaha and Garelli)
of the world entered the markets through collaborations and joint ventures. After the
liberalization, the change in demographics shifted the interests of youngsters of India
from scooters to motor cycles. Already Hero Honda captured the motorcycle market and
was ahead of Bajaj. Bajaj was dominant and leading only in scooters market.
In 2001, recession and collapse of stock markets hardly hit the sales of scooters. Some
business analysts even forecasted that there was every possibility that Bajaj Autos
would shut down. However, Rahul Bajaj with high determination and great
perseverance; reinvented and renewed his own ideology and briskly walked ahead with
hope and set up an excellent factory at Chakan. He restructured the product-line and
increased the productivity of workforce. He invested in R&D, came up with a new brand
Bajaj Pulsar motorcycle, and gave a new direction to the company. The current models
of Motorcycles Bajaj Autos sell are the XCD, Platina, Discover, Pulsar, Avenger and
Ninja. Today Bajaj is market leader in motorcycles in Colombia, Central America, Sri
Lanka, Bangladesh, Philippines, Nigeria, Uganda and Kenya with the exports increasing
consistently by 15%, with 891,002 units exported in 2009-10. Bajaj also stood top
exporter of three-wheeler commercial vehicles with 19% growth every year, with 164,887
units exported in 2009-10. Rahul Bajaj is always imperative to focus on technology,
pricing strategy, values, ethics, innovation, speed and perfection. The company not only
manufactured scooters, motor cycles, and three -wheelers but also produced Bajaj ULC
ultra-low-cost car.
Mr. Rahul Bajaj heads numerous responsibilities of the company; as an Executive
Chairman and Head of Bajaj Group of Companies of Bajaj Auto Ltd. Mr. Bajaj served as
the Chief Executive Officer of Bajaj Auto Ltd. since 1968. He served as Managing
Director of Bajaj Holdings & Investment Limited until March 31, 2005. He served as
Deputy General Manager of Bajaj Tempo Limited. Mr. Bajaj serves as Chairman of the
Board of Bajaj Finserv Ltd., Bajaj Allianz Life Insurance Company Ltd., and Bajaj Allianz
General Insurance. Rahul Bajaj had an adventurous ride over the years, taking the
organization to new horizons. On the way to his retirement, he is very much satisfied and
contended with his professional career.

Personal Life
Bajaj Auto is the leading Indian Automobile Manufacturer. It comes from the business
house started by Jamnlal Bajaj who was a Rajasthani businessman in 1945. Shishir
Bajaj is younger brother of Rahul Bajaj. He married Rupa Gholap, a beauty queen, in
1961. Later he had two sons Rajiv Bajaj and Sanjiv Bajaj and a daughter Sunaina Bajaj
who recently married Manish Kejriwal. He has three cousins Shekhar, Madhu, and Niroj
together with whom he controls the Bajaj Group of Companies.
Rahul’s family has been very closely associated with the Indian Politics since pre-
independence days. Rahul Bajaj has a personal association with major politicians of
India like late Prime Minister Mr. Rajiv Gandhi, senior political leaders like Sharad Pawar
etc. Rahul Bajaj as of now is serving as a member of the parliament.

3|Page
He is an Indian businessman, politician and philanthropist. He is the Chairman of Indian
Conglomerate Bajaj group and Member of Parliament. The Bajaj Group has diversified
interests ranging from automobiles, home appliances, lighting, iron and steel, insurance,
travel and finance. Rahul Bajaj is one of India’s most distinguished business leaders and
intentionally respected for his business and entrepreneurial spirit.
Bajaj Group is involved in a variety of welfare activities, which are carried out with the
support of its companies and trusts. The social and welfare objectives of the Bajaj Group
are being fulfilled through many Trust and Foundation.

Contribution
Throughout Bajaj’s career spanning forty years at BAL, the company’s commitment to
corporate social responsibility has remained constant. Bajaj has setup many
“Philanthropic Trusts and Foundations” which support community and rural development
in the areas where it workers live, though funding efforts in primary school education,
agriculture and health care.
Through its social investments, Bajaj group addresses the needs of communities
residing in the variety of facilities taking sustainable initiatives in the areas of health
education, environment, conservation, infrastructure and community development and
response to natural calamities. Bajaj’s acknowledges there is still much he wants to do,
particularly as India is on the verge of becoming a world Economic Power. According to
him some lingering problem in India including an inadequate infrastructure, inflexible
labor policies and too much bureaucratic red tape need to be addressed. However, he
believes in the long run India will succeed since the entrepreneurial spirit capability of
the India people will overcome all the issues. Donations and contributions are given to
companies that have proven record of accomplishment. In addition, Bajaj Auto has
supported school infrastructure development, vocational training for entrepreneurship
teach to lead as well as scholarship for meritorious students. Bajaj Auto has continued
its support to Swachh Bharat Abhiyan taking part in “Balaji Majhi Taka-Tak” programme
run by CRT, Munipal Corporation, Aurangabad and CII. This programme aims to make a
clean city, with minimal quantity of garbage going to landfills. They have supported
projects include projects on mid-day meals, clean drinking water, sanitation, blood
banks, path lab services in remote mountain villages, breast cancer research, and vision
care. They have undertaken various philanthropic activities and social work through its
corporate and non- corporate entities besides providing financial support to such cases,
has expanded its support to voluntary activities in development sector, and has changed
many lives. It also organizes seminars, consultative meets for Panchayat workers,
special workers for women members of the Panchayats and trade union workers. They
are aimed at improving the living conditions of the rural population’s income generation,
training for self-employment, improved health and sanitation, and land maintenance
practices such as horticulture, social forestry and reclamation of wasteland.
It can be stated that the Group give immense importance to its social responsibilities. 40
public Charitable trusts, engage in a number of social relevant corporate social
responsibilities activities and partners in numerous initiatives besides donating large
amounts to worthy organization. It also runs a library, which has literature and books on
Mahatma Gandhi, Vinoba Bhave, Pujya Jamnala Bajaj, Smt Jankidevi Bajaj and other
freedom fighters.

4|Page
Business undertakings
Rahul Bajaj is the Chairman of the Bajaj Group, which ranks among the top 10 business
houses in India. The Bajaj Group has diversified interests ranging from automobiles,
home appliances, lighting, iron and steel, insurance, travel and finance. Rahul Bajaj is
one of India's most distinguished business leaders and internationally respected for his
business acumen and entrepreneurial spirit.
Some of Bajaj group companies are:

 Bachhraj & Company Pvt. Ltd.

 Bachhraj Factories Pvt. Ltd.
 Bajaj Allianz General Insurance Company Ltd.
 Bajaj Allianz Life Insurance Company Ltd.
 Bajaj Auto Finance Ltd.
 Bajaj Auto Holdings Ltd.
 Bajaj Auto Ltd.
 Bajaj Electricals Ltd.

 Bajaj Finserv Ltd.

 Bajaj Holdings & Investment Ltd.
 Bajaj International Pvt. Ltd.
 Bajaj Sevashram Pvt. Ltd.
 Bajaj Ventures Ltd.
 Baroda Industries Pvt. Ltd.
 Hercules Hoists Ltd.
 Hind Lamps Ltd.

 Hind Musafir Agency Ltd.

 Jamnalal Sons Pvt. Ltd.
 Jeevan Ltd.
 Maharashtra Scooters Ltd.
 Mukand Engineers Ltd.
 Mukand Global Finance Ltd.
 Mukand International Ltd.
 Mukand Ltd

Current products and brand

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 manufactured by Bajaj Auto Company: Bajaj is the first Indian two-wheeler
manufacturer to deliver 4-stroke commuter motorcycles with sporty performance for the
Indian market, which was otherwise dominated mostly by mileage-based products from
Hero and TVS Motors. Bajaj achieved this with the 150cc and 180cc Pulsar, giving
Indians the first taste of performance biking. This was also accompanied by innovative

5|Page
marketing techniques - by featuring its flagship product Pulsar 220 DTS-i in Pulsar MTV
Stuntmania, India's first stunt biking reality show.

Motorcycles in production include the Platina, Discover, Pulsar, Avenger, Dominar 400
and CT 100. In FY 2012-13, it sold approximately 37.6 lakh (3.76 million) motorcycles,
which accounted for 31% of the market share in India. Of these, approximately 24.6 lakh
(2.46 million) motorcycles (66%) were sold in India and remaining 34% were exported.

Auto rickshaw (three-wheeler): Bajaj is the world's largest manufacturer of auto

rickshaws 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. Out of these 480,000 three-wheelers, 53% were exported and remaining
47% were sold in India. In Indonesia, Bajaj three-wheelers are "iconic" and "ubiquitous"
to the point that the word Bajaj (pronounced bajay) is used to refer to auto rickshaws of
any kind.

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 liter (85
mpg-imp; 71 mpg-US) (3.3 L/100 km), or twice an average small car, and carbon dioxide
emissions of 100 g/km.

On 3 January 2012, Bajaj auto unveiled the Bajaj Qute (formerly Bajaj RE60), a mini car
for intra-city urban transportation, which is legally classified as a quadricycle. The target
customer group was Bajaj's three-wheeler customers. According to its Managing
Director Rajiv Bajaj, the RE60 powered by a new 200 cc rear mounted petrol engine will
have a top speed of 70 kilometers per hour (43 mph), a mileage of 35 kilometers per liter
(99 mpg-imp; 82 mpg-US) and carbon dioxide emissions of 60 g/km.

SWOT ANALYSIS
STRENGTH

 Brand positioning: Bajaj Auto, is the world’s fourth largest two and three-wheeler
auto manufacturer in the world. The company manufactures motorcycles,
passenger carriers and goods carriers. The most popular brand in the two
wheeler segment of Bajaj Auto’s portfolio is Bajaj Pulsar. In the three-wheeler
segment, it has a range of 2-stroke and 4-stroke passenger as well as goods
carrier.
 Sustainable business: The company’s extensive range of products allows them to
cater to a wide range of customers. Also, it helps the company to deliver
sustainable business growth.
 Strong Distribution: Bajaj Auto has dealers throughout India and it has always
maintained a smooth supply chain. Bajaj motorcycles and three wheelers are
always in demand and are supplied to various small and large cities. Hence,
there are various Bajaj Auto service Centre’s throughout the country.
WEAKNESS

 Lack of Presence in the scooter market: Bajaj Auto was the leader in the scooter
market till the motorcycle momentum picked up in the 1990s. Bajaj shut down its

6|Page
 scooter business post that, but the scooter business is blooming and showed a
growth of 12% in 2016. Today, Honda Activa and other such models are the
leders in scoothers. The company is losing out on a huge market by not re-
entering the scooter market.
 Labour issues: Bajaj Auto has been involved in Labor and wage issues in the
recent past. In February 2014, workers in its Chakan plant threatened to go for
hunger strikes. In 2013, Chakan and Pune plant workers went on strike. This
damages Bajaj’s image and it also has an adverse effect on the production.
 Not a Global brand: Even after producing in high volume, Bajaj is not recognised
as a global brand. It has not entered other markets or not expanded
internationally as fast as it could. It is predominantly an Indian market player.
OPPORTUNITIES

 Growth in motorcycle market: The global motorcycle manufacturing is expected

to grow strongly in the years to come. According to the market line, the global
motorcycle industry generated about $75000 million in 2016. It showed a growth
of about 6.3%. The market is expected to grow at 7% CAGR for the 2016-19
period to approximately reach $93450 million.
 Growing India three wheeler Industry: The three wheeler market registered a
growth of 11.51% in FY2016 and is expected to grow at a CAGR of 4.4% to
approximately reach $4.2 billion by 2017.
 Launch new vehicles: Bajaj Auto should further look to strengthen its product
portfolio like it has done in the past with models of Avenger Pulsar, Discover etc.
By continuously encapsulating new technologies into its portfolio, Bajaj’s image of
being an innovative company will also be maintained
THREATS

 Intense competition in the 2-wheeler market: The 2-wheeler market in India is

highly competitive with various top brands such as Global and Indian giants such
as Suzuki, Hero MotoCorp, TVS etc. fighting to capture market share. Fuel
efficiency and price being crucial for the Indian market, all the brands are
constantly innovating to achieve higher fuel efficiency in low price.
 High Bank interest rates: In comparison with other countries, India has a higher
lending rate which is growing. The growth in interest rates affects consumer
decision on spending on vehicles etc. bought on interests.
 Environmental Regulations: Auto companies are subjected to strict environmental
regulations in India. The BS regulations are constantly updated in India, hence
the companies have to constantly modify their products in order to fall in line with
the regulations, and hence, this may adversely affect company’s financial
condition.

Concluding remarks
Bajaj auto faces stiff competition from the Market leader Honda and closest rival Suzuki.
It is because they are not able to create reliable brand image among their customers.
They need to focus on developing their products that can give better experience to their
consumer.

7|Page
From the survey, it is seen that Bajaj is only able to somewhat satisfy their costumers
from their products. They need to create a great sense of joy in their customers by
offering unmatched product features and service that will make their customers loyal to
the brand and this will greatly help Bajaj in increasing its market share.
Bajaj’s product prices are in comparison with its leading competitors. The problem is that
consumers do not think that Bajaj has that much value and hence prefer to buy other
brands. Bajaj need to offer more competitive pricing and better promotions to sell their
motor cycle better.
We can learn following things from the Rahul Bajaj:

 Earlier organizations made individuals, today individuals make an organization. It

is important to have teams, but the basic functioning and formation of good teams
depends on good individuals.
 It is important that all of us work honestly, ethically and make all our choices
consciously. Every decision that you make should be towards nation building.
Charity begins from home and you must stick to it.

References

https://en.wikipedia.org/wiki/Rahul_Bajaj

https://www.business-standard.com/about/who-is-rahul-bajaj

https://www.bajajauto.com/bhil/profile/profile_rahulbajaj.html

8|Page
https://www.iloveindia.com/indian-heroes/rahul-bajaj.html

https://www.wisdomjobs.com/spark-of-corporate/12-rahul-bajaj-21-10-2011.html

https://www.marketing91.com/swot-analysis-bajaj-auto-2/

9|Page