Project O f Pankaj

8/7/2019 Project O f Pankaj

1/57

A

RESEARCH REPORT

ON

PROFITABILITY ANALYSIS USING FINANCIAL RATIO

COMPARATIVE STUDY OF AUTOMOBILE COMPANIESBAJAJ AUTO, TVS MOTORS LIMITED

SUBMITTED IN PARTIAL FULFILMENT OF THEREQUIRMENT OF MASTER OF BUSINESS ADMINISTRATION

JK BUSINESS SCHOOL GURGAON

(HARYANA)

SUPERVISOR:- SUBMITTED

BY:- Mr. S.K.

KAPOOR PANKAJ KUMAR

MANDOWARA

(PROFESSOR) ENROLMENT

NO. 08061144171

(JK BUSINESS SCHOOL, SPACIALISATION

FINANCE

GURGAON)


2/57

JK BUSINESS SCHOOL GURGAON

HARYANA 2008-2010

DECLARATION

I hereby declare that I did the ProjectPROFITABILITY ANALYSIS USING FINANCIAL

RATIO

A

COMPARATIVE STUDY OF AUTOMOBILECOMPANIES(BAJAJ AUTO, TVS MOTORS

LIMITED)in my knowledge under the guidance of Asst. Prof.S.K kapoor.


3/57

I am thoughtful to Dr. Reena Ramachandran forgiving me this opportunity to carry out this StudyProject.

ACKNOWLEDGEMENT

Acknowledgement is a way to show

my gratitude and convey my thanks to those who

supported in the successful completion of the

executive training and in the completion of the finalreport on executive training.

At first, I would like to thank our Centre Head,

Mr. Sandeeep Sharma for giving me the valuable

opportunity to do the research work in the sector of

my choice banking industry.

I would also like to thank my faculty

supervisor Prof. S. K. KAPOOR for his valuable

support in preparation of this thesis report. Without

his ultimate support and guidance I wouldnt be

able to complete this report. Last but not least, I

would like to thanks my parents, my friends and

my classmates who have encouraged me to


4/57

achieve my future ambitions. GUIDANCE IS THE

BEST IN THE WAY PROGRESS.

PANKAJ KUMAR MANDOWARA


5/57

.CONTENTS

1. HISTORY OF BAJAJ

Profile

Key Person

Bajaj Introduction

Company History

Timeline Of New Release

2. HISTORY OF TVS

3. OBJECTIVES OF THE RESEARCH4. RESEARCH METHODOLOGY

Data Source

Research Approach
http://www.bajajauto.com/1024/index.asp


6/57

Sampling Unit

Data Completion And Analysis

Scope

5. LIMITATION OF RESEARCH STUDY

6. ANALYSIS AND INTERPRETATION

7. FINDINGS

8. CONCLUSION

9. RECOMMENDATION

10. BIBLIOGRAPHY

11. QUETIONNAIRE


7/57


8/57

Bajaj Auto limited is one of the largest two wheeler

manufacturing company in India apart from producing two

wheelers they also manufacture three wheelers. The company

had started way back in 1945. Initially it used to import the two

wheelers from outside, but from 1959 it started manufacturing of

two wheelers in the country. By the year 1970 Bajaj Auto had

rolled out their 100,000th vehicle. Bajaj scooters and motor

cycles have become an integral part of the Indian milieu and

over the years have come to represent the aspirations of modern

India. Bajaj Auto also has a technical tie up with Kawasaki

heavy industries of Japan to produce the latest motorcycles in

India which are of world class quality The Bajaj Kawasaki


9/57

eliminator has emerged straight out of the drawing board of

Kawasaki heavy industries. The core brand values of Bajaj Auto

limited includes Learning, Innovation, Perfection, Speed andTransparency.

Bajaj Auto has three manufacturing units in the country at

Akurdi, Waluj and Chakan in Maharashtra, western India, which

produced 2,314,787 vehicles in 2005-06. The sales are backed

by a network of after sales service and maintenance work shops

all over the country.

Bajaj Auto has products which cater to every segment of

the Indian two wheeler market Bajaj CT 100 Dlx offers a great

value for money at the entry level. Similarly Bajaj Discover 125

offers the consumer a great performance without making a big

hole in the pocket.

PROFILE:

Founder Jamnalal Bajaj

Year of

Establishment1926


10/57

Industry Automotive - Two & Three Wheelers

Business Group The Bajaj Group

Listings & its codesBSE Code: 500490; NSE - Code:

BAJAJAUTO

Presence Distribution network covers 50

countries.

Dominant presence in Sri Lanka,

Bangladesh, Columbia, Guatemala, Peru,

Egypt, Iran and Indonesia.

Joint Venture Kawasaki Heavy Industries of Japan

Registered & Head

Office

Akurdi

Pune - 411035

India

Tel.: +(91)-(20)-27472851

Fax: +(91)-(20)-27473398

Works Akurdi, Pune 411035

Bajaj Nagar, Waluj Aurangabad431136

Chakan Industrial Area, Chakan,
http://www.surfindia.com/finance/security-profile/bajaj-auto-finance-limited.htmlhttp://www.surfindia.com/finance/security-profile/bajaj-auto-finance-limited.html


11/57

Pune 411501

E-mail [email protected]

Website www.bajajauto.com

KEY PERSONS:

Board of Directors

Rahul Bajaj Chairman

Madhur Bajaj Vice Chairman & Whole-Time Director

Rajiv Bajaj Managing Director

Sanjiv Bajaj Executive Director

D.S. Mehta Whole-Time Director

Kantikumar R. PodarDirector

Shekhar Bajaj Director

D.J. Balaji Rao Director

J.N. Godrej Director
mailto:[email protected]://www.bajajauto.com/http://www.bajajauto.com/1024/aboutbajaj/rahul.asphttp://www.bajajauto.com/1024/aboutbajaj/madhur.asphttp://www.bajajauto.com/1024/aboutbajaj/rajiv.asphttp://www.bajajauto.com/1024/aboutbajaj/sanjiv.asphttp://www.bajajauto.com/1024/aboutbajaj/dsmehta.asphttp://www.bajajauto.com/1024/aboutbajaj/kantikumar.asphttp://www.bajajauto.com/1024/aboutbajaj/shekhar.asphttp://www.bajajauto.com/1024/aboutbajaj/balajirao.asphttp://www.bajajauto.com/1024/aboutbajaj/jngodrej.aspmailto:[email protected]://www.bajajauto.com/http://www.bajajauto.com/1024/aboutbajaj/rahul.asphttp://www.bajajauto.com/1024/aboutbajaj/madhur.asphttp://www.bajajauto.com/1024/aboutbajaj/rajiv.asphttp://www.bajajauto.com/1024/aboutbajaj/sanjiv.asphttp://www.bajajauto.com/1024/aboutbajaj/dsmehta.asphttp://www.bajajauto.com/1024/aboutbajaj/kantikumar.asphttp://www.bajajauto.com/1024/aboutbajaj/shekhar.asphttp://www.bajajauto.com/1024/aboutbajaj/balajirao.asphttp://www.bajajauto.com/1024/aboutbajaj/jngodrej.asp


12/57

S.H. Khan Director

Mrs. Suman

Kirloskar

Director

Naresh Chandra Director

Nanoo Pamnani Director

Manish Kejriwal Director

P Murari Director

Niraj Bajaj Director

Committees of the Board

Audit Committee

S.H. Khan Chairman

D.J. Balaji Rao

J.N. Godrej

Naresh Chandra

Nanoo Pamnani

Shareholders & Investors Grievance committee

D.J. Balaji Rao Chairman

J.N. Godrej
http://www.bajajauto.com/1024/aboutbajaj/shkhan.asphttp://www.bajajauto.com/1024/aboutbajaj/suman.asphttp://www.bajajauto.com/1024/aboutbajaj/suman.asphttp://www.bajajauto.com/1024/aboutbajaj/naresh.asphttp://www.bajajauto.com/1024/aboutbajaj/nanoo.asphttp://www.bajajauto.com/1024/aboutbajaj/manish.asphttp://www.bajajauto.com/1024/aboutbajaj/pmurari.asphttp://www.bajajauto.com/1024/aboutbajaj/niraj.asphttp://www.bajajauto.com/1024/aboutbajaj/shkhan.asphttp://www.bajajauto.com/1024/aboutbajaj/balajirao.asphttp://www.bajajauto.com/1024/aboutbajaj/jngodrej.asphttp://www.bajajauto.com/1024/aboutbajaj/naresh.asphttp://www.bajajauto.com/1024/aboutbajaj/nanoo.asphttp://www.bajajauto.com/1024/aboutbajaj/balajirao.asphttp://www.bajajauto.com/1024/aboutbajaj/jngodrej.asphttp://www.bajajauto.com/1024/aboutbajaj/shkhan.asphttp://www.bajajauto.com/1024/aboutbajaj/suman.asphttp://www.bajajauto.com/1024/aboutbajaj/suman.asphttp://www.bajajauto.com/1024/aboutbajaj/naresh.asphttp://www.bajajauto.com/1024/aboutbajaj/nanoo.asphttp://www.bajajauto.com/1024/aboutbajaj/manish.asphttp://www.bajajauto.com/1024/aboutbajaj/pmurari.asphttp://www.bajajauto.com/1024/aboutbajaj/niraj.asphttp://www.bajajauto.com/1024/aboutbajaj/shkhan.asphttp://www.bajajauto.com/1024/aboutbajaj/balajirao.asphttp://www.bajajauto.com/1024/aboutbajaj/jngodrej.asphttp://www.bajajauto.com/1024/aboutbajaj/naresh.asphttp://www.bajajauto.com/1024/aboutbajaj/nanoo.asphttp://www.bajajauto.com/1024/aboutbajaj/balajirao.asphttp://www.bajajauto.com/1024/aboutbajaj/jngodrej.asp


13/57

Naresh Chandra

S. H. Khan

Remuneration committee

D.J. Balaji Rao Chairman

S.H. Khan

Naresh Chandra

Registered under the Indian Companies Act, VII of 1913

REGISTERED

OFFICE

Akurdi, Pune 411 035

WORKS Akurdi, Pune 411 035

Bajaj Nagar, Waluj Aurangabad 431

136

Chakan Industrial Area, Chakan, Pune

411 501
http://www.bajajauto.com/1024/aboutbajaj/naresh.asphttp://www.bajajauto.com/1024/aboutbajaj/balajirao.asphttp://www.bajajauto.com/1024/aboutbajaj/shkhan.asphttp://www.bajajauto.com/1024/aboutbajaj/naresh.asphttp://www.bajajauto.com/1024/aboutbajaj/naresh.asphttp://www.bajajauto.com/1024/aboutbajaj/balajirao.asphttp://www.bajajauto.com/1024/aboutbajaj/shkhan.asphttp://www.bajajauto.com/1024/aboutbajaj/naresh.asp


14/57

Bajaj Autos Ltd.

Bajaj Auto Limited

Type Public

Founded 1945

Headquarters Pune, India

Key people Rahul Bajaj (Chairman)

RevenueRs. 1,01,063 billion (2006) or USD 1.87

billion

Net income Rs. 17,016 billion

Employees ???

Website www.bajajauto.com

Bajaj Auto is a major Indian automobile manufacturer. It is

India's largest and the world's 4th largest two- and three-wheeler
http://en.wikipedia.org/wiki/Category:Types_of_companieshttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Rahul_Bajajhttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Rshttp://en.wikipedia.org/wiki/USDhttp://en.wikipedia.org/wiki/Billionhttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Rshttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Websitehttp://www.bajajauto.com/http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Image:Logo_bajaj.gifhttp://en.wikipedia.org/wiki/Category:Types_of_companieshttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Rahul_Bajajhttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Rshttp://en.wikipedia.org/wiki/USDhttp://en.wikipedia.org/wiki/Billionhttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Rshttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Websitehttp://www.bajajauto.com/http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Automobile


15/57

maker. It is based in Pune, Maharashtra, with plants in Waluj

near Aurangabad, Akurdi and Chakan, near Pune. Bajaj Auto

makes motorscooters, motorcycles and the auto rickshaw.

COMPANY'S HISTORY

Bajaj Auto came into existence on November 29, 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 license from the Government of India to manufacture

two- and three-wheelers and it went public in 1960. In 1970, it

rolled out its 100,000th vehicle. In 1977, it managed to produce

and sell 100,000 vehicles in a single financial year. In 1985, it

started producing at Waluj in Aurangabad. In 1986, it managed

to produce and sell 500,000 vehicles in a single financial year. In

1995, it rolled out its ten millionth vehicle and produced and

sold 1 million vehicles in a year.

Timeline of new releases

1971 - three-wheeler goods carrier
http://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Motorscootershttp://en.wikipedia.org/wiki/Motorcycleshttp://en.wikipedia.org/wiki/Auto_rickshawhttp://en.wikipedia.org/wiki/1945http://en.wikipedia.org/wiki/1959http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/1960http://en.wikipedia.org/wiki/1970http://en.wikipedia.org/wiki/1977http://en.wikipedia.org/wiki/1985http://en.wikipedia.org/wiki/Aurangabadhttp://en.wikipedia.org/wiki/1986http://en.wikipedia.org/wiki/1995http://en.wikipedia.org/wiki/1971http://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Motorscootershttp://en.wikipedia.org/wiki/Motorcycleshttp://en.wikipedia.org/wiki/Auto_rickshawhttp://en.wikipedia.org/wiki/1945http://en.wikipedia.org/wiki/1959http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/1960http://en.wikipedia.org/wiki/1970http://en.wikipedia.org/wiki/1977http://en.wikipedia.org/wiki/1985http://en.wikipedia.org/wiki/Aurangabadhttp://en.wikipedia.org/wiki/1986http://en.wikipedia.org/wiki/1995http://en.wikipedia.org/wiki/1971


16/57

1972 - Bajaj Chetak

1976 - Bajaj Super

1977 - Rear engine Autorickshaw 1981 - Bajaj M-50

1986 - Bajaj M-80, Kawasaki Bajaj KB100

1990 - Bajaj Sunny

1994 - Bajaj Classic

1995 - Bajaj Super Excel 1997 - Kawasaki Bajaj Boxer, Rear Engine Diesel

Autorickshaw

1998 - Kawasaki Bajaj Caliber, Legend(India's first four-

stroke scooter)

2000 - Bajaj Saffire 2001 - Eliminator, Pulsar

2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar

2004 - Bajaj CT 100, New Bajaj Chetak 4-stroke with

Wonder Gear, Bajaj Discover DTS-i

2005 - Bajaj Wave, Bajaj Avenger, Bajaj Discover

2006 - Bajaj Platina

2007 - Bajaj Pulsar-200
http://en.wikipedia.org/wiki/1972http://en.wikipedia.org/wiki/Bajaj_Chetakhttp://en.wikipedia.org/wiki/1976http://en.wikipedia.org/w/index.php?title=Bajaj_Super&action=edithttp://en.wikipedia.org/wiki/1977http://en.wikipedia.org/wiki/Autorickshawhttp://en.wikipedia.org/wiki/1981http://en.wikipedia.org/w/index.php?title=Bajaj_M-50&action=edithttp://en.wikipedia.org/wiki/1986http://en.wikipedia.org/w/index.php?title=Bajaj_M-80&action=edithttp://en.wikipedia.org/w/index.php?title=Kawasaki_Bajaj_KB100&action=edithttp://en.wikipedia.org/wiki/1990http://en.wikipedia.org/w/index.php?title=Bajaj_Sunny&action=edithttp://en.wikipedia.org/wiki/1994http://en.wikipedia.org/w/index.php?title=Bajaj_Classic&action=edithttp://en.wikipedia.org/wiki/1995http://en.wikipedia.org/w/index.php?title=Bajaj_Super_Excel&action=edithttp://en.wikipedia.org/wiki/1997http://en.wikipedia.org/w/index.php?title=Kawasaki_Bajaj_Boxer&action=edithttp://en.wikipedia.org/wiki/1998http://en.wikipedia.org/w/index.php?title=Kawasaki_Bajaj_Caliber&action=edithttp://en.wikipedia.org/wiki/Legendhttp://en.wikipedia.org/wiki/2000http://en.wikipedia.org/wiki/Bajaj_Saffirehttp://en.wikipedia.org/wiki/2001http://en.wikipedia.org/wiki/2003http://en.wikipedia.org/w/index.php?title=Caliber115&action=edithttp://en.wikipedia.org/w/index.php?title=Bajaj_Wind&action=edithttp://en.wikipedia.org/wiki/Bajaj_Pulsarhttp://en.wikipedia.org/wiki/2004http://en.wikipedia.org/wiki/Bajaj_CT_100http://en.wikipedia.org/w/index.php?title=Wonder_Gear&action=edithttp://en.wikipedia.org/w/index.php?title=Bajaj_Discover_DTS-i&action=edithttp://en.wikipedia.org/wiki/2005http://en.wikipedia.org/wiki/Bajaj_Wavehttp://en.wikipedia.org/wiki/Bajaj_Avengerhttp://en.wikipedia.org/wiki/Bajaj_Discoverhttp://en.wikipedia.org/wiki/2006http://en.wikipedia.org/wiki/Bajaj_Platinahttp://en.wikipedia.org/wiki/2007http://en.wikipedia.org/w/index.php?title=Bajaj_Pulsar-200&action=edithttp://en.wikipedia.org/wiki/1972http://en.wikipedia.org/wiki/Bajaj_Chetakhttp://en.wikipedia.org/wiki/1976http://en.wikipedia.org/w/index.php?title=Bajaj_Super&action=edithttp://en.wikipedia.org/wiki/1977http://en.wikipedia.org/wiki/Autorickshawhttp://en.wikipedia.org/wiki/1981http://en.wikipedia.org/w/index.php?title=Bajaj_M-50&action=edithttp://en.wikipedia.org/wiki/1986http://en.wikipedia.org/w/index.php?title=Bajaj_M-80&action=edithttp://en.wikipedia.org/w/index.php?title=Kawasaki_Bajaj_KB100&action=edithttp://en.wikipedia.org/wiki/1990http://en.wikipedia.org/w/index.php?title=Bajaj_Sunny&action=edithttp://en.wikipedia.org/wiki/1994http://en.wikipedia.org/w/index.php?title=Bajaj_Classic&action=edithttp://en.wikipedia.org/wiki/1995http://en.wikipedia.org/w/index.php?title=Bajaj_Super_Excel&action=edithttp://en.wikipedia.org/wiki/1997http://en.wikipedia.org/w/index.php?title=Kawasaki_Bajaj_Boxer&action=edithttp://en.wikipedia.org/wiki/1998http://en.wikipedia.org/w/index.php?title=Kawasaki_Bajaj_Caliber&action=edithttp://en.wikipedia.org/wiki/Legendhttp://en.wikipedia.org/wiki/2000http://en.wikipedia.org/wiki/Bajaj_Saffirehttp://en.wikipedia.org/wiki/2001http://en.wikipedia.org/wiki/2003http://en.wikipedia.org/w/index.php?title=Caliber115&action=edithttp://en.wikipedia.org/w/index.php?title=Bajaj_Wind&action=edithttp://en.wikipedia.org/wiki/Bajaj_Pulsarhttp://en.wikipedia.org/wiki/2004http://en.wikipedia.org/wiki/Bajaj_CT_100http://en.wikipedia.org/w/index.php?title=Wonder_Gear&action=edithttp://en.wikipedia.org/w/index.php?title=Bajaj_Discover_DTS-i&action=edithttp://en.wikipedia.org/wiki/2005http://en.wikipedia.org/wiki/Bajaj_Wavehttp://en.wikipedia.org/wiki/Bajaj_Avengerhttp://en.wikipedia.org/wiki/Bajaj_Discoverhttp://en.wikipedia.org/wiki/2006http://en.wikipedia.org/wiki/Bajaj_Platinahttp://en.wikipedia.org/wiki/2007http://en.wikipedia.org/w/index.php?title=Bajaj_Pulsar-200&action=edit


17/57

Scooters

Bajaj Sunny

Bajaj Chetak Bajaj Cub Bajaj Super Bajaj Wave Bajaj Legend

Motorcycles

Kawasaki Eliminator

Bajaj Pulsar

Bajaj Kawasaki Wind 125

Bajaj Boxer

Bajaj CT 100

Bajaj Platina

Bajaj Caliber

Bajaj Discover

Bajaj Avenger

Bajaj Pulsar 220 DTS-Fi

Upcoming Models

Bajaj Krystal

Bajaj Blade
http://en.wikipedia.org/w/index.php?title=Bajaj_Sunny&action=edithttp://en.wikipedia.org/wiki/Bajaj_Chetakhttp://en.wikipedia.org/w/index.php?title=Bajaj_Cub&action=edithttp://en.wikipedia.org/w/index.php?title=Bajaj_Super&action=edithttp://en.wikipedia.org/wiki/Bajaj_Wavehttp://en.wikipedia.org/w/index.php?title=Bajaj_Legend&action=edithttp://en.wikipedia.org/wiki/Kawasaki_Eliminatorhttp://en.wikipedia.org/wiki/Bajaj_Pulsarhttp://en.wikipedia.org/w/index.php?title=Bajaj_Kawasaki_Wind_125&action=edithttp://en.wikipedia.org/w/index.php?title=Bajaj_Boxer&action=edithttp://en.wikipedia.org/wiki/Bajaj_CT_100http://en.wikipedia.org/wiki/Bajaj_Platinahttp://en.wikipedia.org/w/index.php?title=Bajaj_Caliber&action=edithttp://en.wikipedia.org/wiki/Bajaj_Discoverhttp://en.wikipedia.org/wiki/Bajaj_Avengerhttp://en.wikipedia.org/wiki/Bajaj_Pulsar_220_DTS-Fihttp://en.wikipedia.org/w/index.php?title=Bajaj_Krystal&action=edithttp://en.wikipedia.org/w/index.php?title=Bajaj_Blade&action=edithttp://en.wikipedia.org/w/index.php?title=Bajaj_Sunny&action=edithttp://en.wikipedia.org/wiki/Bajaj_Chetakhttp://en.wikipedia.org/w/index.php?title=Bajaj_Cub&action=edithttp://en.wikipedia.org/w/index.php?title=Bajaj_Super&action=edithttp://en.wikipedia.org/wiki/Bajaj_Wavehttp://en.wikipedia.org/w/index.php?title=Bajaj_Legend&action=edithttp://en.wikipedia.org/wiki/Kawasaki_Eliminatorhttp://en.wikipedia.org/wiki/Bajaj_Pulsarhttp://en.wikipedia.org/w/index.php?title=Bajaj_Kawasaki_Wind_125&action=edithttp://en.wikipedia.org/w/index.php?title=Bajaj_Boxer&action=edithttp://en.wikipedia.org/wiki/Bajaj_CT_100http://en.wikipedia.org/wiki/Bajaj_Platinahttp://en.wikipedia.org/w/index.php?title=Bajaj_Caliber&action=edithttp://en.wikipedia.org/wiki/Bajaj_Discoverhttp://en.wikipedia.org/wiki/Bajaj_Avengerhttp://en.wikipedia.org/wiki/Bajaj_Pulsar_220_DTS-Fihttp://en.wikipedia.org/w/index.php?title=Bajaj_Krystal&action=edithttp://en.wikipedia.org/w/index.php?title=Bajaj_Blade&action=edit


18/57

Bajaj Sonic

Bajaj XCD String

New Image

The company, over the last decade has successfully changed its

image from a scooter manufacturer to a two wheeler

manufacturer, product range ranging from Scooterettes to

Scooters to Motorcycle. Its real growth in numbers has comein the last 4 years after successful introduction of a few

models in the motorcycle segment.The company is headed

by Rahul Bajaj who is worth more than US$1.5 billion.
http://en.wikipedia.org/w/index.php?title=Bajaj_Sonic&action=edithttp://en.wikipedia.org/wiki/Rahul_Bajajhttp://en.wikipedia.org/w/index.php?title=Bajaj_Sonic&action=edithttp://en.wikipedia.org/wiki/Rahul_Bajaj


19/57

TVS MOTOR COMPANY


20/57

The TVS group was established in 1911 by Shri. T. V.

Sundaram Iyengar. As one of Indias largest industrial entities it

epitomizes Trust, Value and Service. It all began way back in1984 when Sundaram Clayton Limited (A TVS Group

company) introduced its 50 CC mopeds in the arena of road

racing, notching up unbelievable speeds of 105 kmph. Since

then, there has been no looking back for TVS Motor Company.

TVS Racing was established in 1987 with the objective ofimproving the performance of its bikes. Over the years it has

provided valuable data, design inputs, development of reliable

motorcycle models, excellent vehicle dynamics & handling etc.

The true evidence of it is seen in today's TVS Victor and TVS

Fiero. Today, there are over thirty companies in the TVS Group,employing more than 40,000 people worldwide and with a

turnover in excess of USD 2.2 billion.

With steady growth, expansion and diversification, TVS

commands a strong presence in manufacturing of two-wheelers,

auto components and computer peripherals. We also have

vibrant businesses in the distribution of heavy commercial

vehicles passenger cars, finance and insurance.


21/57

TVS Motor Company Limited, the flagship company of the

USD 2.2 billion TVS Group, is the third largest two-wheeler

manufacturer in India and among the top ten in the world, withan annual turnover of over USD 650 million.

The year 1980 is one to be remembered for the Indian two-

wheeler industry, with the roll out of TVS 50, India's first two-

seater moped that ushered in an era of affordable personal

transportation. For the Indian Automobile sector, it was a

breakthrough to be etched in history. TVS Motor Company is

the first two-wheeler manufacturer in the world to be honoured

with the hallmark of Japanese Quality The Deming Prize for

Total Quality Management.

MANY FIRSTS TO THE AUTOMOTIVE INDUSTRY IN

INDIA

TVS has been at the forefront in bringing a revolution in the

way personal commutation was happening, way back in the

1980s. Beginning with launching a simple, easy-to-use moped
http://www.tvsmotor.in/article.asp?id=8&aid=1http://www.tvsmotor.in/article.asp?id=8&aid=1


22/57

for the middle class in India in the 1980s to launching 7 new

bikes in a single day (first time in the history of the automotive

industry in the world), TVS has often taken the unbeaten path toinnovation.

Ushering in the personal transportation revolution

1980 Launched TVS 50, India's first 2 seater 50 cc moped

1984First Indian company to introduce 100 cc Indo -

Japanese motorcycles

1994Launched India's First indigenous scooterette (sub - 100

cc variomatic) - TVS Scooty

1996

Introduced India's first catalytic converter enabled

motorcycle, the 110 cc Shogun

1997 Introduced India's first 5 speed motorcycle, Shaolin

2000Launched India's first 150 cc, 4 stroke motorcycle - The

Fiero

2001Launched India's first fully indigenously designed and

manufactured motorcycle.

2004Launched the revolutionary VT-I engine for the best in

class mileage in TVS Centra

2006 Launched TVS Apache - first bike to win 6 awards in a


23/57

row

2007Apache RTR - first two wheeler in India to have racing

inspired engine and features.

2008TVS Flame, TVS Scooty Electric Vehicle and Three

wheeler TVS King launched.


24/57

TVS MOTORS LIMITED.

TVS Motors

Type PrivateConglomerate (BSE)

Founded in 1911 by Shri.T V Sundaram Iyengar

Headquarters Chennai, Tamilnadu, India

Key people Mr.Venu Srinivasan Chairman

ProductsMotorcycles,Mopeds,Ungeared

scooters, Automotive components

Revenue USD 2.2 billion (FY 2006)

Employees 5,633 (2007)

Website www.tvsmotor.in
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Private_Companyhttp://en.wikipedia.org/wiki/Conglomerate_(company)http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/T._V._Sundaram_Iyengarhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Tamilnaduhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/w/index.php?title=Mr.Venu_Srinivasan&action=edit&redlink=1http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Mopedhttp://en.wikipedia.org/wiki/Scooter_(motorcycle)http://en.wikipedia.org/wiki/Scooter_(motorcycle)http://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/US_Dollarshttp://en.wikipedia.org/wiki/Fiscal_yearhttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Websitehttp://www.tvsmotor.in/http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Private_Companyhttp://en.wikipedia.org/wiki/Conglomerate_(company)http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/T._V._Sundaram_Iyengarhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Tamilnaduhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/w/index.php?title=Mr.Venu_Srinivasan&action=edit&redlink=1http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Mopedhttp://en.wikipedia.org/wiki/Scooter_(motorcycle)http://en.wikipedia.org/wiki/Scooter_(motorcycle)http://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/US_Dollarshttp://en.wikipedia.org/wiki/Fiscal_yearhttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Websitehttp://www.tvsmotor.in/


25/57

TV Sundaram Iyengar and Sons Limited (TVSs) is the

holding company for the TVS Group of companies engaged in

the manufacturing of almost all kinds of automotive

components, best two wheelers and a few other industrial

products. They are also into the financial services sector. The


26/57


27/57

because of its capability to carry two people. In the same

location, the same promotors started another company in 1984,

in collaboration with Suzuki Motor Corporation of Japan, for themanufacture of 100 cc motorcycles under the brand name of Ind-

Suzuki Motorcycles. Subsequently in the moped division was

bought by Ind Suzuki Motorcycles in 1987 and the company

changed its name to TVS Suzuki Ltd. Even though the company

started producing all kinds of two wheelers like mopeds,scooters and motorcycles, the collaboration with Suzuki

continued for the motorcycles only. The collaboration with

Suzuki Motor Corporation ended in 2001 and since then the

name of the company changed to TVS Motor Company. The

company now develops all types of two-wheelers through itsown in house R&D facility and manufactures in three locations

in India, Hosur in Tamlnadu, Mysore in Karnataka and Baddi in

Himachal Pradesh. It has recently started a new manufacturing

plant in Indonesia to cater to the South east Asian market. The

Chairman and Managing Director of the Company is Mr. Venu

Srinivasan who is the grandson of TV Sundaram Iyengar.

TVS Group Companies


28/57

Sundaram Brake Linings

Sundaram Fastners

Southern Roadways Sundaram Finance

Sundharams Private Limited

Brakes India Limited

THE MAJOR PRODUCTS

Motorcycles

TVS Ind Suzuki AX 100

TVS MAX 100

TVS MAX R 100

TVS Supra

TVS Suzuki Samurai

TVS Suzuki Shogun

TVS Suzuki Shaolin

TVS Suzuki Fiero

TVS Fiero

TVS Star

TVS Star City

TVS Star city deluxe


29/57

TVS Star Sport

TVS Fiero F2

TVS Fiero FX TVS Centra

TVS Victor (110 cc)

TVS Victor GLX (125 cc)

TVS Victor EDGE (125 cc)

TVS Flame (125 cc,ccvti technology) TVS Apache (150 cc,13.7 Ps @8500rpm)

TVS Apache RTR 160

TVS Apache RTR 160 EFI (Electronic Fuel Injection)

TVS Flame

Scooterettes

TVS Scooty ES (60 cc) TVS Scooty KS (60 cc)

TVS Scooty Pep (75 cc)

TVS Scooty Pep + (90 cc)
http://en.wikipedia.org/wiki/TVS_Apachehttp://en.wikipedia.org/wiki/TVS_Flamehttp://en.wikipedia.org/wiki/TVS_Apachehttp://en.wikipedia.org/wiki/TVS_Flame


30/57

TVS Teenz

TVS Teenz Electric

Mopeds

TVS XL 50(50 cc)

TVS XL (60 cc

TVS Eco

TVS Astra TVS XL Super (60 cc)

TVS XL Super Heavy Duty

TVS Champ (60 cc)

TVS Super Champ (60 cc)

BAJAJ PULSAR 150

Price (ex-showroom,

Mumbai)

Rs 49,400-53,000

Top speed 107kph


31/57

0-60kph 6.25sec

Kpl 59.6 (overall)

HERO HONDA CBZ X-TREME

Price Rs 56000

Displacement 150 cc

Weight: 141 Kgs (Kick Start) / 143 Kgs (Electric Start)4-stroke single cylinder

Idle engine speed 1400 rpm

TVS APACHE

Price: Rs.58,600/-(Pune)

Displacement 150 cc

Good Balance, Goodbrakes

4-stroke single cylinderElectric start & kick start option

Six-spoke black alloy wheels


32/57


33/57

OBJECTIVES OF THE RESEARCH

1. To analyze the customer satisfaction.

2. To analyze the customer preference.

3. To know which manufacturer is providing better

services.

4. To suggest various factors to improve sales.

5. To evaluate financial Health and Profitability of the

establishment.

6. To have an inter-firm (Bajaj Auto, TVS Motor

Limited) comparison measure efficiency and help the

management to take remedial measures.

7. To help the investors in taking investment decisions

and to help the banks and financial institution in taking

lending decision.

8. To assess the ability of the firm to meet its short-tm as

well as long-term obligations to its creditors and alsoto ensure a reasonable return to its owners and secure

optimum utilization of the assets of the firm.

9. To develop a software programmes to visually see the

liquidity status of the firm on day-to-day.


34/57


35/57

RESEARCH METHODOLOGY

It is well known fact that the most important step in

marketing research process is to define the problem. Choose for

investigation because a problem well defined is half solved. That

was the reason that at most care was taken while defining

various parameters of the problem. After giving through brain

storming session, objectives were selected and the set on the

base of these objectives.

DATA SOURCE

Research included gathering both Primary and Secondary

data. Primary data is the first hand data, which are selected a

fresh and thus happen to be original in character. Primary Data

was crucial to know various customers and past consumer views

about bikes and to calculate the market share of this brand in

regards to other brands.

Secondary data are those which has been collected by

some one else and which already have been passed through


36/57

statistical process. Secondary data has been taken from internet,

newspaper, magazines and companies web sites.

RESEARCH APPROACH

The research approach was used survey method which is a

widely used method for data collection and best suited for

descriptive type of research survey includes research

instrument .DATA COMPLETION AND ANALYSIS

After the data has been collected, it was tabulated and

findings of the project were presented followed by analysis and

interpretation to reach certain conclusions.

SCOPE

My project was based on the A COMPARATIVE STUDY

OF AUTOMOBILE COMPNAY ( TVS AND BAJAJ),

PROFITABILITY ANAYLSIS USING FINANCIAL RATIO

and data was taken by the Moneycontrol.com only.


37/57


38/57

LIMITATION OF RESEARCH STUDY

1) Ratio Analysis is subject to certain limitations.

For e.g. in the matte of inter-firm comparison the

procedure adopted by various firms may vary.

The Second limitation comes from price level

variation caused by inflation.

2) Therefore Ratio Analysis fails to yield strictly

comparable/dependable results. Thirdly, ratios are

only a post mortem result of what ha happened

between two balance sheet dates. Additionally the

trend analysis fails to provide an empirical

forecast about the future in view of the ever-changing social, economic and international

scenario. Fourth, financial analysis is based upon

only monetary information and non-monetary

factors are ignored. Fifth, it does not consider

changes in the price level. And last one, as the

financial statement are prepared on the basis of

the Going Concern

3) Concept, it does not give exact position. Thusaccounting concept and conventions cause seriouslimitations to financial analysis.


39/57

4) The sample was collected using connivance-

sampling techniques. As such result may not give

an exact representation of the population.

5) Shortage of time is also reason for

incomprehensiveness.

6) The views of the people are biased therefore it

doesnt reflect true picture.


40/57


41/57

ANALYSIS AND INTERPRETATION

Various Profitability Ratios

a. Gross Profit Ratiob. Net Profit Ratioc. Operating Net Profit Ratiod. Operating Ratioe. Return on Investment or Return on Capital Employedf. Earning Per Share

1) Gross Profit Ratio: Gross Profit Ratio shows therelationship between Gross Profit of the concern and itsNet Sales. Gross Profit Ratio can be calculated in thefollowing manner: -

Gross Profit Ratio = Gross Profit/Net Sales x 100

Where Gross Profit = Net Sales Cost of Goods Sold

Cost of Goods Sold = Opening Stock + Net Purchases +Direct Expenses Closing Stock

And Net Sales = Total Sales Sales Return

Objective and Significance: Gross Profit Ratio providesguidelines to the concern whether it is earning sufficientprofit to cover administration and marketing expenses andis able to cover its fixed expenses. The gross profit ratio ofcurrent year is compared to previous years ratios or it is


42/57

compared with the ratios of the other concerns. The minorchange in the ratio from year to year may be ignored but incase there is big change, it must be investigated. This

investigation will be helpful to know about any departurefrom the standard mark-up and would indicate losses onaccount of theft, damage, bad stock system, bad salespolicies and other such reasons.

However it is desirable that this ratio must be high andsteady because any fall in it would put the management indifficulty in the realisation of fixed expenses of the

business.

Gross

Profit

Ratio

(%s)

Year Bajaj Tvs

Mar. 2008 10.32 -1.53

Mar. 2009 11.06 0.49


43/57

2) Net Profit Ratio:Net Profit Ratio shows the relationshipbetween Net Profit of the concern and Its Net Sales. NetProfit Ratio can be calculated in the following manner: -

Net Profit Ratio = Net Profit/Net Sales x 100

Where Net Profit = Gross Profit Selling and DistributionExpenses Office and Administration Expenses FinancialExpenses Non Operating Expenses + Non OperatingIncomes.


Objective and Significance: In order to work out overallefficiency of the concern Net Profit ratio is calculated. Thisratio is helpful to determine the operational ability of theconcern. While comparing the ratio to previous yearsratios, the increment shows the efficiency of the concern.

Net


44/57

Profit

Ratio

(%)

Year Bajaj TvsMar.2008 8.32 0.96Mar.2009 7.4 0.82

3) Operating Net Profit Ratio: Operating Profit meansprofit earned by the concern from its business operation

and not from the other sources. While calculating the netprofit of the concern all incomes either they are not partof the business operation like Rent from tenants, Intereston Investment etc. are added and all non-operatingexpenses are deducted. So, while calculating operatingprofit these all are ignored and the concern comes to


45/57

know about its business income from its businessoperations.

Operating Profit Ratio shows the relationship between

Operating Profit and Net Sales. Operating Profit Ratio canbe calculated in the following manner: -

Operating Profit Ratio = Operating Profit/Net Sales x

100

Where Operating Profit = Gross Profit OperatingExpenses

Or Operating Profit = Net Profit + Non Operating Expenses Non Operating Incomes


Objective and Significance: Operating Profit Ratioindicates the earning capacity of the concern on the basis of

its business operations and not from earning from the othersources. It shows whether the business is able to stand inthe market or not.

Operating Net

Profit Ratio

Year Bajaj Tvs

Mar.

2008 610.1

135.5

3Mar.2009 601.32

158.91


46/57

4) Operating Ratio: Operating Ratio matches the operatingcost to the net sales of the business. Operating Costmeans Cost of goods sold plus Operating Expenses.

Operating Ratio = Operating Cost/Net Sales x 100

Where Operating Cost = Cost of goods sold + OperatingExpenses

Cost of Goods Sold = Opening Stock + Net Purchases +Direct Expenses Closing Stock

Operating Expenses = Selling and Distribution Expenses,Office and Administration Expenses, Repair andMaintenance.

Objective and Significance: Operating Ratio is calculatedin order to calculate the operating efficiency of the concern.As this ratio indicates about the percentage of operatingcost to the net sales, so it is better for a concern to have this


47/57

ratio in less percentage. The less percentage of cost meanshigher margin to earn profit.

Operating

Profit RatioYear Bajaj Tvs

Mar.2008 75.01 1.91Mar.2009 75.52 5.24

5) Return on Capital Employed: This ratio shows therelationship between the profit earned before interest andtax and the capital employed to earn such profit.


48/57

Return on Capital Employed

= Net Profit before Interest, Tax and Dividend/Capital

Employed x 100

Where Capital Employed = Share Capital (Equity +Preference) + Reserves and Surplus + Long-term Loans Fictitious Assets

Or

Capital Employed = Fixed Assets + Current Assets

Current Liabilities

Objective and Significance: Return on capital employedmeasures the profit, which a firm earns on investing a unitof capital. The profit being the net result of all operations,the return on capital expresses all efficiencies andinefficiencies of a business. This ratio has a greatimportance to the shareholders and investors and also to

management. To shareholders it indicates how much theircapital is earning and to the management as to howefficiently it has been working. This ratio influences themarket price of the shares. The higher the ratio, the better itis.

Return on Capital Employed

Year Bajaj Tvs

Mar. 2008 39.71 1.08Mar. 2009 32.75 5.37


49/57

6) Earning Per Share: Earning per share is calculated bydividing the net profit (after interest, tax and preferencedividend) by the number of equity shares.

Earning Per Share

= Net Profit after Interest, Tax and Preference

Dividend/No.Of Equity Shares

Objective and Significance: Earning per share helps in

determining the market price of the equity share of the company.

It also helps to know whether the company is able to use its

equity share capital effectively with compare to other

companies. It also tells about the capacity of the company to pay

dividends to its equity shareholders.

Earning Per Share

Year Bajaj Tvs

Mar. 2008 52.25 1.34Mar. 2009 45.37 1.35


50/57


51/57

FINDINGSDuring this research project I found that, when we talk

about the Current Ratio of these company so Current ratio of

TVS Motors is very strong as compare to the BAJAJ in 2008-

2009. Normally Current Ratio should be 1:2 but BAJAJ Autos

current ratio has been gone down below 1. So its not adequate

ratio.1) Then we talk about the Gross Profit Ratio shows that higher

the ratio its better so when we compare to these Companies

we found that TVS is more profitable from BAJAJAuto.

2) Then we talk about the Net Profit Ratio shows that an

increase in the ratio over the previous year shows

improvement in the overall efficiency and profitability ofthe business so both of companies profit gone down but

TVS Motorss profit gone down less as compare with

BAJAJ Auto.


52/57

3) Then we talk about Operating Profit Ratio shows that

higher the ratio that is better for the companies so in TVS

Motors ratio is very higher then the previous year.

4) Then we talk about the EPS, it is very strong of the BAJAJ

Auto but in the 2008-09 declining rate of EPS was very

higher then the TVS Motors.

So eventually I have found that in the 2008-2009 TVS

Motors was very beneficial then the BAJAJ Auto.


53/57

CONCLUSION

Conclusion is that at the end this study shows that TVS was

more profitable. It I have found from this study. In this

study I have calculated various type ratio which are mearly

related from the profitability of the companies. So these all

ratio are shows that :-

1. BAJAJ is considered to be most fuel-efficient bike on Indian

roads.

2. Service & Spare parts are available throughout India in local

markets also.

3. While buying a motorcycle, economy is the main

consideration in form of maintenance cost, fuel efficiency.

4. Sale volume of BAJAJ is very high in the Indian market


54/57

5. TVS is the more profitable from BAJAJ Auto


55/57

RECOMMENDATIONS

1. Bajaj should be accelerate its profitability with a constant

rate.

2. TVS Motors should think about sales volume .

3. TVS Motors should be more aware in the market and expand

its business in every segment.

4. More service centers should be opened.

5. They also introduce some good finance/discount schemes for

students.

6. The price should be economic.


56/57


57/57

BIBLIOGRAPHY

1. www.bajaj.com

2. www.twowheeler.com3. www.google.com4. www.tvsmotors.com

5. www.automartindia.com

6. The monecontrol.com

7. Books :- Analysis Of Financial Statement( Writer : D.K.GOEL And RAKESH GOEL )
http://www.bajaj.com/http://www.twowheeler.com/http://www.google.com/http://www.bajaj.com/http://www.twowheeler.com/http://www.google.com/

Project O f Pankaj

Documents

Transcript of Project O f Pankaj