Rajiv Bajaj: Working on global alliance with KTM, Kawasaki

Alka Kshirsagar Updated - November 17, 2017 at 01:12 PM.

Mr Rajiv Bajaj, Managing Director of Bajaj Auto

Bajaj Auto is working on a global alliance with Austria's KTM and Kawasaki Heavy Industries, Japan, for selling motorcycles in the overseas markets, and is looking to achieve 50 per cent of its total sales through exports by 2016.

Speaking at the company’s AGM here, Mr Rajiv Bajaj, Managing Director, Bajaj Auto Ltd , said that the company has a target of doubling both sales and turnover by 2016 to touch 10 million units in annual sales.

“I estimate 50 per cent or more to come from exports,” he said.

“We are working on global motorcycles alliance with KTM and Kawasaki Heavy Industries to partner them in markets where we are not present like Brazil, Vietnam and Malaysia.

It is not easy to do this, ourselves,” he said, adding that discussions are under way. “We hope to conclude this soon,” he said.

Sales target

The company’s current sales are at around 4.5 million units a year and the turnover at Rs 20,000 crore.

“Our goal is double sales, revenue, exports, and more than double the bottom line,” he told shareholders, adding that the strategy will remain the three-legged stool approach adopted in 2009.

“This three legged stool – sharp brand focus, global presence and variable cost – has served us well in the first phase of our strategy from 2009-2012,” he said.

The company had worked on a cost structure that was relatively immune to the upheavals in the market place.

“This is because we have invested more efforts in R&D and marketing than on production,” Mr Bajaj said, adding that their fixed cost as less than 10 per cent of sales.

Taking a dig at scooter manufacturers in reply to a question on when BAL will re-enter the scooter market, he compared the lower profitability of other two-wheeler makers with that of BAL and quipped, “In my opinion this is because they make too many scooters.”

>alka@thehindu.co.in

Published on July 18, 2012 16:08