Mr Rajiv Bajaj is not unduly concerned about the prevailing slowdown trends and believes his company will continue its good growth run both here and abroad. “These cycles are inevitable and if you cannot take it, you have no business to be in business. The strength of a company's strategy is visible at the down of a cycle and this is where we are confident of holding our own,” the Managing Director of Bajaj Auto told Business Line .

The company has targeted 20 per cent growth for this fiscal, which translates into a little over 4.5 million bikes and three-wheelers. The present momentum indicates things are on course with exports taking up nearly 40 per cent of business.

From a time when its sales were little to write home about, Bajaj Auto has staged a strong comeback over the last two years. This has been the result of a brand-led strategy, which has seen the Pulsar and Discover emerge as the key growth drivers in bikes along with the RE-branded three-wheelers.

This has operated in tandem with a focused back-end plan where fixed costs account for a mere five per cent of the overall costing structure. “Be it good or bad times, this model will ensure that we are on track to post 20 per cent EBITDA consistently,” Mr Bajaj said.

‘Less is More'

From his point of view, companies must be profitable by the end of the day so that every associate, right from the employees and shareholders to dealers and ancillary suppliers, benefits in the process. “This is what good capitalism is all about but there is not enough going around. Neither is there enough pressure on companies to be profitable,” Mr Bajaj added.

Bajaj Auto's minimalist approach, where only a handful of brands are now integral to the business, has been a result of the ‘less is more' principle. This has seen some radical decisions being taken in the recent past, which included exiting scooters and shutting down the Akurdi plant near Pune.

The move to bid adieu to scooters raised the hackles of sentimentalists and old-timers to whom this business was instantly synonymous with the company and the ‘ Hamara Bajaj ' slogan. However, it was clear that the market for motorcycles was much larger. The move has paid off with the Pulsar and Discover (and the Boxer sold in Africa) contributing to a substantial part of the international business.

Going forward, Bajaj Auto is gearing up to showcase its new engine technology in the coming weeks which will be part of the Pulsar and Discover range eventually.

Terming it the ‘next big step' after the DTS-i technology, the company says it is part of the ‘innovation for mass consumption' strategy to help grow its bike numbers in India and abroad .

gmurali@thehindu.co.in

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