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Case Study of Bajaj Auto: Establishment of New Brand Identity

The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance. The group flagship company, Bajaj Auto, is ranked as the world’s fourth largest two- and three wheeler manufacturer and the Bajaj brand is well-known in over a dozen countries in Europe, Latin America, the US and Asia.

Founded in 1926, at the height of India’s movement for independence from the British, the group has an illustrious history. The integrity, dedication, resourcefulness and determination to succeed which are characteristic of the group today, are often traced back to its birth during those days of relentless devotion to a common cause. Jamnalal Bajaj, founder of the group, was a close confidant and disciple of Mahatma Gandhi. In fact, Gandhiji had adopted him as his son. This close relationship and his deep involvement in the independence movement did not leave Jamnalal Bajaj with much time to spend on his newly launched business venture. His son, Kamalnayan Bajaj, then 27 took over the reins of business in 1942. He too was close to Gandhiji and it was only after Independence in 1947, that he was able to give his full attention to the business. Kamalnayan Bajaj not only consolidated the group, but also diversified into various manufacturing activities.

The present Chairman and Managing Director of the group, Rahul Bajaj, took charge of the business in 1965. Under his leadership, the turnover of the Bajaj Auto the flagship company has gone up from Rs.72 million to Rs.46.16 billion (USD 936 million), its product portfolio has expanded from one to and the brand has found a global market. He is one of India’s most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit.

Need For Change In Corporate Identity

The 59- year old institution, which is one of the country’s largest two- wheeler and three wheeler manufactures for a long time was accused of using obsolete technology that was polluting the air. They had lost their dominance in the scooter market. Although they were still the largest selling brand in the country, they did not have that overwhelming brand presence anymore. They lost their position because they failed to convince the consumers that they had environment friendly, stylish, sleek products.

A viewer at the Auto Expo2000 exhibition asked Mr. Rajeev Bajaj- ”Mr. Bajaj, why are you still making these old, ugly scooters and polluting three-wheelers?” There was a shift in the market preference from scooters to motorbikes. Now, they had an overwhelming share of the scooter market, but were very nascent in the motorcycle market. They yet had to make a major dent in the motorcycle market. Hence, their total market-share in the two-wheeler segment fell. The company failed to anticipate the consumer behavior. They thought they were going in the right direction, but they were not. “We are to be blamed for our market dominance slipping because we did not see it coming”- Mr. Rajeev Bajaj

In the late 1990s, Bajaj Auto faced an identity crisis. With stagnating scooter market and increased competition from the local and MNC players, Baja Auto had to quickly adapt to the evolving market or be rendered obsolete. Urban as well as Rural market was patronizing motorbikes and ignoring scooters. It also failed miserably in the overseas market. To make a dent in the overseas market it needed, the brand needed to command a certain image.

Implemented Change In Corporate Identity

The re- branding for Auto Bajaj that has a 30- year-old legacy and was a consistent brand, a conscious decision was made, after witnessing the above reasons for the need to change. The job revamping and redesigning the company’s brand image, corporate identity and logo’s various manifestations was done by Elephant Design, a Pune based, Multi- disciplinary design office that has created redefined and repositioned several brands across a wide range of industry segments.

The new logo and repositioning was preceded by a nationwide market research to ascertain the new identity’s acceptance among customers and others. Elephant Designs apparently spent four months exploring alternatives during the implementation stage. The market research was also taken to ascertain the perception among customers and non customers.

Say’s Deshpande, “The research resulted in qualitative analysis of the Opinions available and helped us take an informed decision”. They conducted this research in representative markets of North, West, and South India. They were positively surprised to find a huge acceptance of the designed identity and very favorable value fits.

They were also hopeful that the redesign would have a favorable impact on the business. According to them, the returns are more intangible since identity means symbol. And it symbolically represents what the company is about. Bajaj perhaps saw red when it realized that its blue and white logo had been there for far too long time. The company quickly set to work on a new identity and the result is all blue new logo, a modification of the older one that was officially launched at the Auto Expo Show in New Delhi in January 2004. Thus the old hexagonal blue and white logo of the company was replaced with a more dynamic, vibrant, stylized and trendy B. The brief by Bajaj to Elephant Design was that the B had to be retained.

Ashwini Deshpande, Director, Elephant Design, while talking about the philosophy behind the change in Bajaj’s identity, says that “Bajaj has been changing in many different ways over the years.” The manufacturing infrastructure has become high- tech too, there are a lot of emphases on research and development, and consumers have changed too. The customers are younger than what they used to be. Their exposure is much wider, expectations are very high, Bajaj has a very dynamic distribution and servicing set up and amid all this Bajaj is producing non- polluting and systematically as well technologically advanced vehicles. The change in Identity recognizes all these changes and presents an easier interface for audience to understand the change’.

The entire project that took about a year’s time to complete, including the following according Elephant Design: New Brand Map/ Brand Architecture for Bajaj Auto

• New Visual Identity
• Contextualization of New Identity
• Communication
• Corporate and Regional Offices
• Other properties- Vehicles, Factories, Godowns

Elephant had earlier worked with the Bajaj’s on the new look that the company gave its showrooms across the country.

The dowdy retail outlets were transformed into the more contemporary ‘Planet Bajaj’. Sudhi Sharma director, Elephant Design said, the new logo was very modern, dynamic, and stylish and looks inspiring confidence. It also symbolizes the new band excitement, excitement in engineering and speed, Sharma said. When someone says, “Times are changing…” Mr. Rahul Bajaj adds, “Let me assure you that Bajaj Auto will lead this change.

Bajaj Auto unveiled the new corporate identity on the 15th of January at the Auto Expo 2004, New Delhi. The white and blue reverse hexagonal symbol with Bajaj Auto in small all lettering, which stood in good stead for Bajaj Auto for many decades, finally paved way for a refreshing new look symbol with the Bajaj logotype in capital letters. The new identity arrives at a time when Bajaj Auto has successfully metamorphosed into a major motorcycle manufacturer with proven credentials in award winning Pulsar twins and also proved its technological capability with the introduction the revolutionary (Digital Twin Spark Ignition — DTSI Technology).

The new visual identity of Bajaj Auto emanates from the confirmation of core values, which Bajaj has identified as its brand values. The Brand essence for the new Bajaj has been defined as “Excitement”. Excitement engineering will deliver and inspire confidence in to various stakeholders like Bajaj has traditionally done. Bajaj promises to live its essence thru a set of five Brand Values of Learning, Innovation, Perfection, Speed and Transparency. The change in Identity is a part of the ongoing changes happening at Bajaj. At a time when Bajaj has state of the art manufacturing infrastructure, has an enviable distribution and service network, has created a benchmark R&D facility and at a time when the customer has changed in terms of its exposure to quality and style, the change in Identity will help invite a paradigm shift in consumer perception of the company.

The traditional hexagonal symbol has been replaced by an open abstract form of stylized B; the “flying B” as it has been named represents style and technology. It also has a strong association with the heritage of Bajaj since the external form has a hint of hexagon. “Flying B” form denotes speed and open form denotes the transparency.

The new Logotype is all capital BAJAJ, representing precision engineering and perfection. The logo is all confident bold stylistic lettering, which is very global in its outlook.

Bajaj has adopted a new tagline of “Inspiring Confidence”. In whatever the company does it seek to inspire confidence in its audience? Bajaj has traditionally enjoyed tremendous consumer support and plans to consolidate and move ahead on this. The Brand line appears below the Logotype in a script font. This font is to represent learning values at Bajaj and that Bajaj as a brand moves closer to customer.

The Identity has a fresh new Blue colour. This Blue represents stability and strength of Bajaj. Blue also represents high technology and precision engineering. The new Identity presents a futuristic face of the new global Bajaj. Elephant Design has been working with Bajaj on creating and implementing the new Bajaj_ identity. The new brand will manifest in all consumer and employee interfaces. Says, Rajiv Bajaj, Joint Managing Director, BAL, “Bajaj is on the cusp of a revolution brewing on various fronts, be it, exports, design, R&D, new models and marketing.” The company thus needed a new identity that would present the new philosophy. The sweeping changes happening at Bajaj Auto required a more dynamic, vibrant and exciting identity, which would also showcase inspiration and confidence through excitement engineering. The change in identity is expected to present an easier interface for the world to understand the new Bajaj with the same trustworthy values.”

“Hamara Bajaj” the age-old slogan, which was popular in every Indian household for more than three decades. Perhaps the only way that this company could retain its glory is by changing its attitude, image and of course, products. Having grown up singing the popular jingle “Buland Bharat ki buland tasveer…” it is rather alarming to get up one morning and seeing our very own Bajaj from “Hamara Bajaj” turned into “Inspiring Confidence”. After having understood the term ‘Corporate Identity’, it stands as the personality of the organization. It is therefore necessary to understand two main facets of identity- purpose and belonging.

References:

• New positioning with a new Corporate Identity – Elephant Design

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Bajaj Auto: The Story of an Indian Born Global Brand

Given that my last name is ‘Bajaj’, I have been known as ‘Hamara Bajaj’ for as long as I can remember. Although I have no direct connection to the family, it’s a Brand that I feel quite connected to!

Also, what’s interesting is the origin of the word “Bajaj”.It comes from the Punjabi word “Bajaji”, which means ‘cloth’. This perhaps means that most Bajaj’s business would have originated from a caste of Cloth sellers in the Sindh. And hence you find Punjabi, Marwari’s & Sindhi’s all with the last name Bajaj!

An interesting tale that my dad tells me is that I was virtually born on a bullet, which my dad owned when my mom was expecting. I remember later on in the 1980s we also owned a Bajaj scooter like many middle-class Indian families.

Enough of my story. Let’s talk about the Bajaj group. The Bajaj Group is one of the oldest and largest Indian conglomerates, founded by Jamnalal Bajaj in 1926. Currently, the group has business interests across automobiles (2- and 3-wheelers), home appliances, lighting, iron and steel, insurance, travel, and finance.

However, Bajaj Auto is clearly the crown jewel. And the story of this business is perhaps one of the most exciting stories of Indian born brands.

Bajaj Auto becoming The Pride of India

Perhaps the fondest memory that any Bajaj mention evokes in all of us is of the iconic ‘buland bharat ki buland tasweer’ advertisement that was played in 1989. These were the years just before liberalization and Bajaj had a monopoly in the Indian market.

The advertising was perhaps a well thought out pre-emptive strike by the automobile major in a market that was on the cusp of opening up. The Bajaj group knew that its monopoly was soon to be challenged. And perhaps the best way to fight back would be to evoke emotions of national pride among its customers.

The company also did this campaign to popularise Bajaj Chetak as the dynamic scooter that would be the pride of every Indian family. At a time when there was a waiting period for even scooters and cars were a privilege reserved for the rich, the campaign perfectly captured what every Indian family felt about their chariot on two wheels.

The advertising cemented Bajaj’s position as the pride of every Indian household. It also helped the brand keep aggressive competition at bay for the next few years.

However, Advertising can rarely combat Product Innovation. As a result, Bajaj Auto’s most iconic scooter Chetak faced a fate similar to what Kodak faced in Analogue cameras when the market moved towards digital cameras.

Read: Here’s Why Kodak Failed: It Didn’t Ask The Right Question!

Bajaj auto: gearing up to competition.

The 90s were difficult times for Bajaj Auto and under the onslaught of toughening competition, the company faced assault from several directions:

The first big challenge to the business came from the launch of Activa from Hero Honda. Activa was a stylish looking gearless scooter with an electric start. It quickly made scooters with gears obsolete and the iconic ‘Chetak’ stopped production in 2005.

Bajaj tried to fight back with ‘Kristal’ in 2006 but it never really took off. And the Bajaj group decided to exit from the Scooter segment altogether in 2009 .

To this day, the Bajaj family continues to be asked by market observers, if exiting from the well-established scooter business was a wise strategy. But as very rightly said by Michael Porter

The essence of strategy is choosing what not to do.

Hence the decision to vacate the scooter segment enabled the company to put razor-sharp focus and deploy aggressive resources to reposition the company as a motorbike manufacturer.

Repositioning Bajaj Auto

The strategy to reposition itself as a Motorbike company was not easy and was played out through a number of successful & not so successful initiatives.

The first was the launch of the reloaded version of ‘Hamara Bajaj’ in 2001 with the brilliant ‘badal rahain hain hum yaha..’ which interspaced the previous lyrics with the reloaded ones, marking a transition to a more modern avatar while retaining a warm Indian core.

The TVC was perhaps even more brilliant than the original which displayed all their motorcycle models including the ‘Eliminator’, the ‘Boxer’ & the ‘Caliber’.

After playing in the 100 cc or below segment, it was the launch of Bajaj Discover in 2004 that took Bajaj to lead the 125 cc category.

However, the real success of Bajaj Auto in the motorcycle business could be attributed to its launch of Pulsar in 2001 in 150 cc & 180 cc variants. The bike was in direct competition with Hero Honda CBZ (1999). The Bajaj Group was agile enough to work quickly with R&D support from Tokyo and Glynn Kerr as the designer. The bike was an all-out success and by 2011 it had a 47% Marke Share in the segment, giving Bajaj Auto a market share of 27% in 2011.

By April’12 the company had sold more than 5 million units. Pulsar was important in transitioning the market’s focus from small fuel-efficient sub 125 cc motorbikes to a world of performance bikes with higher power and better features.

As competition again started biting on their heels in the domestic market, it was time again for the management team at Bajaj to show their business acumen and move the center of gravity of their business to more lucrative and profitable shores.

You just can’t beat a Bajaj

Despite making a bold move of repositioning themselves as a Motorbike company the road was never easy for Bajaj. They faced stiff competition from Honda which was willing to play a low margin game to grow market share.

Honda was willing to play on single-digit margins to grow their Market Share and Bajaj’s market share slid from 20.5% to 11.1% in the domestic market.

Bajaj actually increased its profit margins in this period by focussing on a completely new strategy. Not only did they tighten their manufacturing practices but they decided to chase leadership in exports!

Showing again the agility to reinvent themselves and choosing strategies that are revolutionary and often counterintuitive!

World’s Favourite Indian!

The thrust to become a global Motorbike brand was kicked off in the 2000s. With the success of Pulsar, Bajaj Auto realized that they now had the competency to build an export business of significant scale.

A lot of their export’s success can be attributed to leadership in the African, Asian, and South American markets. The Brand in 2007 sold thrice as many pulsars in Columbia as they did in India. Surprisingly it was not the Pulsar or Discover that helped the brand. It was the “Boxer”.

The brand was already a household name in Indonesia, owing to their leadership in three-wheelers. So they spent a lot of money on communicating themselves as an upmarket brand and setting up exclusive showrooms. Since they were present at the top end of the market in Indonesia their margins are higher than in India in 2007.

In Nigeria, Bajaj realized that the competition came from cheaper Chinese bikes. Bajaj Auto launched the Boxer at a price that was 25% higher than Chinese bikes but far more fuel-efficient. As per Nigerian customers, it left more money in their wallets.

This strategy has been fantastically successful making Bajaj the top-selling motorbike in countries as diverse as Sri Lanka, Bangladesh, Columbia & the Philippines.

In 2020, this trend has only grown with the company now selling more vehicles overseas than in India. In 2019, around 47% of Bajaj’s exports were to Africa, 28% to South Asia and the Middle East, and 14% to ASEAN.

The spirit of this strategy can clearly be captured by Bajaj Auto’s latest Ad campaigns. The World’s Favourite Indian, with the beautiful lyrics of “hum se hain yeh jahan”.

In Conclusion

Bajaj Auto is truly an iconic & global brand and has shown the resilience and agility to pivot time & time again.

They first unleashed magic in domestic markets through ‘buland bharat ki buland tasweer’, making Bajaj Chetak the pride of every Indian household.

Next, as they faced the heat with gearless scooters. They made the judicious & bold call to exit scooters and reinvent themselves as a motorbike company.

The breakthrough launch of Pulsar again gave them a fresh lease of life & as the margins started drying up in domestic markets they looked overseas. They continue to be the most profitable two-wheeler company in India with a rich and long legacy.

Let’s see what the future holds for Bajaj through investments in global brands and new markets. Although Bajaj Auto made an entry in the two-wheelers electric vehicle segment with the new Chetak in 2019, it would be exciting is to see how Bajaj Auto stays relevant to the growth of the rising demand for electric vehicles and prove its relevancy to future generations.

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Learning from emerging markets: An interview with Bajaj Auto’s Rajiv Bajaj

Founded in 1945, India’s Bajaj Auto first sold imported two- and three-wheeled scooters before obtaining a license from India’s government to become a manufacturer in its own right, in 1959. Today, the company is India’s second-largest motorcycle producer, selling nearly three million vehicles annually and operating in more than 50 countries.

Since 2005, Rajiv Bajaj has been managing director of the company his grandfather founded. Educated in both India and Britain, he has been instrumental in focusing Bajaj Auto on motorcycle manufacturing, driving down costs and raising productivity in the company’s operations while investing heavily in research and development. In this interview with Laxman Narasimhan, a director in McKinsey’s Delhi office, Rajiv Bajaj discusses the transformation of Bajaj Auto, what can be learned from its experience in emerging markets, and its effort to expand internationally.

Rajiv Bajaj biography

Born December 21, 1966, in Mumbai, India

Married, with 1 child

Graduated with a degree in mechanical engineering in 1988 from the University of Pune

Received an MS in manufacturing systems engineering in 1991 from the University of Warwick

Bajaj Auto (1990–present)

Managing director (2005–present)

Joint managing director (2003–05)

President and whole-time director (2002–03)

President (2000–02)

Actively involved in Society of Indian Automobile Manufacturers

Winner of Amity School of Business Leadership Award for Brand Excellence

Member of the World Economic Forum’s Young Global Leaders, business, (honored in 2005)

Interests include yoga and homeopathy

The Quarterly : How has the Indian market evolved in recent years?

Rajiv Bajaj: Over the past two decades, India has been progressively and significantly liberalized, both economically and socially. That has increased both the wealth and spending capacity of consumers, resulting in almost unparalleled market scale for consumer durables in general and automotive products in particular. Yet in my view, India’s markets are not just underpenetrated but also undersegmented. I think they are underestimated in terms of their potential to be the center of gravity of the world for many businesses in the future.

The Quarterly : You are positioning Bajaj Auto to be an emerging-market champion. What does that mean to you?

Rajiv Bajaj: For me, being an emerging-market champion means aligning the organization’s ideas, energies, and resources toward building a few key motorcycle brands that, collectively, could make us one of the world’s most comprehensive and profitable motorcycle makers. It means building and positioning Bajaj as a global motorcycle specialist and, given the rapid pace of evolution of our market, leveraging our expertise and experience to expand into emerging markets similar to ours.

The Quarterly : What makes you feel you’re the “rightful owner” of the opportunity that India’s emerging consumer class represents, rather than a developed-market player?

Rajiv Bajaj: Markets are shaped by customers more than they are by manufacturers. We have operated in the Indian market for 65 years—we are part of it, have grown with it, and we understand it intimately. And that hasn’t changed just because India is now the world’s second-largest motorcycle market, and perhaps its most profitable one. Our competence has been shaped at the crossroads of a market characterized by the world’s most stringent emission standards, relatively expensive fuel, constant pricing pressures, and consumer expectations of high-quality, durable vehicles. We’re the player that reflects this market.

The Quarterly : You say that markets are shaped by customers, yet, of course, manufacturers also play a role in driving consumer demand. You’ve created and put together some terrific brands in India and on a global level. What aspirations of consumers are you trying to meet and surpass?

Rajiv Bajaj: There are two kinds of global motorcycle makers: niche, with often unsustainable scale; or mass, with commoditized brands. Our strategy hinges on bringing together the best of both worlds, so that more consumers may be able to experience the pride of owning an aspirational motorcycle brand.

The Quarterly : Just how local are these consumer needs? For instance, are consumer segments in Nigeria and Indonesia similar to those you service in India?

Rajiv Bajaj: We’ve consciously sought to ensure that the individual attributes that define our chosen brands have appeal across markets, both the nations that you mention and others in the Southern Hemisphere. For this reason, we believe that our strategy has global validity. However, even though consumers across markets often seek similar attributes in our products, the way we position our brands and the product mix we offer are certainly strongly influenced by the local context consumers live in and the nature of local competition. That definitely varies from one market to another.

The Quarterly : One common market attribute is affordability. How do you think about that, and how do you ensure that your product is accessible, since consumers in many emerging markets can be quite geographically dispersed?

Rajiv Bajaj: We measure affordability as the monthly cost of ownership of our product, adjusted for resale price, relative to the competition. That’s the basic equation. In terms of accessibility, we aim to have sales and service facilities within a 30-minute radius of our consumers, wherever they may be. We’re also constantly improving online connectivity. But, I have to say, we always emphasize quality ahead of accessibility.

The Quarterly : What innovations in manufacturing, distribution, and retailing are required to address the issues of affordability and accessibility?

Rajiv Bajaj: All of our innovations are directed at supporting our unique business model, which rests on selling specialized brands at the front end, derived from flexible platforms at the back end. What this means in practice is that when Bajaj “makes volume, sells niche,” it enables affordability, and when our dealers “distribute volume, sell niche,” they ensure accessibility. It sounds simple, but it’s the result of long experience in this market—and not easily replicated.

The Quarterly : Now you’re taking your business model outside India by expanding internationally. How does your organization need to evolve to meet its needs as a global company?

Rajiv Bajaj: As I said, our strategy is brand centered at the front end and platform based at the back end. So the key to profitable growth, in every market that we participate in, is our ability to continually improve the alignment between new categories and current core competencies. That is, we need to figure out how to take what we know and do well and to make it appeal to consumers in other markets. We also need to learn to do this in a manner that’s not just appropriate for Bajaj brands but also harmonious with those of our global partners, KTM and Kawasaki, which operate, predominantly, in markets in the Northern Hemisphere.

The Quarterly : Multinationals have skills and experience to bring to emerging markets. Have you learned any lessons from observing and competing with international players? Have they made mistakes that you want to avoid?

Rajiv Bajaj: You don’t operate successfully in any market without doing a lot of things right, and that applies equally to companies in developed markets and in emerging markets. From our European partner, KTM, we are learning the principles of sharply positioning a brand as opposed to promoting a diffused product. That’s critical to building sustainable scale in markets with diverse consumer segments serviced by many manufacturers. From our Japanese partner, Kawasaki, we are learning the principles of building a responsive supply chain as opposed to a rigid manufacturing facility.

The Quarterly : What lessons can international companies learn from your success?

Rajiv Bajaj: This may be a lesson applicable to many emerging markets. From our market, international companies can appreciate the rich rewards of bridging brand aspirations and affordability. By looking at our business model and success in India and elsewhere, they can understand some of the principles of building such a bridge.

The Quarterly : Why do you think many multinationals either avoid emerging markets or enter them only in a limited fashion?

Rajiv Bajaj: Perhaps such organizations have an inadequate strategic understanding of how to build a business in markets where their natural category is nascent or they lack the competitive will to do so.

The Quarterly : Where do you see Bajaj Auto ten years from now?

Rajiv Bajaj: Bajaj has a limited window in which it can hope to differentiate itself on the basis of its unique business model. So for as long as we can, we’re going to do our best to establish Bajaj as the largest garage of some of the world’s most specialized motorcycle brands.

Laxman Narasimhan is a director in McKinsey’s Delhi office.

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• Chair, Bajaj Group (Diversified)

“We were in a socialist raj. You couldn’t make anything until you got an industrial license and you couldn’t make more than the license capacity.”

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Additional Resources

• Gita Piramal, Rahul Bajaj: An Extraordinary Life , Portfolio, 2022.
• Paran Balakrishnan, "OBITUARY: Rahul Bajaj (1938-2022): A straight-talking, forward-thinking industry titan with spine," The Telegraph , February 13, 2022.
• "Rahul Bajaj: "To provide continuity, that is what an owner does,"" Moneycontrol News , January 30, 2022.
• Bajaj Auto Ltd. [HBS Case]
• Bajaj Auto Limited History
• “Bajaj Group: Sharing a Legacy,” LiveMint, August 19, 2014
• “I Am No Saint, Says Bajaj Auto Chairman Rahul Bajaj,” Forbes India, November 22, 2013
• “Secret of My Success: Rahul Bajaj on Vision, Brand, Philosophy,” NDTV, December 2, 2012
• “On Record with Rahul Bajaj,” Bloomberg TV, August 1, 2011
• Datamonitor, Bajaj Auto Ltd. SWOT Analysis, 2009-2014
• Niraj Dawar and Tony Frost, “Competing with Giants: Survival Strategies for Local Companies in Emerging Markets,” Harvard Business Review, March 1999
• Bal Ram Nanda, In Gandhi’s Footsteps: The Life and Times of Jamnalal Bajaj. Oxford University Press, 1990
• To a Gandhian Capitalist; Correspondence between Mahatma Gandhi and Jamnalal Bajaj and Members of His Family. Edited by Kaka Kalelkar, foreword by Jawaharlal Nehru. Hind Kitabs, 1951
• Video file of this interview available at Baker Library Historical Collections, histcollref+hbs.edu . Harvard ID holders can access the full-length video above.

Interview Citation Format

"Interview with Rahul Bajaj, interviewed by Srikant M. Datar, July 8, 2014, Creating Emerging Markets Project, Baker Library Historical Collections, Harvard Business School, http://www.hbs.edu/creating-emerging-markets/."

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Case Study on Bajaj Company

Bajaj company case study:.

Bajaj Company is more known as Bajaj Auto. It is an Indian manufacturer of various means of transportation.

The company has its headquarters in Pune and has four plants in other cities. Bajaj Auto manufactures motorcycles, scooters and automobiles of various categories. In 2005 the company was included into the two thousand the most profitable companies in the world but in 2010 it was excluded from this list. The company was founded in 1945 and was called M/s Bachraj Trading Corporation Private Limited. Its activity was focused on the selling of the foreign motorcycles and auto-rickshaws on the territory of India. In 1959 the company gained the licence on the manufacturing of these auto-rickshaws and reached success very soon.

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Till the year 1986 Bajaj produced more than 500 000 auto-rickshaws and could be called a profitable and prosperous Indian company. Since the year 1995 Bajaj manufactured more than a million vehicles per year. Nowadays, Bajaj sells its motorcycles, automobiles and auto-rickshaws in more than 50 countries of the world and it is able to compete on the market due to the low prices for its vehicles. India is known to be the motherland of the low-cost affordable automobiles and Tata Nano is the leader on this sector of the market, but Bajaj Auto became its serious rival in 2012 when projected its affordable automobile with the price $2500 together with Renault and Nissan Motor. Moreover, Bajaj Auto is called one of the most competitive manufacturers of scooters, because its vehicles are sold all over the world and they are popular because of their low price.

Bajaj Company is one of the most successful automobile and motorcycle manufacturers in India and the student is able to study the history of the success of the company and learn about the factors which influence the rapid growth of the company’s popularity. The case study about Bajaj Company is supposed to inform the professor about the slightest details of the case suggested for the analysis. The student should learn everything about the cause of the case on Bajaj Company and evaluate its effect. The problem on Bajaj Company can be connected with the production, failures or success of the manufacturer. If the failure is under the research, the student is asked to solve this problem efficiently.When the student has troubles with the composition of his case study, he can always find the answer to his questions in the Internet and rely on a free example case study on Bajaj Company written online.

The young professional is able to borrow the research approach towards the problem reading a free sample case study on Bajaj Company in the web.

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KTM and Bajaj: An Austrian-Indian Partnership in the Motorcycle Industry

• First Online: 31 December 2018

Cite this chapter

• Stefan Schmid 6 &
• Simon Mitterreiter 6  

Part of the book series: MIR Series in International Business ((MIRSIB))

3899 Accesses

1 Citations

Austria-based motorcycle manufacturer KTM has managed to become the number one European seller of motorcycles. To achieve this goal, the company has chosen to engage in a joint venture with Indian motorcycle manufacturer Bajaj Auto Limited (BAL). The present case study provides an overview of KTM’s internationalization path and highlights the main motives, objectives and outcomes of the Austrian-Indian partnership. The case study outlines the internationalization of KTM in the context of an overview of India’s economy, the Indian motorcycle industry and India’s key players in the industry.

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In the present case study, the authors use the terms motorbike and motorcycle synonymously.

See Ihle ( 2013 , pp. 7–9).

See Chung and Turpin ( 2004 ).

See Sapp et al. ( 2007 ).

See Zietsma and Wong ( 2005 ).

See Stoffregen ( 2012 , p. 9).

See Schäfer ( 2002 , p. 9).

See Pierer as cited in Anonymous ( 2015 ).

See Naganathan and Gunupudi ( 2010 ).

Although Suzuki and Kawasaki lag far behind Honda and Yamaha, the term “big four” is commonly used in the industry. See, for instance, Pashley ( 2008 ) or Zühlke ( 2007 ).

See Anonymous ( 2017b ).

See Lindner ( 2015 ).

See Anonymous ( 2017d ).

See Hamilton ( 2013 ).

See ACEM ( 2015 ).

See Fournier and Donada ( 2016 ), Götze and Rehme ( 2014 ).

See Kawasaki ( 2017 ), KTM ( 2017a ).

These countries include: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam [see Kutschker and Schmid ( 2011 ), p. 188].

See KTM ( 2017a ).

Pierer as cited in Anonymous ( 2015 ).

See Pierer et al. ( 2009 ).

See Gach ( 2014 ).

See Cathcart ( 1992 ), Pierer et al. ( 2009 ).

See Pleininger ( 2003 ).

See Delekat ( 2015 ).

See Buchholz ( 2005 ), Möller ( 2005 ).

See Atzesberger ( 2017 ), KTM ( 2017a ).

See KTM Industries ( 2017c ).

See KTM ( 2017b ).

See Fuchs and Apfelthaler ( 2009 , pp. 342–343).

See KTM ( 2017a ), Pierer et al. ( 2009 ).

See Gluschitsch ( 2013 ).

Habsburg as cited in Wheeler ( 2013 ).

See Bayer and Doll ( 2013 ), Jandrasits ( 2013 ).

See KTM ( 2012 ), KTM Industries ( 2017c ).

See Neff ( 2017 ), Zingel ( 2014 ).

See Banerjee ( 2013 ).

See Kale and Anand ( 2006 ), UNCTAD ( 2016b ).

See Auswärtiges Amt ( 2017 ).

Examples include Bosch, Samsung and Siemens. See Kale and Anand ( 2006 ), McKinsey and Company ( 2016 ), UNCTAD ( 2013 ).

See UNCTAD ( 2016a ).

See RSM Consulting ( 2016 ).

See IBEF ( 2017 ), Peermohamed ( 2013 ).

See SIAM ( 2017 ).

See Richter ( 2014 ).

See Bergthaler ( 2017 ), Fuchs and Apfelthaler ( 2009 , p. 370).

See George et al. ( 2006 ), Naganathan and Gunupudi ( 2010 ).

See Shah ( 2017 ).

See Doval ( 2010 ).

See Baggonkar ( 2015 ), Sen Gupta ( 2011 ).

See Hero MotoCorp. ( 2016 ).

See TVS Motors ( 2017 ).

See Anonymous ( 2017c ).

See Sharma ( 2011 ).

See Bajaj Auto Limited ( 2016 ), KTM ( 2007 ).

See Philip ( 2012 ).

See KTM ( 2016 ).

See KTM ( 2007 ).

See Reiter ( 2015 ).

See Haider ( 2014 ), KTM ( 2017a ).

See Anonymous ( 2011 ), Bergthaler ( 2016 ).

A platform in the automotive industry refers to a common set of design, engineering and production over a number of various models. It is used to reduce costs and allows manufacturers to create different models from a design point of view with similar technical components [see Braess and Seifert ( 2013 ), pp. 155–158; Schmid and Grosche ( 2008 ), p. 153].

See Anonymous ( 2017a ), Niyogi ( 2014 ).

See Anonymous ( 2008 ).

Trunkenpolz as cited in Wheeler ( 2014 ).

Pierer as cited in Reiter ( 2015 ).

See Kolar ( 2007 ).

Bajaj as cited in Anonymous ( 2017e ).

See KTM Industries ( 2017b ).

See Kshirsagar ( 2016 ).

See Suchde ( 2017 ).

See Niyogi ( 2014 ).

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In International Business literature, the Uppsala approach is one of the most cited approaches for describing internationalization patterns. Please argue how far KTM’s internationalization corresponds to the Uppsala approach of internationalization, in terms of both the psychic distance chain and the establishment chain.

Joint ventures can be categorized in various ways. The following table illustrates an overview of possible types of joint ventures.

Please classify the joint venture between KTM and Bajaj according to the categories below.

• Source: translated from Kutschker and Schmid ( 2011 ), p. 889

From the perspective of KTM, please discuss the advantages and disadvantages of a joint venture compared to a fully owned subsidiary in a foreign country.

Joint ventures as a market entry strategy require careful planning and preparation. Among other things, the macro and the micro environment of the host country and the possible partners have to be assessed with due diligence.

Why did KTM choose India as a target market and especially Bajaj as a partner for joint venture cooperation? Please provide a coherent argumentation using tools (e.g., PESTEL Analysis, Porter’s Five Forces or the strength/weakness profiles of both partners) as a basis for your statements.

During the first 5 years of the joint venture, Indian Bajaj increased its financial commitment within the joint venture. Bearing in mind the macro environmental situation at this time, please argue what might have been the reasons and objectives for this decision.

After having established the joint venture with Bajaj in India, KTM’s management had to decide on future allocation strategies, i.e., opt for the centralization or decentralization of value chain activities.

Please analyse in general (i.e., independently from the KTM case) the coordination requirements that result from a (partial) decentralization of value chain activities.

Imagine you are a consultant working for the KTM executive board (“Vorstand”). Please prepare an executive presentation that offers the board concrete actions to efficiently deal with the partial decentralization of R&D and manufacturing from 2011 onwards. Please ensure to provide support for your recommendations with reasonable arguments derived from your knowledge about the motorcycle industry and the companies KTM and Bajaj.

Imagine that you are back in 2007/2008 and that you are member of the board responsible for production in KTM. Rumours within your staff stoke fears of massive job losses at headquarters in Upper Austria owing to the recently signed joint venture contract with Bajaj. Employees and trade unions fear the partial outsourcing of motorcycle production to Bajaj’s production plant in Pune/India. Please prepare a convincing speech to your local employees to reduce their fears of job losses.

Having recently graduated, you are the new personal assistant to Stefan Pierer, CEO of KTM (“Vorstandsvorsitzender”). He asks you for an outlook of Southeast Asia’s motorcycle markets until 2027 and the implications for KTM. Please develop a first draft of the new strategy “KTM in ASEAN markets until 2027”. Please focus not only on target market strategies but also on market entry strategies, timing strategies, allocation strategies and coordination strategies. Please provide a consistent, well-structured proposal for the future.

Please note that, for some of the questions, the case study is only a starting point. You will have to search for additional information to answer the questions.

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Schmid, S., Mitterreiter, S. (2018). KTM and Bajaj: An Austrian-Indian Partnership in the Motorcycle Industry. In: Schmid, S. (eds) Internationalization of Business. MIR Series in International Business. Springer, Cham. https://doi.org/10.1007/978-3-319-74089-8_5

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Product details

Bajaj Allianz Life Insurance Company Limited is a joint venture between Bajaj Finserv Limited and Allianz SE. Both enjoy a reputation of expertise, stability and strength. Bajaj Allianz today has a countrywide network connected through the latest technology for quick communication and response in over 200 towns spread across the length and breadth of the country. Bajaj Allianz Life Insurance Corporation (BALIC), uses its in-house call center to cross sell to its existing customer base through regular telecalling done by its staff. However, the same did not yield efficient results, thus reducing profitability. Customer Centria, used initial list of its policy holders, for study and analysis to dig deeper into the customers profile and behavior.

Business Objective

To increase the cross sell conversion rates on its health insurance and other related products, from its existing database of customers, using call center as the primary channel of contact.

Our Approach

• Conducted an audit of existing data infrastructure
• Generate customer understanding (Insights and Analysis) for cross selling products
• Segment the customer base
• Develop analytical models basis segmentation and product portfolio
• Test and validate basis responses and feed back

Implementation

A detailed analysis data systems, data model and data tables

• Identify profile and analyse BALIC's customer data for data accuracy and completeness
• Generate appropriate program codes for aggregation, data segmentation, merging and purging of data across different data tables as appropriate

Developed appropriate data mining models and techniques using tools and applications as required to

• Create a profile mapping of its existing Life Insurance database
• Generate insights on the relevant cross sell opportunities, in conjunction with BALIC's marketing team which narrowed the focus to cross selling health insurance, specifically the product Family Care First

Mapping of the insights with the profiles on the Life Insurance database, to create a cross selling road map for the team, using telecalling as a first point of contact, but progressively integrating a multichannel contact program to maximise responses, basis customers past behavior to first contact.

Expanded the scope of generating customer lists for various other cross selling opportunities identified and mutually agreed upon with the product portfolio .

• Cross Sell conversion rates saw a dramatic increase, in some cases consistently high at 10 %
• Ensured best practices for data mining models and techniques
• Expansion of cross sell opportunity to potentially migrate to a multi channel system from a single channel, namely call center

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Creating awareness about Intellectual Property

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• Oct 18, 2021

Bajaj Auto Ltd. Vs. T.V.S. Motor Company Ltd.

Updated: Oct 23, 2021

Citation: Civil Appeal No. 6472 of 2004

Bench: Justice B.N. Agarwal & Justice P.P. Naolekar

Court: Supreme Court of India

Timeline of the Case:

In October 2007, Bajaj claimed unauthorized application of its patent by TVS at Madras High Court.

Bajaj prayed for an order of temporary injunction while the above suit was still pending.

T. V. S. filed a suit against Bajaj for groundless threat of infringement in Madras High Court.

In February 2007, the Madras High Court granted a temporary injunction to Bajaj.

In May 2009, the Division Bench repealed the temporary injunction in response to T. V. S.’s prayer to repeal the same.

Due to this, Bajaj filed suit in the Hon’ble Supreme Court against the order of the Madras High Court.

The matter was settled outside court after withdrawing the several pending suits from various courts and fora. The two companies entered into a settlement agreement and put the dispute to rest.

Laws Involved:

Sections 64, 106, 107 and 108 of the Patents Act, 1970

Facts of the Case:

Two suits were involved in this case. The first one involved Bajaj Auto Limited filing a suit in the Madras High Court under Section 108 of the Patents Act, 1970 against T.V.S. This was filed to obtain a permanent injunction against TVS to prevent it from using Bajaj’s patented 125-CC Flame engine. Bajaj claimed that T. V. S. 's CCVTi technology used in the 125 - CC Flame engine was a replica of its DTS-i technology. With the exception of the three-valve component in the product, it was prima facie similar to the applicant’s patented product.

While this suit was pending, Bajaj prayed for an order of temporary injunction. T. V. S. filed a subsequent suit against Bajaj Auto Limited in the Madras High Court on the basis of the groundless threat of infringement under Section 106 of the Patents Act.

The Madras High Court issued the temporary injunction prayed for by Bajaj. The order stopped T. V. S. from completing pending orders and producing fresh models for the duration of the injunction. In response to this, T. V. S. requested for the repealing of this injunction. The Division Bench of the Madras High Court agreed to this and later repealed it, for which an appeal was filed in the Hon’ble Supreme Court by Bajaj, against the order of the Madras High Court Division Bench. The decision of the Madras High Court was repealed.

Whether T. V. S. infringed the patent of Bajaj Ltd.?

Whether improvements made on patented technology can be used without infringing the original patent?

The plaintiff (Bajaj) claimed that the patented technology was a new invention and fell under the ambit of the definition of ‘an inventive step’. Thus, the technology patented was not prior art and as a result, the injunction could be sustained. It was also contended that Bajaj’s invention came into the market three years before T. V. S’s product had already achieved commercial success.

The defendant, T. V. S., claimed that the technology used in this case was prior art, since it was used before in a US Honda Patent, the patent ought not to have been granted to Bajaj in the first place. In addition to this, Bajaj's claim was for two spark plugs with two valves, and T. V. S. 's design included two spark plugs with three valves for which it held a license. Thirdly, Bajaj’s invention was not new and novel as held under the rules set by Bishwanth Prasad Radhey Shyam v. H. M. Industries AIR 1982 SC 1444 . Lastly, they claimed that the validity of the patent could be challenged.

The Hon’ble Supreme Court expressed displeasure at the pendency of the case while it was before the Madras High Court at the interloculary level. The suit was filed in the year 2007, and not even a written statement was filed.

The Hon’ble Supreme Court stated that as observed in the case of M/s Shree Vardhman Rice and Gen Mills v. M/s Amar Singh Chawalwala (2009) 10 SCC 257 , matters connected to intellectual property were to be decided expeditiously by the trial court rather than enduring the long process of granting and refusing injunctions.

Thus, without analysing the merits of the case, the Supreme Court ordered the Defendant to file a written statement as soon as possible. In addition to this, it ordered the Madras High Court to hear the case every day until it is disposed of, and that no order for adjournment would be granted. The deadline for the same was the 30th November, 2009.

It also directed that a receiver be appointed, who would be tasked with tracking T. V. S.’s sales until the suit was pending. The Supreme Court then dismissed the appeal.

Conclusion:

The Supreme Court’s role in this case broadened the ambit of trademark, patent and copyright infringement, and it was observed that matters concerning IPR hold high significance, due to which they ought to be disposed of speedily. Further, it provided guidelines to lower courts, an important one being, intellectual property matters shall be heard on a day-to-day basis and should be resolved within a span of two to three months and that this order would have to be strictly and punctually complied with by all lower and tribunal courts. Only circumstances beyond the control of parties would justify an adjournment of the hearing beyond the following day.

If the above guidelines were implemented strictly in all courts, all IPR cases would be decided on a priority basis, which would prevent unnecessary adjournments, thus overcoming judicial delays. This judgement surely bodes well for IPR owners in India, as well as the international community.

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Bajaj Auto Ltd. Vs T.V.S. Motor Company Ltd JT 2009 (12) SC 103

Written by Rishita Saxena

Updated on: May 25, 2023

Table of Contents

Bajaj Auto Ltd. Vs T.V.S. Motor Company Ltd JT 2009 (12) SC 103: Case Analysis

Introduction

Patent is the exclusive right of the invention given to the holder rendering him to enjoy the monopoly along with the profits in relation to the usage of that invention. The patent act 1970 has provisions relating to the enforcement of patent rights and protects the interest of the holder

Bajaj Auto Ltd. Vs T.V.S. Motor Company Ltd is a landmark case of a dispute with regard to unauthorized application of the patent of the Digital Twin Spark Ignition ( DTSi ). It is an intellectual property of Bajaj auto limited, in DTSi  technology, the two spark plugs at either end of the combustion chamber helps faster and better combustion.

All this starts back in 2002 when Bajaj filed an application for the patent of DTS-i technology on July 16 in the Indian Patent Office. Bajaj also filed a PCT application (The Patent Cooperation Treaty- it is a international patent treaty which provides unified procedure for filing patent applications in contracting States) on October 30, 2003. On July 7 2005 the patent was granted to the Bajaj Auto Ltd.

Terms and sections Often used in this case study explained below:

The  doctrine of equivalents (also termed as doctrine of pith and marrow )is a legal doctrine where in a court is empowered to hold a party to a suit liable for infringement of a patent either directly or indirectly. This means that even if a party does not infringe a patent right/claim directly or literally but nevertheless is equivalent to the claimed  invention , the doctrine of equivalents will come into play.

Section 106 of the Patents Act 1970 provides with the Power of court to grant relief in cases of threats of infringement proceedings on baseless grounds to the defendant. This section suggests that mere knowledge of presence of a patent will not amount to constitute a threat to further proceedings against any party.

Section 108 of the Patents Act 1970 provides for reliefs in suit for infringement. This section is often used for seeking temporary reliefs for the plaintiff.

Case Analysis

There are two suits in this case. The first one was when, Bajaj claims unauthorised application of his patent regarding DTSi against TVS at Chennai High Court in 2007 for the relief of permanent injunction under section 108 of the Patents Act 1970, restricting from using the technology described in this patent for manufacturing, marketing, selling, offering for sale or exporting 2/3 wheelers, including the proposed 125-CC FLAME motorcycle containing an internal combustion engine. Plaintiffs also claimed damages for infringement of patent.

While the suit was pending in the high court, the plaintiff filed an application for seeking the temporary injunction for the same till the pendency of the suit.

TVS Motor Company brought a subsequent suit under section 106 of the Patent Act in the same High Court, claiming that Bajaj is making “groundless threats of patent infringement”.

To this, the Madras High Court in contrary issues a temporary injunction restraining TVS to a limited extent meaning thereby it could execute pending (already taken) orders but couldn’t take fresh orders.

Later to this order, TVS pleaded for vacating this injunction order and the division bench of the High Court agrees and vacates the order later.

To this, an appeal was filed before the hon’ble Supreme Court by the petitioners against the order of the division bench of Madras High Court.

Whether the Defendants infringed the patent or combination even though it made some improvements to the main patented article?

Supreme Court expressed its unhappiness on the pendency of the case before single bench of Madras HC at the interlocutory stage for such a long time as the suit was filed in December, 2007 and yet, even written statement has not been filed.

SC said that as they have already observed in the case of M/s. Shree Vardhman Rice & Gen Mills vs. M/s Amar Singh Chawalwala that the matters in relation to patent trademark and copyright must be expeditiously decided by the trial court rather than disputing on the point of grating and refusing injunctions to each other. Such suits go on for years and years and are not decided properly which is not a good practise.

SC directed all courts and tribunals to follow this case judgment strictly, punctually and faithfully.

Hence without the analysing the merits of the present case, SC directed the respondent to file a written statement as soon as possible if not already filed so. SC also directed the madras HC to hear the case on day to day basis. No adjournment order shall be granted and the suit shall be disposed of on or before 30 th November 2009.

SC court also directed the Madras high court to appoint a receiver in this regard who will keep all the records of the sale proceeds of the TVS till the pending of the suit.

The SC then dismissed the appeal.

Final judgment-

The Madras High Court held that the patent right vest with the Bajaj Auto ltd as it has been manufacturing products using the patent technology since last 5years.

The Court subsequently in paragraph 54 observed that-

“It is also clear as per the decisions, for the purpose of deciding the novel features to constitute “pith and marrow” a purposive construction has to be given in order to make it essential requirement of the invention that any variant would follow outside the monopoly even if it could not have material effect upon the working of invention.”

In this case the legal battle was fought for almost 2 years and was struggling between the interlocutory orders, which were making the legal battle of no positive effects for either party. The Supreme Court gave a landmark judgment in this case ensuring that all cases in relation to IPR have to be completed within 4 months from the date of filing the suit and case should be heard on a day to day basis in order to follow the SC’s direction.

• http://www.legalservicesindia.com/
• https://www.legitquest.com/
• https://indiankanoon.org/

Development in of Sovereign Immunity

Legal maxims related to the law of torts.

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