Thankfully, 2022-23 (FY2023) saw the effects of Covid abate significantly, with citizens as well as businesses finally reverting to normalcy. However, the flip side was the impact of inflationary trends, supply chain disruptions emanating from China, and the Russia-Ukraine conflict impacting commodity prices. India’s retail, or consumer price, inflation remained high and for much of the year was above 6%. To combat this, the RBI regularly raised its policy repo rate, starting May 2022, with cumulative increase being 250 basis points. In addition, thanks to higher global commodity prices and depreciation of the Indian rupee, the current account deficit increased.

However, despite these critical challenges, India emerged as the fastest growing major economy in the world. The second advance estimate of national income released by the Central Statistics office (CSO) on 28 February 2023 expects real GDP growth in to be 7.0%; and that of gross value added to be 6.6%

Given this overall macroeconomic scenario, it needs to be asked how has Bajaj Auto fared?

Charts A and B plot the Company’s financial performance

Motorcycles (Domestic)

After peaking at 13.6 million units in FY2019, domestic sale of motorcycles for the industry steadily fell year-on-year right to under 9 million units in FY2022 — a drop of 34% over three consecutive years. Thankfully, FY2023 finally led to some growth: to 10.2 million units, or a rise of 13.9% over the trough of the previous year. Even so, domestic sales remained significantly below the all-time high of 13.6 million units in FY2019.

Given this industry scenario, how did Bajaj Auto perform?

Table 1 gives the data on domestic sales.

Table 1: Domestic sale of Motorcycles (in numbers)
Year ended 31 March		Domestic sales for the industry (nos.)		Domestic sales growth		BAL’s domestic sales (nos.)		BAL’s domestic growth		BAL's market share
2019		13,599,678		7.8%		2,541,320		28.7%		18.7%
2020		11,214,640		(17.5%)		2,078,136		(18.2%)		18.5%
2021		10,019,836		(10.7%)		1,807,980		(13.0%)		18.0%
2022		8,984,186		(10.3%)		1,632,897		(9.7%)		18.2%
2023		10,230,502		13.9%		1,769,575		8.4%		17.3%

Despite the Company’s domestic sales in FY2023 being 8.4% higher than in the previous year, it grew slower than the market. Consequently, Bajaj Auto’s market share witnessed a decline to 17.3%.

The greatest volume of sales occurs at the lower end, comprising 100-110 cc models. Given the strong competitive price pressures in this segment and in a milieu of increasing commodity prices and shortages of key semiconductors in the first half of FY2023, it made relatively less sense from the point of view of profits and shareholder value to push for on these products. Therefore, Bajaj Auto consciously focused to grow the sales of its more profitable models in the 125 cc range and above. It was a clear choice where per unit EBIDTA became a key variable.

Below is a segment-wise analysis of the domestic motorcycle market, followed by what it implies for the Company.

100cc segment: This segment accounts for by far the highest unit-wise sale of motorcycles in India. Bajaj Auto is represented here by the CT and Platina brands.

•	In FY2023, this segment grew by 6%, but over a lower base in FY2022.
•	For reasons mentioned earlier, Bajaj Auto consciously curtailed presence here. Consequently, Bajaj Auto’s sales was an average of 53,746 units per month, with market share of 12.2%.

125cc segment: This segment recorded a double-digit growth in the domestic motorcycle market. Bajaj Auto is represented here by the Pulsar 125.

•	In FY2023, this segment grew by 20%.
•	Bajaj Auto’s sales in this segment grew 38%, market share improved by 300 bps to 23.9%.
•	Having introduced this sleek model in FY2020, it sold an average of 52,439 units per month through FY2023. We look forward to such impressive growth of the Pulsar 125 in FY2024 also.

150cc and above segment: This segment is the fastest growing and represents 22% of the domestic motorcycle market. Bajaj Auto is represented here by the Pulsar, Avenger, Dominar, KTM and Husqvarna brands.

•	In FY2023, this segment grew by 27%.
•	Bajaj Auto’s sales was an average of 41,002 units per month, with market share of 21.4%.

Irrespective of the market segments, Bajaj Auto is firmly entrenched in the domestic motorcycle market with the brand — Pulsar. For instance, Pulsar 125 is a much sought after bike. It is also worth noting that in FY2023, the Pulsar’s, as a brand, grew by 33% and sold over 1 million units annually in the domestic motorcycle market.

Probiking (KTM)

The probiking business consists of two brands: KTM and Husqvarna. The KTM brand and its models are well recognised across India. At present, the Husqvarna models are being seeded.

Unfortunately, production and hence sales in Q1 FY2023 were badly affected by the shortage of semiconductors. Consequently, the volume of KTM sales for FY2023 grew by 4% over FY2022. Thankfully, this crisis abated from the second quarter, and sales picked up. Thus, if we compare volumetric sales for nine-month period of FY2023 versus the same nine-month period of FY2022, KTM showed a growth of 16%. Chart C plots the sales of KTMs in India over the years.

Urbanite (Chetak EV)

In FY2021, this legendary brand was re-introduced as a best-in-class electric scooter. Woven together in this iconic design are simple lines and smooth surfaces – creating a thing of beauty and delight. It demonstrates the future of mobility, and offers a digitised, fully-connected riding experience by virtue of being embedded with mobility solutions like data communication, security and user authentication that enable customers to have a seamless ownership and riding experience.

The global semiconductor shortage that affected the industry right up to the first quarter of FY2023 also affected the Chetak. Thus, despite market demand, Bajaj Auto could not produce the quantities needed right up to the end of Q1 FY2023. Thereafter, the supply-side constraints eased, and we increased the manufacturing of the Chetak. To give an example, the Company sold 8,187 units in FY2022. This has risen to 36,260 in FY2023. Table 2 gives the data on domestic sales by BAL and Chetak Technology Ltd. (Wholly owned subsidiary of BAL).

Table 2: Domestic sale of Chetak EV (in numbers)
Year ended 31 March		Nos.		Growth
2020		212
2021		1,395		558%
2022		8,187		487%
2023		36,260		343%

The Chetak is currently sold through 105 dealers present across 84 cities.

Three-Wheelers (Domestic)

Three-wheelers has been a growth story. In FY2019, domestic sales for the industry were 690,425 units. This fell by 10% in FY2020. Thereafter, the Covid-19 lockdown crashed sales in FY2021 by a staggering 66% to 208,091 units. Thankfully, FY2022 saw an increase of 12% to 234,047 units. Finally, FY2023 has righted things. The three-wheeler markets picked up across India.

Our performance in this segment is in Table 3.

Table 3: Domestic sale of Three-Wheelers (in numbers)
Particulars		FY2023		FY2022		FY2021
Passenger carriers
Industry sales		329,784		166,147		127,790
BAL’s sales		261,386		130,172		81,618
BAL’s market share		79.3%		78.3%		63.9%
Goods carriers
Industry sales		81,309		67,900		80,301
BAL’s sales		38,623		30,427		27,686
BAL’s market share		47.5%		44.8%		34.5%
Total three-wheelers
Industry sales		411,093		234,047		208,091
BAL’s sales		300,009		160,599		109,304
BAL’s market share		73.0%		68.6%		52.5%

•	For the industry, sales picked up substantially to reach nearer to the pre-Covid levels. In FY2023 alone, the volume of sales went up by 76% to 411,093 units. This is especially gratifying because it signals that owners and operators are again back on track — aided by generous financing offers.
•	Bajaj Auto’s domestic sale of three-wheelers also grew by 87% to 300,009 units in FY2023.
•	Domestic sale of Bajaj Auto’s passenger vehicles more than doubled over the previous year to 261,386 units in FY2023.
•	In effect, in the domestic market, Bajaj Auto is the undisputed leader in all the segments.

International Business

Unlike in the recent past, FY2023 has been a difficult year for exports — thanks to serious geo-political uncertainties, as well as economic challenges like hyper-inflation and scarcity in availability of US dollars for key importing nations.

In FY2023

•	KTM recorded its highest ever volume of export sales.
•	We sold 1.8 million units versus 2.5 million vehicles in the previous year.
•	Though Bajaj Auto’s sales have declined, its market share across major geographies is largely intact.

Table 4 gives the export data.

Table 4: Export Volume and Value, for Bajaj Auto
Particulars		FY2023		FY2022		Change
Units
Motorcycles		1,636,956		2,195,772		-25.4%
Commercial Vehicles		184,284		310,854		-40.7%
Total numbers		1,821,240		2,506,626		-27.3%
Exports in K (crore)		14,458		16,934		-14.6%
Exports in USD (million)		1,787		2,172		-17.7%

Despite this, there are some geographical positives:

•	In Philippines, after the lifting of Covid restrictions, we increased the volume of motorcycle plus three-wheeler sales by 62%.
•	Similarly, we grew sales in Mexico and Peru.

In FY2023, exports as a percentage of Bajaj Auto’s net sales was 40.9%. Chart D plots our export performance over the years, both in value and as a percentage of the Company’s total net sales.

R&D

FY2023 was a challenging year with many regulatory changes for automotive products to be met under very tight timelines; and to work on numerous EV programs to strengthen our EV portfolio.

Products

N250 and F250 Twin Channel ABS with Black scheme

New generation high end Pulsar N250 and F250 have been upgraded with a Twin Channel Anti-Lock Braking system (ABS) and steel braided rear brake hoses enhancing rider confidence and safety during braking. The new all black colour greatly enhances the visual interest and overall vehicle appeal.

N160

N160, the younger sibling of the Naked N250 in next generation Pulsar line up, inherits all the features and drive away chassis from the N250, making it the best-in-class bike in terms of vehicle handling and rider comfort. The N160 was the first to bring the additional safety of the Dual Channel ABS to this segment. Its modern two-valve engine provides very good torque that gives excellent roll-on performance.

NS200 and NS160 upgrade

NS200 and NS160, our muscular streetfighter twins, have been upgraded with upside down fork suspension, twin channel ABS and an updated instrument console with a gear position indicator and fuel economy display. The upside down fork suspension enhance the bikes’ front-end rigidity — making it easier to drop into the corners and improves cornering stability. The twin channel ABS and steel braided rear brake hoses helped enhancing rider confidence and safety during braking.

P150 Single Disc and P150 Twin Disc

The all new P150 Single and Twin Disc are designed to ooze aggression. The models use a brand new 150cc air cooled power train, which delivers best-in-class performance and gear shift. Both bikes have brilliant class D LED projector head lamps that are bi-functional.

Low Speed EV

Bajaj R&D has developed a low-speed two-wheeler for Yulu — where the Company has a 19% stake — to address its needs for the shared mobility business. Yulu has launched two of these new e-bike variants in India, namely Miracle GR a personal use vehicle, and Dex GR a last-mile delivery vehicle.

Both have a claimed 25 kph top speed, hub-mounted motor and both these vehicles use swappable batteries to allow quick turn-around, an LED headlight and tail-lamp. The Dex GR gets a rear rack to support the load carried by delivery agents.

Realigning resources to meet new regulatory requirements

The Government of India has notified the following requirements to address fire safety concerns of electric vehicles as mandatory requirements for CMVR certification and for FAME II, PLI incentives:

•	AIS 156: This standard addresses the functional safety requirements for electric vehicles and traction batteries. Within it, Amendment 3 focuses on additional safety requirements for REESS / Traction Battery Packs, charger and battery cell requirements, as well as thermal propagation tests.
•	MHI guidelines: Ministry of Heavy Industry (MHI) also published an office memorandum dated 2 November 2022 mandating various cell / battery pack / BMS level tests, as pre-conditions for claiming FAME II / PLI scheme incentives.

Although, AIS 156 was issued earlier covering up to Amendment 1, the subsequent Amendment 3 plus the new MHI guidelines appeared suddenly in November 2022 — thus giving only four months for EV manufacturers to comply with these before 31 March 2023.

The BS6 OBD 2 norms were a big engineering change. The notification of the OBD norms splitting it into OBD 2A and 2B came in only in November 2022. The powertrain and vehicle configurations had to be adjusted to meet the new norms rapidly.

Alternate source needed for de-risking meant that R&D had to calibrate and homologate many more variants to meet these new norms. Over 47 variants had to be homologated. This was done in an organised manner. We are proud to state that the entire range of two and three-wheelers has been successfully homologated in time.

Operations

TPM

Bajaj Auto’s ‘back end’ consists of its Manufacturing, Engineering, Development and Materials functions. The principles and philosophy of TPM guide these functions in achieving excellence both individually and collectively to achieve the highest productivity, world-class quality, and lowest cost. ‘The TPM way’ has been successfully extended to include Bajaj Auto’s vendors, dealers and distributors

Bajaj Auto’s TPM at Operations

Bajaj Auto is ‘first in the industry’ in having all its manufacturing plants certified for the ‘Special Award for TPM Achievement’ by Japan Institute for Plant Maintenance (JIPM). In FY2020, the BAL Chakan plant was also conferred the ‘Advance Special Award for TPM Achievement’ which is a step behind the ‘World Class TPM’ award.

Bajaj Auto’s back-end has defined various ‘focused improvement themes’ which get constantly improved through TPM tools and techniques. In the last few years, we have established a production system that can flexibly respond to faster new product manufacturing and small-volume production of multiple items.

Further, to sustain all improvements and excel, we work on the ‘Bajaj Production System (BPS)’ which aims at ‘Better Flow with Better Quality’. Through this, we are in the process of aligning our efforts at the back-end to a ‘No Stock Production’ system encompassing the entire supply chain.

BAL engineering has developed capabilities for Digitisation and Industry 4.0 through its various verticals including automation and robotics. We strive to improve operations parameters through accelerating digital transformation in both production and process management.

Vendor TPM Activities

BAL seeks the co-existence and co-prosperity of our business partners based on mutual trust. We facilitate fair trade, environmentally preferable purchasing, human resources development, safety and health activities as well as more reinforced and efficient procuring that gives consideration to various risks.

The TPM concept is pervasive at Tier I vendors’ end with the help of BAVA (Bajaj Auto Vendors Association). Moreover, Bajaj Auto’s TPM practicing Tier I vendors have extended the TPM practices down the supply chain to their vendors.

Under the Safety, Health and Environment pillar of Bajaj Auto’s TPM and in alignment with the ‘Green Purchase Policy’, various activities were initiated — with the majority of our vendors having been certified for ISO 14001 and OHSAS 18001. Our 39 vendor groups have started with renewable energy and have implemented rooftop solar equivalent to 35 MW power.

We have also taken up a drive to maximise supplies to all our plants from vendors within the plant cluster. The majority of our supplies at respective BAL manufacturing locations are being done by vendors; located in each cluster. This has significantly shortened the length of our supply chain and reduced our carbon footprint.

TPM in Dealer Service and Overseas Distributor Plants

TPM methodologies are being continuously spread across our business partners in India and the other global locations. The tool is kaizen, which is well spread across our dealers and distributors.

We started the implementation of TPM at our international distributor plants. As of FY2023, 19 such distributor plants have been practicing TPM for over a year. Consequently, these are now experiencing improvements in manpower productivity, production rate, first-time-right quality and reduction in cost parameters. Four of our distributor plants were evaluated for the qualification criterion of the ‘BAL TPM Award’. All of them have experienced more than 30% growth in their KPI parameters. In FY2024, three more countries are expected to join the league of BAL TPM award.

As on 31 March 2023, we had 1,012 dealerships practicing TPM. As on 31 March 2023, 418 dealerships were awarded the ‘BAL TPM Award’.

Capacity and Employee Strength

Table 5: Plant-wise capacities (in units per annum) – BAL + CTL
Plant		As on 31 March 2023			Product Range
Waluj		Motorcycles	2,700,000		Boxer, CT, Platina, Discover, Pulsar
		Commercial Vehicles	930,000		Passenger Carriers, Goods Carriers, Quadricycle
Chakan		Motorcycles	1,200,000		Pulsar, Avenger, Dominar, KTM, Husqvarna
Chakan/Akurdi		Scooters	120,000		Chetak
Pantnagar		Motorcycles	1,800,000		CT, Platina and Pulsar
			6,750,000

As on 31 March 2023, total employee strength stood at 9,816. This includes Chetak Technology Ltd. (CTL) employee strength of 361.

Women Employment

Our women employee strength has grown over four times: from 148 in FY2014 to 694 in FY2023. Almost 62% of the women are working in the manufacturing plants and in engineering.

Human Resource

Over the last year, we have refined and focused on 4 key areas – capability building, employee engagement, learning and development, and employee wellbeing.

As part of our Capability Building, we have been able to recruit, invest, develop and promote internal talent and have attracted external talent for key leadership roles across functions and BUs. Thus, with focused efforts, we have been able to build a strong leadership and management cadre.

We launched Lean In which is a global community dedicated to helping foster leadership, advancement, and inclusion of women in the workplace, strategised and launched campus challenges-TORQ across 28 premier engineering colleges including top 8 IITs and IISc to attract the sharpest minds of the country and developed teams, from scratch, in record time with niche skills like EMI/EMC design, reliability engineering, IoT and OS reprogramming and mobile application development.

Through these and other initiatives, Chetak Technology Ltd. (our 100% subsidiary) has 54% female strength for L4 and below level, and 22% for L3+ level, which is the highest across all business units.

To strengthen Employee Engagement, we launched for the first time, a survey named Pulse across the organisation to gauge the overall engagement levels, identify the areas of improvement, plan focused interventions, and ascertain the impact of people interventions. The initiative received an outstanding response rate of 92%.

We also conducted various events throughout the year such as Mental Health Awareness Week and Women’s Week Celebration, Prodigy for celebrating the achievements of employee’s children and Disha as a career guidance service to boost the career of employees’ children in the right direction.

We recognise the importance of investing in the Learning and Development of our employees to keep up with the changing industry trends and technological advancements. By investing in our employees, we were able to stay ahead of the curve and continue to deliver innovative and high-quality electric vehicles to our customers.

We partnered with industry best trainers to provide training and certification in EV related fields. We collaborated with IIT Madras to upskill employees in EEE-related skills including software and launched a 6-month certification course on E-mobility and Electric Vehicle Engineering.

Charged and Supercharged were launched for R&D-GTE’s to equip them with foundational skills necessary to build an EV and also launched up!SURGE and up!SWING which focused on the learning and development of women employees.

As a part of Employee Wellbeing initiatives and aligning with our principles of ‘incorporating best market practices’ and ‘continuous improvement’, we have launched Paternity Leave Policy for our employees.

These initiatives have led us to winning multiple awards and recognitions such as:

‘Significant Achievement in HR Excellence’ as part of the CII National HR Excellence Award Confluence 2021-22

ET HR World Future Skills Awards 2022 under the category of ‘Best Approach to Implementing a Learning Experience Platform (LXP)’ and ‘L&D Future Leaders’.

Gold Award as part of the Brandon Hall Group Technology Excellence Awards 2022, under the category ‘Best Advance in Learning Management Technology (LMT)’

And our managers won The Great Manager Awards 2022 and received The HR40under40’s Future HR Leader Award.

Financials

Table 6 gives the summarised standalone profit and loss statement of Bajaj Auto. Table 6: Standalone Profit and Loss Statement
						(₹ In Crore)
Particulars		FY2023		FY2022		Growth%
Operations
Sales		35,359		32,136		10.0%
Other operating income		1,069		1,009
Total operating income		36,428		33,145		9.9%
Cost of materials consumed, net of expenditures capitalised		26,027		24,317
		71.4%		73.4%
Stores and tools		154		132
		0.4%		0.4%
Employee cost		1,443		1,356
		4.0%		4.1%
Factory, administrative and other expenses		1,086		948
		3.0%		2.8%
Sales and after sales expenses		1,167		1,131
		3.2%		3.4%
Total expenditure		29,877		27,884
Earnings before interest, tax, depreciation and amortisation (EBITDA)		6,551		5,261		24.5%
EBIDTA %		18.0%		15.9%
Interest		39		9
Depreciation and amortisation		283		269
Operating profit		6,229		4,983		25.0%
		17.1%		15.0%
Non-operating income		1,181		1,209
Less : Non-operating expense		1		2
Non-operating income, net		1,180		1,207
Profit before tax and exceptional item		7,409		6,190		19.7%
Exceptional item (Income) / Expense		–		(315)
Profit before tax		7,409		6,505		13.9%
Tax expense		1,781		1,486
Profit after tax		5,628		5,019		12.1%
Surplus cash and cash equivalents as on 31 March		17,445		19,090		-8.6%
Return on Operating Capital Employed (ROCE)		309%		214%

Our surplus funds are invested in (i) fixed income securities rated A1+ and equivalent for short term investments, (ii) AA+ and above rated securities for long term investments, and (iii) fixed deposits with banks and finance companies.

As required for listed companies by the Securities and Exchange Board of India (SEBI), Table 7 gives the key ratios.

Table 7: Bajaj Auto’s Key Financial Ratios, Standalone
Particulars		FY2023		FY2022		Remarks
Debtors Turnover Ratio		21.48		15.18		Revenue from contract with customers recording a growth and average receivables recording a decline
Inventory Turnover Ratio		19.83		17.86
Current Ratio		1.71		2.13
Operating Profit Margin		17.1%		15.0%
Net Profit Margin		15.0%		14.6%
Return on Net Worth		21.6%		19.4%

Subsidiaries

Bajaj Auto International Holdings BV (BAIH BV)

Bajaj Auto International Holdings BV (BAIH BV) is a 100% Netherlands based subsidiary of Bajaj Auto Ltd. Over the years 2007 to 2013, through this subsidiary, Bajaj Auto has invested a total of €198.1 million (₹ 1,219 crore) and holds 49.9% stake in Pierer Bajaj AG (PBAG). 50.1% in PBAG is held by the Pierer Group.

Pierer Bajaj AG (formerly PTW Holding AG) holds 73.3% stake in Pierer Mobility AG (PMAG). Pierer Mobility AG is Europe’s leading ‘Powered Two-wheeler’ manufacturer with focus on highly innovative sports motorcycles and electric mobility-E bicycles, E motorcycles, etc. With its KTM, Husqvarna and GASGAS motorcycle brands, it is a leading premium motorcycle manufacturer in Europe.

Bajaj Auto is a partner in all mobility businesses that the Pierer Group engages in.

In the year 2022, PBAG recorded a strong performance with revenues in excess of €2.4 billion (growth of 19.5% over 2021) and a profit of €125 million.

Chetak Technology Ltd. (CTL)

In the electric vehicle (EV) market, two-wheelers are expected to have an early advantage, especially given the various incentive schemes from the Government of India and various state governments. In FY2023, the market size was estimated at over 300,000 units annually.

Given a high stake, Bajaj Auto felt the need to participate in this space through a 100% subsidiary called Chetak Technology Ltd. (CTL), with a clear focus to develop new technologies and products, to have dedicated manufacturing, sales, after-sales and to offer customer centric experiences.

The subsidiary formed on 4 October 2021 with initial paid-up equity share capital of ₹ 5 crore, stands adequately funded with paid-up equity share capital of ₹ 470 crore as on 31 March 2023. That apart, a new state of the art manufacturing facility at Akurdi is being set up with planned investments in excess of ₹ 200 crore.

For FY2023, CTL sold 4,873 units, generating a total operating income of ₹ 81 crore and recorded a net loss of ₹ 77 crore. As on 31 March 2023, CTL’s employee strength stood at 361.

Bajaj Auto (Thailand) Ltd.

Bajaj Auto (Thailand) Ltd. is a wholly owned subsidiary in Thailand with an issued and subscribed share capital of Thai Baht (THB) 45 million (₹ 10 crore). An Engineering Design Centre (EDC) is set up under this subsidiary.

Bajaj Auto (Thailand) has all necessary approvals from local authorities. The EDC is operational and international designers are working from this new facility in Bangkok.

Bajaj Auto Spain S.L.U.

Bajaj Auto Spain S.L.U. is a wholly owned subsidiary in Barcelona, Spain – intent being to setup an Engineering Design Centre – with an issued and subscribed share capital of €600K (₹ 5 crore).

The EDC has just started operations with the facility being set-up and is expected to be fully operational in the coming year.

Bajaj Auto Consumer Finance Ltd. (BACFL)

With over two-thirds of two-wheelers and over three-fourths of three-wheelers retailed in India being financed, this activity is the key to the automobile business. Penetration, geographic coverage and expanding financing options for the retail customers of Bajaj Auto Ltd. and Chetak Technology Ltd. are the keys to success in future.

A wholly-owned captive financing company has been formed. This new subsidiary with a paid-up equity share capital of ₹ 30 crore has applied to the RBI for an NBFC license and is drawing up plans to set up a new organisation, infrastructure and processes. Once operational, Bajaj Auto will be positioned to offer an increased variety of financing options to its business partners and retail customers through this new NBFC.

Bajaj Do Brasil Comercio De Motocicletas Ltda

Brazil is an important market for motorcycles in Latin America. To address this motorcycle market in Brazil, Bajaj Auto has set up a wholly owned subsidiary on 31 March 2022 with a paid up equity share capital of BRL 30 million (₹ 48 crore).

The subsidiary has just started operations after obtaining all necessary approvals and has currently introduced the Dominar 160, 200 and 400 range of motorcycles in this highly competitive market. Full scale operations are likely to commence in the coming year.

Consolidation of accounts and segment reporting

Table 8: Segment Revenue and Segment Results
				(₹ In Crore)
Segment Revenue		FY2023		FY2022
Automotive		36,665		33,272
Investment and others		978		1,157
		37,643		34,429
Segment Results Profit/(Loss) from each segment before tax
Automotive		6,905		6,505
Investment and others		976		1,155
		7,881		7,660
Less: Interest		39		8
Profit before tax		7,842		7,652
Profit after tax		6,060		6,166

Corporate Social Responsibility (CSR)

Bajaj Auto is focused to build competence around selected areas and create large scale impact. During FY2023, it focused on

Skilling Initiatives

As a part of Skilling Initiatives, two large scale programs have been launched.

A. Bajaj Engineering Skills Training (BEST)

The objective is to make the youth ready for industry 4.0 by skilling them in current and evolving technologies. A focused curriculum is developed in 4 modules and setting up Industry relevant equipment across Universities and Engineering colleges for practical applications. The modules and labs for these topics have been designed leveraging experts from Bajaj Auto Engineering team and in consultation with external stakeholders like CII, ACMA, ASDC and Academia.

The primary target beneficiaries for the program are Diploma and Graduate engineers from tier 2 and tier 3 colleges/institutes/locations. The duration of such courses is designed to be between 4-6 months with a combination of 70% practical and 30% theory. The center will also cater to various other short term skill trainings, covering both fresh skilling and upskilling.

B. Bajaj Manufacturing Systems (BMS) Certification program

Bajaj Auto has been implementing manufacturing system and processes as per the TPM (Total Productivity Management) philosophy. Basis the research and an understanding of ITI ecosystem, it was realised that students in these institutions do not get exposure to latest manufacturing systems and processes implemented in the industry.

To better equip the students, Bajaj Auto has developed an innovative and interactive digitised self-learning content with real life and industry examples. These modules are going to be hosted via online Learning Management System (LMS) and will provide free access to students. The first phase of pilot will be conducted in the year 2023 across ITI’s in Maharashtra. Basis the learnings and experiences, this will be expanded across the entire state of Maharashtra and then PAN India.

Education programs in and around our local area

A. Science Technology Engineering Mathematics (STEM) Education in schools: Bajaj Auto has implemented STEM education in schools and tuition centers to support school children with academic classes which will enhance their interest in STEM subjects. It also has set up science labs in schools and trained teachers to adopt applied learning.

B. Vocational Education in schools: Bajaj Auto is supporting ‘Lend A Hand India’ for a three-year intervention aimed at improving access and quality in delivery of education in secondary/higher secondary schools in the state of Rajasthan and Uttarakhand. The project has two primary objectives. To launch skill vocational education program in 20 schools (10 schools each at Sikar in Rajasthan and Udham Singh Nagar in Uttarakhand) and

To provide technical and project management support to the State governments of Rajasthan and Uttarakhand in scaling the vocational education in 1,105 schools (905 in Rajasthan and 200 in Uttarakhand). Overall, the program seeks to reach out to 121,600 students through a blend of direct and systemic capacity building interventions.

C. Scholarships for Higher Education: Bajaj Auto has initiated ‘Rupa Rahul Bajaj Scholarship Program’ to support students from underprivileged background to take higher education in reputed Universities and colleges. A detailed process is laid down to select students who will be eligible for scholarship. To start with, from FY2024, 10 students have been extended the financial support for four years. This program will be scaled up to create a pipeline for BEST initiative.

D. Bharatiya Yuva Shakti Trust (BYST-Youth Entrepreneurship Development Program)

The program, run by BYST, includes supporting underprivileged young entrepreneurs by supplementing financing based on the assessment done by the mentors assigned to them who are drawn from the similar industry and who gives voluntary personalised advice and support. The young entrepreneurs are nurtured till they reach a level where not only are self-sufficient, but they in turn make a valuable contribution to society through creation of wealth and employment. Bajaj Auto has commitment to mentor 1,000 youths through BYST and help them build their enterprise.

Programs under Environment sustainability

A. Bajaj Water Conservation Project (BWCP): The Bajaj Water Conservation Project was launched in 110 villages of Gangapur and Aurangabad Talukas of Aurangabad district, where a total of ₹ 123 crore was funded by Bajaj Auto and the community contributed ₹ 46 crore for the project. The key activities undertaken during second phase were water resource development, capacity building, livelihood enhancement through alternate livelihoods, soil conservation and plantation, water use efficiency and productivity enhancement.

B. Animal Welfare: Bajaj Auto is supporting Canine and Care and Control under Animal Welfare. The organisation works under 5 day program for Animal Birth Control (ABC) starting from catching of canine, spaying, post operative care for 2 days and to release of same canine in same area. In FY2023, a support was provided for ABC (Animal Birth Control) of Canine Population in Pune Municipal Corporation area. Along with ABC, these canines get vaccinated for Rabies.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Company’s objectives, projections, estimates and expectations may be ‘forward looking’ within the meaning of applicable laws and regulations. Actual results may differ from those expressed or implied. Important factors that could make a difference to the Company’s operations include global economy, political stability, stock performance on stock markets, changes in government regulations, tax regimes, economic developments and other incidental factors. Except as required by law, the Company does not undertake to update any forward-looking statements to reflect future events or circumstances. Investors are advised to exercise due care and caution while interpreting these statements.