Aah!!! Wasn't thinking on these lines!!! Atleast for this reason, I should start getting crazy about BAL products!!! Now my respects have gone even more for BAL.

But they did something long back that no other Indian company did (just like to recall), bought Jackie Chan for marketing Discover.

OTOH, can you guys even recall any of HMSI's ad? They are literally misery/stingey when it comes to ads!!! Their ads appear only when there's a new launch or some stickered/upgrade on existing products appear.

I sense sarcasm there... Is it...?

Yes for people who think every comment is sarcastic!!!
Edit - Add this one too - http://www.xbhp.com/talkies/712512-post.html

That. When they were going 'global' with discover me thinks

Just asking... Genuine praise for BAL from non users is very rare you know...

They were almost zero before 2000/2001 & they stand #2 in the country, that too with their own R&D & own products (non stickered ); I've always said & will say...I've my respects & admiration for BAL; If I don't own a BAL product, it doesn't mean I hate them; products & company are two different things to me, especially when I consider myself as fan of products & not a fan boy!!!

Just because people governing the country are bad, its not necessary that I should hate my country isn't it?

+1

You have won a fan sir..

Just the standard lambasting of Bajaj gets me into stereotyping mode sometimes...

A few more reasons for their high profitability-

1. They don't need to pay a large chunk of their profit to a parent company as royalty.
2. BAL also has been doing very well in the export market and giving due importance to it.
3. BAL has stakeholdings in other companies. For example, even when Tata sales were taking a hit in India, the quarterly results were good thanks to JLR. Similarly for BAL.


EDIT: I am not very computer savvy and so I do not know how to post links etc. But some info of Bajaj and its largest competitor Hero from Economic Times-

Hero MotoCorp- Financials

Q1 / 2011 Ann 2011
Total Income Cr 5,772 19,491
BIT Cr. 666 2,318
PAT Cr. 558 1,928
EPS (Rs.) 27.94 96.55
Market Cap (Rs Cr.): 39,067


Bajaj Auto- Financials

Q1 / 2011 Ann 2011
Total Income Cr. 4,850 16,860
EBIT Cr. 953 3,538
PAT Cr. 711 3,340
EPS (Rs.) 24.57 115.42
Market Cap (Rs Cr.): 43,198

PS- As this information is copy-pasted from ET, I cannot guarantee that it is 100% accurate.

ET is mostly 100% acurate...

Just a correction:

Market Cap is not the right way to compare Profit. The correct way of gauging profit in Business is to compare the PAT & EBIDTA figures..

PAT: Profit After Tax
EBIDTA: Earnings Before Interest, Taxes, Depreciation and Amortization

When the product of a company is itself a big brand like "PULSAR" ,one really doesn't need to spend too much on ads.They have a strong brand and hence no need for a brand ambassador,no other company in India has this kind of a product,that's why they were able to achieve this.

Thanks bro, but I know that I was just surprised to see BAL with a higher market cap. thats all.
What I was trying to show was that even though the total income of Hero is 5772 crores its PAT is 558 crores. While Bajaj with lower total income of 4850 crores has a higher PAT at 711 crores. I guess I highlighted the wrong figures in my previous post

I can't understand one thing. When I own a 2007 model Pulsar happily, and it has provided me all the reliability I needed, even on long trips, stunting, commuting, etc., why do you expect the new Bajaj bikes to have a problem in 2011?
Wake up man. Its not 2003 whereby you can blame Pulsars in the matter of quality..

Owners don't exactly have much of a big problem. Its these keyboard warriors doing all the bashing...
Somebody please give this guy a Pulsar and send him to Himalayas... Then he'll know! And ask him which bikes are used in MTV Stuntmania...

+1 ditto for me...

The key factor contributing to Bajaj's profitability is parts-sharing in their model line-up. For example take Discover, apart from mentioning 100-125-150, nobody can really tell you which one it is from front!! that kind of parts sharing between models results in huge economies of scale at backend and contributes a lot to the model's profitability.


a bit of OT, I think this thread is going to see a lot more flaming comments and finally going to be locked up just like the earlier ones related to Bajaj !! personally i've seen gear box problems in n number of Hunks & good number of Unicorns requiring engine over haul even before hitting 10k km on the odo, so I don't think Pulsars are any more reliable/unreliable than the competition. It's just the matter of perception.