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Bajaj Auto became the first company in two-wheeler to cross 1 lakh crore market

Bajaj Auto on Friday surpassed a market cap of Rs 1 lakh crore after its shares closed 1% higher at Rs 3,482.8 a share. It is the most valuable two-wheeler manufacturer in the world.

History of Bajaj Auto

Bajaj Auto Limited is an Indian multinational two-wheeled and tricycle manufacturing company headquartered in Pune, Maharashtra, specializing in the manufacture of motorcycles, scooters and car trailers. The Bajaj Group, founded by Jamnalal Bajaj in Rajasthan in the 1940s, is headquartered in Pune, Maharashtra, with factories in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttarakhand.

The oldest factory in Akurdi (Pune) is currently the headquarters of the R&D center ‘Ahead’. Bajaj Auto is currently the third largest and second largest motorcycle manufacturer in India and the largest manufacturer of three-wheeled vehicles in the world. As of May 2015, it had a market capitalization of 64,000 crore (US $ 9.0 billion), which made it to be 23rd largest in India and became the largest publicly traded company by market value. On 2012, It was listed by Forbes Global 2000 at 1,416 units.

Bajaj Auto Today

Bajaj Auto became the first two-wheeler company globally to cross-market capitalization of Rs 1 lakh crore. The company’s share price closed at Rs 3,479 per share on NSE taking its market capitalization of Rs to 100,670.76 crores. The stock has gained 11 per cent over the year with the 79 per cent rally in March highs helping to reach the milestone. The market’s current capitalization is 63 per cent higher than Hero MotoCorp and 43 per cent larger than Eicher Motors, its closest peers.

The company’s strong emphasis on the category of motorcycles and its unwavering commitment to differentiation strategies as well as the practice of total efficient maintenance combined with global ambition has today made Bajaj the world’s most valuable two-wheeled company, empowering them to serve and delight customers worldwide even more, as reported by Rajiv Bajaj, the company’s managing director.

Even as domestic volumes for the sector have been a sluggish, strong export volumes have helped the company offset the weakness in the domestic market. The company reported a 5 percent growth in volumes driven largely by exports which was up 14 percent even as domestic volumes were down 4 percent.

According to the company, the Pune-based company is selling brands such as Pulsar, Boxer, Platina and RE in more than 70 countries. What should help to boost exports is the company’s strategy to increase its presence in the existing and new markets for both motorcycles and three-wheeled vehicles of the automotive sector within this two-wheeled space with export revenue of R12,000 million in the domestic market. The company has been receiving a share in the management sector with the Pulsar 125cc and could gain momentum as the urban markets open. Strong export prices of and the presence in high-end categories such as advanced motorcycles and three-wheelers have helped the company Bajaj Auto trade a small premium to Hero MotoCorp in one year.

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