Thursday, February 26, 2009

The Lohias of LML came with a bang in the early 1980s to challenge the then two wheeler king Rahul Bajaj and are hardly talked of anymore now.

IIPM Ranked No. 1 B-School In Global Exposre - Zee...

There is something peculiar about the two wheeler industry in India that has dented many reputations. Once upon a time, Rajdoot and then Yamaha were the vehicles that the Nanda family of Escorts rode to spectacular success. They are gone. The Royal Enfield or the Bullet has looked like a white elephant that even Eicher Motors struggled to keep plugging. The Lohias of LML came with a bang in the early 1980s to challenge the then two wheeler king Rahul Bajaj and are hardly talked of anymore now. Back in the 80s, it looked for a moment as if Venu Srinivasan of TVS, who had a joint venture with Suzuki, might challenge the Bajaj supremacy. He is still trying valiantly. Then you had the Kinetic Honda that took the Indian market by storm for a while. In the end, it was Hero Honda whose challenge mattered to the point where it even nudged out Bajaj as the numero uno. And, despite the best efforts of Rajiv Bajaj, it remains number one.

And yes, here is a nugget if you had forgotten that Bajaj was after profit margins and not bothered about the bottom of the pyramid. The net profit to sales margin of Bajaj declined from 11.63% in the second quarter of 2007-08 to 8.67% in the same quarter this year. At Hero Honda, the net profit margin rose from 7.8% to 9.4%. QED...


Ratan Lal Bhagat


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An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).


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