Bajaj Auto Ltd, the country's second largest two-wheeler manufacturer, is planning to set up its own assembly units in various locations outside India for catering to specific markets.To begin with, the company is sitting on high cash reserves and is contemplating setting up its first plant in Indonesia within the next 9-12 months.Having already sold about 1000 motorbikes in Indonesia, the company is currently studying the market for this assembly plant. According to Sanjiv Bajaj, vice president (finance), BAL, "We will soon be introducing 3-wheelers in Indonesia. In the meanwhile, we are studying the market to offer the best price to our customers. We are looking at various options available for localization in order reduce our input costs. Once this plant becomes functional, it will specifically cater to the South East Asian markets."Bajaj said that the long-term direction of company was to opt for a similar approach. "Besides expanding our presence in existing markets, we will look at specific locations that can play a key role in catering to new markets. The next location after Indonesia maybe Brazil, which will cater to our Latin American market," Bajaj said. BAL's ever-increasing export market is another key factor that has propelled the company to think of setting up assembly plants in different locations. As a result of increasing exports, BAL intends to be closer to its customers. Currently, Bangladesh and Sri Lanka account for 60 per cent of their export market. This is followed by South America, which accounts for 25 per cent. Middle East and Africa are new entrants to this list. BAL has sold 1.5 million vehicles this year and is expected to register a turnover of about Rs 6000 crore. Of this, exports account for 10 per cent. In what could be the next big thing in the gearless scooter segment after Honda Activa, BAL is also geared up to launch the "Wave" in the first half of the next fiscal. Other launches during the same period include Super 100, which has undergone a re-work on the Kawasaki engine, and K-60. The company will also launch a new version of the Chetak scooter. Its flagship product, Bajaj Pulsar, is currently selling nearly 27,000 units per month.
