Bajaj has the potential to be a world-class company

COMING to think of it, Tomotaka Ishikawa, advisor at Bajaj Auto since April 2008, has not made much of a transition. After all, there is so much to separate from Truly Yamaha and Hamara Bajaj. Both are truly yours for this turnaround man and Yamaha lifer. The former Yamaha India managing director, known for reviving the Japanese firm's fortunes in Thailand and later in India, hopes to weave the same magic into Bajaj Auto's sales. Short, bespectacled, and clothed in a Bajaj Auto Tshirt, Ishikawa has just finalised a three-year plan with Rajiv Bajaj, MD of Bajaj Auto, to get the company back on its wheels after struggling to keep pace with market leader Hero Honda in the last couple of years. Ishikawa is confident that he will make Bajaj Auto a niche, high value player and help its exports double in three years. Lijee Philip andKausik Datta caught up with the turnaround expert in recently, where he talked at length on product plans and global strategy...  Given Bajaj Auto's strategy to be distinctly ahead by developing itself as a life-style brand across global markets, what exactly is your mandate in the company?  I am an advisor to Bajaj Auto, with no specific roles. Certain emphasis is given on product and growth planning. I am trying to set up a procedure for a three-year planning. I tried last year but I failed. It may take three years to make a three-year plan!  What is the objective of the three-year plan? When was it implemented? Why did it fail initially?  We intend to start the plan by February 2010. The plan is about the future — which segment of the market or which customer or the product the company should target. This will help Bajaj Auto achieve its target of exporting 1.2 million vehicles in three years against the current level of six lakh units. We are currently outlining the new markets, deciding on the priority of product launches. Once that is set, we can have a clearer picture of cash flow. I want Bajaj Auto to take the three-year plan seriously. Last year, I set up a process and couldn't attain a certain level in the product planning area. I struggled to get consensus and approval from Rajiv (Bajaj) and it took a little too long. So now we have started again, with a different process. But I cannot unveil the strategy.  Can you specify the target of this plan?  My idea may not be Rajiv's idea as yet. Bajaj Auto is trying to do unique things in the Indian market as compared to Hero Honda. We are trying to be number one and Bajaj has the potential to be a world class company. Rajiv's idea hasn't changed since he has introduced the Pulsar and the product has been gaining market share steadily. I think it's a miracle, for a company without any support or technology, to attain a market share of 25% within 10 years.  What do you mean by a world-class company?  You should have your own technology. The sales volume should be very close to the big four Japanese players. We have already touched the two million level, and will be bigger than Kawasaki. We are major players in African markets, but the Chinese have flooded the markets. We are not necessarily number one in many countries. But with this technology, performance and quality, we can produce products at very low cost with quality.  What about the Indian market?  We have been trying many different things to challenge Hero Honda sales but it has only confused the customer. We went back to the Discover, the 110cc bike and sales started growing from September last year. Our thrust is, not to grow the same way as Hero Honda, but to educate the customer so that they have a better choice. We don't want to be like the Chinese, discounting products as we care for the brand. Our patience and consistence is helping us and I believe it is the right direction.  What's your strategy in the overseas market?  Bajaj Auto can take the road that Japanese took 40 years ago. That was the market of motorcycles and prices were expensive. Japanese gave smaller motorcycles at a cheaper price. Now Japanese are struggling to be in the commuter segment because of high cost. Many manufacturers have started buying from China, resulting in a big gap in quality between Chinese and Japanese bikes. Many of the Chinese products are unacceptable by mature markets. So I think we have a lot of potential to attack with Japanese products at Chinese prices.  What about three-wheeler market?  We have to know who we are and why we are here. The confusion is that we are using the technology of a two-wheeler to sell a three-wheeler. If we push ourselves like the Tatas, we will be nowhere. Our task is to upgrade and evolve our current products.  Is working at Bajaj Auto different?  It is completely different in terms of management. The Japanese companies are very bureaucratic and very established with a lot of work done systematically. Strategic discussions are scarce, once in a year where we talk about mid-term planning. Here in Bajaj Auto they talk strategy everyday.      lijee.philip@timesgroup.com