In the last four decades, Bajaj Auto CEO has shaped the history of India Inc. Sometimes, he has been left out. By karan mehrishi
Within the business journalism circle, he’s known as the ‘quote’
master. In case any hack needs a comment or two on seemingly controversial macro issues, his or her first reaction is to call up Rahul Bajaj, Chairman, Bajaj Auto. Invariably, Bajaj will make a crisp and cutting remark. The reason: Bajaj is probably one of the few Indian industrialists who are not afraid of anyone – neither policy makers, cabinet ministers, nor other promoters. He has the ability to criticise anyone – if he thinks it’s right to do so.
Bajaj will say it the way he feels and thinks about any issue. If people don’t like it, so be it. But he is unlikely to change his views for politically correct reasons. As S. Ramnath, Director, IDFC SSKI Securities, opines “I think he is very bold and dynamic personality and has the guts to talk about almost anything. He is least afraid of the media unlike many other personalities. Bajaj has passed through success and difficult times. He is very blunt about what he says but he is also open to questions.”
Therefore, it wasn’t surprising that Bajaj emerged as one of the key players in the second Bombay Club, which was informally formed in 1993, to combat the negative impact of economic reforms and liberalisation on the then existing Indian business houses. (The first Bombay Club, comprising leading industrialists as was the case with the second one, was formed in 1946 under the late J. R. D. Tata, and it submitted an exhaustive economic and business blueprint for an independent India.)
The Bajaj-led Bombay Club wasn’t against reforms per say; it was against the possibility of Indian firms being swamped by foreign MNCs due to reforms. Bajaj believed, as he still does, that in the early 1990s, there was no level-playing field between the Indian promoters and foreign MNCs, that many of the policies seemed skewed in favour of the latter. Thus, the second Bombay Club wanted the then Congress Government to go slow on reforms until the Indians could effectively compete with foreigners.
Within the business journalism circle, he’s known as the ‘quote’
master. In case any hack needs a comment or two on seemingly controversial macro issues, his or her first reaction is to call up Rahul Bajaj, Chairman, Bajaj Auto. Invariably, Bajaj will make a crisp and cutting remark. The reason: Bajaj is probably one of the few Indian industrialists who are not afraid of anyone – neither policy makers, cabinet ministers, nor other promoters. He has the ability to criticise anyone – if he thinks it’s right to do so.Bajaj will say it the way he feels and thinks about any issue. If people don’t like it, so be it. But he is unlikely to change his views for politically correct reasons. As S. Ramnath, Director, IDFC SSKI Securities, opines “I think he is very bold and dynamic personality and has the guts to talk about almost anything. He is least afraid of the media unlike many other personalities. Bajaj has passed through success and difficult times. He is very blunt about what he says but he is also open to questions.”
Therefore, it wasn’t surprising that Bajaj emerged as one of the key players in the second Bombay Club, which was informally formed in 1993, to combat the negative impact of economic reforms and liberalisation on the then existing Indian business houses. (The first Bombay Club, comprising leading industrialists as was the case with the second one, was formed in 1946 under the late J. R. D. Tata, and it submitted an exhaustive economic and business blueprint for an independent India.)
The Bajaj-led Bombay Club wasn’t against reforms per say; it was against the possibility of Indian firms being swamped by foreign MNCs due to reforms. Bajaj believed, as he still does, that in the early 1990s, there was no level-playing field between the Indian promoters and foreign MNCs, that many of the policies seemed skewed in favour of the latter. Thus, the second Bombay Club wanted the then Congress Government to go slow on reforms until the Indians could effectively compete with foreigners.
In retrospect, Bajaj was right. Hundreds of Indian business houses, promoters, and companies fell victims to the foreigners. In many cases, where the foreigner had joint ventures with Indian partners, the former forced the local promoters to sell out. In sector after sector, there was a deluge of foreign presence. The situation still exists in several sectors such as consumer durables, consumer electronics, white goods, & FMCG. But despite the intensity of the corporate warfare witnessed in the 1990s, Bajaj has emerged as one of those rare survivors.
The fact is that Bajaj Auto has transformed from a Rs.72 million company to a Rs.46 billion conglomerate within Bajaj’s span at the helm of affairs is an indicator of the patriarch’s vision. Today, Bajaj Auto is one of the most cash-rich companies. Surprisingly, this has not only helped his business grow but also made him more popular among the Indian public. His opinions have earned him the respect of the masses and the business community in the same way.
Sirish Chandran, Executive Editor, Overdrive magazine (which along with ICICI Bank honoured Bajaj by inducting him in the ‘Indian Automotive Hall of Pride’ in 2003), describes, “Rahul Bajaj is a visionary and he is looking towards the future by expanding beyond the traditional two-wheeler market and branching out in four wheelers.” Adds Dilip Chenoy, Director General, Society of Indian Automobile Manufacturers, “Rahul Bajaj has been associated with SIAM since its inception in 1960; he has been its president in 1976-77. His involvement and contribution has been substantial. Even today, his views and recommendations are highly sought after.”
However, to be unfair to the man, Bajaj hasn’t always read the writing on the wall in time. During the 1980s, many Indian promoters took the stockmarket route to raise easy funds to expand and grow. But Bajaj simply refused to join the party. And he didn’t have to. Unlike other promoters, Bajaj was in a sellers’ market; whatever scooters he made, he sold them at attractive prices. In many cases, there were long queues to buy Bajaj’s models, just as was the case with cars. So, Bajaj was sitting on a mountain of cash, his cash was cheaper than even the one that was being raised through public issues.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
The fact is that Bajaj Auto has transformed from a Rs.72 million company to a Rs.46 billion conglomerate within Bajaj’s span at the helm of affairs is an indicator of the patriarch’s vision. Today, Bajaj Auto is one of the most cash-rich companies. Surprisingly, this has not only helped his business grow but also made him more popular among the Indian public. His opinions have earned him the respect of the masses and the business community in the same way.
Sirish Chandran, Executive Editor, Overdrive magazine (which along with ICICI Bank honoured Bajaj by inducting him in the ‘Indian Automotive Hall of Pride’ in 2003), describes, “Rahul Bajaj is a visionary and he is looking towards the future by expanding beyond the traditional two-wheeler market and branching out in four wheelers.” Adds Dilip Chenoy, Director General, Society of Indian Automobile Manufacturers, “Rahul Bajaj has been associated with SIAM since its inception in 1960; he has been its president in 1976-77. His involvement and contribution has been substantial. Even today, his views and recommendations are highly sought after.”
However, to be unfair to the man, Bajaj hasn’t always read the writing on the wall in time. During the 1980s, many Indian promoters took the stockmarket route to raise easy funds to expand and grow. But Bajaj simply refused to join the party. And he didn’t have to. Unlike other promoters, Bajaj was in a sellers’ market; whatever scooters he made, he sold them at attractive prices. In many cases, there were long queues to buy Bajaj’s models, just as was the case with cars. So, Bajaj was sitting on a mountain of cash, his cash was cheaper than even the one that was being raised through public issues.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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