Back to some months before this quarter. In what followed as a rapprochement, Rajiv was given the mantle to manage Bajaj Auto’s manufacturing division while younger Sanjiv was given the financial 
portfolio. Creeping out of nowhere, their younger cousin Kushagra Bajaj (son of Shishir Bajaj & Rahul Bajaj’s nephew) suddenly alleged that his uncle Rahul Bajaj wanted to take control of Bajaj Hindustan, a company which, according to Kushagra, grew manifold under his capacity as Joint MD. Though this was rubbished by Rahul, the eventual media hype ensured miles of bad PR. This fiasco made one thing apparent to the company watchers – the fact that Rahul and his two sons were getting to manage the flagship company had become a source of discomfort among other brothers!
Stunning was the news of the much hyped demerger of Bajaj Auto into three separate companies (announced just two months back), and of the creation of five separate business units within these companies (announced just two weeks back, with one of them going into the four wheeler business), as this all but vindicates the infighting storyline. The three way demerger will create three entities with a $1.2 billion holding company owned 100% by current Bajaj ownership. This entity will hold 30% each in both the $330 million Bajaj
Auto (engineering) and the $180 million Bajaj Finserv (finance).
Though the demerger has been branded as a value unlocking exercise for shareholders, it is believed that this is to ensure that technically, only fragmented parts of the company are actually controlled by Rahul’s sons. The funny part is, all these disputes seem to be helping the shareholders! Bajaj Auto’s share price has grown 182% in the past three years (as on July 26, 2007); Bajaj Electricals by 1154%; Bajaj Hindustan by 198%; Bajaj Auto Finance by 347%. So where does this all lead the Wild Hogs party to?
portfolio. Creeping out of nowhere, their younger cousin Kushagra Bajaj (son of Shishir Bajaj & Rahul Bajaj’s nephew) suddenly alleged that his uncle Rahul Bajaj wanted to take control of Bajaj Hindustan, a company which, according to Kushagra, grew manifold under his capacity as Joint MD. Though this was rubbished by Rahul, the eventual media hype ensured miles of bad PR. This fiasco made one thing apparent to the company watchers – the fact that Rahul and his two sons were getting to manage the flagship company had become a source of discomfort among other brothers!Stunning was the news of the much hyped demerger of Bajaj Auto into three separate companies (announced just two months back), and of the creation of five separate business units within these companies (announced just two weeks back, with one of them going into the four wheeler business), as this all but vindicates the infighting storyline. The three way demerger will create three entities with a $1.2 billion holding company owned 100% by current Bajaj ownership. This entity will hold 30% each in both the $330 million Bajaj
Auto (engineering) and the $180 million Bajaj Finserv (finance).Though the demerger has been branded as a value unlocking exercise for shareholders, it is believed that this is to ensure that technically, only fragmented parts of the company are actually controlled by Rahul’s sons. The funny part is, all these disputes seem to be helping the shareholders! Bajaj Auto’s share price has grown 182% in the past three years (as on July 26, 2007); Bajaj Electricals by 1154%; Bajaj Hindustan by 198%; Bajaj Auto Finance by 347%. So where does this all lead the Wild Hogs party to?
For Complete IIPM Article, Click here
Source: IIPM Editorial, 2008
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Source: IIPM Editorial, 2008
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Home Campus Tour Contact Us Sitemap IIPM Think Tank IIPM National Brochure IIPM in Media India Today & Tomorrow
Strategic Alliance / Consulting / Intellectual Tic-up Partners Arindam chaudhuri GIDF Planman Consulting Business & Economy 4Ps Business & Marketing The Sunday Indian The Daily Indian Kkoooljobs.com
Strategic Alliance / Consulting / Intellectual Tic-up Partners Arindam chaudhuri GIDF Planman Consulting Business & Economy 4Ps Business & Marketing The Sunday Indian The Daily Indian Kkoooljobs.com
