Hamara Bajaj, the faction dominated by Rahul Bajaj, is one of them. They are celebrating their 100 anniversary this year and the fifth generation has already entered the scene. Founded in 1926 by Jamnalal Bajaj, often described as Mahatma Gandhi’s fifth son, the strategic plank on which the Bajaj’s foundation was built rested on Gandhian philosophy: simple living, high thinking, trusteeship over wealth and nationalism before profits.
A century of reinvention
Over the years, the group evolved from a trading house into one of India’s most respected conglomerates. After Jamnalal Bajaj’s death in 1942, his son Kamalnayan expanded the business post-Independence by entering automobiles, electricals, steel and travel. His elder son, Rahul Bajaj, must be credited with transforming the Bajaj Group into a global powerhouse while remaining a strong nationalist. In 1965, at the age of 27, Rahul took over when the turnover was Rs 7.5 crore. Today, it is at Rs 62,905 crore! The Chetak scooter became a symbol of middle-class aspiration. He steered the company through the licence raj era and later liberalisation, making it one of the world’s leading two- and three-wheeler manufacturers.
Today, Rahul Bajaj’s two sons, Rajiv and Sanjiv, along with their cousins Niraj (Mukand Ltd) and Shekhar (Bajaj Electricals), run a clutch of 40 companies and over 100 entities, including subsidiaries and affiliates globally, focusing on two-wheelers, finance, electric mobility and global operations. The top companies in the group, as measured by market capitalisation, are Bajaj Finance, Bajaj Finserv, Bajaj Auto, Bajaj Housing Finance and Bajaj Electricals. The combined market capitalisation of these entities is around USD 148 billion.
Navigating the splits
Like all business families, the House of Bajaj too witnessed a bitter family feud between Rahul Bajaj and his younger brother, Shishir Bajaj. The dispute simmered for years and became one of India Inc’s most closely watched. Finally, it was settled with both factions agreeing to separate. Shishir got control of Bajaj Hindusthan Sugar and Bajaj Consumer Care, while Rahul retained control of the flagship auto and finance businesses.
Rahul Bajaj was a darling of the media. He never minced words. Fear was not part of his dictionary and one could say he belonged to the last generation of industrialists who spoke bluntly and fearlessly against the government in public. Many recall his famous moment in 2019 when, at an industry event attended by Home Minister Amit Shah, he openly spoke about fear and intolerance in business circles.
Spot on, always!
I had the opportunity to meet him and his sons during my stint at Business India and CNBC TV18. My first interaction was while doing a cover story titled Road Warriors for Business India in 2001. I drove down from Mumbai to Bajaj Auto’s headquarters in Pune and camped there for over two days visiting factories, offices, dealerships and meeting several people. What impressed me then was that they were producing one Pulsar every minute, 480 Pulsars in an eight-hour shift! I was ushered into Rahul Bajaj’s cabin and the first thing I noticed was how spartan it was. The Gandhian touch was evident. He was speaking to WTO chief Supachai Panitchpakdi, fixing a luncheon meeting three months in advance. I sat down and fired a volley of questions. He answered all of them with equanimity and straight to the point, like Arjuna’s arrow.
I was highly impressed by Rajiv’s forthrightness, honesty and frankness. During the long interview, he openly admitted that the company had become complacent while making Chetak scooters and was not in sync with changing market behaviour. The competitor, Hero Honda (now Hero MotoCorp), spotted a huge opportunity and launched the Splendor 100cc motorcycle, which displaced Bajaj Auto from the numero uno position. Splendor’s ad line, “Fill it. Shut it. Forget it,” caught the imagination of the younger generation and became a runaway hit. Incidentally, this year Hero MotoCorp revived that old campaign!
Pulsar Moment
Rajiv, however, responded with a quick course correction. He exited the scooter segment for a few years and focused on profitable motorcycles. Pulsar, his baby, was the outcome of the company’s indigenous R&D efforts. He also ended creating a new segment, between economy and premium with the Pulsar 125cc.
Rajiv is an intense individual who follows three theories religiously in both life and business. He openly says yoga and homoeopathy shaped his management philosophy. And he is deeply influenced by Gillette’s strategy. In many of his talks and interviews, he has repeatedly said that companies become weak when they try to be “everything to everybody.” Instead, much like Gillette, — which began with two blades and steadily moved up the value chain, he believes in creating sharply differentiated brands that command aspiration and pricing power. Marketing gurus call this the premiumisation and sharp brand positioning strategy.
This aspiration-led strategy resulted in iconic brands such as Pulsar, KTM and Avenger. Bajaj focused on a few sharply defined brands. One of Rajiv’s most quoted lines is: “Make volume, sell niche.” And finally, no interview or conversation with Rajiv is complete without the mention of his close friend Siddhartha Lal of Royal Enfield and Eicher Motors fame.
Today, the Bajaj Group is on a solid growth path. The fifth generation has stepped in. Sanjiv’s two children and Rajiv’s son are cutting their teeth in the business. Bajaj Auto, with a market capitalisation of USD 30 billion, and Bajaj Finance, valued at nearly double that, are on a strong wicket. From here, it appears to be a one-way street, upward and onwards.