Bajaj Auto Defers Bifurcation Plans

Pune, July 31 | Updated: Aug 1 2004, 07:11am hrs
With estranged brother Shishir Bajaj not signing on the dotted line of the family settlement regarding the sale of his holdings, Bajaj Auto Ltd (BAL) has had to put the plans to bifurcate the company into manufacturing and investment units on the backburner. This could be considered only after the dispute gets settled. Till then the plan will be on hold but the demerger plan has not been given up, Rahul Bajaj, CMD, BAL, said.

When Shishir Bajaj offloads his shareholding in BAL, the company could move forward but he was taking time and Rahul Bajaj said he did not know how long it would take...three months or three years. He was hopeful of putting the family settlement behind him in the next six to 12 months. Though he indicated that the demerger was not a priority.

Exploring plans post demerger or vertical split of the assets of the company, Rahul Bajaj said it would have to make sense and be something useful to the company. But there were possibilities that Bajaj talked off. When we floated the (demerger) idea, the feedback was positive, Rahul Bajaj said. He said what the investment company would be like was not decided. Becoming a mutual fund, do investments or should the company carry out other activities is not decided. The company would have to make a scheme before going ahead and it will not be in a haphazard manner with half-baked ideas nor will there be any unrelated diversification, he said.