With Bajaj Auto managing director Rajiv Bajaj saying it is time someone younger takes over the reins of the business, succession plans may be in the making at the two-wheeler manufacturer.
Addressing shareholders at the company’s 17th annual general meeting (AGM) on Tuesday in Pune, Bajaj said, “Every time I say something to you (shareholders), I start by saying, ‘my mind goes back 30 years’. So, it tells me that perhaps I have been here long enough.”
“So, just as these two companies (Chetak Technologies and Bajaj Auto Credit) have new MDs, Bajaj Auto (also) needs a new MD; a younger MD because I have been here 34 years. I am 58 and not so young anymore. But don’t worry, I am not going anywhere immediately,” Bajaj added.
This is the first time in 17 years that leadership changes are being talked about at Bajaj Auto. In 2007 the company split into three legal entities, Bajaj Auto, Bajaj Holdings and Bajaj Finserve. While the automotive business went to Rajiv, younger brother Sanjiv got the finance business. Patriarch Rahul Bajaj was the chairman of all three entities.
Rajiv’s son Rishab joined Bajaj Auto in FY22 as management trainee and currently holds the designation of divisional manager (product strategy – electric vehicle) in the company. Members of Bajaj Auto’s board accorded their approval to Rishab’s position in the company for a period of five years until the end of FY28 through a resolution passed on March 5, 2024, details provided in the company’s 17th annual report stated.
Chetak Technologies, a company formed recently to look at new technologies in electric and other powertrain domains, appointed Bajaj Auto veteran Abraham Joseph as its MD.
Bajaj Auto Credit, a 100% captive finance subsidiary of Bajaj Auto established as a non-banking finance company (NBFC), appointed another veteran Kevin D’sa as its MD. Bajaj Finance, an entity controlled by Bajaj Finserve, earlier provided, vehicle loans to Bajaj Auto’s two and three-wheelers. Later, Bajaj Auto decided to have its own NBFC as Bajaj Finance manages retail loans to other segments as well.
Like its competitors, Hero MotoCorp and TVS Motor Company, Bajaj Auto has remained a promoter-driven company since its formation in 1945.
Rajiv Bajaj joined the company in the early 1990s starting with manufacturing and supply chain, before moving to research and development and engineering between 1995-2000 and marketing and sales in 2000-2005. He has served on the board of Bajaj Auto since March 2002 and has been its Managing Director since April 2005.
Almost a year before the passing away of Rahul Bajaj in early 2022, brother Niraj Bajaj, chairman of Mukand, took over as Bajaj Auto’s chairman. Sanjiv Bajaj, chairman Bajaj Finserve is also on the board of Bajaj Auto as director.
Bajaj Auto reported net consolidated sales, in FY24 of Rs 43,600 crore, a 23% year on year (y-o-y) growth, while the net profit came in nearly Rs 7,500 crore, recording a y-o-y growth of 33%. Although the company is the fourth largest two-wheeler seller in the country, its revenue and profits outpace its rivals by a huge margin.
