BAJAJ AFTER RAHUL

As competition widens across businesses, can the Bajaj Group retain its mojo?

- NEVIN JOHN

However, the biggest change instituted since Rahul’s passing was that there will no longer be a chairman. Instead, the ₹1.46 lakh crore Bajaj Group will be run by consensus via the family council — which includes Rahul’s cousins Shekhar, Madhur and Niraj and Niraj’s son Nirav, besides Rajiv and Sanjiv. The council meets every one and a half months and spends a day together in Mumbai or Pune discussing business and family matters. Moreover, the fifth generation — Rajiv’s son Rishabh and Sanjiv’s daughter Sanjali — has joined the business.

Two years and four months since Rahul Bajaj’s passing, a statistical analysis of the 98-year-old Bajaj Group reveals the business performance has improved despite his absence. Yet, new challenges have emerged stronger than before. Aggregate net profit (consolidated) of six major companies rose 117% to ₹37,809 crore in the last three fiscals. During the period, the group added over ₹4 lakh crore to the aggregate market cap of listed firms, crossing ₹10 lakh crore in December 2023. “Rahul Bajaj was always against the idea of doing multiple things at a time and insisted on sticking to the knitting. We want to become better every day with sharper focus in the businesses we are in,” says a family member.

Yet, the group faces new challenges that can affect profitability and valuations. Especially its two most successful and profitable companies: Bajaj Auto and Bajaj Finance. BAL was a late entrant and less aggressive initially in electric mobility and for that reason its electric scooter Chetak lags Ola Electric and TVS Motors in market share. BFL, on the other hand, is up against stiff competition from new ventures of cash-rich conglomerates — Jio Financial Services, Godrej Capital, Poonawalla Fincorp and Hero Fincorp. In the NBFC space, Tata Capital is strengthening its play.

Keeping the family together is another challenge, especially when the baton is being passed on to the fifth generation.