Bajaj vs. Bajaj

Bajaj Auto patriarch Rahul Bajaj is dead against son Rajiv Bajaj’s decision to distance the motorcycle maker from the parent brand, another sign that the two are like chalk and cheese in running the company.scooters to focus on motorcycles last year.

On Thursday, it was evident that the dislike for the plan is still fresh in his mind. “There is still lot of demand for scooters with annual volumes at around 1.8 million units. I don’t understand why Bajaj Auto can’t develop a scooter that sells in good numbers.” 

A week after Bajaj Auto managing director Rajiv Bajaj unveiled his plans to focus on five brands and phased out the rest, chairman Rahul Bajaj has made it clear that he is opposed to his son’s strategy. Doing away with the Bajaj brand is a major decision and can be only taken after getting permission from the company’s board of directors, he told ET Now on Thursday. “No such proposal has come to me,” he said.

“I will be involved in any decision on whether to drop the Bajaj brand or not, with Rajiv of course. I give a lot of importance to the CEO and his team, as I believe we should not interfere with their decisions unless there is a strong reason,” he said.

The senior Bajaj’s outburst is the latest instance of his simmering differences with his son’s style of management. He had similarly made public his displeasure after Bajaj Auto under Rajiv’s leadership decided to exit its earlier mainstay

But he added that Rajiv is the managing director and CEO and “it’s finally his decision on what the company should do”.

The differences between the two also came to the fore when a pact was signed with the Renault-Nissan alliance for an ultra low-cost car. Rajiv Bajaj’s plan to ditch the Bajaj brand was at odds with his father’s wishes. “Will Carlos Ghosn (Renault-Nissan CEO) tell me how to run my company,” Rahul Bajaj had said then.

Rajiv Bajaj was unavailable for comment, but his associates say there is no going back on the brand restructuring. “Some people may find false comfort in stretching the brand beyond what’s logical. However, we believe in our strategy and proof is that execution is already underway, as seen on our products in the showroom,” one person said.

Bajaj Auto is looking to style itself, as a “garage of independent brands like Hindustan Unilever” wherein marketing and branding focus is limited to four motorcycles — Boxer, Discover, Pulsar and KTM — as well as the autorickshaw, while the parent brand takes a back seat. The entire organisation will also be realigned, along these brand verticals, as part of the radical change in strategy.

“The Bajaj brand is very diffused, covering everything from heaters and hairoil to insurance and financial services. Correcting that problem is the biggest opportunity for the company,” the junior Bajaj told ET NOW recently.