Upload
rahul-rafaliya
View
230
Download
2
Embed Size (px)
Citation preview
7/31/2019 Indian Role Model
1/13
Describe general background
Achievements
Leadership style
Various leadership traits and personality of the Rahul Bajaj
7/31/2019 Indian Role Model
2/13
Rahul Bajaj
"Those who die, must die" - Rahul Bajaj
http://www.businessreviewindia.in/business_leaders/those-who-die-must-die---rahul-bajajhttp://www.businessreviewindia.in/business_leaders/those-who-die-must-die---rahul-bajaj7/31/2019 Indian Role Model
3/13
DESCRIBE GENERAL BACKGROUND
Net Worth
$3.4 B as of October 2012
Forbes Lists
#19India's Richest
#719Forbes Billionaires
#29in India
Born 10 June 1938 (age 74)
Bengal Presidency,British India
Residence Pune,Maharashtra,India
Education St. Stephens College (Delhi, India), 1958
B.A., Economics
The Government Law College (Bombay, India), 1960
LL.B (Bachelor of Laws)
Harvard Business School (Boston, U.S), (1964)
MBA (Master of Business Administration)
Occupation Chairman ofBajaj Group
Net worth $3.4 billion (2012)
Political party Independent
Parents Jamnalal Bajaj(grandfather)
Married to Priya
Son Rajiv, Sanjiv
Daughter Sunaina
Awards Padma Bhushan(2001)
http://www.forbes.com/india-billionaireshttp://www.forbes.com/india-billionaireshttp://www.forbes.com/india-billionaireshttp://www.forbes.com/billionaireshttp://www.forbes.com/billionaireshttp://www.forbes.com/billionaireshttp://www.forbes.com/billionaires/list/#p_1_s_a0_All%20industries_India_All%20states_http://www.forbes.com/billionaires/list/#p_1_s_a0_All%20industries_India_All%20states_http://www.forbes.com/billionaires/list/#p_1_s_a0_All%20industries_India_All%20states_http://en.wikipedia.org/wiki/Bengal_Presidencyhttp://en.wikipedia.org/wiki/Bengal_Presidencyhttp://en.wikipedia.org/wiki/British_Indiahttp://en.wikipedia.org/wiki/British_Indiahttp://en.wikipedia.org/wiki/British_Indiahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Bajaj_Grouphttp://en.wikipedia.org/wiki/Bajaj_Grouphttp://en.wikipedia.org/wiki/Bajaj_Grouphttp://en.wikipedia.org/wiki/Independent_(politician)http://en.wikipedia.org/wiki/Independent_(politician)http://en.wikipedia.org/wiki/Jamnalal_Bajajhttp://en.wikipedia.org/wiki/Jamnalal_Bajajhttp://en.wikipedia.org/wiki/Padma_Bhushanhttp://en.wikipedia.org/wiki/Padma_Bhushanhttp://en.wikipedia.org/wiki/Padma_Bhushanhttp://en.wikipedia.org/wiki/Jamnalal_Bajajhttp://en.wikipedia.org/wiki/Independent_(politician)http://en.wikipedia.org/wiki/Bajaj_Grouphttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/British_Indiahttp://en.wikipedia.org/wiki/Bengal_Presidencyhttp://www.forbes.com/billionaires/list/#p_1_s_a0_All%20industries_India_All%20states_http://www.forbes.com/billionaireshttp://www.forbes.com/india-billionaires7/31/2019 Indian Role Model
4/13
Personal Background of Rahul Bajaj
Rahul Bajaj was born on 10th June 1938 at Bengal. Residency, British India. He is an Indian businessman,
industrialist, politician, Forbes billionaire and a member of the Indian Parliament. In 2010, Forbes had
estimated his net worth to be US $ 1.1 Billion making him one of Indias Top 50 richest persons. He is the
Chairman of Bajaj Auto, a leading Indian Automobile Manufacturer.
Family
Rahul Bajaj is a son of Rajasthani Businessman Jamnalal Bajaj who started Bajaj Auto in 1945. He has one
brother, Shishir Bajaj, with whom there was a recent business settlement ending the family dispute. He has 3
cousins, Shekhar, Madhur and Niraj together with whom he controls the Bajaj Group of companies. He is
married to Ruparani and has two sons Rajiv & Sanjiv who are involved in the management of his companies
and a daughter, Sunaina Kejriwal who is married to Manish Kejriwal who heads Temasek India.
Growing up
Rahul Bajaj went to The Cathedral and John Connon School. He graduated from St. Stephen's College in Delhi
in 1958 with an honors degree in economics. He underwent on-the-job training for 4 years at two of the
group companies. During that time, he also earned a law degree in Bombay. He is also an alumnus of the
prestigious Harvard Business School in USA.
The Beginning
given his family background- at the tender age of 12, he started dreaming of becoming a businessman. His
grandfather had bought a steel mill and a sugar mill, and in 1945 his father founded Bajaj Auto, now the
crown jewel in the Bajaj Group.
In the 1970s, India was a socialist state barred by rules and regulations. As a result, there was no
entrepreneurship and nothing could be done without government approval. At this difficult time Bajaj
became the CEO of Bajaj Auto Ltd. (BAL) in 1968 at the age of 30 making him one of the youngest CEOs of
that time.
In this environment, the company was limited to produce just 20,000 units a year. Supply and demand didn'tmatch. Hence, after placing their order, customers had to wait for roughly ten years to receive it.
To lower costs while improving the price and quality of the products, he increased production to avail
7/31/2019 Indian Role Model
5/13
Economies of Scale. He ignored a government regulation and increased volume by more than the
permitted 25 percent of his licensed capacity.
His grandfather had been known as the "fifth son" of Mahatma Gandhi and his parents and grandparents
had spent time in British prisons for the sake of Indian independence. Hence, he didn't fear of going to jail
for the (illegal) excess production.
Also, the fact that he was producing a commodity that most Indians needed gave him the strength to take
the risk. He established factories at Akurdi and Waluj and worked hard to expand BAL- now the world's
fourth-largest maker of motorized scooters, three-wheel vehicles, and motorcycles - India's most common
forms of transportation.
Industrial Background of Rahul Bajaj
Mr. Rahulkumar Kamalnayan Bajaj, Rahul, serves as an Executive Chairman and Head of Bajaj Group of
Companies of Bajaj Auto Ltd. Mr. Bajaj served as the Chief Executive Officer of Bajaj Auto Ltd. since 1968. He
served as the Managing Director of Bajaj Holdings & Investment Limited until March 31, 2005. He served as
Deputy General Manager of Bajaj Tempo Limited. He serves as the Chairman of the Board of Bajaj Finserv
Ltd., Bajaj Allianz Life Insurance Company Ltd., and Bajaj Allianz General Insurance Co. Ltd. He has been the
Chairman and Director of Bajaj Auto Finance Ltd. since July 26, 1972. Mr. Bajaj has been Non-Executive
Chairman of Bajaj Holdings & Investment Limited since February 20, 2008. He served as Non-executive
Chairman of Maharashtra Scooters Ltd., until October 18, 2006. He served as Chairman and Director of
Mukand Ltd. until July 2007 and served as its Director until July 28, 2010. He serves as a Member of
Executive Board at Indian School of Business. He served as a Director of National Aviation Company of India
Limited. He served as a Member of Governing Board of Indian School of Business. He served as Executive
Director of Bajaj Holdings & Investment Limited until February 2008. Mr. Bajaj served as Non-executive
Director of Maharashtra Scooters Ltd., until October 18, 2006. He serves as a Member of International
Advisory Committee of NYSE Euronext, Inc. (Formerly New York Stock Exchange, Inc.). Mr. Bajaj served as the
President of Confederation of Indian Industry (CII - 1979-80/1999-2000). He also served as President ofSociety of Indian Automobile Manufacturers (SIAM) and Mahratta Chamber of Commerce, Industry And
Agriculture (MCCIA) and the Chairman of the Development Council for Automobiles and Allied Industries. He
served as Chairman of the Government owned domestic carrier, Indian Airlines from 1986 to 1989. He
7/31/2019 Indian Role Model
6/13
serves as Co-Chairman of the Board of Commonwealth Business Council. He was elected to the Upper House
of Parliament (Rajya Sabha) in June 2006. President of India nominated Mr. Bajaj as the Chairman of the
Board of Governors of the Indian Institute of Technology, Bombay on 12th May, 2003. He served as
Chairman of the International Business Council of the World Economic Forum, Geneva and serves as its
Member. He serves as a Director of Bajaj Finserv Ltd. In 1975, he received the Man of the Year award from
the National Institution of Quality Assurance. He was selected as Business India's Businessman of the year
1985. In 1988, he was felicitated for his achievements in a public function by the Pune Municipal
Corporation. He received the Bombay Management Association Award for the most distinguished services in
the field of management in 1990. He was awarded FIE Foundation, the Rastrabhushan Award in 1996.
Lokmanya Tilak Smarak Trust awarded Mr. Bajaj the Lokmanya Tilak Award in 2000. He was awarded the
'Padma Bhushan' by the President of India in March 2001. He was awarded the Jeevan Sadhana Gaurav
Puraskar by the Pune University for 2002 and he was the first person to be inducted by the ICICI Bank and
the leading automotive magazine, Overdrive, in the Indian Automotive Hall of Pride - 2003. Mr. Bajaj
received both Economic Times and Ernst & Young Life Time Achievement Awards in 2004. Degree of Doctor
of Letters (Honoris Causa) was conferred on Mr. Bajaj by the Rani Durgavati Vishwavidyalaya (formerly
Jabalpur University) in March 2005. He was also conferred the degree of Doctor of Arts (Honoris Causa) by
IIT Roorkee and the Alumni Achievement Award by the Harvard Business School, both in September 2005.
Mr. Bajaj is an Honours Graduate (BA) in Economics from Delhi University, Degree in Law (LLB) from Bombay
University and a Business Graduate (MBA) from the Harvard Business School.
Rahulkumar Kamalnayan BajajExecutive Chairman, Member of Remuneration & Nomination Committee and Head of Bajaj Group of Companies,Bajaj
Auto Limited
Age Total Calculated
Compensation
This person is connected to 28 board members in 6 different
organizations across 10 different industries.
See Board Relationships74 111,254,198
As of Fiscal Year 2012
Board Members Memberships*
Former Director
Mukand Limited
Former Non-Executive Chairman
Maharashtra Scooters Ltd.
Former Director
Air India Limited
http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=32669680http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=32669680http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=32669680http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=32669680http://investing.businessweek.com/research/stocks/people/relationship.asp?personId=8400921http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=878102http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=881102http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=8032555http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=8032555http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=881102http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=878102http://investing.businessweek.com/research/stocks/people/relationship.asp?personId=8400921http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=32669680http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=32669680http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=326696807/31/2019 Indian Role Model
7/13
Chairman, Chairman of Bajaj Finserv Ltd., Chairman of Bajaj Finance Ltd., Chairman of Bajaj Allianz General
Insurance Company Ltd. and Chairman of Bajaj Auto Ltd.
Bajaj Allianz Life Insurance Company Limited
Chairman and Chairman of Bajaj Allianz Life Insurance
Bajaj Allianz General Insurance Co. Ltd.
Executive Chairman, Member of Remuneration & Nomination Committee and Head of Bajaj Group of
Companies
Bajaj Auto Limited
1972-Present
Chairman and Member of Remuneration & Nomination Committee
Bajaj Finance Ltd.
2007-Present
Non-Executive Chairman and Member of Remuneration Committee
Bajaj Finserv Limited
2008-Present
Non Executive Chairman, Member of Remuneration & Nomination Committee, Executive Chairman of Bal and
Chairman of Bajaj Finserv Ltd
Bajaj Holdings & Investment Limited
annual Compensation*
Salary 43,334,198
Total Annual Compensation 43,334,198
Stock Options*
All Other Compensation 67,500,000
Total Compensation*
Total Annual Cash Compensation 111,254,198
Total Short Term Compensation 43,334,198
Other Long Term Compensation 67,500,000
Total Calculated Compensation 111,254,198
http://investing.businessweek.com/research/stocks/people/person.asp?personId=8400921&ticker=32669680
http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=9155888http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=12205230http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=32669680http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=881576http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=41356562http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=878334http://investing.businessweek.com/research/stocks/people/person.asp?personId=8400921&ticker=32669680http://investing.businessweek.com/research/stocks/people/person.asp?personId=8400921&ticker=32669680http://investing.businessweek.com/research/stocks/people/person.asp?personId=8400921&ticker=32669680http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=878334http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=41356562http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=881576http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=32669680http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=12205230http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=91558887/31/2019 Indian Role Model
8/13
ACHIEVEMENTS
Since Rahul Bajaj took over the charge of Bajaj Group in 1965, under his leadership Bajaj Auto has grown to
new heights year after year. The turnover of Bajaj Auto has risen from a mere Rs.72 million to Rs.46.16
billion. He created one of India's best companies in the difficult days of the license-permit raj.
Apart from his achievements as the CEO of BAL, his individual achievements are:
He is the only top executive to have served two terms as president of the Confederation of Indian
Industry (CII), which represents over 5,000 companies from India's private and public sectors.
He is a member of International Advisory Committee and his expertise in these matters are tapped by
the New York Stock Exchange.
For his contribution to Indian industry, he was awarded the nation's third-highest civilian honor, the
Padma Bhushan, in 2002.
He was nominated to the Rajya Sabha from Maharashtra in June 2006 with cross party support from
the NCP, BJP and the Shiv Sena.
7/31/2019 Indian Role Model
9/13
He was said to be the 20th richest man of India according to the Forbes India poll on top 40 richest
persons in India.
The Government of India appointed Mr. Bajaj as the Chairman of the Development Council for
Automobiles and Allied Industries, 1975-77.
In 1975, Mr. Bajaj received the Man of the Year Award from the National Institution of Quality
Assurance.
Mr. Bajaj was selected as Business India's Businessman of the Year 1985.
In 1988, Mr. Bajaj was felicitated for his achievements in a public function by the Pune Municipal
Corporation.
Mr. Bajaj was Chairman of Indian Airlines between 1986-89.
Mr. Bajaj received the Bombay Management Association Award for The Most Distinguished Services in
the Field of Management 1990.
Mr. Bajaj was appointed by His Royal Highness, The Prince of Wales as a Member of the Prince of Wales
International Business Leaders Forum in February 1992.
FIE Foundation awarded Mr. Bajaj the Rashtrabhushan Award in 1996. Lokmanya Tilak Smarak Trust
awarded Mr. Bajaj the Tilak Award in 2000.
He was also conferred the Alumni Achievement Award by the Harvard Business School in September
2005.
He was a recipient of many more national as well as international honors.
7/31/2019 Indian Role Model
10/13
LEADERSHIP STYLE
Rahul Bajaj is the man who can be given credit for building Bajaj auto are the 4th largest two-
wheeler manufacturer in the world. He has achieved an incredible growth rate of 1852% in the last
decade.
Following are some of the points that explain the reason of his success.
Concentration of Core Competency: Rahul Bajaj collaborated with Kawasaki for production of
motorcycle but for scooter he did not go for any collaboration. Manufacturing scooters is his core
competency and he does not want to experiment with that.
Customer is King: Bajaj has often been accused of exploiting the customers with delivery period of
10 years, black marketing, etc. but this is not true at the face value. A deeper insight brings to
picture that there were other elements who are responsible for these accuses. Bajaj, in spite of a
heavy demand, did not raise the price of his scooters and avoided exploitation of customers.
Staunch believer in himself: Bajaj listens to each and everyone, but takes decision on his own. His
organisation is a little centralized. In spite of strong oppositions, he sticks to his decisions.
Never give up attitude: Licence Raj was a nightmare for Bajaj. He does not believe in bringing
Government officials and getting his license cleared. This is a major reason why Bajaj Auto came
under MRTP and was allowed to expand its production capacity. But he did not give up to the
Government conditions and after some years, done lobbying through business housed and putting
tremendous pressure on Government learn his license.
Jach Welchs theory: Rahul Bajaj holds same views of Mr. Jack Welch, the former CEO of GE. He
believes that if one is no No 1 or No 2, he should get out from that business. This principle kept
him away from the four-wheeler marke.
Attitude towards workers: Bajaj has less kind of words for workers. Still, there has been only one
strike in the history of 35 years of the company. He takes care of the needs of the workers and at
the same time, he views workers as a tool for production. In his word Why do they strike and
lose wages? They should work more, earn more
BBC: Rahul Bajaj is well known for his unflinching frankness and varied opinion on every topic
under the sun. His office is therefore popularly known as BBC (Bajaj Broadcasting Corporation)
Straightforwardness: His quotes about the Government have found place in the headlines of many
leading newspapers and magazines in India and have also raised controversies. But this does not
stop him from doing what he considers correct.
All the above features are the hallmark of Bajaj. They has earned him a rare reputation as one of Indias
most successful industrialists.
7/31/2019 Indian Role Model
11/13
Squeaky clean, he has never been involved in shady takeovers. He does not engage in street fights, nor
has he ever hijacked someone elses project. He hasnt burnt tyres during hard drive for meteoric growth.
On the contrary, he is something of a plodder, routinely burning the midnight oil, and devoted to the
virtues of hard work. Hes Indias most admired industrialist along with Dhirubhai Ambani and the late
Adity Birla.
Rahul Bajaj on Business
Mr. Bajajs business acumen, dedication to the Group and opinions are a few things that give him
international recognition. As a matter of fact, the Financial Times has stated that it is largely because of Mr.
Bajajs valuable input thatthe companys products can combat with the best in global markets. And even
though he is an influential industrialist, his reputation is as spotless. This simply means that he has never
gone out of his way to steal someone elses idea to expand his business. As a firm believer in healthy
competition, he encourages his employees to stay focussed on constant innovations and improvements.
The companys current employee strength is over 20, 000 in India with a turnover of over US $3.2 Billion. Mr.Bajaj is known to be exceedingly liberal and considerate with his employees till date. Over the years, he has
worked tirelessly to create a friendly and open environment in his offices one that is conductive to
productivity and good work. He has been a donormember of Indo-British Partnership Initiatives and in the
last ten years; also headed the Indian delegation in the international convention organized annually by the
World Economic Forum.
He was also recently in the news for opposing any government bailout for the heavily debt-ridden brand
Kingfisher Airlines stating those who die, must die. I am a private sector man and I dont see any logic of
bailing out any private sector company, either for the sake of employees, or customers. If Bajaj Auto gets
into a mess, would you bail me out? he asked.
http://www.businessreviewindia.in/business_leaders/those-who-die-must-die---rahul-bajaj
http://www.businessreviewindia.in/business_leaders/those-who-die-must-die---rahul-bajajhttp://www.businessreviewindia.in/business_leaders/those-who-die-must-die---rahul-bajajhttp://www.businessreviewindia.in/business_leaders/those-who-die-must-die---rahul-bajaj7/31/2019 Indian Role Model
12/13
VARIOUS LEADERSHIP TRAITS AND PERSONALITY
With the market opening up after the license-quota raj was terminated, two wheeler manufacturers
realized the potential growth of their companies. Bajaj teamed up with Kawasaki of Japan to produce
one of the most fuel efficient and attractive two wheelers for the Indian market. Even so, Rahul was
completely aware how he did not have to go in for collaboration in the scooter segment. He had already
achieved the competency in the field and just had to continue operations. It says something for his
integrity that he did not think of exploiting the market to his own advantage when the demand for his
scooters were very high and the supply was limited. He could have raised the price to a very high
premium but he did not.
When there were suggestions that he should foray into four wheeler market, he did not do it because his
philosophy was that if you can not be in the top two positions, you had no business to be in the business.
You simply have to get out. Four wheeler market was already crowded with many domestic and foreign
car makers vying for the market. You can call it anything but Rahul calls it prudence.
He is impatient with workers' strike. He does not understand why the workers strike. His logic is they
should work more and be paid more. And, he does not mince words. He tells it as it is. He has been
7/31/2019 Indian Role Model
13/13
quoted, misquoted, analyzed and re-analyzed by media and the government. He does not flinch from his
stand for anything.
Honesty is the Best Policy
Rahul Bajaj believes in hard work more than anything else. It is no wonder he is one of the most admired and
respected businessmen in India. Claims, he has never bribed anyone and has been an honest businessman through
out his career. Has built a forture due to the sheer might of his will power.
Rahul Bajaj on Global Pollution & the Auto Industry
Given Mr. Bajajs wealth of expertise and years of experience, he is questioned often on various matters every now and then the most popular being
the auto industry of course. "If your vendors are not with you on cost and quality, you cannot succeed," has been one of his best advices.
Regarding pollution, Mr. Bajaj maintains that every large country must take on the responsibility of not adding to global pollution. "We have to decide
without getting into a self-defeating debate about the danger of global warming." Bajaj said.
He adds that richer countries of the world who contribute the most to pollution must take action for betterments and set examples for other nations.
Rahul Bajaj is one businessmen, politician and philanthropist who likes to do things his way and is totally uninhibited
about speaking his mind
LIFELONG LESSON FROM HBS
"The case method teaches you how to gather and understand the facts of a situation and then how to analyze and make a decision. But even more
important, this process requires you to think really hard. In my career, nothing has been more important than that."
ADVICE TO CURRENT STUDENTS
"Integrity and character matter. Without them, no amount of ability can get you anywhere. In addition, you need courage courage to make difficult
decisions, for example, and courage to oppose something if your conscience tells you that you are right."
CURRENT READING
A wide range of magazines on politics, the international economy, and business
Sources:
http://investing.businessweek.com/research/stocks/people/person.asp?personId=8400921&ticker=32669680
www.forbes.com
www.wikipedia.com
http://www.alumni.hbs.edu/awards/pastwinners.html
http://investing.businessweek.com/research/stocks/people/person.asp?personId=8400921&ticker=32669680http://investing.businessweek.com/research/stocks/people/person.asp?personId=8400921&ticker=32669680http://www.forbes.com/http://www.forbes.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.alumni.hbs.edu/awards/pastwinners.htmlhttp://www.alumni.hbs.edu/awards/pastwinners.htmlhttp://www.alumni.hbs.edu/awards/pastwinners.htmlhttp://www.wikipedia.com/http://www.forbes.com/http://investing.businessweek.com/research/stocks/people/person.asp?personId=8400921&ticker=32669680