indian role model

7/31/2019 Indian Role Model

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Describe general background

Achievements

Leadership style

Various leadership traits and personality of the Rahul Bajaj


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Rahul Bajaj

"Those who die, must die" - Rahul Bajaj
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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-billionaires


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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


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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


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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
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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
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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.


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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.


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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.


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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.

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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


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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

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