Bajaj splits on way to succession

The dispute over the ownership of the Bajaj group of companies rages on between brothers Rahul and Shishir. Even after years of sparring, an amicable settlement is still elusive. Little wonder then that Bajaj Auto Chairman Rahul Bajaj doesn't want history to repeat itself.

So even as he continues to fight for as large a share of the Bajaj empire as he can wrest for his sons, the veteran businessman has taken the first step to ensure that his sons do not have to do the same. By announcing a three-way split of the Rs 10,076 crore Bajaj Auto today, the 66-year-old Parliamentarian has initiated the process of creating separate business empires for his two sons Rajiv and Sanjiv.

For the moment, the demerger of Bajaj Auto, by which Rajiv will take control of the two- and three-wheeler businesses and younger brother Sanjiv will hand over the international two-wheeler business which he has been overseeing and focus on managing the financial services entity, is simply an allocation of managerial responsibilities. Both brothers will be directors on the boards of the two new entities in which the automotive and financial services businesses will be housed. But it is simply a starting point and clearly an indication of the things to come.

After the unseemly fight between the Ambani brothers, a direct result of their father Dhirubhai Ambani not leaving behind a written will bequeathing his assets, it is unlikely that the senior Bajaj will leave even the ownership of the companies undecided. Indeed, once the dispute with Shishir

Bajaj over Hindustan Bajaj is sorted out, it is likely that Rahul Bajaj will distribute his share between his children, and even if the details are not made public, there will be a written will.

The Bajaj Auto chairman claims that all is well in the family. There are no problems even if others believe there are. But work had to be divided, the 70-year-old Parlimentarian asserted at the press conference held today to announce the demerger. But those in the know say Rajiv and Sanjiv have their differences and believe that the sooner these are resolved the better.

For, Indian business history is littered with examples of warring families. While Bajaj will certainly feature prominently in the chapters on family feuds, he will at least try to make sure his sons don't find a mention.