Firodias thumb nose at Bajaj, to rename Tempo

Carrying forward its standoff with Bajaj Auto over a change of name, the Firodias-run Bajaj Tempo today said it would go ahead with steps to rechristen itself as 'Force Motors' "as per an ordinary resolution", also making it clear that it was not contemplating offloading its holding in the two-wheeler major.

The company also made it clear that it has no plans to invite its German technical collaborator Man Nutzfahrzeuge as an equity partner.

On the name change, Bajaj Tempo CMD Abhay Firodia said, "as per the directive received from the regional director, western region, ministry of company affairs, the company has proposed to change its name to Force Motors Ltd.

"The directive is issued under Section 22 of the Companies Act, 1956, whereby it is mandated that change in name should be carried out by an ordinary resolution," he said in a statement here.

If it goes by this route, Bajajs, who hold a 24 per cent stake in Bajaj Tempo, will not be able to block the resolution. Bajaj Auto CMD Rahul Bajaj has openly hit out at the Firodias for proposing a new name, emphasising that the word 'Bajaj' cannot be dropped.

"Any proposition or resolution which drops the word 'Bajaj' from the name will be opposed by us," Bajaj said here, adding that the name change requires a special resolution under Section 21 of the Companies Act.

The Firodias, who hold about 10 per cent in Bajaj Auto, also made clear that they are in no mood to offload their equity.

"The Firodias have to stay invested in Bajaj Auto considering that this investment has been historically a good investment since the formation of Bajaj Auto," Abhay Firodia said.

"There is no reason for the Firodia family to change its opinion today," he added.

This statement puts an end, for the time being, to recent speculations that the two companies were considering smoking a peace pipe by offloading their cross holdings.

"The Firodias have also decided not to attempt purchase of shares in Bajaj Tempo held by the Bajaj group or any other person as the present promoters' holding is sufficient," the statement said.

On Man, it said that Bajaj Tempo could raise itself the investment of up to Rs 350 crore, required to vigorously pursue plans for manufacturing heavy commercial vehicles, new technology engines and vehicle aggregates.

"Bajaj Tempo is a near debt-free company and in a position to access the required resources without resorting to inducting a foreign equity partner," Firodia said.

It said Man was a technical collaborator and "Bajaj Tempo has no proposals or plans to induct man as equity partner."