Rahul to pass on baton at Bajaj Auto to Rajiv

Bajaj Sr to continue as the chairman of the conglomerate.

After nearly 40 years at the helm of Bajaj Auto, Rahul Kamalnayan Bajaj, 66, will pass on the baton to his eldest son Rajiv Bajaj when he steps down as managing director of the company on March 31, 2005. Bajaj Sr will, however, continue as the chairman of the Bajaj conglomerate.

The board of directors of Bajaj Auto approved the proposal to appoint Rajiv Bajaj as managing director of the company at a board meeting today.

Rajiv Bajaj, who is currently the joint managing director of Bajaj Auto, will take over as managing director from April 1 and will be in charge of the production, marketing, supply chain, manufacturing and production engineering at the company.

His younger son Sanjiv Bajaj, who joined the board as executive director last year, will manage the company's international marketing, finance functions, legal services, and treasury operations.

It was also decided at the board meeting that Madhur Bajaj, vice-chairman of Bajaj Auto, and Rahul Bajaj's cousin will be allowed an extension for five years, till March 31, 2010, as the vice-chairman of the company, though his term expires on November 5, 2005.

Rahul Bajaj's decision to step down as the managing director of the company does not come as a surprise as he had often indicated his intention to hand over the reins of the company to his sons.

Sources close to the family say that in the last few years, Bajaj Sr had taken a back seat as far as running Bajaj Auto was concerned, assuming a larger role in promoting and protecting the interest of Indian Inc.

Rajiv Bajaj, who is largely credited with positioning Bajaj Auto as a serious contender in the motorcycle market, joined the company in 1990 and became the joint managing director in 2003.