You just can't beat this Bajaj

LUNCH WITH BS: Kushagra Bajaj

Kushagra Bajaj tells Business Standard how he transformed from a simple boy unaware of the ways of the world to the country's top sugar baron

Second floor, Bajaj Bhawan, Jamnalal Bajaj Marg. The address of Kushagra Bajaj, the CEO of Bajaj Hindusthan Ltd, is the same, whether you visit him at Nariman Point in Mumbai or at Noida in suburban Delhi. Except the Noida office is brand new "" Bajaj and his team moved in last December.

Bajaj's Noida office could easily be described as the swankiest office of any sugar company in the country. The sugar industry, to be sure, has never been the hunting ground of the country's glamorous businessmen.

Talk to any old timer in the industry and he will tell you that there are only three Ms to be found close to a sugar factory: makhi (flies), machchar (mosquitoes) and Marwari. Unlike their counterparts in the sunrise sectors, the sugar barons have believed in making money quietly, away from any media glitz.

Till Bajaj created a stir over a year ago with his ambitious growth plans. He decided to put up four new factories in west Uttar Pradesh. His rivals quickly cried foul saying that he would draw cane from areas nurtured and developed by them over decades.

Bajaj countered by saying that over 40 per cent of the cane in the area was being diverted to inefficient khandsari producers; so there was no question of any shortage for the existing sugar factories. While the debate goes on, Bajaj has already put up one factory in the region and another three will start crushing cane in September this year.

Though it was a Saturday afternoon and the heat was scorching, the buzz of a company on the move was unmistakable at Bajaj's office. (The deal was, we would meet at his office and then drive together to the Noida Radisson for lunch.)

"Work is like a nasha for me. The joke is that men in my companies get divorced by their wives soon as they spend such long hours in the office," his words were ringing in my ears as I entered the building.

In the midst of the hustle bustle, there was a burly UP Police constable perched comfortably in the reception area, an automatic weapon dangling from his shoulder. Cops always accompany Bajaj, I was told, whenever he travels to his factories in the badlands of west UP.

"Some time ago, there was a traffic jam on the highway to one of our factories. When I enquired, I was told that there was a shooting going on. Coming from Mumbai, I quickly got out of the car to see the film stars. But I was told it was a shooting between some gangsters and the police. Ever since, I have asked for police protection," Bajaj told me as we squeezed into a small lift to leave his office.

Out in the scorching sun, Bajaj's brown Honda Accord was waiting for us. The car looked a little oversized for him. The enfant terrible of the sugar industry is no taller than five feet six inches and would certainly not weigh more than 55 kg. Yet, at 27, he is giving sleepless nights to his rivals. It is common knowledge that some of them have even dragged him to the courts. "How nasty is the fight," I asked him as soon as the car started rolling.

Some of them, Bajaj said, have started playing dirty "" a few even tried to scuttle his recent $ 120 million issue of GDRs. "Still, they may haven't made it personal. Only yesterday, Uncle Dhruv [Dhruv Sawhney of Triveni Engineering] gave me this DVD of this film he has co-produced," he said flashing a DVD at me.

By now, we had reached Radisson. After checking out the other eateries, we settled for Made In India, the Indian restaurant on the first floor. Like all good Marwaris, Bajaj has never had non-vegetarian food and doesn't smoke or drink.

"How about some cane juice," I suggested. "At this time of the year, you won't get it anywhere," he retorted. There was no point arguing with the expert. I ordered the non-vegetarian platter, while Bajaj settled for the set vegetarian menu.

Bajaj is an avid talker. His speech may at times remind you of a raw graduate just out of school, but his arguments are invariably convincing. And I found him in a specially chirpy mood during our meeting.

The reason was not far to seek: he had just concluded a $ 120 million GDR issue. "The money is in the bank. You know, this is the second largest public float ever done by a sugar company anywhere in the world," he said.

"What will you do with the money," I enquired. At the moment, Bajaj is keeping his plans close to his chest. What he did admit was that the money was earmarked for new capacities, again in west Uttar Pradesh. Clearly, Bajaj is twisting the knife. Will this make his rivals complain more bitterly? Bajaj seemed to be unpurtubed.

"Once, our expansions are through, I will be among the top six sugar producers of the world," he said. For the record, he is currently at the 16th spot. In India, he is the biggest.

By now, a horde of waiters had descended on us. As we were the only guests in the restaurant, superb service was only to be expected. Bajaj started nibbling at the vegetarian kebabs (such things do exist), while I cut into delcious chicken tikkas.

In Bajaj's philosophy, size is of crucial importance in any commodity business. "I admire what Dhirubhai Ambani, GD Birla and Rahul Bajaj have done. They are my idols," he said. The last name on the list was surely interesting.

Rahul Bajaj and Shishir Bajaj, my guest's father, want to separate the family business. It is an open secret that the bonhomie within the Bajaj family is a thing of the past. Bajaj stonewalled all my attempts to extract more information on the family spat. Yet he remembered fondly the time he has spent with his cousins, including the pranks they played on each other and the strict regimen followed by his uncle, Neeraj, a national badminton champion.

People in the other camp have often pointed fingers at Bajaj and his unabashed aggression. In contrast to his son, Shishir Bajaj is known to be a very conservative businessman. Bajaj Hindusthan, industry watchers say, turned aggressive only after Bajaj became its CEO in August 2001. "Were you always so cocky," I asked Bajaj.

Having lived a protected childhood, Bajaj told me over dal and tandoori rotis, he was unaware of the ways of the world till not so long ago. In the mid-1990s, when he joined Carnegie Mellon for a bachelor's degree, he was petrified to even move out of his room.

"For the first three days, I survived on Coke. It was only when my mother came visiting a couple of months later that I had my first hearty meal," he said. But it taught him the art of survival. He completed his graduation and then his post-graduation from North Western University, Chicago, in record time.

Bajaj also married early. He tied the knot with Vasavdatta, the daughter of Rajshree and Aditya Vikram Birla and the kid sister Kumarmangalam Birla. "How did it happen," I was curious to know even as we had begun to negotiate the ras malai.

The Bajaj and Birla families have had old ties. In fact, it was Jamnalal Bajaj who did the kanyadaan when Basant Kumar Birla married Sarala. The offer came while he was studying. After some initial hesitation, Bajaj finally gave in to his mother entreaties and got married.

By now, we had spent two hours over lunch. Bajaj decided it was time for him to get back at work "" to realise his long list of ambitions.