When Bajaj and Firodia came together

There is a wall separating the two plants in Akurdi near Pune. In real life too, Bajaj Auto and Force Motors (formerly Bajaj Tempo) have been divided by their past.

Relations between the two saw better days when the founder partners had come together in the 1950s to make scooters and three-wheelers. It was the parting of ways in later years, which caused some angst, even while both companies hold a part of each other’s shares.

Naturally, there was tremendous anticipation at the SIAM (Society of Indian Automobile Manufacturers) convention on Thursday during the final session of an otherwise somnambulistic event. Sharing the dais were Rajiv Bajaj, MD, Bajaj Auto, and the much older Abhay Firodia, Chairman, Force Motors.

Bajaj recalled how he was on a flight from Mumbai to Zurich seven years ago when Firodia came across to say hello. “He was very warm and spoke nicely to me,” he said.

To Bajaj, here was someone who had his best interests at heart. And, in December 2009, when the company embarked on its new brand strategy with the Discover, it was Firodia who sent a message wishing him the very best. Bajaj went on to add that he had heard from the grapevine how Firodia would tell people, “As long as Rajiv is there as MD, I will not sell my shares in Bajaj Auto.” The older industrialist, who spoke subsequently, admitted that this was true. Sitting and listening to all this was Rajiv’s father and Chairman of Bajaj Auto Rahul Bajaj.

Firodia was as generous in his praise for the younger Bajaj. “I appreciate the spirit with which you spoke,” he said. He went on to add that in the automotive industry’s quest for globalisation, “an icon of exports is sitting here. It is a victory of the Indian-owned Indian automobile company”. It was all too obvious that the perceived hostility between the two families is a thing of the past.

They may not be on backslapping terms but are civil with each other, said a top industry source.

Specialisation

Bajaj also spoke of the company’s business model, which did not follow the science and principles of management, but the science of homeopathy.

And the first leg of this strategy was specialisation. “All professionals understand the importance of specialisation and the need to do one thing well. Businessmen think that all they touch will turn into gold when in reality less is more,” he said. Bajaj then dwelt on the decision to exit scooters and why people continue to ask him if there is a rethink on the issue. “When Sachin (Tendulkar) does not play baseball, why should I make scooters?” he quipped, a clear reference to the fact that both games involve a ball and bat but are yet completely different.

On the slowdown in the industry, Bajaj was categorical that most of the woes were self-inflicted. “Organisations fall prey to what they are susceptible to. Our flawed strategies are responsible for the mess we sometimes find ourselves in. We must seek to remedy what is within us and not outside,” he said.

>murali.gopalan@thehindu.co.in

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