Rahul Bajaj on Thursday stepped down as the chairman and non-executive director of Bajaj Auto. He will be replaced by Niraj Bajaj.
Rahul Bajaj has been at the helm of the two-wheeler major since 1972 and the group for five decades. In a regulatory filing to the bourses, Bajaj Auto said that Rahul Bajaj has tendered his resignation considering his age.
At its meeting held on Thursday, the board of directors, as recommended by the nomination and remuneration committee, has approved his appointment as chairman emeritus for a term of five years from May 2021.
Last year, Rahul Bajaj had decided to give up his executive role to become a non-executive director while holding the position of the chairman.
In July 2020, he had stepped down as the non-executive chairman of Bajaj Finance. After Rahul Bajaj resigned as the chairman of Bajaj Finance after leading it for 33 years, son Sanjiv Bajaj had donned the mantle as non-executive chairman.
Earlier this week, Rahul Bajaj had also resigned as the non-executive director at Bajaj Finance, effective April 30. Here too, the board has proposed his appointment as chairman emeritus of the NBFC for a term of five year beginning May 1, 2021.
Eighty three-year-old Rahul Bajaj took over the group’s reins in 1965 and has since then charted it into a strong growth path. Under his leadership, the turnover of Bajaj Auto has leapt from around Rs 7 crore to over Rs 27,000 crore.
Known for his outspoken and frank views, Bajaj holds an honours degree in economics from Delhi University, a degree in law from Bombay University and an MBA from the Harvard Business School. He was elected to the Rajya Sabha from 2006-2010. He has handed over the baton at Bajaj Auto to elder son Rajiv Bajaj.
The 67 year old Niraj Bajaj, who will take over as the non-executive director at Bajaj Auto, had joined the company’s board in September 2006.
He is also the chairman and managing director of Mukand Ltd. After studying at the Sydenham College of Commerce & Economics, Mumbai, he acquired his masters in business administration from Harvard Business School.
Niraj Bajaj has represented India in table tennis for seven years between 1970 and 1977, the last four years as the team captain. He was the recipient of the Arjuna Award.
Net profit up 1.66%
Bajaj Auto’s standalone March-quarter net profit rose 1.66 per cent to Rs 1,332.07 crore from Rs 1,310.29 crore, marginally below analyst estimates.
During the quarter, standalone revenues rose to Rs 8,596.10 crore from Rs 6,815.85 crore a year ago.
Two-wheelers showed a growth of 21 per cent in volume terms at 487,731 units.
Sales of commercial vehicles (CVs), however, fell 38 per cent to 46,388 units. The domestic CV business was impacted because of the reduced demand for short distance mobility.
Exports put up a better show with two-wheelers logging a growth of 24 per cent in volume terms and commercial vehicles 19 per cent.
The board of directors of the company on Thursday recommend a dividend of Rs 140 per share and the total payout towards dividend would amount to around Rs 4,051 crore.
The company added that its overall share in motorcycles in the domestic and international market among players from India was 27.6 per cent as against 27.5 per cent in 2019-20. .
