The Bajaj Group is one of India’s most prestigious and diversified business conglomerates, with a rich heritage dating back over a century. Founded by Jamnalal Bajaj in 1926, the group has grown to encompass a wide range of industries, including automobiles, financial services, home appliances, and steel.
In this blog, we will see the finer aspects of Bajaj group like their history, family tree, holding structure and group companies.
(Read similar posts on TVS group and Murugappa group)
Journey of Bajaj Group
- The journey of Bajaj group starts with Shri Jamnalal Bajaj (4 November 1889-11 February 1942) who was an industrialist, philanthropist, and freedom fighter.
- A rich merchant of Wardha, Seth Bachhraj and his wife later adopted him as their grandson.
- Under the guidance of Seth Bachhraj, Jamnalalji got involved in the family business and acquired the know-how of being a tradesman- keeping strict accounts and buying and selling commodities- excelling in his work.
- In 1926 he founded what would become the Bajaj group of industries.
- He was a close associate and follower of Mahatma Gandhi who was known to have adopted him as his fifth son.
- The group started with a sugar factory and cotton mill in the 1920s, gradually expanding into other sectors.
Reference: https://www.bhil.in/about-bajaj.html
The second generation of promoters are Kamal Nayan Bajaj and Ramkrishna Bajaj, children of Jamnalal Bajaj. The family tree can be seen in the below image.
Please note that not all the family members are covered in the above image. It only intends to cover the members who are heading the group.
Family Split
In the image, you can see two groups: The Bajaj Group and the SKB Group. The Bajaj Group split somewhere in 2008 due to differences among the family members. Brothers Rahul Bajaj and Shishir Bajaj decided to part ways. Interestingly, first cousins Shekhar Bajaj, Madhur Bajaj, and Niraj Bajaj chose to side with Rahul Bajaj.
- Consequently, the combined entities managed by Rajiv Bajaj, Sanjiv Bajaj, Shekar Bajaj, Madhur Bajaj, and Niraj Bajaj are referred to as the “Bajaj Group.”
- On the other hand, the entities run by Shishir Bajaj and Kushagra Bajaj are known as the SKB (Shishir Kumar Bajaj) Group.
Holding Structure Group
The listed companies in the Bajaj Group have a multi-tiered holding structure as below.
Private Family Entities
These unlisted entities are fully owned by Bajaj family members and hold stakes in the listed companies. Examples: Bajaj Sevashram Private Limited, Jamnalal Sons Private Limited, Sanjiv Nayan Bajaj Sanjiv Trust etc.
Listed Entities
These are publicly traded companies that have stakes in other listed companies within the Bajaj Group. Bajaj Holdings & Investment Limited (BHIL) is a notable example, functioning as an investment company with significant stakes in the group’s key companies.
Cross Holdings
A listed non holding company has stakes in other listed companies of Bajaj group. An example is Bajaj Auto’s stake of 3.14% in Bajaj Holdings and Investments.
Individual Holdings
Individual family members also have small or substantial holdings in the group companies. An example is Niraj Bajaj’s 8.27% holding in Mukand Limited.
Bajaj Group
SKB Group
The structure is relatively simple with only 2 listed entities and 1 holding company. Much details about the holding company are not available.
In the previous heading, we saw that the family and business split between Shishir and Rahul Bajaj. The business split was complex but was settled through the following transactions:
- Shishir sold his holding in the group’s primary investment firm, Bajaj Sevashram (The Ultimate Holding Company), to Rahul Bajaj.
- The Rahul Bajaj group bought a little over 29 percent in sugar producer Bajaj Hindusthan Ltd through open market transactions and transferred this stake to Shishir.
- Shishir Bajaj, who personally held just under one percent each in Bajaj Auto Ltd, Bajaj Holding & Investments Ltd, Mukand Ltd, and Bajaj Electricals, transferred these shares to the Rahul Bajaj group.
For more details, please refer to the articles below.
- https://www.livemint.com/Companies/Q1yt1hDIr9FrJM3lDkwMvM/How-the-Bajajs-split-and-made-up-after-7-yrs.html
- https://www.telegraphindia.com/business/bajaj-brothers-make-peace/cid/505905
- https://www.dnaindia.com/business/report-kushagra-bajaj-takes-on-rahul-1084463
- https://economictimes.indiatimes.com/news/company/corporate-trends/bajaj-sevashram-crucial-in-family-saga/articleshow/1750053.cms?from=mdr
Holding Companies of Bajaj
Bajaj Sevashram Private Limited
- Year of incorporation: 1953
- The company was established to Market & Sell hair oil and other beauty products.
- The manufacturing division was demerged in 2001 and transferred to Bajaj Consumer Care Ltd.
- The company is a core investment company with main holding company of the Bajaj group. It is The Ultimate Holding Company (Read my earlier blog to understand more about Ultimate Holding Company) of the group.
- Rahul Bajaj and Shishir Bajaj own 25% each in Bajaj Sevashram, the remaining equity is equally divided among their three cousins—Shekhar, Madhur and Niraj who hold 16.67% each
- Promoters: Shekar Bajaj, Niraj Bajaj, Rajiv Bajaj and Sanjiv Bajaj
Jamnalal Sons Private Limited
- Year of incorporation: 05/03/1938
- The company was Managing Agent of various Bajaj Group Companies during 1960-1970.
- Presently the company is NBFC Core Investment Company and having investment in all Bajaj Group Listed Companies.
- It is a wholly-owned subsidiary of Bajaj Sevashram
- It holds a 78% stake in Bachhraj & Co (BCOPL)
- Promoters: Sanjiv Bajaj and Niraj Bajaj
Bachhraj & Co Private Limited
- Year of incorporation: 12/01/1927
- Company is Non-Banking Finance Company registered with Reserve Bank of India having investment in various Bajaj Group Listed Companies.
- Promoters: Sanjiv Bajaj and Niraj Bajaj
Bachhraj Factories Private Limited
- Year of incorporation: 27/08/1926
- It continues ancestral business of ginning and pressing of cotton at Wardha.
- Company is having investment in various Bajaj Group Listed Companies.
- Promoters: Sanjiv Bajaj and Shekar Bajaj
Note: The name of the group “Bachhraj” can be traced to the interesting fact of the first generation promoter Shri. Jamnalal being adopted by Shri Bacchraj as his Grandson.
Baroda Industries Private Limited
- Year of incorporation: 14/02/1941
- Company is NBFC Core Investment Company and having investment in all Bajaj Group Listed Companies.
- Promoters: Niraj Bajaj and Minal Bajaj
Listed Companies of Bajaj Group
Bajaj Auto Limited
Focuses on the production of motorcycles, scooters, and three-wheelers. Known for iconic models like the Bajaj Chetak and Pulsar, Bajaj Auto is a pioneer in the Indian automotive industry. It has also made significant strides in electric vehicles with the Chetak EV.
Mukand Limited
The company is engaged in the manufacture of stainless steel, alloy steel, and stainless steel billets, and is an exporter of hot rolled bars. The company manufactures iron and steel products, steel castings, steel structures, Electrical Overhead Travelling (EOT) and other cranes, and other industrial machinery. A key supplier of high-quality steel products for automotive, engineering, and construction industries.
Bajaj Holdings and Investment Limited
Bajaj Holdings & Investment Ltd. (‘BHIL’ or ‘the Company’) came into existence post the demerger of erstwhile Bajaj Auto Ltd. into three entities with effect from 1 April 2007.:
- Bajaj Auto Ltd.,
- Bajaj Finserv Ltd. And
- The erstwhile Bajaj Auto Ltd. (renamed as Bajaj Holdings & Investment Ltd.),
This company holds strategic stakes of 33.43% in Bajaj Auto Ltd, 39.29% in Bajaj Finserv Ltd., (BFS) and 51% in Maharashtra Scooters Ltd. (Read my detailed blog on Bajaj Holdings here)
Maharashtra Scooters
Maharashtra Scooters is holding and investment Company, having investment in Bajaj Holdings & Investment Limited, Bajaj Auto Limited, Bajaj Finance Limited and Bajaj Finserv Limited.
It is also engaged in the business of manufacturing dies, Jigs, fixtures and die casting components primarily for the automobile industry, etc.
Bajaj FinServ
It is a holding company that owns significant shares of its various key subsidiaries such as Bajaj Finance, Bajaj Allianz General Insurance, Bajaj Allianz Life Insurance as well as its relatively smaller entities such as Bajaj Finserv Direct, Bajaj Finserv Health, Bajaj Financial Securities and Bajaj Finserv Asset Management Company. (Read my detailed blog on Bajaj Finance and Bajaj FinServ)
Bajaj Finance Limited
It is one of the largest and most diversified NBFCs in India offering payments and lending solution to customers. The model is focused on acquisition of millions of customers and offering multiple loans and services on a cross-sell basis to meet their financial service needs.
Bajaj Electricals Limited
Focuses on consumer appliances, lighting, fans and engineering projects.
Hercules Hoist
The company offers a comprehensive range of products and services from manufacturing to the marketing of mechanical hoists, electric chain hoists, and wire rope hoists, stackers and storage and retrieval solutions, and other engineering machinery.
Bajaj Consumer Care
The company is engaged in the business of cosmetics, toiletries and other personal care products.
Bajaj Hindusthan
The Company is engaged in the manufacture of sugar, alcohol, ethanol, and the generation of power. The company was incorporated in 1931 under the name ”The Hindustan Sugar Mills Limited”.
Conclusion
Considering the year of Incorporation of Bacchraj (Parent group) companies in 1927, the Bajaj group can be seen as nearly 97 years old and inching toward a century. The group companies have given phenomenal returns to shareholders. In the next blog we will understand more about Bajaj FinServe and Bajaj Finance Limited.
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