Ruling out a formal division of the Bajaj Auto Ltd (BAL) empire between his two sons, the Chairman, Mr Rahul Bajaj, on Friday said both Mr Rajiv Bajaj and Mr Sanjiv Bajaj would continue to be part of the company even after the proposed demerger takes place. ``Both the boys will clearly continue to be in Bajaj Auto, no doubt about it,'' Mr Bajaj told newspersons here.

He, however, added that his younger son Sanjiv ``may probably spend more time on the new demerged company or companies''.

Mr Bajaj reiterated that the plan to demerge the company's financial and investments business into a separate entity was based on the intention of unlocking shareholder value by utilising surplus cash and not because of the reported "rift between the brothers".

``You cannot simply divide a company between individuals when you have so many shareholders interest to be taken into consideration,'' he said.

Mr Sanjiv Bajaj, Executive Director, BAL, however, added that the demerger process was being evaluated at the moment and it would depend on what kind of impact it would have on Bajaj Auto. "If the cash flows of BAL continue to be positive after the demerger, probably the board will give a go ahead," he said.

Bajaj Auto has about Rs 6,500 crore of cash reserves to fund investment in new models and facilities after the demerger, which the company may decide on as early as September.

Source : Business Line (Online Edition) (3/10/2007)

Rating For Rahul Bajaj rules out division of Bajaj Auto

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