Rahul Bajaj

Chairman of Bajaj Group

Net worth: US$2.4 billion (Forbes 2016)

Rahul Bajaj (born 10 June 1938) is an Indian businessman, politician and philanthropist. He is the chairman of Indian conglomerate Bajaj Group and member of parliament. Bajaj comes from the business house started by a Rajasthani Marwadi businessman Jamnalal Bajaj. He was awarded the third highest civilian award Padma Bhushan in 2001. In a recent interview for the Creating Emerging Markets project at the Harvard Business School, Bajaj provides a devastating critique of Indian industrial policies before the liberalization in the 1990s.

Growing up

Rahul Bajaj went to The Cathedral and John Connon School. He graduated from St. Stephen's College in Delhi in 1958 with an honors degree in economics. He underwent on-the-job training for 4 years at two of the group companies. During that time, he also earned a law degree in Bombay. He is also an alumnus of the prestigious Harvard Business School in USA.

The Beginning

Given his family background- at the tender age of 12, he started dreaming of becoming a businessman. His grandfather had bought a steel mill and a sugar mill, and in 1945 his father founded Bajaj Auto, now the crown jewel in the Bajaj Group.

In the 1970s, India was a socialist state barred by rules and regulations. As a result, there was no entrepreneurship and nothing could be done without government approval. At this difficult time Bajaj became the CEO of Bajaj Auto Ltd. (BAL) in 1968 at the age of 30 making him one of the youngest CEOs of that time.

In this environment, the company was limited to produce just 20,000 units a year. Supply and demand didn't match. Hence, after placing their order, customers had to wait for roughly ten years to receive it.

To lower costs while improving the price and quality of the products, he increased production to avail “Economies of Scale”. He ignored a government regulation and increased volume by more than the permitted 25 percent of his licensed capacity.

His grandfather had been known as the "fifth son" of Mahatma Gandhi and his parents and grandparents had spent time in British prisons for the sake of Indian independence. Hence, he didn't fear of going to jail for the (illegal) excess production.

Also, the fact that he was producing a commodity that most Indians needed gave him the strength to take the risk. He established factories at Akurdi and Waluj and worked hard to expand BAL- now the world's fourth-largest maker of motorized scooters, three-wheel vehicles, and motorcycles - India's most common forms of transportation.

Achievements

Since Rahul Bajaj took over the charge of Bajaj Group in 1965, under his leadership Bajaj Auto has grown to new heights year after year. The turnover of Bajaj Auto has risen from a mere Rs.72 million to Rs.46.16 billion. He created one of India's best companies in the difficult days of the license-permit raj.

Achievements

• He is the only top executive to have served two terms as president of the Confederation of Indian Industry (CII), which represents over 5,000 companies from India's private and public sectors.
• He is a member of International Advisory Committee and his expertise in these matters are tapped by the New York Stock Exchange.
• For his contribution to Indian industry, he was awarded the nation's third-highest civilian honor, the Padma Bhushan, in 2002.
• He was nominated to the Rajya Sabha from Maharashtra in June 2006 with cross party support from the NCP, BJP and the Shiv Sena.
• He was said to be the 20th richest man of India according to the Forbes India poll on top 40 richest persons in India.
• The Government of India appointed Mr. Bajaj as the Chairman of the Development Council for Automobiles and Allied Industries, 1975-77.
• In 1975, Mr. Bajaj received the “Man of the Year” Award from the National Institution of Quality Assurance.
• Mr. Bajaj was selected as Business India's Businessman of the Year 1985.
• In 1988, Mr. Bajaj was felicitated for his achievements in a public function by the Pune Municipal Corporation.
• Mr. Bajaj was Chairman of Indian Airlines between 1986-89.
• Mr. Bajaj received the Bombay Management Association Award for The Most Distinguished Services in the Field of Management – 1990.
• Mr. Bajaj was appointed by His Royal Highness, The Prince of Wales as a Member of the Prince of Wales International Business Leaders Forum in February 1992.
• FIE Foundation awarded Mr. Bajaj the Rashtrabhushan Award in 1996. Lokmanya Tilak Smarak Trust awarded Mr. Bajaj the Tilak Award in 2000.
• He was also conferred the Alumni Achievement Award by the Harvard Business School in September 2005.
• He was a recipient of many more national as well as international honors.