Bajaj Vs Bajaj: The Tale Of Two Brothers
It’s been almost a decade since Rahul Bajaj handed the charge of his group to his sons. While the de-merged entities grew multi-fold during the period, it’s the younger sibling Sanjiv Bajaj who has taken the lead with the financial services business he heads.
Bajaj Auto Ltd., led by Rajiv Bajaj, that earned about nine times the revenue of Bajaj Finserv Ltd. and Bajaj Finance Ltd. at the time of the split is now two-thirds their size. The automaker’s market capitalisation is about half the valuation of the two companies put together.
Rajiv Bajaj, a mechanical engineering, leads India’s second-largest two-wheeler and automotive business that sells twice the number of units compared to a decade ago. According to company filings, revenue from auto sales more than doubled in nine years through March 2017, growing at an annualised rate of 12.6 percent—from Rs 8,446 crore to Rs 21,767 crore. Profits rose at a faster pace of 28.8 percent to Rs 4,079 crore, while its market capitalisation surged more than tenfold to Rs 94,500 crore.
Sanjiv Bajaj, also a mechanical engineer, leads the two companies that now have a combined market capitalisation of Rs 1.8 lakh crore—twice that of Bajaj Auto. Sales of Bajaj Finserv and Bajaj Finance have grown at an annualised rate of 68.1 percent and 42.1 percent since the year ended March 2009, its exchange filings said. The profit for the two businesses rose at a CAGR of 54.1 percent and 64.7, respectively.
- Bajaj Finserv’s revenue rose from Rs 385 crore to Rs 24,522 crore in nine years to March 2017. Profit jumped from Rs 71 crore to Rs 2,262 crore.
- Bajaj Finance’s sales surged from Rs 599 crore to Rs 10,007 crore during the period. Profit rose from Rs 34 crore to Rs 1,836 crore.