Describe general background Achievements Leadership style Various leadership traits and personality of the Rahul Bajaj

Rahul Bajaj

"Those who die, must die" - Rahul Bajaj

DESCRIBE GENERAL BACKGROUND Net Worth $3.4 B as of October 2012 Forbes Lists #19 India's Richest #719 Forbes Billionaires #29 in India

Born

10 June 1938 (age 74) Bengal Presidency, British India

Residence Education

Pune, Maharashtra, India St. Stephens College (Delhi, India), 1958 B.A., Economics The Government Law College (Bombay, India), 1960 LL.B (Bachelor of Laws) Harvard Business School (Boston, U.S), (1964) MBA (Master of Business Administration)

Occupation Net worth Political party Parents Married to Son Daughter Awards

Chairman of Bajaj Group $3.4 billion (2012) Independent Jamnalal Bajaj (grandfather) Priya Rajiv, Sanjiv Sunaina Padma Bhushan (2001)

 Personal Background of Rahul Bajaj

Rahul Bajaj was born on 10th June 1938 at Bengal. Residency, British India. He is an Indian businessman, industrialist, politician, Forbes billionaire and a member of the Indian Parliament. In 2010, Forbes had estimated his net worth to be US $ 1.1 Billion making him one of Indias Top 50 richest persons. He is the Chairman of Bajaj Auto, a leading Indian Automobile Manufacturer.

Family
Rahul Bajaj is a son of Rajasthani Businessman Jamnalal Bajaj who started Bajaj Auto in 1945. He has one brother, Shishir Bajaj, with whom there was a recent business settlement ending the family dispute. He has 3 cousins, Shekhar, Madhur and Niraj together with whom he controls the Bajaj Group of companies. He is married to Ruparani and has two sons Rajiv & Sanjiv who are involved in the management of his companies and a daughter, Sunaina Kejriwal who is married to Manish Kejriwal who heads Temasek India.

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.

Industrial Background of Rahul Bajaj

Mr. Rahulkumar Kamalnayan Bajaj, Rahul, serves as an Executive Chairman and Head of Bajaj Group of Companies of Bajaj Auto Ltd. Mr. Bajaj served as the Chief Executive Officer of Bajaj Auto Ltd. since 1968. He served as the Managing Director of Bajaj Holdings & Investment Limited until March 31, 2005. He served as Deputy General Manager of Bajaj Tempo Limited. He serves as the Chairman of the Board of Bajaj Finserv Ltd., Bajaj Allianz Life Insurance Company Ltd., and Bajaj Allianz General Insurance Co. Ltd. He has been the Chairman and Director of Bajaj Auto Finance Ltd. since July 26, 1972. Mr. Bajaj has been Non-Executive Chairman of Bajaj Holdings & Investment Limited since February 20, 2008. He served as Non-executive Chairman of Maharashtra Scooters Ltd., until October 18, 2006. He served as Chairman and Director of Mukand Ltd. until July 2007 and served as its Director until July 28, 2010. He serves as a Member of Executive Board at Indian School of Business. He served as a Director of National Aviation Company of India Limited. He served as a Member of Governing Board of Indian School of Business. He served as Executive Director of Bajaj Holdings & Investment Limited until February 2008. Mr. Bajaj served as Non-executive Director of Maharashtra Scooters Ltd., until October 18, 2006. He serves as a Member of International Advisory Committee of NYSE Euronext, Inc. (Formerly New York Stock Exchange, Inc.). Mr. Bajaj served as the President of Confederation of Indian Industry (CII - 1979-80/1999-2000). He also served as President of Society of Indian Automobile Manufacturers (SIAM) and Mahratta Chamber of Commerce, Industry And Agriculture (MCCIA) and the Chairman of the Development Council for Automobiles and Allied Industries. He served as Chairman of the Government owned domestic carrier, Indian Airlines from 1986 to 1989. He

serves as Co-Chairman of the Board of Commonwealth Business Council. He was elected to the Upper House of Parliament (Rajya Sabha) in June 2006. President of India nominated Mr. Bajaj as the Chairman of the Board of Governors of the Indian Institute of Technology, Bombay on 12th May, 2003. He served as Chairman of the International Business Council of the World Economic Forum, Geneva and serves as its Member. He serves as a Director of Bajaj Finserv Ltd. In 1975, he received the Man of the Year award from the National Institution of Quality Assurance. He was selected as Business India's Businessman of the year 1985. In 1988, he was felicitated for his achievements in a public function by the Pune Municipal Corporation. He received the Bombay Management Association Award for the most distinguished services in the field of management in 1990. He was awarded FIE Foundation, the Rastrabhushan Award in 1996. Lokmanya Tilak Smarak Trust awarded Mr. Bajaj the Lokmanya Tilak Award in 2000. He was awarded the 'Padma Bhushan' by the President of India in March 2001. He was awarded the Jeevan Sadhana Gaurav Puraskar by the Pune University for 2002 and he was the first person to be inducted by the ICICI Bank and the leading automotive magazine, Overdrive, in the Indian Automotive Hall of Pride - 2003. Mr. Bajaj received both Economic Times and Ernst & Young Life Time Achievement Awards in 2004. Degree of Doctor of Letters (Honoris Causa) was conferred on Mr. Bajaj by the Rani Durgavati Vishwavidyalaya (formerly Jabalpur University) in March 2005. He was also conferred the degree of Doctor of Arts (Honoris Causa) by IIT Roorkee and the Alumni Achievement Award by the Harvard Business School, both in September 2005. Mr. Bajaj is an Honours Graduate (BA) in Economics from Delhi University, Degree in Law (LLB) from Bombay University and a Business Graduate (MBA) from the Harvard Business School.

Rahulkumar Kamalnayan Bajaj

Executive Chairman, Member of Remuneration & Nomination Committee and Head of Bajaj Group of Companies,Bajaj Auto Limited

Age

Total Calculated Compensation 111,254,198 As of Fiscal Year 2012

This person is connected to 28 board members in 6 different organizations across 10 different industries. See Board Relationships

74

Board Members Memberships*

Former Director Mukand Limited Former Non-Executive Chairman Maharashtra Scooters Ltd. Former Director Air India Limited

Chairman, Chairman of Bajaj Finserv Ltd., Chairman of Bajaj Finance Ltd., Chairman of Bajaj Allianz General Insurance Company Ltd. and Chairman of Bajaj Auto Ltd. Bajaj Allianz Life Insurance Company Limited Chairman and Chairman of Bajaj Allianz Life Insurance Bajaj Allianz General Insurance Co. Ltd. Executive Chairman, Member of Remuneration & Nomination Committee and Head of Bajaj Group of Companies Bajaj Auto Limited 1972-Present Chairman and Member of Remuneration & Nomination Committee Bajaj Finance Ltd. 2007-Present Non-Executive Chairman and Member of Remuneration Committee Bajaj Finserv Limited 2008-Present Non Executive Chairman, Member of Remuneration & Nomination Committee, Executive Chairman of Bal and Chairman of Bajaj Finserv Ltd Bajaj Holdings & Investment Limited

annual Compensation* Salary Total Annual Compensation 43,334,198 43,334,198

Stock Options* All Other Compensation 67,500,000

Total Compensation* Total Annual Cash Compensation Total Short Term Compensation Other Long Term Compensation Total Calculated Compensation 111,254,198 43,334,198 67,500,000 111,254,198

http://investing.businessweek.com/research/stocks/people/person.asp?personId=8400921&ticker=32669680

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.

Apart from his achievements as the CEO of BAL, his individual achievements are:

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.

LEADERSHIP STYLE
Rahul Bajaj is the man who can be given credit for building Bajaj auto are the 4th largest twowheeler manufacturer in the world. He has achieved an incredible growth rate of 1852% in the last decade. Following are some of the points that explain the reason of his success. Concentration of Core Competency: Rahul Bajaj collaborated with Kawasaki for production of motorcycle but for scooter he did not go for any collaboration. Manufacturing scooters is his core competency and he does not want to experiment with that. Customer is King: Bajaj has often been accused of exploiting the customers with delivery period of 10 years, black marketing, etc. but this is not true at the face value. A deeper insight brings to picture that there were other elements who are responsible for these accuses. Bajaj, in spite of a heavy demand, did not raise the price of his scooters and avoided exploitation of customers. Staunch believer in himself: Bajaj listens to each and everyone, but takes decision on his own. His organisation is a little centralized. In spite of strong oppositions, he sticks to his decisions. Never give up attitude: Licence Raj was a nightmare for Bajaj. He does not believe in bringing Government officials and getting his license cleared. This is a major reason why Bajaj Auto came under MRTP and was allowed to expand its production capacity. But he did not give up to the Government conditions and after some years, done lobbying through business housed and putting tremendous pressure on Government learn his license. Jach Welchs theory: Rahul Bajaj holds same views of Mr. Jack Welch, the former CEO of GE. He believes that if one is no No 1 or No 2, he should get out from that business. This principle kept him away from the four-wheeler marke. Attitude towards workers: Bajaj has less kind of words for workers. Still, there has been only one strike in the history of 35 years of the company. He takes care of the needs of the workers and at the same time, he views workers as a tool for production. In his word Why do they strike and lose wages? They should work more, earn more BBC: Rahul Bajaj is well known for his unflinching frankness and varied opinion on every topic under the sun. His office is therefore popularly known as BBC (Bajaj Broadcasting Corporation) Straightforwardness: His quotes about the Government have found place in the headlines of many leading newspapers and magazines in India and have also raised controversies. But this does not stop him from doing what he considers correct. All the above features are the hallmark of Bajaj. They has earned him a rare reputation as one of Indias most successful industrialists.

Squeaky clean, he has never been involved in shady takeovers. He does not engage in street fights, nor has he ever hijacked someone elses project. He hasnt burnt tyres during hard drive for meteoric growth.

On the contrary, he is something of a plodder, routinely burning the midnight oil, and devoted to the virtues of hard work. Hes Indias most admired industrialist along with Dhirubhai Ambani and the late Adity Birla. Rahul Bajaj on Business Mr. Bajajs business acumen, dedication to the Group and opinions are a few things that give him international recognition. As a matter of fact, the Financial Times has stated that it is largely because of Mr. Bajajs valuable input that the companys products can combat with the best in global markets. And even though he is an influential industrialist, his reputation is as spotless. This simply means that he has never gone out of his way to steal someone elses idea to expand his business. As a firm believer in healthy competition, he encourages his employees to stay focussed on constant innovations and improvements. The companys current employee strength is over 20, 000 in India with a turnover of over US $3.2 Billion. Mr. Bajaj is known to be exceedingly liberal and considerate with his employees till date. Over the years, he has worked tirelessly to create a friendly and open environment in his offices one that is conductive to productivity and good work. He has been a donormember of Indo-British Partnership Initiatives and in the last ten years; also headed the Indian delegation in the international convention organized annually by the World Economic Forum. He was also recently in the news for opposing any government bailout for the heavily debt-ridden brand Kingfisher Airlines stating those who die, must die. I am a private sector man and I dont see any logic of bailing out any private sector company, either for the sake of employees, or customers. If Bajaj Auto gets into a mess, would you bail me out? he asked. http://www.businessreviewindia.in/business_leaders/those-who-die-must-die---rahul-bajaj

VARIOUS LEADERSHIP TRAITS AND PERSONALITY

With the market opening up after the license-quota raj was terminated, two wheeler manufacturers realized the potential growth of their companies. Bajaj teamed up with Kawasaki of Japan to produce one of the most fuel efficient and attractive two wheelers for the Indian market. Even so, Rahul was completely aware how he did not have to go in for collaboration in the scooter segment. He had already achieved the competency in the field and just had to continue operations. It says something for his integrity that he did not think of exploiting the market to his own advantage when the demand for his scooters were very high and the supply was limited. He could have raised the price to a very high premium but he did not.

When there were suggestions that he should foray into four wheeler market, he did not do it because his philosophy was that if you can not be in the top two positions, you had no business to be in the business. You simply have to get out. Four wheeler market was already crowded with many domestic and foreign car makers vying for the market. You can call it anything but Rahul calls it prudence.

He is impatient with workers' strike. He does not understand why the workers strike. His logic is they should work more and be paid more. And, he does not mince words. He tells it as it is. He has been

quoted, misquoted, analyzed and re-analyzed by media and the government. He does not flinch from his stand for anything.

Honesty is the Best Policy

Rahul Bajaj believes in hard work more than anything else. It is no wonder he is one of the most admired and respected businessmen in India. Claims, he has never bribed anyone and has been an honest businessman through out his career. Has built a forture due to the sheer might of his will power.
Rahul Bajaj on Global Pollution & the Auto Industry Given Mr. Bajajs wealth of expertise and years of experience, he is questioned often on various matters every now and then the most popular being the auto industry of course. "If your vendors are not with you on cost and quality, you cannot succeed," has been one of his best advices. Regarding pollution, Mr. Bajaj maintains that every large country must take on the responsibility of not adding to global pollution. "We have to decide without getting into a self-defeating debate about the danger of global warming." Bajaj said. He adds that richer countries of the world who contribute the most to pollution must take action for betterments and set examples for other nations.

Rahul Bajaj is one businessmen, politician and philanthropist who likes to do things his way and is totally uninhibited about speaking his mind

LIFELONG LESSON FROM HBS "The case method teaches you how to gather and understand the facts of a situation and then how to analyze and make a decision. But even more important, this process requires you to think really hard. In my career, nothing has been more important than that." ADVICE TO CURRENT STUDENTS "Integrity and character matter. Without them, no amount of ability can get you anywhere. In addition, you need courage courage to make difficult decisions, for example, and courage to oppose something if your conscience tells you that you are right." CURRENT READING A wide range of magazines on politics, the international economy, and business

Sources:
http://investing.businessweek.com/research/stocks/people/person.asp?personId=8400921&ticker=32669680 www.forbes.com www.wikipedia.com http://www.alumni.hbs.edu/awards/pastwinners.html