Remembering Rahul Bajaj-The Man Who Transformed Bajaj Auto From ₹7.5 CR to ₹12,000 CR Company!

7 mins read

The picture of a family riding a Bajaj scooter is a reminiscent image of the 1980s-90s Indian working class. Back then, a scooter was a prized possession and was treated as a full-fledged family vehicle in almost all middle-class homes. From dropping kids to school, going to work or an evening family outing to the nearest street food stall, a scooter somewhat became the carrier of the Indian middle class. And the man responsible for placing the wheels under the Indian dreams was Rahul Bajaj.

Rahul Bajaj’s ambitions, integrity, and grit led him to unlock a new era of the Indian auto sector. His deep understanding of the Indian needs brought affordability and style within the same bracket leading to the birth of India’s favorite scooter, Chetak, and transformed Bajaj into ‘Humara Bajaj’. Possessing a perfect combination of vision and fearlessness, Rahul Bajaj was a game-changer for the Indian two-wheeler sector.

His recent unfortunate demise has left an irreparable void in the Indian auto industry. As the country mourns for the former Bajaj Group's Chairman, one can’t help taking a trip down the memory lane to see how Rahul Bajaj made Bajaj synonymous with two-wheelers in India.

Taking on the legacy

Born on 10th June 1938 in Kolkata, business was not an uncharted field for Rahul Bajaj. His grandfather, Jamnalal Bajaj started Bajaj group of companies in 1926 and his father Kamalnayan Bajaj diversified the interests of the company into scooters, cement and electrical equipment. It was in 1968 that Rahul Bajaj took over as the CEO of Bajaj Auto.

The switch from luxury to basic amenities

To take his business further Bajaj decided to shift to a not-so-developed area called Akurdi in Pune from his plush base in Mumbai. Starting a factory in a rural area fetched financial support from the government and other benefits for the factory but living in an area which lacked basic amenities was a tough call to make especially for a person who had always been amid luxury. Many assumed that Rahul Bajaj might have to regret the decision of shifting his base but he never looked back. In fact, he made Akurdi one of the most prominent industrial areas in the country and hence started an era of indigenously produced two wheelers that were both affordable and appealing to the Indian people.

Enter the ‘Chetak’

In the 1950s, a scooter of the Italian firm Piaggio called ‘Vespa’ became the new rage.The scooter was sold and assembled in India by some licensees, which included the Bajaj Group. In fact, while doing his BA in Economics from St. Stephens in Delhi, Rahul Bajaj would ride a Vespa to college. However, things took a different turn in 1971 when Indira Gandhi government denied extension of the international collaboration between Piaggio and Bajaj. This brought Bajaj’s business ties with Piaggio to an abrupt end. Another big setback happened the following year when Kamalnayan Bajaj's sudden demise left complete responsibility of the industrial conglomerate on 34-years-old Rahul Bajaj’s shoulders. However, nothing proved to be a roadblock for Rahul Bajaj. 

Chetak ‘roars’

Having the infrastructure to produce scooters, the following year Bajaj Auto launched three scooter models, back to back. These were Bajaj 150, Bajaj Chetak and Bajaj Super. Out of these, Bajaj Chetak (named after Mewar’s King Maharana Pratap’s trustworthy and fast-as-a-bullet horse) became an instant hit, especially amongst the Indian middle class who couldn’t afford a car. It somewhere personified people’s dream of having arrived in life. Hence, every family wanted to own a Chetak and were ready to pay a premium for even a second hand scooter!

But there was a twist. Not everyone’s dream was coming true, courtesy- the license raj.

“Bajaj scooter is 94 kg of gold”

The 1970s was a period of license raj i.e a system of licenses and regulations that hindered the setting up and running of businesses. And like all the other industrialists who wanted to expand, Rahul Bajaj too had to bear its brunt.

“There was a ten-year delivery period for Bajaj scooters. And l was not allowed to expand. What kind of socialism is that? I was just 35 years old but as chairman and managing director of Bajaj Auto, I was summoned by the Monopolies and Restrictive Trade Commission. My "crime"? I had produced more scooters than what was permitted under my industrial license. The rules stipulated that a company could produce only up to 25 per cent in excess of its licensed capacity.” he mentioned in the book Business Maharajas. 

To take matters into his own hands, Rahul Bajaj went to Delhi to face the Commission. With no lawyer accompanying him, Bajaj had no option but to put his best foot forward. His competitor, M A Chidambaram, chairman of Automobile Products of India that manufactured Lambretta scooters, had also been invited. In order to show how Lambretta scooters were superior to Bajaj, Chidambaram pointed out that while his scooters weighed 100 kgs, Bajaj was only 94 kgs in mass. To this Rahul Bajaj gave the most classic retort "Yes, the Lambretta scooter is 100 kg of silver but the Bajaj scooter is 94 kg of gold!"

The hearing was indeed a success and Bajaj Auto was allowed to expand. Rest is history! Over the years, Rahul Bajaj transformed Bajaj Auto from ₹7.5 crore to ₹12,000 crore company and needless to say, Chetak was the main driver of growth.

In April 2021, after serving for about five decades in Bajaj Auto, he resigned as Chairman of Bajaj Auto considering his age. He was awarded the third highest civilian award in India, the Padma Bhushan in 2001. 

Bajaj’s ‘Buland Bharat Tasveer’

Rahul Bajaj’s business philosophy was influenced by Gandhism probably because his grand-father Jamnalal Bajaj was an ardent follower of Mahatma Gandhi. It is said that Gandhi had declared Jamnalal as his fifth son. Hence, for Rahul Bajaj an inclination towards gandhism was quite natural. When at the peak of success, he decided not to take advantage of the hype and provide the best product at the lowest possible price. When asked the reason, Rahul Bajaj said,

“Ensuring that the consumer obtains the best possible product at the lowest possible price, and the employee gets a fair wage for a day’s work is the criterion of ethics in business.” 

Being outspoken, he vehemently criticized economic liberalization that he believed put indigenious players at a disadvantage. Rahul Bajaj’s ‘India First’ philosophy was one of the factors that set him apart from others. These ideals helped him shape a brand that not only catered to Indian demands but also tapped the Indian sentiments and tied them through a common thread. Hence, Bajaj scooter didn’t remain a commodity, it became an emotion. It became ‘Humara Bajaj’. 

An image etched forever

As rightly put by Anand Mahindra, the chairman of the Mahindra Group, “Your footprints on the sands of Indian Business will never be extinguished.” Indeed, they will never be extinguished. Rahul Bajaj will always remain one of the top names in the country who took the sprawling Bajaj empire to new heights. But there is more to him than this. His ethics, wit, sense of humor and ability to call spade a spade, set him apart from others. As Bajaj Auto bids adieu to its stalwart, his principles will always remain the cornerstone of the company and the nostalgia of the ‘Chetak’ will always remain etched in our hearts. 

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