BAL approves demerger, to split into three entities

Mumbai, May 17 (UNI) Country's second largest two-wheeler maker Bajaj Auto Ltd today announced its demerger scheme, saying that the company is creating three seperate entities with an objective to enable the investors to hold separate focused stocks.

The three entities will be Bajaj Holding and Investement Ltd (BHIL), New Bajaj Auto Ltd (BAL) and Bajaj Finserv Ltd (BFL). The existing company, Bajaj Auto Ltd, will be renamed as Bajaj Holding and Investement Ltd and would act as the primary investment company.

Addressing the mediapersons immidiately after chairing the board meeting here, Bajaj Auto chairman Rahul Bajaj said '' The demerger will facilitate more tranparent benchmarking of the companies with peers in their respective industries and it is based on share value unlock.'' On a poser on change in management, he said '' There will be no change in the management at the top level. However, lower management can have a 50 per cent change, which is a general phenomenon.'' ''Rajeev will remain the managing director and CEO of the company with his responsibility towards auto manufacturing and Sanjeev will continue to hold the position as the Executive Director with his responsibities towards financial operations,'' he asserted vehemently.

Taking a dig at the recent media reports, he said ''All the rumours running arround are totally out of sense. There is no such division in the family. Rather the demerger is a part of business strategy to strengthen competencies.'' The demerger will create three separate entities focusing on auto business, wind energy generation, insurance, consumer finance and new initiatives in financial services space and new business opportunities.

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