The Steady Ride
Despite major economic changes in India in 2017 pertaining to the fallout of demonetisation, the fiscal ended on a positive note for the Bajaj Group patriarch Rahul Bajaj and his family. Bajaj’s net worth during the year grew 97 per cent to Rs 1,52,071 crore from Rs 91,165 crore in 2016. The growth was partly led by the rising shares of his group company Bajaj Finserv.
Growth for Bajaj Finserv during the last fiscal was led by Bajaj Finance, its lending arm. Its assets under management rose 36 per cent to Rs 60,194 crore in the 2016-17 fiscal, while its receivables under financing during the period grew 33 per cent to Rs 56,832 crore.
For Bajaj Auto, however, it was business as usual as the sudden announcement of demonetisation in November 2016 slowed down the pace of the overall industry for the year. “We have grown; but not as much as last year,” Bajaj was quoted saying in the annual report of the two-wheeler maker. Net sales for the company de-grew by 3.5 per cent to Rs 21,374 crore, while its total operating income (net sales plus other operating income) fell 3.2 per cent to Rs 22,026 crore.
“The Bajaj Group has systemically focused on building the brand value. Even if they sell a lesser number of motorcycles, they do a higher turnover. This is where they have registered their mark,” says Deven Choksey, managing director, KR Choksey Investment Managers.
The Mumbai-based Bajaj Group is one of the oldest and largest conglomerates in the country. Its flagship company Bajaj Auto, is ranked the world’s fourth largest three- and two-wheeler manufacturer.
