Rahul Bajaj Gave the Word

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Kamalnayan Bajaj Architect of the Bajaj Group

Gita Piramal

Kamalnayan Bajaj Charitable Trust ISBN No. 978-81-922892-3-6

January 2015

Compilation and Writing Gita Piramal

Content Research Support Mukul Upadhyaya

Image Research Touchstone

Design Indi Design

Publisher Kamalnayan Bajaj Charitable Trust

Printing Pragati Press, Hydrabad

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without the prior written permission of the copyright owner and the publisher.

For Private Circulation Only Diya

A tiny word of two syllables, ‘diya’ is one of those special Nitin Kochar, Mohan Keyyath, R Satyanarayan and words that immediately resonate in us. A diya, as noun, J Sridhar – I owe you a huge debt of gratitude for your is a small clay bowl with a delicate flickering flame. patience, persistence and putting me back on the right Metaphorically it represents big emotions such as hope track whenever I veered off it. I do not know the names and passion, courage and respect. Diya, as verb, can be of the many, many executives who contributed to this interpreted as ‘given’. effort. I request you to thank, on my behalf, each and every Bajaj executive who put in those extra hours. That Dear reader, the book in your hand is a result of both this book exists is not only because the family wanted the noun and the verb. a biography. It exists as much because of the respect Kamalnayan aroused in the descendants of those who Let me explain. worked for him, and today are either employed in the Bajaj group or are associates. The writing of business history is not for the faint of heart. To illustrate this point, let me share with you In Mumbai, Mukul Upadhyaya, custodian of the just one of many herculean chores that have to be Bajaj family history, not only helped me navigate the undertaken. Companies have to maintain annual wonderful archive of photographs maintained by the reports. But as the years pass, they move from office Jamnalal Bajaj Foundation, but also unlocked the cabins to a back office before eventually reaching their secrets of old Hindi texts, some of them long forgotten resting place in a trunk or a Godrej cupboard in a – but never by him. Over in Pune, Sudhir Sharma warehouse of some kind. I asked for the annual reports masterminded the book’s design. of all the companies in the Bajaj group from 1938 to 1972: the year Kamalnayan Bajaj effectively joined the While this hectic activity was going on in Bajaj offices family business, until his death. And when I could not across India, the Bajaj family jumped whole-heartedly find a specific piece of data, I started asking for minutes into the project. Suman Jain, Kiran and Kumud shared of the meetings of the boards of directors. not just their photographs and letters, but also their memories. Minal, Rajiv, Sanjiv and Sunaina, I hope, Not once did I hear a moan. had fun remembering childhood days. Relatives-by- marriage such as Chitra Pamnani, Rupa Bajaj’s sister, Rahul Bajaj gave the word. Shekhar, Madhur and were willy-nilly drawn into the quest. As was Dhirubhai Niraj readily hunted out documents in the companies Mehta, who married Nanda, Radhakrishna Bajaj’s under their charge. It requires real dedication and daughter – read all about them inside the book! passion to dig into dusty, long-forgotten archives. In addition to their normal duties, group executives Diya, the noun, came into action. worked extra hours to collect the information. As one of them exhorted a colleague, “Please help Of much greater importance than the data collection her. This is about us.” effort is the Bajaj commitment to truth – a Gandhian

Kamalnayan Bajaj – Architect of the Bajaj Group 3 value that continues into the fourth generation. They Had Kamalnayan not depended on managers, he could would not stop digging until they had uncovered every not have built sixteen factories and acquired five more. discoverable fact surrounding a specific event. Gradually Was it sharp speech or did he prefer to say the truth as a treasure trove of information emerged. Knowledge is? Even those who advised him to use softer language do that had lain hidden for decades emerged from darkness not deny his well-meaning nature and willingness to go into the light. out of his way to help those in need.

Now Diya the verb played its role. For a business historian, few experiences can match the excitement of working with primary data in an I was given knowledge. Without strings, caveats or unfettered environment. That too primary data never restrictions. This is most unusual. I had complete used by anyone else. I was in virgin territory. Raw freedom. The only other occasion of such delight was primary data, however, carries with it the responsibility when I was granted unlimited access to the Kasturbhai of capturing history responsibly, accurately and Lalbhai letters. When a researcher is trying to figure truthfully. One discovers so many interesting facts out what makes an extraordinary person tick, such and insights. Inevitably I wanted to share everything I transparency is invaluable. discovered. But a reader doesn’t want a PhD. Biography is as much as helping a reader discover himself or herself And by any yardstick Kamalnayan was an extraordinary as about the subject of the biography. I have to admit, man. His many detractors – while he was alive and later curbing myself was difficult. – point to his impatience with detail, his dependence on managers, his sharp speech. In this biography, I Writing this book was an amazing ride. Thank you believe you will find that Kamalnayan was able to build Rahul for providing me with this opportunity. an impressive business group during one of the most tumultuous periods in Indian history, precisely because of these traits. – Gita Piramal Had he bogged himself down with detail, Kamalnayan Mumbai and Oxford could not have dreamt big. In 1942, the family bank December 25, 2014 account held barely Rs. 3.5 lakh, group sales were less than Rs. 1 crore, and about 200 people worked in ginning and pressing mills. By 1972 when he died, sales were Rs. 76.24 crore and profits Rs. 8.41 crore.

4 Kamalnayan Bajaj – Architect of the Bajaj Group Contents

Foreword 06 1. A Different Heart Beat 09 2. Making the Future 13 3. 10 Secrets of Success 19 4. Conscious Marketing 23 5. Enrico Piaggio 27 6. IPO 31 7. 100,000 Indian Vespas 35 8. Chetak 39 9. Frits Philips 43 10. Lighthouse 49 11. Partition 55 12. Mukand Makeover 61 13. Satyagrahi 67 14. Three Grandfathers 71 15. Do or Die 75 16. Lok Sabha 79 17. Shishya 87 18. Cambridge 91 19. Purab Paschim 97 20. Padma Vibhushan Jankidevi 101 21. Match-Maker 105 22. After I Die 113 Foreword

Filial reverence is the corner stone of enduring human an avid humanitarian, social reformer and philanthropist civilisations, the very basis of continuity in society. Even and got involved in industry as a happenstance. Our as we inherit our legacies, we need to keep them alive first venture Mukand, occurred because a friend needed and take them forward. some capital.

This collage of images and words, which for want of a Kakaji transformed us from a successful and reputed better description can be called a book, is a tribute to cotton trading group to an industrial group. This Kamalnayanji (Kakaji), not only as the head of the Bajaj he did purposefully. Even as he carried forward the family in his generation family tradition of but also as a person contributing to public and as an architect of life, be it in political, the Bajaj group as we socio-cultural or now know it. In his life philanthropic fields. time he transformed After Pujya Kakaji a trading group to passed away on 1st amongst the top twenty May 1972, I wrote a industrial houses of the piece titled ‘My father country. The group – a son’s perspective’. today has a market It is difficult for a son cap of approximately to write something Rs. 130,000 crore and about his father. I had a profit before tax of stated then, that by over Rs. 8,000 crore. their very nature, most Bajaj Auto is the third of the memories are largest motorcycle manufacturer in the world. The two of a personal kind and one is reluctant to put them into Bajaj Allianz Insurance Companies and Bajaj Finance as a words. Inspite of this, I had put down some of my views consumer finance company are leaders in their respective about him to shed some light on his personality and the fields. All built on the foundation laid by Kakaji. kind of person he was. Parts of the piece have found their way into this book. It is the changing of course that matters in the lives of individuals and more so in the trajectory of institutions. Apart from the influence of his father, Pujya Jamnalalji, Once the new course is set, it is relatively easy to it was the environment and his ‘education’ in the progress. Jamnalalji was the founder of the group. But Paunar and Sevagram Ashrams and the family’s and he was almost an accidental industrialist. Business and his involvement with the freedom struggle, which made industry were incidental to his interests. He was however Kakaji both an unusual and an outstanding human

6 Kamalnayan Bajaj – Architect of the Bajaj Group being. This could be seen in his views on fair and ethical in Pune, we would sit for a discussion after dinner, dealings in life and business. What I found really amazing starting around 9 p.m. which went on till 2 a.m. I would was his ability of independent and original thinking. disagree with him quite often and at times vehemently. Some examples of his original thinking are mentioned But, he did not mind at all. on the back cover of this book. He never accepted ideas uncritically. He even argued with Gandhiji. This is why Kakaji gave all of us the freedom to learn and grow by he earned the sobriquet of being a ‘Gandhian’ rebel. making mistakes.

As could be said, he was tutored in the school of life, His was a rounded personality. He was in business, unfettered by conventional thinking. His only formal politics, involved in the civil society, and in culture education was a year at Cambridge. His getting and arts. He travelled widely within and outside India. admission to Cambridge is a story in its own right which the reader would savour in a chapter in this book. Kakaji was also a modern man, a contemporary person. I am not sure whether this was inspite of his ‘education’ Kakaji, through the force of his personality, kept the in Vinoba’s and Gandhiji’s ashrams, or because of it! family together. If any family member had any problems, Unlike many others, his was an agile mind and he kept he was always there to help. Of course, he also expected changing his thinking and views, based on new facts. a great deal from all of us in the younger generation. He had his own way of teaching and guiding us and at the Much has been said and written about Kakaji in books same time he ensured that we also enjoyed ourselves. and articles, but his was not a personality which could be described in words. Very often when he went abroad, he took one member of the younger generation with him. In 1956 he took From 1940 when he was 25 years old till he passed me with him to Europe for a month. It was Suman to away at the young age of 57 in 1972, the world changed Europe for over two months in the summer of 1960, dramatically. From the second World War, the Korean just before she was married, and it was Madhur in the and Vietnam wars, periods of growth and recession, the summer of 1971, which turned out to be the last trip Cold war, etc., he kept changing with the world. abroad of Kakaji. He kept advising the managers in our companies to keep When I was in Harvard Business School, during the up with the latest technological developments globally. summer of 1963, Rupa and I travelled all over the U.S. He invited the best partners, whether it was Piaggio by car for about three months. Almost half of the time, of Italy, Philips of Holland, David Brown of U.K. for he travelled in the car with us. Mukand and many others.

We stayed in motels, where the cost of a room was $10 But he did not change his principles. Because of per night. He expected us to live like students. But what Gandhiji and Jamnalalji’s commitment to khadi, he not was noteworthy was that he also lived like us! only wore khadi till he died, but he did not let the group enter the textile industry. Similarly, though we had a Once I joined the business full time, from January 1965, Sugar Mill from the 1930s, he saw to it that the molasses whenever we were together in Mumbai and more often were not used to produce potable alcohol.

Kamalnayan Bajaj – Architect of the Bajaj Group 7 Kakaji, however, did not look after his health either by this has been achieved. It was decided to bring out the way of diet or regular exercise. He tried but, with his book in English and Hindi. The Hindi version will come travels and partly perhaps because of his temperament, out soon. he did not succeed. He was not good at taking medicines either. He suffered from diabetes and even after his Though this is a foreword and not an acknowledgement, heart attack in 1969, he did not take proper care of his I cannot but help put on record the very long association health. Of course, medical science in India in the late with the Bajaj family/group of the three major 60’s was not what it is today. contributors to this book.

When the family decided to celebrate his birth centenary Mukul is the son of Martand Upadhyaya, who had which falls on 23rd January, 2015, it was suggested to compiled/edited all the works of Kakaji, besides bring out a pictorial book which in brief would give to publications related to Jamnalalji. Sudhir has been the readers Kakaji’s thought process, value systems and known to Rajiv, Sanjiv and me for about 20 years achievements. This is what this book is all about. It is and has helped companies like Bajaj Auto and Bajaj not a regular biography. A great deal of material had to Finserv in their design work. He also assisted Kumud be collected by family members, people working in the in designing the book DEAR RAHUL which the family Bajaj group companies and by Mukul Upadhyaya and brought out on my 70th birthday. Gita of course knows his son, Aditya. Sudhir Sharma and Tarun Thakkar almost every member of the Bajaj family and I consider were responsible for the art work and design. We were her a very close and special friend, who is a highly really fortunate to get Gita, who is busy doing post- accomplished person in many ways, besides being a doctoral research in Oxford University and with renowned historian of Indian business. another important project, to agree to author this book even though she had never met Kakaji. To our forefathers we owe a debt which we can not repay. This book is a tribute to Pujya Kakaji in fond And, what an author she is and how she made all of remembrance from all of us in the Bajaj family. us work! But it was clear that she worked the hardest of us all. – Rahul Bajaj Everyone worked as a close knit team. And, worked under tremendous pressure of time. It was decided that the book should be ready before January 23, 2015 and

8 Kamalnayan Bajaj – Architect of the Bajaj Group Chapter 1

A Different Heart Beat

Bapu always thought and cited Jamnalalji as one coming very near his ideal of trusteeship. Jamnalalji did earn money like other capitalists but he held himself as a trustee of his wealth and he expected his sons and heirs to do the same. Jamnalalji would have gladly given up further earning of money after he had surrendered himself to Gandhijji but Gandhiji encouraged him to earn more, because he knew that Jamnalalji’s ways were honest and clean and the money so earned was spent in the service of the country.

Kaka Kalelkar, 1942

Kamalnayan Bajaj – Architect of the Bajaj Group 9 The pugree changes owners

1938 to 1942 was a difficult period for the Bajaj Group. The trading, cotton ginning and pressing, and real estate businesses which Jamnalal had so carefully nurtured were doing well, but the manufacturing businesses were in trouble. A change in the British Raj’s sugar policy in 1937 negatively impacted the family’s sugar business. But what really hit the group was the acquisition of Mukand Iron & Steel Works in 1939.

Its promoter, Lala Mukand Lal, was a Gandhi supporter. The re-rolling mills and foundry in Lahore and at Reay Road, Bombay were virtually new – This picture was taken at Bajajwadi, Wardha in 1954 when Jawaharlal Lal had bought the equipment and built the plants Nehru paid a visit. Ramkrishna Bajaj is on the extreme left, Kamalnayan barely two years earlier, but was unable to run them. on the extreme right and Rameshwarprasad Nevatia behind Nehru. On Gandhi’s suggestion Jamnalal bought the business. Jamnalal could never refuse Gandhi anything. chairman of the companies, Kamalnayan as director. At And Jamnalal invited his friend Jeewanlal Motichand Kamalnayan’s suggestion Ramkrishna was sent to the Shah, yet another follower of Gandhi, to be a partner sugar operation at Golagokarannath, United Provinces. in the business. Helping and learning from Rameshwarprasad Nevatia, their brother-in-law, would become Ramkrishna’s first The cash crunch was painful, but not the real major business responsibility. problem. Jamnalal and Shah were out of their league. The Tatas and local Lahore mills were experienced By July 1941 Jamnalal was in a high state of anxiety. competitors. Mukand’s plant operations were not Fearing a downturn similar to what India went through even running properly. The furnaces had not been after World War I, Jamnalal seriously thought of selling erected fully. The foundries spluttered. Power supply off his shares in Hindustan Sugar Mills and Mukand was erratic. By the time the new managing agents Steel, and was dissuaded from doing so by the Birlas. (Jeewan Ltd) got their act together, World War II broke out and the British Raj took control of India’s iron and On February 11, 1942, Jamnalal passed away. steel industry. On the 12th day, Kamalnayan wore Jamnalal’s cap. In By 1940 a depressed Jamnalal virtually retired from his diary Ramkrishna, 18 years old, wrote, Kamalnayan all business activity. He resigned as chairman and “has to now shoulder Kakaji’s responsibilities. Now, for director of the group’s three big businesses: steel, sugar me, bhai takes the place of father. I must also behave and real estate. Rameshwar Das Birla took over as with him in that manner.”

10 Kamalnayan Bajaj – Architect of the Bajaj Group The Hindustan Sugar Mills at Golagokarannath in the United Provinces marked Jamnalal’s entry into the sugar industry

Jamnalal joined the steel industry by acquiring Mukand Works in Lahore. Here Jamnalal is with Jeevanlal Motichand (1881-1971), Jamnalal’s Gopichand Bhargava, Chief Minister of Punjab. Kamalnayan is in the background. partner in the steel business.

Kamalnayan Bajaj – Architect of the Bajaj Group 11 My son is taken away from me – by mk Gandhi

Son and father at work – Jamnalal and Gandhi

You are aware how intimate was my relation with Jamnalal. There was no work which I did in which his full co-operation in body, mind and wealth was not available. Neither I nor he were fond of what is known as politics. He entered politics because I was in it. But my real politics was constructive work.

And his politics also was the same. I had hoped that after me he would carry on those works of mine which would be regarded as of special importance. He had also assured me to this effect. But God alone can fulfil man’s wishes.

12 Kamalnayan Bajaj – Architect of the Bajaj Group Chapter 2

Making the Future

At the stroke of the midnight hour, when the world sleeps, India will awake to life and freedom... We end today a period of ill fortune and India discovers herself again. The achievement we celebrate today is but a step, an opening of opportunity, to the greater triumphs and achievements that await us. Are we brave enough and wise enough to grasp this opportunity and accept the challenge of the future?

Jawaharlal Nehru, 1947

Kamalnayan Bajaj – Architect of the Bajaj Group 13 MRTP’s select membership list

Listening to Nehru, Kamalnayan reviewed the events Rs. 67.60 lakh to Rs. 76.24 crore; gross profit from of the past five years. A minimum of Rs. 60 lakh worth Rs. 12.77 lakh to Rs. 8.41 crore. of assets had been lost to Pakistan. Several properties had to be sold to pay debts. He had to shut down the Kamalnayan used all routes to growth known at the time. He expanded the businesses started by his father, diversified into new businesses, constructed greenfield plants, acquired companies, entered into joint ventures, introduced new products, and developed distribution networks in India and outside.

These achievements were crafted in an era marked by shortages. Shortage of raw materials and electricity, of foreign exchange needed to import machinery. Frequent communal riots disrupted distribution. Bank nationalisation and the rupee’s depreciation were serious dislocations. The benefits of technologies seeded by the 1960s’ green revolution took time and the threat of mass hunger was never far. stock-broking firm because of heavy losses. On the positive side of the ledger, almost everyone from the Karachi branch who wanted to leave Pakistan was safely back in India. They still had the steel rolling mill in Bombay, and a bit of real estate. The trading, ginning and pressing, and sugar businesses were profitable. His management team was experienced. He had good partners and strong family support. Young and fit, Kamalnayan felt capable and ready to accept Nehru’s challenge to build the temples of modern India.

His energy transformed the Bajaj group. In 1964, twelve years under his leadership, the government drew up its first list of ‘monopolistic business houses’. The Bajaj Group found itself ranked 19th with assets under management of Rs. 29.25 crore. Under Kamalnayan’s leadership, between 1942 to 1972, sales climbed from

14 Kamalnayan Bajaj – Architect of the Bajaj Group Politics made the 1942-1972 era even more interesting: the freedom struggle, the traumatic end of British rule, the tragedies of Partition, three wars with Pakistan, and one with China. Besides the eccentric prime ministerships of Jawaharlal Nehru and Indira Gandhi.

These decades saw experiments in economic and industrial policy-making which frequently disrupted a company’s business plan. British laissez-faire disappeared, to be replaced by Soviet style centralised planning with five year plans and an MRTP Commission. The abolishing of the managing agency system introduced board-run companies. Companies had to throw out tried and tested old ways of working and learn to cope in the new environment.

This was the uncertain, unstable India in which Kamalnayan Bajaj built a group of companies based on the concepts of trust, fairness and honesty. How did he achieve what he did without compromising his ethics? This is his story. Born 1915. Head of the family 1942, age 27. Dies 1972, age 57.

Kamalnayan Bajaj – Architect of the Bajaj Group 15 Making the Future Pictorial presentation of Kamalnayan Bajaj’s achievements

1962 Consumer Electricals, Pune 1954 1954 1954 Electrical Transformers, Lamps and Bulbs, Bulbs and Tube Lights, Bombay Bombay Shikohabad, UP 1960 1967 Scientific Instruments, Sugar, Palia, UP Kothrud, Pune 1966 1962 Forgings, Bombay Electric Hoists, 1970 Khalapur, Maharashtra Cement, Udaipur 1953 Batala Steel, 1963 Batala, 1958 Travel Agency, Punjab Fans, Bombay Bombay

1961 Scooters CKD 1950s Assembly, Ayurvedic Akurdi, Pune Cosmetics, Powai 1972 Madhya Pradesh lamps (Unfinished) 1958 1948 Power Steel Foundry 1953 Equipment 1961 1964 Kurla Ayurvedic Autorikshaws Kitchen Appliances, Cosmetics, CKD Assembly, Bombay Udaipur 1958 Akurdi, Pune 1941 Steel, Kalwe, Ginning & Pressing Maharashtra 1972 Mill, Baroda

1965

1960 Greenfield Acqusitions 1915 1945 Unfinished projects 16 Kamalnayan Bajaj – Architect of the Bajaj Group Making the Future Pictorial presentation of Kamalnayan Bajaj’s achievements

1965

1960 Greenfield Acqusitions 1915 1945 Unfinished projects Kamalnayan Bajaj – Architect of the Bajaj Group 17 My best teacher – by Rahul Bajaj

Not much can be said about the business He did not only act by his instincts. He would apply his activities during the times of my grandfather. It mainly intelligence rationally and objectivity to every issue, involved processing of cotton, less than two hundred and yet with a touch of humanism. He had great faith people were engaged in it and the annual turnover in his analytical skills. was around a crore of rupees. Moreover, Jamnalalji always gave away more in charity than what he His logical way of thinking ensured that he never earned. As regards business sense, Kakaji sought the refuge of fate. He did believe in God, but (Kamalnayanji) was far greater than his father. Kakaji he was not one who keeps complaining about his fate. founded and built upon the edifice of our business He used to say that those who rely on fate achieve almost from ground up. little; whatever one acquires is possible only through a scientific and objective approach. I do not claim that he did this single-handedly. My uncle (Ramkrishnaji Bajaj) also played a vital role. He had his own way of explaining work-efficiency. They were ably helped by Shri Rameshwarji Nevatia Assume that we have two light bulbs – one has a and others. And of course there were the loyal and rating of 100 Watts, while the other is rated 10 Watts. capable executives. But if the credit for establishing A 100 W bulb that gives off light equivalent to that of this business were to go to one person, that person a 65 W bulb, will have to be called an inefficient one. would undoubtedly be Kakaji. On the other hand, a 10 W bulb giving off 11 W is not only efficient in itself, but it is also more efficient than He never involved himself or spent time in the the 100 W one. This was his favourite example. minutiae of day-to-day activities, so in this regard, his absence is perhaps not felt that much by us. His True to this nature, he was never bothered about absence is felt the most when we remember his great success or failure. He believed only in action. He grasp of business matters. If the need arose he could believed that a person ought to try his best to give such insightful ideas and solutions that none of complete a task that has been taken up, irrespective us could have ever thought of. It is because of such of how difficult it might be. He felt that the line inputs that the Bajaj Group could rise to such heights dividing success and failure is a very thin one. within such a short span of time. If we had had the benefit of Kakaji’s guidance for an even longer period, it would doubtless have helped raise the business to even greater heights.

18 Kamalnayan Bajaj – Architect of the Bajaj Group Chapter 3

10 Secrets of Success

I am of course anxious that the various industries with which I am connected should generate profits, but if anyone on our part goes against national interest, I would condemn it and would not be a party to it even if it meant a loss in the bargain. Whatever we industrialists do should be primarily in the interests of our country and only secondarily in our own interests.

Kamalnayan, 1951

Kamalnayan Bajaj – Architect of the Bajaj Group 19 Rise of the Bajaj Group

Under Kamalnayan’s leadership the Bajaj Group principles on how to deal with them. Ten are described became not only much larger but also financially on the next page. strong and well diversified – factors critical in a shallow emerging economy as India was before the 21st century. Distilled like this into bare words, the principles seem obvious, clichéd, maybe even banal. In real life, each Curiously each generation has produced a strong one of these ten principles is incredibly difficult to entrepreneur. When Jamnalal retired, the business was execute. Take ten, and you have a compounding bigger than what he inherited from Seth Bachhraj. challenge. These principles are even tougher to Ditto for Kamalnayan. Ditto for the third generation. embed in processes. Finally, how do you ensure that And it looks as if the trend will continue in the fourth everyone in every group company follows the same generation. This is an amazing achievement considering behaviours? Consistently. that family businesses across the world are prone to the ‘third generation syndrome’: the first generation Personal example is the only way to initiate fundamental starts a business, the second consolidates it, the third change. Kamalnayan headed the group for thirty years, diminishes it. a time sufficiently long for the organisation and all his stakeholders to test him, his principles and his leadership The key to continuity of success perhaps lies in the style. And only after the grilling, to individually accept unique Bajaj culture. Influenced by Gandhi and Vinoba and adopt Kamalnayan’s core principles. Bhave, Jamnalal created the culture. Immersed in this unique culture through childhood, Kamalnayan became This short biography aims to capture Kamalnayan’s the path-finder of its practical application in the modern principles in action through snapshots of defining management workplace. As diverse dilemmas emerged moments in the life of a torch-bearer. As you go through and challenged Kamalnayan, he developed a few the chapters, keep a look out for them.

20 Kamalnayan Bajaj – Architect of the Bajaj Group Kamalnayan Bajaj’s Principles

• Manage sensitively the talent in the family

• Select good partners and be good to them

• Pick successful and experienced friends and professionals to be directors, and listen to them

• Invest in your employees and pay them as highly as the organisation can afford

• Trust and delegate, but don’t shy away from problems

• Second movers are every bit as successful as pioneers

• Keep up with modern management trends

• Cut losses swiftly

• Work for India. Don’t be shy of being a nationalist

• Be honest and ethical. Always

Kamalnayan Bajaj – Architect of the Bajaj Group 21 A truthful person – by Rameshwarprasad Nevatia

I knew Kamalnayan since he was three years old. abundant business acumen and was hugely He was handsome, agile and courageous during his optimistic as well. childhood. Once he was challenged to jump into a well and he actually jumped. This is an example of his His brain was really very sharp when it came to confidence. He seldom cared for the consequence. financial issues and the gainful use of capital. It was his risk-taking professional intelligence that In 1942, when Jamnalal Bajajji expired, we were impressed the most. When he launched Bajaj Auto, concerned about how to keep the commitment that the original company, Bachhraj Trading Corporation, Jamnalalji had made for donating money for various had lost almost its entire capital in the export business charitable works. The family did not have many assets and his companions were not in a position to think of at that time. It was just a few lakh out of which it was any new venture; but at his own risk Kamalnayan took difficult to donate money for all the commitments. the help of people who could be helpful in investment But whatever differences Kamalnayan had with his and management. And he proved his mettle by making father, his admiration for his father and especially Bajaj Auto a successful venture. his ideals were not low by any means. He fulfilled the commitment and invested the property left by him Kamalnayan applied the same foresightedness and towards this goal. initiative to Bajaj Electricals too. Its original name was Radio Lamps Works. A Sindhi businessman had After the death of his father, Kamalnayan launched launched this company and managed it. During the certain small industries but did not succeed. The partition of India, he found himself in a fix and did not reason was that he did not focus on business and left have the money. He came to Kamalnayan. At that everything to managers. The fact is that he did not time, Radio Lamps Works’ sales were not so good, but like interfering in day-to-day management of things. Kamalnayan’s foresight saw a rising demand in the He intervened only when serious issues emerged. coming days and knew that this would be a profitable This particular weakness stayed life-long with him. bargain. Therefore, after due deliberation, he took In my opinion, his lack of a systematic education over this company. Subsequently it turned out to be a was the reason behind it as otherwise he possessed very profitable business.

22 Kamalnayan Bajaj – Architect of the Bajaj Group Chapter 4

Conscious Marketing

Bajaj did not take advantage of the ten year delivery period of the Bajaj scooter, even though the premium on the vehicle was much more than the profit. And his is the lowest priced scooter in the market.

mrtp Commission Report, 1971

Kamalnayan Bajaj – Architect of the Bajaj Group 23 Measuring Performance

Tilling the land, eating only what the ashram could In all his companies, Kamalnayan closely monitored his produce, Kamalnayan knew what it was to be a farmer, products against various indices. He took an economist’s hungry and poor – like most of India. It would take pride whenever a product’s selling price rise was lower India decades to upgrade to an emerging economy. than inflation. His commitment to constant innovation Ever conscious of low consumer purchasing power, and improvements in quality spoke of the engineer in Kamalnayan kept prices of his products minimal. Gains him. And the group’s advertising owed its creativity to from productivity or efficiency were promptly passed on his love of design and impish sense of fun. The salesman to the consumer. in him strove to expand distribution networks. The humanitarian tried to keep workers’ salaries as high as possible. Pulling together these elements was the logical mathematician in him that sought to derive trends from fragments of data in a chaotic country.

Pass the benefits of cost reduction programs to consumers, Your labour is worthy of your hire. Mukand, 1957 insisted Kamalnayan - even for small items like electric bulbs. Bajaj Electricals, 1956.

24 Kamalnayan Bajaj – Architect of the Bajaj Group We have cut prices of scooters and 3 - wheelers, though  Our prices were already the lowest.  They have not risen for six years.  Prices of all articles, including cars, trucks, motorcycles & scooters –– other than have shot up.  Costs, including materials, components and labour have sky - rocketed  scooter is in such demand that delivery is ten years hence. Yet, we have slashed prices, so that consumers benefit by over Rs. 55 lacs a year ! WWe have fought inflation !

The cheapest and the best! A Bajaj Auto advertisement, 1972. As the order Even when wholesale prices ballooned, Kamalnayan insisted book lengthened, there was no point in advertising. consumers should not suffer. Bajaj Auto, 1971.

Kamalnayan Bajaj – Architect of the Bajaj Group 25 Vyapar Mei Daan – by Sanjiv Bajaj

My grandfather Kamalnayanji passed away when stakeholders. Every business must demonstrate how it I was less than three years old. I have faint memories delivers superior products and services to customers of his visits to our home in Akurdi, Pune. He always vs. our competitors, builds an entrepreneurial work spent some time chatting with me, and gave us environment that rewards excellence, thoughtful Cadbury chocolates which I loved. risk taking and speedy action – all to provide a stable value creation opportunity to our shareholders. One saying of his has stayed with me to these times. It went something like this: ‘vyapar mei daan hona In Bajaj Finance, we decided while building our loan chahiye’ instead of some people who find ‘daan mei business, we would not charge customers any vyapar’. It was his solemn belief that while we must pre-payment penalty (an industry norm) and be do well in business, its benefit must spread across completely transparent in other charges, and this has society. Every action of his was focused not on the earned us a loyal set of customers. In Bajaj Allianz narrow interests of a few but for the larger good. In General Insurance, we have built an internal team for recent years, we have been taught about Corporate settling motor and health claims so that we provide Social Responsibility, but Kamalnayanji espoused it a fair, consistent, and speedy experience to our many decades ago. We try to follow him by focusing policyholders in their times of need. on creating long term value in our businesses for all

26 Kamalnayan Bajaj – Architect of the Bajaj Group Chapter 5

Enrico Piaggio

The Company’s Collaboration Agreement with M/s Piaggio & Co expired on 31st March, 1967. In anticipation of renewal, the collaborators have been good enough to extend their co-operation and assistance to the Company to keep production going. The terms of the new agreement have been now finalised and it will be signed shortly. As the Government has not been issuing import licences for import of CKD components for scooters, the Company had negotiated purchase of these imported components on deferred payment from the Collaborators. A further deferred payment agreement is under negotiation for meeting the Company’s needs during the current year.

Kamalnayan Bajaj, 1968

Kamalnayan Bajaj – Architect of the Bajaj Group 27 The lucky sting of a wasp

Some say that luck is predictable. If you want more Meanwhile Innocenti introduced the Lambretta. Both luck, take more chances. Be more active. Show up entrepreneurs began exporting their scooters. more often. It’s unlikely that Kamalnayan would have heard of this cliché but he demonstrated it often in his An Englishman, William Rootes, introduced the life. Luck led to a technical partnership between Enrico Lambretta in India. Desi Kamalnayan introduced the Piaggio and Kamalnayan Bajaj, two men whose lives Vespa. It could as easily have been the other way round. were so different that they could have been living on two Luck favoured Kamalnayan: the Vespa was undoubtedly different planets. the better looking model. Both began by importing the scooters. Assembly followed. Finally sales volumes Both were born into famous families with strong political justified manufacturing. A waiting list emerged for the links. But while the Piaggios enjoyed la dolce vita, Jamnalal Vespa, none for the Lambretta. taught his family how to live on Rs. 500 a month. He “reduced his standard of living to that of the lower middle Throughout the many vicissitudes that dogged Bajaj class,” commented Rammanohar Lohia, a socialist. Auto in the 1960s, Enrico and his management team proved to be patient and loyal partners. India’s foreign The Piaggios used to manufacture aircrafts. Their factory exchange situation was precarious. The government was heavily bombed during World War II. After the war, could barely scrape enough to release some for critical Enrico searched for a new opportunity. There were few capital machinery. Awkwardly the Bajajs could not cars left in impoverished Italy but people still needed always pay their partners on time for royalties nor for cheap transport. Several entrepreneurs jumped at the components they had not yet learnt to make. Piaggio opportunity, including Ferdinando Innocenti, whose steel continued their support. They recognised the sincerity of tube factory too had been bombed out of existence. Kamalnayan and his management team: they were not trying to get out of meeting their dues. Innocenti hired Corradino D’Ascanio, a military aeronautical engineer who had led the design and Enrico died on October 16, 1965, age 60. His business construction of the first modern helicopter. As he passed on to his son-in-law, Umberto Agnelli. A special hated motorbikes, D’Ascanio created a revolutionary business relationship ended. The newly inherited one vehicle: the scooter. The two men fell out, and would turn into a legal nightmare. D’Ascanio took his design to Enrico. The Vespa (wasp in Italian) was born.

28 Kamalnayan Bajaj – Architect of the Bajaj Group Enrico Piaggio in his factory

Kamalnayan Bajaj in his factory

Kamalnayan Bajaj – Architect of the Bajaj Group 29 A Roman Holiday – by Rahul Bajaj

I was studying in St. Stephen’s College for my Economics Honours Degree during 1955-58. I used to go around on a Vespa – it definitely boosted my popularity! During the summer holiday in 1956, I accompanied Kakaji for a month or so to Europe. For me it was a vacation whereas Kakaji had work in some countries including the Netherlands, France and Italy. He also had to meet some people in London from where he returned to India by air and I returned by ship from Genoa to Mumbai.

We were importing vehicles from Piaggio at that time. Piaggio’s head office in those days used to be in Genoa and their plant in Pontederra. We were invited to the celebration of the production of their 100,000th Vespa scooter. I was told that they could achieve this figure because so many Americans bought the scooter after seeing the movie Roman Holiday starring Gregory Peck and Audrey Hepburn.

Audrey Hepburn and Gregory Peck on a Vespa in the Sachin Tendulkar, cricket’s living legend, blockbuster movie, Roman Holiday, that opened up the on a Bajaj Sunny US market for the Italians.

30 Kamalnayan Bajaj – Architect of the Bajaj Group Chapter 6

I PO

My marketing department? I don’t require it. I have a dispatch department.

Rahul Bajaj, 1982

Kamalnayan Bajaj – Architect of the Bajaj Group 31 Over-subscribed

When Jamnalal took Hindustan Housing public in general meeting) of the shareholders was held on 1937, Kamalnayan’s interest in the IPO (Initial Public Saturday, October 15, 1960 at 4.00 pm at Bajaj Auto’s Offering) was cursory. His mind was pre-occupied then registered office at 134, Dr. Annie Besant Road, with a trip to Colombo, his forthcoming engagement Worli. The shareholders present were Rahulkumar to Savitri, and the battle with his parents to be allowed Bajaj, Vinodkumar Nevatia, Purshotam Jhunjhunwala to go to the West for under-graduate studies. As representing Bachhraj & Co, LN Panpalia representing Kamalnayan prepared for Bajaj Auto’s IPO in 1960, his Jamnalal Sons, NK Firodia and BM Khanna. Special memories harked back to those days. Resolution No 4 authorising the directors to obtain the consent of the Controller of Capital Issues and issue Times had changed in the intervening years since his 60,100 equity shares of Rs. 100 each was quickly father had passed away. India now had a Controller passed. Kamalnayan was not present but he had of Capital Issues. The stock market was buzzing with already vetted all details. anticipation. Out of PROSPECTUS 1. Consent of the Central Government has been, obtained to this issue by an order of habit, Kamalnayan kept which a complete copy is open to public inspection at the Head Office of the Company. It must be distinctly understood that in giving this consent the Central Government do not take any responsibility for the financial soundness of any scheme. or for the correctness of any of the state- checking and rechecking ments made or opinions expressed with regard to them. the nine page prospectus. 2. A Licence has been obtained from the Central Government for effecting a substantial Certificate expansion to the Company’s existing industrial undertaking of which a copy is open to public No : inspection at the Head Office of the Company. It must be distinctly understood that in granting His eye paused at Point this undertaking or for the correctness of any of the statements made or opinions expressed in Number of regard to it. Shares : 3. A copy of this Prospectus having attached thereto documents as required under Section 5 on Page 1: “The Folio: 60 of the Companies Act, 1950, and specified hereunder has been delivered to the Registrar of Incorporated under the Indian Companies Act VII of 1913 Companies, Maharashtra, for registration. subscription list will open AUTHORISED CAPITAL: Rs. 1,00,00,000 4. Application will be made to the Bombay Stock Exchange for permission to deal in and for an official quotation of the shares of the Company. at the commencement of divided into 1,00,000 Ordinary Shares of Rs. 100 each 5. The subscription list will open at the commencement of Banking hours on the 14th day of November, 1960 and will close at the close of Banking hours on the 19th day of November, 1960, or earlier at the discretion of the Directors but not before the close of Banking hours on the Banking hours on the 14th 16th day of November, 1960. day of November, 1960 BAJAJ AUTO LIMITED (Incorporated under the Indian Companies Act, 1913) and will close at the close 6. CAPITAL AUTHORISED :- This is to certify that 1,00,000 Shares of Rs. 100 each ...... Rs. 1,00,00,000 of Banking hours on the ALREADY ISSUED, SUBSCRIBED AND PAID UP : 9,900 Equity Shares of Rs. 100 each ...... Rs. 9,90,000 19th day of November, PRESENT ISSUE : is the Registered Holder of 60,100 Equity Shares of Rs. 100 each ...... Rs. 60,10,000 Five Ordinary Share of Rupees One Hundred each As per Special Resolution passed by the Company on 15th October 1960, or earlier at the 1960 these Shares are offered as follows :-- numbered inclusive in TO EXISTING SHAREHOLDERS : discretion of the Directors BAJAJ AUTO LIMITED 25,740 Equity Shares of Rs. 100 each at par ...... Rs. 25,74,000 subject to the Memorandum and Articles of Association Shares not taken up by the existing shareholders or their nominees thereof and that the sum of Rupees Fifty will be subscribed by the Directors and their friends. but not before the close of has been paid upon each of the said shares. FOR PUBLIC SUBSCRIPTION : 34,360 Equity Shares of Rs. 100 each offered at par to the public Given under the Common Seal of the said Company at Bombay under this Prospectus for subscription in cash ...... Rs. 34,36,000 Banking hours on the 16th this day of 1961. Rs. 60,10,000 7. DIRECTORS day of November, 1960.” (1) SHRI KAMALNAYAN BAJAJ . . Industrialist 31B, Carmichael Road, (Chairman) Bombay - 28 Directors (2) SHRI MADANMOHAN P RUIA . . Industrialist 96, Napean Sea Road, Bombay. (3) SHRI RAMNATH PODAR . . Industrialist Podar Mansion, 10 Marine Drive, Bombay-1 Events raced ahead. An (4) SHRI SHANTANU L. KIRLOSKAR . . Industrialist “Lakaki,” Poona - 5 NOTE: No transfer of any portion of the shares comprised in this certificate can be registered unless accompanied by this certificate. (5) SHRI M. K. FIRODIA . . Industrialist Navipeth, Ahmednagar. EGM (extraordinary (6) SHRI RAMESHWAR PRASAD NEVATIA Industrialist Pitale Prasad, Worli Sea Face. (Ex-Officio) Bombay -8 (7) SHRI V. J. SHAH (Ex. Officio) . . Industrialist 41, Bhulabhai Desai Road, Bombay - 26 Bajaj Auto IPO Prospectus Bajaj Auto Share Certificate

32 Kamalnayan Bajaj – Architect of the Bajaj Group Bajaj Auto’s paid up licenses and two motorcycle ones. So exactly how did capital prior to its the Puneites overtake the champion? And how did they IPO was Rs. 990,000 manage to stay on top for so many decades? And what divided into 9,900 was the role Bajaj Auto played in swinging India towards shares of Rs. 100 scooters when the rest of the world chose motorcycles? each. In the IPO 34,360 shares of Looking backwards, management gurus and MBA Rs. 100 each were students have spent thousands of hours teasing out offered at par for and identifying the key decisions and processes that public subscription went into making Bajaj scooters the #1. Books and and 25,740 shares case studies abound. On the ground, at the time, on a day- of Rs. 100 each at to-day basis, Kamalnayan and Rahul worked on a simple par for the existing principle – be the best at what you do. The phrase would shareholders. become a mantra in Akurdi, driving the organisation. The Controller of Capital Issues 850 ton hydraulic press gave his consent on October 21, 1960. As D day approached, the directors – Kamalnayan Bajaj, Rameshwarprasad Nevatia, Viren Shah, Madanmohan R Ruia, Ramnath Podar, Shantanu L Kirloskar and MK Firodia - tuned in to the gossip on the Bombay Stock Exchange. Bajaj Auto had ten brokers selling the issue, six in Bombay, two in Delhi and one each in Madras and Calcutta. The Rs. 60.10 lakh issue was one of the biggest to hit the market. Relief. The issue was over-subscribed. The shares of the company were first listed on the Bombay Stock Exchange in April, 1961.

The money was promptly spent on more machinery at the Akurdi plant. Bajaj Auto had some catching up to do. Inside the newly minted factory Kamalnayan was not the first to make scooters in India. That honour went to MA Chidambaram, a talented Although API initially dominated the scooter market, entrepreneur from Tamil Nadu. He was handed a Bajaj Auto overtook it fairly quickly. A number of two year lead and a great brand, Lambretta, by a minister government and private enterprises also entered the in the Nehru administration, a fellow Tamilian. Nor scooter segment, but “almost all of them disappeared was it certain that scooters, rather than motorcycles, from the market by the turn of the century,” noted would turn out to be the common person’s choice. In the Arthur Thompson, an industry tracker. “Bajaj Auto beginning, the Nehru administration gave out two scooter stood the test of time.”

Kamalnayan Bajaj – Architect of the Bajaj Group 33 Do what you think best, but be the best at what you do – by Rajiv Bajaj

Every entrepreneur starts his long journey with a Seeking to grow across multiple segments Bajaj small first step - one product for one customer, be that Auto had mastered only one, and that too only in the an individual, an organisation, or a market. It takes him context of its home market. all the resources at his disposal to make the transition from having a clever idea to managing a sustainable To be worthy of Kamalnayanji’s scrutiny we thought it business. Inevitably his progressive success reaches a necessary to turn our strategy on its head - from being point where further growth becomes incremental. the lowest cost manufacturer of various two-wheelers for the Indian market, to becoming the most profitable The entrepreneur, now emboldened by some notion of marketer of motorcycles for the world. Our journey a midas touch, mulls his next product for his satisfied as a global motorcycle specialist began with the customer in the hope that the virtuous cycle repeats audacious launch of our indigenously developed high itself. Contrary to expectation it often does not, performance sports motorcycle, the Pulsar, in 2001. especially in large, open, competitive markets. We Its instant success represented our first experience of have experienced this contra-intuitive truth first hand the potency of Kamalnayanji’s business mantra. at Bajaj Auto established by my illustrious grandfather Shri Kamalnayan Bajaj. Ever since, riding on this new found focus of aligning the organisation and its value chain - employees, Bajaj Auto started life with a scooter which, in its suppliers, dealers, agencies and other partners - Bajaj legendary avatar as the Chetak, ensured that by the Auto now has market dominating motorcycles across 1980s its maker had sealed its place not only at the the world, ranging from the ‘Stronger for Longer’ heights of business charts, but also in the depths of Boxers in Africa, to the ‘Ready to Race’ KTMs in the Indian hearts, as ‘Hamara (our) Bajaj’. But every Bajaj developed markets of the US, Europe, and Japan. two-wheeler that subsequently followed its scooters in In just thirteen years Bajaj Auto has become the the form of a moped, motorcycle, or scooterette was, world’s 3rd largest motorcycle maker, with almost without exception, a business failure. Moreover, Bajaj half its production being exported, and also sports the scooters were unable to carry their success overseas, highest operating margin of any two-wheeler maker in and the shift in the Indian market over the 1990s from the world. scooters to motorcycles saw them fade by 2007 into little more than an endearing memory. Kamalnayanji exemplified the wisdom of pursuing excellence and embodied the courage of being It seemed to us that somewhere in its pursuit of focussed while doing so. Marching to his beat I’m sure growth, Bajaj Auto had fallen foul of its founder’s that we will live true to the sentiment that each one of standard for excellence: Do what you think best, but us at Bajaj Auto cherishes: we are proud of our nation, be the best at what you do, Kamalnayanji had averred. and we work to make our nation proud.

34 Kamalnayan Bajaj – Architect of the Bajaj Group Chapter 7

100,000 Indian Vespas

Scooter is a common man’s vehicle and the Company’s scooter is the most popular one in the country. It is really unfortunate that inspite of the extreme shortage of scooters in the country and there being a waiting period of about eight years for the Company’s scooters, the Government has still not approved the Company’s application for expansion.

Kamalnayan Bajaj, 1970

Kamalnayan Bajaj – Architect of the Bajaj Group 35 The difficulty of being good

Enrico Piaggio took an entire decade to sell one lakh The father-son duo refused to exploit the situation. Vespas. Ditto for Kamalnayan and Rahul Bajaj. Piaggio Holding the price line became an ethical issue, a crossed the finishing line in 1956; Bajaj Auto met the modern twist to Gandhian trusteeship concepts challenge in 1970. imbibed during childhood. “Ensuring that the

Rahul celebrates the 100,000th Vespa produced in the Akurdi plant Crashing the 100,000 mark, 1970

The Indian Vespa became so popular that a flourishing consumer obtains the best possible product at the secondary market developed. A customer fortunate lowest possible price and the employee gets a fair enough to be allotted one could sell it the next moment wage for a day’s work is the criterion of ethics in at double the price. Movie directors shot scooter chases. business,” they insisted. The government admitted A Bajaj scooter became a regular dowry demand among that Bajaj Auto had not taken “any undue advantage middle-class families. of its dominant position”, but it still refused to relax

36 Kamalnayan Bajaj – Architect of the Bajaj Group production restrictions. Lobbying by competitors like UP Scooters and Automobile Products of India fanned official anxiety about the power of big business. It’s not easy being the No1.

Politicians wanted the scooters as badly as the ordinary man in the street – but refused to make life easy for Kamalnayan – even after he passed away. On August 13, 1976, a member of parliament alleged in the Lok Sabha that during the 1971 general election, Bajaj Auto gave Rs. 1,20,000 and some scooters to the opposition candidate in the Rae Bareilly constituency.

Rahul jumped to his father’s defence in a letter to Pranab Mukherjee, the then Union Minister of State for Finance. As the company’s chairman in 1971, Kamalnayan had certainly made priority releases from the manufacturer’s discretionary quota but only against payment of the full price, Rahul clarified. Scooters were released, among others, to political friends, both in the ruling and opposition parties. As Kamalnayan belonged to the opposition, Rahul added, some could have had connection with the opposition candidate in Rae Bareilly.

In the event, George Fernandes, as industries minister in the Janata Party administration (1977-79), allowed Bajaj Auto to double its licensed capacity to 160,000 two-wheelers. But it was too A news item about Bajaj scooters in a local American newspaper little, too late for Kamalnayan.

Kamalnayan Bajaj – Architect of the Bajaj Group 37 The license raj? What’s that? – by Dhirajlal S Mehta

In the beginning, we were licensed to make Rahulbhai was given the task of replying to the 1,000 scooters and auto-rickshaws per month. In MRTP Commission. 1962, we applied to increase manufacturing capacity to 30,000 scooters and 6,000 auto-rickshaws per In the meanwhile we had increased production year. In 1963 we applied to increase capacity from beyond the licensed limit, and were liable to 24,000 scooters to 48,000. In 1970 we asked for prosecution. Rahulbhai told me, “I’m ready to go 100,000. Eventually, in 1971, the government to jail just as my parents did for the nation.” Three approved an increase to 48,000. But it was directors resigned on that point though I had obtained an opinion from India’s topmost lawyer that increasing production is not a crime, increased installed capacity is against the law.

One evening Kamalnayanji came to my cabin. It was 9 pm. He asked me “What are you doing at this time?” I replied, “preparing a note for MRTP Commission.” He remarked, “You may take all the trouble but you are not going to get expansion.” I replied, “Because of your politics we may not get what we want but I want to prove that we can get it recommended on merit.”

The hearings started. Dhirajlal Mehta with Shivaji Bhave (Vinoba Bhave’s brother) and Indira Gandhi, 1982 The MRTP Commission asked meaningless because the application remained for many, many details, most of them irrelevant. pending with the Ministry of Company Affairs for In 1971, when it was over, the chairman told me, clearance under the Monopolies and Restrictive “You gave all the information we wanted, even if Trade Practices Act, 1969. It was just another we asked for irrelevant data. The Bajajs are ploy to delay further. completely transparent.”

38 Kamalnayan Bajaj – Architect of the Bajaj Group Chapter 8

Chetak

Any finding that Bajaj has no right to the continued use of plans and specifications in question carries with it the potential for tremendous conflict with Indian policy. As evidenced by the Indian government’s high level of involvement in this particular licensing arrangement, they have great interest in whether contracts which comport with their national policy of promoting industrial independence are viewed as valid in other countries. This agreement was signed under India’s express approval of all terms and conditions. If the United States was given free reign to determine the contract’s validity or scope, we could effectively undermine their entire policy.… Claims of the complaint are dismissed in their entirety.

U.S. district court for the northern district of California, 1982

Kamalnayan Bajaj – Architect of the Bajaj Group 39 The great scooter war

Just how Bajaj Auto came to fight Piaggio in an and wishing Bajaj Auto “the most successful future”. American court is as bizarre as it gets. The backstory Nine years later, the Italians accused Bajaj Auto in begins with Antonella, Enrico Piaggio’s adopted a Californian district court of violating the terms of daughter and only child. When Enrico died in 1965, their collaboration, of not returning Piaggio’s original control of the scooter company passed to her husband, drawings, hence Bajaj had no right to manufacture Umberto Agnelli, not to her. They divorced in 1974. scooters. Piaggio’s move was probably a knee-jerk Piaggio became part of the Agnelli empire. There’s not reaction to Bajaj’s export thrust in the late 1970s. much difference between Indian and Italian business dynasties where women are concerned. In the initial years of his inherited chairmanship, Umberto kept the status quo at Piaggio. Gaining more confidence by the late 1960s, he began to appoint new members to the board of directors.

Brandishing a red flag in the USA

The great scooter war ended on a whimper. In the USA, Piaggio offered an out of-court settlement. The millions of dollars compensation demand was scaled down to $50,000. Bajaj refused to budge and in the final settlement, promised only to not sell Bajaj scooters of Piaggio design in the US. By then there was no demand for the scooters in the US anyway. In Germany, Bajaj Auto lost in the lower courts but won in the supreme court.

Rahul on the 1 millionth Bajaj Chetak c1990 Some analysts felt the drama, expensive as it was, was a blessing in disguise. “With Rahul’s tough and disciplined Piaggio’s technical collaboration with Bajaj Auto approach, the company soon found its footing in the ended on April 1, 1971. Piaggio wrote to Kamalnayan, market and Bajaj Chetak and Super became legends,” thanking him for years of “really friendly cooperation” said one commentator.

40 Kamalnayan Bajaj – Architect of the Bajaj Group The empire strikes back. Forbes USA cover story on Bajaj Auto. May 23, 1994.

Kamalnayan Bajaj – Architect of the Bajaj Group 41 From Vespa to Chetak –by Rahul Bajaj

Bajaj Auto’s collaboration with Piaggio ended on it with our advertising agency, headed by March 31, 1971. Both Piaggio and Bajaj wanted to Alyque Padamsee. renew the agreement for at least another five years. However, in the 1970s the government did not The ‘bajaj’ logo was actually taken from Bajaj renew a single collaboration agreement in the Electricals. To celebrate its 25th anniversary, Bajaj automobile industry as also many other industries. Electricals had decided to change its name from We saw a period of extreme socialism starting in Radio Lamp Works to Bajaj Electricals. In 1962 it held 1969. Rajiv Gandhi, when he came to power in 1985, an all India contest. Pujya Kakaji selected the logo experimented with liberalisation but it really out of hundreds of entries. The prize winning logo started in 1991. was designed by Heros’ Publicity and Bajaj Auto also adopted it, initially only for its company name. From Once I realised that the government is not April 1, 1971 ‘bajaj’ replaced ‘Vespa’. We needed a going to renew the agreement, I knew I had to drop monogram or symbol, and we got Vinayak Purohit, the brand name Vespa for our scooters and APE for who used to work for Mukand, to design the ‘B’ in a 3-wheelers. It was clear to me that we should have hexagonal form. the ‘Bajaj’ brand name for our vehicles. I talked to Pujya Kakaji who was the chairman of the During the 1970s and 1980s we developed three company, mentioned it to the board, and discussed scooter models. We named the first one as Bajaj-150 and the 2nd and the 3rd as bajaj-Chetak and bajaj- Super. Chetak was the name of Maharana Pratap’s horse, immortalised in the ballads of Rajasthan.

The name change was no problem at all because Bajaj scooters and 3-wheelers had a ten year delivery period. The bajaj brand easily replaced the Vespa name though the later was well known. A few people could avoid the long queue. The government formulated a foreign exchange scheme under which if the customer paid for his bajaj-Chetak in foreign exchange he would get early delivery. The national competition winner The Bajaj Hexagon

42 Kamalnayan Bajaj – Architect of the Bajaj Group Chapter 9

Frits Philips

The Hind Lamps board meetings were always very interesting in which there were one or two issues of serious nature, and the rest of the time was spent on exchanging notes on the lighting industry. In those years, when the industry had very few players, the Hind board meetings set the tone of the industry’s strategy for development in the country. The most respected ‘Swadeshi’ Bajaj, and the industry leader and ‘Foreign’ company, Philips, brought on the table a balanced approach, which was then carried through and discussed at the industry lamp association, ELCOMA. All this was done in a friendly and cooperative spirit, inspite of the fierce competitive market stands of the two companies.

hs Mamak, 1993 (Hind Lamps Director)

Kamalnayan Bajaj – Architect of the Bajaj Group 43 Co-opetition

Kamalnayan and Frits celebrating ten years of togetherness Built to last: the Shikohabad plant still going strong, more than sixty years later

Your biggest competitor invites you to launch a joint Software companies claim the word co-opetition or venture. Both of you will continue to compete against competitive collaboration. Two manufacturers beat each other in the market. Will you say yes or no? them to it by more than a half century. I suspect most of us would pass on the offer. The parallels between Kamalnayan and Frits are Not so Kamalnayan Bajaj. Nor Frederik Jacques ‘Frits’ uncanningly similar. It’s as if they were of the same Philips. Their companies have competed fiercely against wood but grew in different forests. Born in Eindhoven, each from the time they opened shop. And continue to the Netherlands in 1905, Frits had a ten year edge do so. But for decades, the two brands sold light bulbs over Kamalanayan. Kamalnayan saw the underbelly and fluorescent tube lights made in one factory: Hind of the British Raj during the Freedom Movement; Lamps, located in Shikohabad, Uttar Pradesh. A factory Frits that of Nazi Germany when Adolf Hitler invaded which they jointly owned. the Netherlands. Kamalnayan did time in a jail, Frits

44 Kamalnayan Bajaj – Architect of the Bajaj Group in a concentration camp. Kamalnayan made Akurdi make people smile with his wit and jokes. Both a quintessential company town, the Frits effect on had a humane concern for the poor and there are Eindhoven was the same. Both were born into business many expressions of the help they silently provided. families, and both grew their businesses during challenging Possibly they felt similar feelings of inner loneliness. Kamalnayan buried such feelings inside him, but Frits found solace through Frank Buchman, an American evangelist and founder of the Moral Re-armament (MRA) movement. As did Kamalnayan and Savitri. They hosted Frank Buchman and his team in Bombay during his first visit to Bombay in 1952, visited the MRA centre in Caux, Switzerland in 1954 and financially supported MRA activities in India.

(L-R) A.J. van Lierre explains a technical point to Rameshwarprasad Nevatia and Ramkrishna in the Hind Lamps workshop times. Under Frits, Philips became a global major, under Joint ventures only work well when both sides recognise, Kamalnayan the Bajaj group became a top 20 group with respect and acknowledge each other’s contribution. The a pan-India presence. In terms of the ability to manage chairman of Hind Lamps was always a nominee of the complexity, the learning curve would be similar. Bajaj group. Until Kamalnayan’s death in 1972, the general manager (as CEOs were known in those days) Of greater interest is the meeting of the minds. Both was always a Dutchman. Philips HO took care to send had an easy way of communicating with people, Dutch Indophiles to Shikohabad. Most stayed for years be they factory workers or influential ministers or at the plant, rarely asking to be transferred back home. rich magnates. Perhaps it had something to do with Secrets of the craft of making bulbs and tube lights were family culture and upbringing. If Kamalnayan had openly shared with Indian managers and engineers. Gandhi as an adopted grandfather, Karl Marx was Frits’ relative. There was always a ready buck-teeth The original agreement was that the Bajajs and ELMI smile on Frits’ face, and Kamalnayan could always would each hold 50% of Hind Lamp’s equity. ELMI

Kamalnayan Bajaj – Architect of the Bajaj Group 45 was an association of four European companies: Philips, The annual reports show rapid growth in the 1960s. General Electric Company (not to be confused with Owing to a shortage of lamps, the government USA’s General Electric), Crompton Parkinson and removed the industry from the banned list on April Associated Electrical Industries. In 1961, Philips offered 1, 1969. Hind Lamps held a licence to increase Kamalnayan a stake in a tungsten filaments plant it was its capacity of 19.4m units by 4m units. Even as planning. He accepted. Kamalnayan saw no reason Kamalnayan and Philips speeded the process of to change the agreement even after Philips finally importing the necessary equipment, they drew up succeeded in entering electric lamp manufacture by plans for further capacity expansion. Fluorescent tube buying the Bombay-based Osler Electric Lamps production was doubled by starting a second shift Factory in 1962. from April 1969.

Hind Board of Directors in 1974. (L-R) Standing 1st row: Ramkrishna, RP Mithal, P Chari (Philips). Standing 2nd row: ML Gauba, PR Deshpandey (Crompton). Standing 3rd row: G Mukherjee, Mrs. Ramamurtham, HS Mamak, A Dutt Roy, Raj Sarin, V Ramamurtham (Philips), PA Vishwanathan (General Electric Company, UK). Sitting: J Lusink, Mrs. Gauba, Mrs. Van Tilburg, RP Nevatia (Chairman), Mrs. Lusink, JJG Ch van Tilburg (Philips), Mrs. Dutt Roy.

46 Kamalnayan Bajaj – Architect of the Bajaj Group The picture changed overnight by 1970. A license to in FY1972, profits from Rs. 4 lakh (FY1953) to expand GLS lamps production by 3m pieces annually Rs. 13.64 lakh (FY1972). The equity balance changed was granted in 1965, but as Kamalnayan noted, “For in 1973 after the introduction of India’s Foreign want of an import licence for capital goods, it has not Exchange Regulation Act. UK’s General Electric been possible so far to implement the expansion.” The Company sold its shareholding to the Bajaj Group, next year, 1971, Hind Lamps’ application for expansion making Philips a minority partner. The partnership under the 4th Five Year Plan was rejected. would eventually end in 2006 when the Bajaj Group completely bought out Philips. Frits died a centenarian Overall, the partnership worked well financially. Sales in 2005. shot up from Rs. 18 lakh in FY1953 to Rs. 3.93 crore

Kamalnayan liked to mix business with pleasure. In this picture Hind Lamps certificate of incorporation ML Gauba, head of all the Bajaj Group’s consumer electricals ventures, joins Savitri and Kamalnayan in Zurich.

Kamalnayan Bajaj – Architect of the Bajaj Group 47 Alma Mater – by Shekhar Bajaj

Hind Lamps was started in a rural backward communication, a gathering was organised on the area, devoid of employment opportunities and lawn in front of the factory, where for the first time, industrial culture. Gradually ancillary industries came the workers’ representative addressed his colleagues up, enhancing employment. In its early days, Hind with management and staff in attendance. A.J. van Lamps was dependent on its own gas used for blowing Lierre had just come to us from the Netherlands as glass. The gas was manufactured from coke and part the latest General Manager. He addressed them in of its electric supply by diesel generators. The gas somewhat understandable Hindi. Whereas in other production gave a quantity of tar that we could not parts of India, particularly Calcutta, labour relations get rid of other than by tarring our own roads were strained, Hind Lamps in the years 1969-72 regularly with the inconvenience of soiling the floors was peaceful. in the colony. As a pioneer in lamp-making, Hind Lamps became a In 1969 the relationship between management and sort of alma mater for engineers, supplying trained the workforce was somewhat strained. To improve talent to the industry.

48 Kamalnayan Bajaj – Architect of the Bajaj Group Chapter 10

Lighthouse

We will have to educate the new consumers in the proper use of electricity and electrical products so that the boon of electrical energy may bring greater benefits to the community.

Kamalnayan Bajaj, 1968

Kamalnayan Bajaj – Architect of the Bajaj Group 49 The turnaround

Kanpur-based Radio Lamp Works had a tiny transformer factory in Bombay, a small glass blowing plant in Shikohabad, a 50% stake in Hind Lamps and a pile of debts when Kamalnayan bought it in 1954.

Write-offs are high on any manager’s list of unpleasant tasks. A realistic businessman, that’s exactly where Kamalnayan launched his turnaround. “Your Directors have considered it advisable to write off stocks in Pakistan and certain amounts due in Pakistan as there does not appear to be any prospect of recovering these amounts,” he informed shareholders in his no-nonsense manner. The clean up continued with a write-off on the shares of Prabhat Bank, purchased prior to Partition, which had subsequently lost their value. Ramkrishna celebrating Bajaj Electricals’ 25th anniversary with employees

Kamalnayan permitted himself to fully unleash his aesthetics and management philosophy. The cover of the annual report of 1956-57 is a harbinger of the new way of working. As interesting as its cover are the inside pages. Apart from modern jaunty fonts and design, a statutory and staid report is turned completely on its head. It showcases the importance Kamalnayan gave to advertising, alongside a data-based and consumer-centric approach to sales and marketing. Kamalnayan also stopped signing his name in the English script in favour of Devnagri. Change was not just in the air, but in black and white.

New clothes. Radio Lamp Works before and after Kamalnayan acquires Radio Lamp Works.

50 Kamalnayan Bajaj – Architect of the Bajaj Group Bajaj Electricals took products to villages and gave live demonstrations to farmers, winning a place in the rural market

lighting in as many forms as possible; and in Kamalnayan (centre) at work, guiding Ramkrishna (2nd from left), consumer electricals from fans to irons, and from trusted advisors and managers. Radio Lamp Works, 1958. kettles to more. The wide spectrum product strategy was achieved through acquisitions, such as the fan With the balance sheet cleaned up, a capable business from the Kathotias (Matchwel), in-house R&D management team in place, shareholders getting regular and outsourcing. dividends again, it was time to concentrate on growth. Over the next decade Kamalnayan transformed Radio In the 1960s the product portfolio mushroomed. Lamp Works. A clear Kamalnayan opened his doors to anyone who could strategy map gradually make an interesting product. When few thought of emerged. Sales climbed giving importance to the small scale industry and through marketing and more than a quarter century before the government brand building, and the introduced reservation for appliances and luminaires, expansion of multiple Kamalnayan realised that Bajaj Electricals should distribution networks. The act as a marketing umbrella. Small scale has company had to be in entrepreneurship, technology and manufacturing capability. What they lack is marketing and finance Until Kamalnayan came on the scene, marketing, so critical for which Bajaj Electricals could take care of. Sixty consumer products, barely existed. years later and counting, more than 70% of Bajaj Radio Lamp Works did not even Electricals products continue to be sourced from other have a logo. The business that started in 1938 finally got a logo manufacturers and at least 50% of that is sourced from in 1962. the small scale industry.

Kamalnayan Bajaj – Architect of the Bajaj Group 51 In management terms, the outsourcing strategy the accounts department more vigilant. Brand equity required developing different competencies within the gradually grew in value. organisation. From running a large in-house production line, managers now had to be taught to go out of the The bigger challenge in the 1960s, however, was to plant to the ramshackle factories of their vendors. They popularise and promote better use of electrical appliances. had to guide freshly minted entrepreneurs on how To generate awareness, the company regularly to treat their machines, how to maintain consistent participated in trade-cum-consumer fairs. It also had quality, how to train their even rawer workers. Within a lively outreach program for women. One particular Bajaj Electricals, this meant recruiting managers who contest attracted over ten thousand entries. “A selection could nurture stubborn and idiosyncratic promoters, of Vegetarian Recipes was brought out on the occasion above managers who could critique trained engineers. of the World Vegetarian Congress,” noted the plump, The logistics team had to become more dextrous, diabetic and vegetarian chairman with satisfaction.

Radio Lamp Works pavilion at the ‘India Can Make It’ Exhibition, Bombay, 1959

52 Kamalnayan Bajaj – Architect of the Bajaj Group The company embedded a Bajaj Cookery Centre in Once a basic pan-India sales and distribution network Bombay’s College of Home Science, “to serve as a was in place, Kamalnayan joined FMCG companies laboratory for students to learn the use of electrical like Hindustan Lever in working his way outwards from appliances in cooking and also for continuous testing cities to penetrate rural India. of our appliances to enable us to effect product improvement from time to time”, wrote Kamalnayan. On October 1, 1960, Radio Lamp Works became Bajaj In India, calendars have a universal appeal, and the Electricals, and was out of the woods with profits of company annually brought them out. And tried to win Rs. 14 lakh from sales of Rs. 2.39 crore. By 1972, sales as many awards as possible for its advertising. Direct were Rs. 10.98 crore and profits Rs. 68 lakh. marketing in those days was referred to as ‘public relations activities’ – and Bajaj Electricals had a busy A good turnaround, nodded analysts. schedule for local promotions.

Early print advertisement, 1959 Early mailer, 1968

Kamalnayan Bajaj – Architect of the Bajaj Group 53 Commendable growth – by Kamalnayan Bajaj

During the year despite shortage of raw materials, With the grace of God we have completed twenty- and numerous other problems, the Electrical Industry five years and were able to celebrate Silver Jubilee has had a commendable growth. The production of functions at all our branches ... In these twenty-five items like electric lamps, fluorescent tubes and years, starting from small beginnings with a sale of transformers has increased steadily. I had mentioned Rs. 29,327 in the first year the Company has attained last year that unless foreign exchange for capital an annual turnover of nearly Rs. 4 crore. The impact goods for expanding the manufacture of components of the Company’s sales through its thirteen branches was released immediately no further major expansion and two territorial agencies is felt throughout the would be possible. It is heartening that the country. We are proud of our men who are responsible Government have now realised the need for for this growth. immediate expansion of capacity for components.

Kamalnayan embraced marketing and had an impish sense of fun. An early example of the Bajaj Group’s advertising, these two creatives were designed in-house in 1957.

54 Kamalnayan Bajaj – Architect of the Bajaj Group Chapter 11

Partition

While nobody can deny the necessity of a certain measure of control over steel which is required by the Government in war times, the manner in which the control is exercised so as to starve a major portion of even genuine industrial and agricultural requirements of the country and thus ensuing wholesale paralysis of the trade, is viewed with serious concern by the industry as well as the trade. The Steel Re-Rolling Mills Association of India has already drawn the attention of the Government towards this matter, but, so far, its efforts have not met with success.

Ramniwas Ramnarain Ruia, 1942 (Mukand Iron & Steel Works Director and Chairman of the Meeting)

Kamalnayan Bajaj – Architect of the Bajaj Group 55 Uncertain times

During World War II, India became the world’s 10th But on May 22, 1939 the board of Mukand Iron & Steel most industrialised nation as the British Raj converted its Works was pre-occupied with smaller matters. After colony into a massive supplier to its war effort. Many an much effort, the ailing company had made its first profit ailing business was invigorated by war profits – except in its first year under new management. Rs. 47,348-0-7 the steel business. Governments have a habit is a modest profit but a profit is a profit. of seizing control over every aspect of steel production in war-time. The business would begin its second descent into a quagmire when the British issued the Iron and Steel Much before war was declared on September 3, (Control of Production and Distribution) Order, 1941. 1939, the threat was in the air. Kamalnayan had Its third descent would be triggered by Partition. visited Germany during the 1936 Olympics where Hitler showcased Nazi power. Gandhi kept abreast of As Partition became more world affairs. and more of a certainty, Rameshwarprasad wondered about dismantling the Lahore factory and relocating it near Delhi. He sought advice from Lala Shri Ram. Shri Ram apparently did not share the sense of urgency and moreover, felt that the new Jinnah-led government of Pakistan would be more favourably inclined towards business than Nehru-led India. Its market also beckoned. Nevatia dropped the idea. Lala Shri Ram

That Kamalnayan, Jeewanlal, Keshavdeo and Rameshwarprasad were planning to be a sort of multinational, operating both in Pakistan and India seems a far-fetched strategy today. At the time, every idea seemed possible. The thought of India being torn into three pieces was just too painful a concept to be Kamalnayan with Jamnalal, Keshavdeo Nevatia and Ramnath Podar, acceptable. In 1948, Kamalnayan calculated the value Lahore, c1940 of the lost factory to be Rs. 60 lakh. Rameshwarprasad’s

56 Kamalnayan Bajaj – Architect of the Bajaj Group induction into business was in the Karachi office. He was among the last to pull out. We have no idea of the cost of closing down the Karachi branch and winding up the operations in Pakistan.

We still don’t know how many people migrated or how many died during Partition, but around ten million refugees probably crossed the western border; and roughly one million died en route. It remains the world’s biggest migration, and one of the most savage. Among those who fled India were three brothers who had a steel mill in Lahore – and one in India. Like the Bajajs, the The Lahore plant is requisitioned by Pakistan authorities Latifs could not get their heads wrapped around the idea on November 3, 1947

Assessing what’s to be done to save the situation. Jamnalal in the centre, his close friend Jeevanlal Motichand (at the back, in cap). In front and to the right is Keshavdeo Nevatia. Lahore, 1939.

Kamalnayan Bajaj – Architect of the Bajaj Group 57 Making the best of what life hands out: the sad story of Batala Engineering

of Partition. The main driver was CM Latif, born in the and executed in favour of that Company in exchange for Indian town of Batala (Punjab). At age 25 he built the shares of the paid up value of Rs. 9,74,357-12-3 of the Lahore unit in 1932, the Batala unit in 1942. Batala Engineering Co Ltd, Batala in the State of Punjab in India amounting to about 85% of the total paid up On October 28, 1950, the Indian government capital of that Company previously held by its Muslim promulgated the Administration of Evacuee Property and other directors and shareholders now in Pakistan Act, 1950. Its object was to take charge of Muslim together with land under that factory measuring about evacuee properties and compensate Indian refugees 21000 sq yards owned by its Muslim managing director who had lost their properties in Pakistan. Amongst and his brothers. That company has got at Batala one the earliest to make an application under the new act factory having mainly machine shop, cast iron foundry was Kamalnayan. and a small steel re-rolling mill. Part of it is being worked at present by the Custodian Evacuees Property, Punjab On November 30, 1950, Kamalnayan updated (India). Out of the above mentioned shares, shares of Mukand’s shareholders. “The Company has conveyed the paid up value of about Rs. 9,56,000/- have been its Lahore factory to the Batala Engineering Co received by us with Transfer Deeds. We have, under the (Pakistan) Ltd, Lahore by way of a Deed of Conveyance Administration of Evacuees Property Act 1950, applied

58 Kamalnayan Bajaj – Architect of the Bajaj Group Mukand’s board of directors at work, 1958 [L-R]: DS Mulla, Rasiklal J Chinai, Madanmohan Ramnarain Ruia, Kamalnayan, Pralhad Bhat, Keshavdeo Nevatia, Viren Shah to the Custodian, Evacuees Property, Punjab, Jullunder, unit in 1972. “At the time it was nationalised, it was for confirmation of the transfer of the shares in our an industry leader with 6,000 employees. It is now an name. We have also filed an application with the High industrial graveyard,” CM Latif lamented before Court at Simla for rectification of Share Register of the his death. Batala Engineering Co. Ltd., Batala.” This was the future. 1947 was the now. The process dragged on and on for years. But the Bajajs eventually got control of the Batala unit. It was The Lahore factory was lost. The Bombay unit was too not even half the value of what they had lost, but it small to be a standalone unit. The Batala handover was was something. The Latifs’ fate was less happy. The a known unknown. The debate in the boardroom was Pakistan government took control of their Lahore fierce. Liquidate or continue?

Kamalnayan Bajaj – Architect of the Bajaj Group 59 Requisitioned, 1947 – by Kamalnayan Bajaj

Due to communal disturbances in Lahore from Strong protests have been lodged by us with the the month of May 1947, Lahore Factory could not West Punjab and Pakistan Government against work properly and had to remain closed for several this arbitrary action, especially as the factory was months. During the days immediately preceding and not deserted and some departments had started following the Partition of the country a large working and a labour force continued to increase, number of the Lahore factory staff continued to all departments would have commenced working remain there and were thus able to save the factory in due course. As a considerable quantity of coal from damage to property and stocks from the hands of from our factory has been taken over by the West the rioters at Lahore. In doing this; they displayed Punjab Government, it was not possible to work some courage and devotion to duty for which we extend our departments for want of coal. Representations have warm appreciation and sincere thanks to them. also been made to the Government of India requesting About middle of September, the factory was restarted them to take up the matter with the Pakistan by our two European Engineers who continued to stay Government. They have informed us that they have there, with such number of workers as could be sent communication to the Pakistan Government available. To our surprise, however, in the last week of regarding our factory. September 1947, a notice was pasted by the West Punjab Government on our Lahore factory In view of the above situation, it becomes necessary gate that the factory has been requisitioned by them that as far as possible, the resources of the company under the West Punjab Economic Rehabilitation should be conserved. Ordinance, 1947. Our Staff was however allowed to continue to work the factory till 3rd November 1947, when suddenly the factory was sealed by the West Punjab Government and since then it has remained entirely closed.

60 Kamalnayan Bajaj – Architect of the Bajaj Group Chapter 12

Mukand Makeover

You and I have known each other seventeen years in the sugar industry. This loan is given to you on your personal guarantee. I trust you.

Lala Shri Ram, 1950 (First chairman of Industrial Finance Corporation to Rameshwarprasad Nevatia)

Kamalnayan Bajaj – Architect of the Bajaj Group 61 Rise of the Phoenix

Under Kamalnayan’s leadership, Mukand’s sales grew to Rs. 26.64 crore in 1972-73, a leap up from Rs. 49.27 lakh in 1947. Profits were a healthy Rs. 3.20 crore. It now had three divisions: the steel making factory and a machine building plant at Kalwe; and the foundry at Kurla.

The triumvirate: Kamalnayan (5th from left), Viren (4th) and Rameshwarprasad (8th) at a Mukand AGM

Shedding the past, in October 1958 Kamalnayan re-entered the steel re-rolling business with plans for a new plant at Kalwe, on the outskirts of Bombay. Kamalnayan is standing to the right of the foundation stone. Snuggled next to him is young Niraj.

As Viren Shah, who took over the chairmanship after Kamalnayan passed away, noted, over the years Mukand had acquired a certain degree of competence and capacity to assist others. It helped a Malaysian company establish a steel foundry in Malaysia. Under a technical agreement, Mukand provided know-how Railways were primary customers for Mukand. In this picture, Kamalnayan (wearing cap) is showing the Kurla foundry to SK Patil, to Polysteels (India) Ltd at Bhavnagar for a mini steel Union Railway Minister (centre in white), 1965. plant with two electric arc furnaces making ingots and

62 Kamalnayan Bajaj – Architect of the Bajaj Group billets. Nearly 150 SME in the Greater Bombay area and the Thana Belapur belt benefited from Mukand’s training programs. It was eager to launch an industrial project under the government’s joint sector policy. And it wanted to build a sponge iron plant.

Back in 1950, these were not even pie-in-the-sky dreams. Kamalnayan, Viren and Rameshwarprasad were still shell-shocked. Once they had picked themselves up, they swiftly drew up an action plan and allocated responsibilities. Rameshwarprasad obtained a loan

Kamalnayan with Mukand’s foreign collaborators at the corporate office at Fountain, Bombay. Mukand’s managers were quick learners. By the 1970s, Mukand was helping other Asian countries to build steel plants.

of Rs. 22 lakh from Lala Shri Ram, now chairman of the newly formed Industrial Finance Corporation. Kamalnayan found a plot at Kurla for a new plant. Viren bought a second-hand bulldozer to prepare the land for the new factory and became the construction supervisor, living in a thatched hut on the site. Allahabad Bank’s Scottish banker chipped in with a Rs. 36 lakh overdraft facility. When an old customer, Associated Cement (ACC) contemplated establishing its own foundry instead of buying from Mukand, the trio went in all guns blazing to persuade ACC’s management otherwise.

These were hard days but like the proverbial phoenix, Mukand rose to become a leader in its field. It was an early adopter of modern management practices, thirsty In the quest to bring the best management talent into Mukand, professors for new technologies for which it entered into technical were encouraged to visit and vet the plants. In this picture, Kamalnayan and Viren Shah discuss plans for growth with Harvard Business School collaborations with international majors, and invested Professors Milton P Brown and James R Bright, January 1963. heavily in developing its human resources.

Kamalnayan Bajaj – Architect of the Bajaj Group 63 64 Kamalnayan Bajaj – Architect of the Bajaj Group Bombay shareholders were invited to visit Mukand on the company’s 25th anniversary. They are seen here on the front lawn of Mukand's plant, February 1963.

Kamalnayan Bajaj – Architect of the Bajaj Group 65

Frugal Innovation – by Niraj Bajaj

In the early 1960s India was making giant strides The third program was for managers. Mukand sent in science and technology and Mukand was in the those who had a minimum of ten years experience forefront. Under Kamalnayanji’s leadership, Mukand and were likely to shoulder higher responsibilities forged ahead. By 1957, Mukand steel was used in the to Harvard Business School’s eight month executive building of a new terminal in Santacruz airport, the education program. Others were sent to Canada Canada-India reactor in Trombay, the Vaitarna Dam and Russia for advanced training. Meanwhile, and Churchgate Station of the Western Railways, to Kamalnayanji opened up Mukand to students of the name just a few projects undertaken at the time. newly established Regional Engineering Schools to enable experiential training. Our growth surged during this period as a result of several initiatives: in training, in product development On product development, Mukand tied up with several and in launching a new division for capital goods internationals firms. One example is quite interesting. engineering. At the same time, profits were steadily We pioneered the manufacture of Automatic Centre invested to increase capacity. Buffer Couplers for trains, in collaboration with USA’s National Malleable and Steel Castings Corporation. Starting in 1957, Kamalnayanji launched three major training initiatives. He appointed a wholetime One of our biggest achievements was to Industrial Training Officer for workers. For engineers, indigenously design and build capital machines for Mukand entered into an eight year technical the steel and sugar industries at a fraction of the agreement with the then well-known British steel cost of similar machinery. Under Kamalnayanji’s foundry, David Brown Industries. The British firm chairmanship (1947-1971) Mukand pioneered frugal would help Mukand solve problems in its foundry as innovation much before it became a buzzword in the also to train Indian technicians at its Yorkshire plant. 21st century.

(a) (b) (c)

(a) Being able to build machines at low cost gave Kamalnayan enormous joy. The group entered the machine building business circa 1960. By 1963, Kamalnayan proudly showcased equipment fabricated at the Kalwe plant at a fraction of the cost of imported machines. In these pictures is a Shot Blasting equipment built in-house. Cost Rs. 70,000; (b) a part of a Sand System that Mukand erected in 1962: Cost Rs. 4,00,000 and; (c) a 10-ton Overhead Crane fabricated in Kalwe. Cost: Rs. 90,000.

66 Kamalnayan Bajaj – Architect of the Bajaj Group Chapter 13

Satyagrahi

On return from the second Round Table Conference, Bapu desired all the workers who had participated in the Salt March, to return to Sabarmati Ashram. Accordingly, Kamalnayan also left Almora for Ahmedabad. On the way, he halted at Bageshwar near Almora, to attend an annual fair. On knowing that he was Jamnalal Bajaj’s son, the local Congressman requested him to speak at a public meeting in the fair. The government had, however, imposed section 144, banning the holding of any meetings on the occasion. Kamalnayan did not want to break any government regulations and was anxious to return to Sabarmati Ashram as early as possible. But the Congress workers had already announced his name as one of the speakers. Kamalnayan was compelled to speak briefly at the meeting. He, along with others, was immediately arrested and kept in the police lock-up for a few days. The Magistrate sentenced him to six months’ rigorous imprisonment with a fine, placed him in the ‘C’ Class and sent him to Almora jail. After a fortnight, he was transferred to Hardoi jail where he was kept for about five months. At the age of 17, he lost about 42 lbs owning to hard work and poor food in the prison. Subsequently, he was transferred to Bareilly District Jail where Vijayalakshmi Pandit and her husband, RS Pandit, were also detained. Since he was given ‘A’ Class here, he regained about 20 lbs.

Shriman Narayan, 1931

Kamalnayan Bajaj – Architect of the Bajaj Group 67 Child of the Revolution

January 1915 created three turning points in Jamnalal’s life. He promoted a new managing agency, Bachhraj Jamnalal, in Bombay. On the 9th, the 30 year old cotton trader was at Apollo Bunder in Bombay, eagerly waiting to catch a glimpse of Gandhi arriving from South Africa. On the 23rd Kamalnayan, his first son, was born at Wardha. The baby was destined to become a satyagrahi.

Baby Kamalnayan Kamalnayan addressing a public meeting

68 Kamalnayan Bajaj – Architect of the Bajaj Group Kamalnayan, Vallabhbhai Patel and Sriman Narayan with Gandhi on his daily morning walk at Sevagram, Wardha Young Kamalnayan in khadi

“The satyagrahi’s object is to convert, not to coerce, spun khadi, picketed shops selling alcohol, was the wrong-doer,” Gandhi would repeatedly exhort his occasionally baton-charged. But unlike his brother followers. The principle became a part of Kamalnayan, Ramkrishna who could be it in business, with his family and friends or in his handle prison with élan, political career. Kamalnayan could not. Jamnalal passed away six The latter career began when Kamalnayan was five. At months before Gandhi five, how much does one understand? What the child saw launched the Quit India was his mother feverishly pulling out sarees and shawls movement, before Wardha from her wardrobe, grabbing his favourite kurta along erupted into violence, and with the rest of his clothes, tossing them into a pile, and before Jamnalal could see handing him a faggot of burning wood to torch everything. Kamalnayan’s successful handling of the Ashti case. As Jamnalal and Jankidevi became closer to Gandhi, Kamalnayan strayed into the freedom movement. He Newspaper cutting of 1920

Kamalnayan Bajaj – Architect of the Bajaj Group 69 A matter of Honour – by Ramkrishna Bajaj Congress passed The Quit India resolution at midnight, 8 August 1942. A huge mass rally was scheduled for the next morning in Shivaji Park, in Bombay's northern suburb.

Though Bapu and Ba were taken away, the Still, the meeting must go on. But who else would meeting must be held as originally planned. There speak? Meanwhile, someone suggested that Bhai was heavy police bandobast at Shivaji Park. Kamalnayan should address the gathering. He had not come prepared to make a speech. The people The police, armed with machine guns, had cordoned gathered around him and there was complete silence. off a large area of the maidan. Waves of people were He spoke for about 15 minutes. What he said was not surging from one end passing over to the other - important, The main purpose was to hold the meeting breaking the police cordons. When the police lost as originally scheduled. patience, they began to burst tear gas shells. But the people had become used to this since morning. The It was held close to the police cordon. But, Congress volunteers had mastered the technique of surprisingly, the police remained quiet. Even nullifying the tear gas attack. The moment the gas otherwise, they were helpless in the face of the shells were fired, they were pressed against the grass. people’s enthusiasm and determination. The meeting Still, some fumes would leak out. Residents from the went off without interruption. surrounding houses brought buckets full of water and the people dipped their handkerchieves in water and For the first time the slogan ‘Kamalnayan Bajaj Ki Jai’ pressed them against their eyes. was heard. I felt very happy. While returning home at night, we saw the slogans ‘Quit India’, ‘Bharat Hamara A large number of people had gathered in one corner Hai’ scrawled on the streets. They were written squatting on the ground in a disciplined manner. They on the house walls, trams, at the railway stations did not disperse even when the gas shells were fired. - everywhere possible. To everybody’s surprise Thereafter, they were cane-charged. Still, not one Kamalnayan was not arrested. Perhaps the police had person got up. Ultimately, the police got tired and no instructions to do so. He did not rank high in the stopped the cane-charge. Congress hierarchy.

Khurshidben and one other lady stood up to address. But, because of the tear gas, they could not speak.

70 Kamalnayan Bajaj – Architect of the Bajaj Group Chapter 14

Three Grandfathers

Chi. Kamalnayan. Your handwriting is no doubt well formed, but it is not clear. Your ‘ट’ and ‘ह’ look the same. The ‘अ’ in ‘अ��ा’ is incomplete, ‘च’ in ‘��ा’ has got seperated and reads like ‘ट’. ‘�ा’ looks like ‘�य’.

Gandhi to Kamalnayan

Kamalnayan Bajaj – Architect of the Bajaj Group 71 Blessings from Bapu

Dadaji No 1: Jamnalal’s biological father Kaniram An observant man, Gandhi kept a watchful eye on every Bajaj. Dadaji No 2: Seth Bachhraj who adopted one in his vicinity. But it may truthfully be said that Jamnalal. Dadaji No 3: MK Gandhi who adopted no other Indian family received as much of Gandhi’s Jamnalal as his fifth son. attention as did the Bajaj family. Kamalnayan got more loving attention from Gandhi than from Jamnalal and Jankidevi, and perhaps more than Gandhi lavished on his own children. Even in the busiest of times.

The Salt Satyagraha was a decisive turning point in Gandhi’s political agenda, yet it was Gandhi who took time out to treat a very ill teenager. Jamnalal and Janaki were among the organisers. Jankidevi was eager that Kamalnayan should join the (a) (b) (c) march. When she went to pick up Kamalnayan from Wardha, he was down with 104° fever. Malaria and kala azar over a two year span had weakened him. A tall 15 year old, his weight had dropped to 72 lbs. Even so, Janaki brought

(a) Dadaji 1: Kaniram Bajaj (b) Dadaji 2: Seth Bachhraj (c) Dadaji 3: MK Gandhi (d) Dadi Ma: Birdibai with Kamalnayan and Kamla (e) Kasturba Gandhi with Jankidevi, (d) (e) Sevagram Ashram, circa 1936

72 Kamalnayan Bajaj – Architect of the Bajaj Group Kamalnayan to Ahmedabad. A few days into the march, “I said to Bapuji: ‘Though Kamalnayan’s weakness and swelling of the eyes worried I respect the doctor’s Bapu. He took charge. opinion, I have complete faith in you and your “I had to report to Bapuji every day as to my treatment.’ Bapuji said: ‘I temperature, diet, activity, etc. Bapuji made me fast, am ready to experiment and earth poultices were applied to the eyes. The fever on you, but are you ready got under control, but the eyes kept going from bad to lose your eyes? Though to worse. He became very anxious and informed my the earth poultices have father about my illness. The latter was busy with the not given any encouraging salt satyagraha at Vile Parle, Bombay. He replied that results as far as the eyes Kamalnayan whatever treatment Bapuji thought best should be given are concerned, your to me; and that, if necessary, he would send somebody general health has improved, and if you have faith in to take me to Vile Parle. I declined to go home, for we nature cure, you should continue it.’ For nearly three were under a pledge,” recalled Kamalnayan in 1948. weeks I lived on milk and thereafter on a liquid diet of curd and fruit juice, and applied earth poultices to the eyes and the stomach. In nearly six weeks I completely recovered. The eyes were as good as, or perhaps better than, they were ever before; and the malignant malaria, which had persisted for about two years, also left me.”

The two men shared an unbreachable trust in each other. A November 1945 crisis in the Nagpur Bank (founded by Jamnalal, managed by Kamalnayan) showed the extent of Gandhi’s faith in Kamalnayan. Gandhi had deposited funds belonging to various trusts in the bank. Advised to withdraw these funds, Gandhi categorically refused.

Salt Satyagraha (Dandi March)

An eye specialist from Ahmedabad appeared. “Bapu got my eyes examined by the doctor, who thought that I had lost my left eye, or at least it was beyond repair, and if proper care was not immediately taken, I might lose the right one also. Bapuji asked me to go with Kakasaheb to the Gujarat Vidyapith and put myself under the Gandhi coming out of his hut at Sevagram with Savitri and Madalsa, with treatment of the eminent doctor.” Kamalnayan a step behind

Kamalnayan Bajaj – Architect of the Bajaj Group 73 Sage advice for students studying abroad – by mk Gandhi

Write to me regularly. Listen to everyone, but do what you consider best, and what agrees best with the hopes you raised in us when you went. There is no end of temptations out there. Live up to your name and recalling its qualities, remain untouched by the mire, although surrounded by it, as does the lotus. Then all will be well. Do not delve beyond your depth and don’t compete with anyone.

74 Kamalnayan Bajaj – Architect of the Bajaj Group Chapter 15

Do or Die

If the news is correct that the Ashti and Chimur petitions have been rejected, it is disturbing. I am opposed to State hanging in every case, but most so in cases like these. Whatever was done by the people on and after August 9, 1942, was done under excitement. If these hangings are now carried out, it will be cold-blooded, calculated murder and worse, because it will be done ceremoniously and under the name of so-called law. It will leave behind nothing but a great increase in the already existing woeful bitterness.

mk Gandhi, 1945

Kamalnayan Bajaj – Architect of the Bajaj Group 75 The half-lawyer

Sunday, April 1, 1945. Kamalnayan was at home in you are released, they will not be hanged. We don’t know Bombay reading Gandhi’s press statement published by what to do. Their lives are now in your hands. You have the Hindu newspaper. Emotions of pleasure and anxiety to take up this case. Or else tell us how we should proceed ricocheted inside him. Pleasure because Gandhi had used further. We cannot bear this anymore.” the draft Kamalnayan had prepared. Anxiety because Radhakrishna Bajaj - his cousin, playmate and school Kamalnayan once had aspirations to be a lawyer. At friend - was among the thirty facing a death sentence. Cambridge, mixing with law students over dinners, the longing grew. But shivers ran down his spine when The case had been going on for three years. “In your and faced with a legal nightmare. Jamnalal was no more. other leaders’ absence, we have done whatever we could,” First challenge: avoid being arrested in order to mount Kamalnayan pleaded with Gandhi. “We hope that now Radhakrishna’s defence. Next: find ways to counter

Bajaj family with Jawaharlal Nehru and Ravishankar Shukla at Bajajwadi; Standing 1st row (L-R) Bharat Narayan, Rahul, Ramkrishna, Shriman Narayan, Radhakrishna, Rameshwarprasad Nevatia, Kamalnayan, Sushil Nevatia, and Suman Jain. In Chairs (L-R) Madalsa Narayan, Vimla, Jawaharlal Nehru, Jankidevi, Ravishankar Shukla, Jankiprasad Poddar and Savitri. Standing last row (L-R) Girdhari Kripalani, Draupadi Kripalani, Vinoo Kripalani and Gangabisan Bajaj Ground. (L-R) Rajat Narain, Shekhar, Aarti Nevatia, Deepak Kripalani, Azadi Nevatia and Shishir, circa early 1950s.

76 Kamalnayan Bajaj – Architect of the Bajaj Group Delhi

Karachi (a) (b)

(a) Kamalnayan and Gandhi deliberate; (b) Bhulabhai Desai, Bombay- Calcutta based lawyer who used his legal skills to save freedom fighters, but did not live long enough to see free India Paunar Nagpur Wardha Chimur Sevagram Bombay witnesses who gave false evidence against Radhakrishna. Ashti In the bigger picture of the freedom movement, the Chimur-Ashti-Wardha episode is a small footnote. The British government tried to hush it up but truth eventually trickled out. What started as an enthusiastic non-violent response to Gandhi’s Quit India call rapidly Madras spiralled into a mayhem of lynching and hangings. The Indians lynched policemen. The British retaliated with rapes, torture and hangings. In Bihar hundreds were killed when aircraft strafed protestors. Trouble in the Central Provinces, 1945 In the Central Provinces, the worst atrocities occurred in Chimur and Ashti. The first shot was fired at aid, funds and defence to detainees of Congress Wardha to disperse a disorderly Congress meeting. As disturbances. Leading Bombay lawyers such as the movement gaining momentum, firing became an Bhulabhai Desai pitched in. Narayan Bhaskar Khare, integral, frequent feature of government repression. a member of the newly formed Central Provinces One constable in Nagpur was speared to death by and Berar Legislative Assembly, formed the Capital protestors. At Chimur, a sub divisional magistrate, a Punishment Relief Society with Anasuya Kale as its circle inspector, a naib-tehsildar and one constable vice-president. Kale worked closely with Gandhi. were stoned and burnt alive. At Ashti, a sub-inspector The defence discovered a lacuna in the order and the of police and four constables were brutally murdered. executions were stayed. In retaliation police opened fire 40 times, 43 protestors died, 156 were injured, 335 were whipped, 8,260 were The stay enabled an appeal for mercy on behalf of arrested, and 5,422 were jailed according to police the Ashti-Chimur prisoners but the appeal’s rejection records, which make no mention of ad hoc hangings on hardened Gandhi’s attitude. He began working village trees. And these numbers are only for the period his network, guiding Desai and influencers such as between August and December 14, 1942. Radhakrishna Manchersha Avari and badgering the Viceroy Lord is just one statistic in the carnage. Wavell and his personal assistant Evan M Jenkins. The Viceroy commuted the sentences to life imprisonment In June 1943, prominent Congressmen and advocates on August 16, 1945. Kamalnayan did the rest of the at Nagpur formed legal aid committees to provide legal work required to set free Radhakrishna.

Kamalnayan Bajaj – Architect of the Bajaj Group 77 A brother’s love –by Radhakrishna Bajaj

The August Kranti Movement of 1942 was at its were outsiders. The false murder charge was tried in peak with people inflicting small damages: cutting the Nagpur High Court under a special ordinance. telegraph wires and removing rail tracks. A few workers of the Wardha Ashram were tempted to join. The British government was trying to crush the On this pretext, a dozen leading workers of Vinobaji’s Movement with full force. People were quite terror Ashram including Vallabh Swami and Dattoba Bhau stricken and the government created false witnesses Panse were arrested. through bribery. Our problem was how to counter these false witnesses. But the witnesses got busted Congress meetings were held in Bajajwadi, Wardha. due to the efforts of Kamalnayan, the lawyers of other The decision to launch the August Movement was friends and society. The State could not sentence me. taken in Bajajwadi. Many members of the Bajaj family Yet under the Defence of India Act, I was kept in jail were in jail. For all these reasons, the family was the for three years. Some were handed sentences, some target of the fury of the British Raj. The government were released; this is a long story. I leave it at that. was just waiting for the smallest excuse to arrest Kamalnayan. There was pressure from Delhi to arrest It was an ordeal-by-fire for Kamalnayan. But without someone from the Bajaj family. They picked on me. any hesitation and panic, he threw his whole might in defending this case. My wife Anusuya would worry I was in Buldhana Jail at the time. I was brought to but Kamalnayan looked after his bhabhi and kept her Wardha and housed in the tehsil court’s special cell. morale high. There I came to know that apart from charges of destroying public property, the authorities planned After Gandhiji’s release from jail, some Ashramites to implicate me in the murder of the policemen. told him that the witnesses were bribed to defect. They hatched the conspiracy that prior to being taken to Gandhiji became serious. Everyone became Buldana, I had conspired to the murders in secret meetings. apprehensive. We can’t lie before Bapu. And the truth may compel him to undertake a fast. We presented Kamalnayan was mostly living in Bombay in those ourselves before Bapu and pushed Kamalnayan days. In order that the Bajaj’s Bombay office may not forward to face him. He told Bapu, “Bapuji, these assist in my case as also to scare Kamalnayan, the days people bribe to tell a lie. But we paid money police arrested two munims – Kaluramji and Motilalji to witnesses to behave honestly and speak the – from the Bombay office. truth. What is wrong in that?”

The feeling of patriotism was so high that lawyers of Bapu laughed at Kamalnayan’s strategy and we all all parties rose to defend us. The only prosecution felt relieved. lawyer from Wardha was Shri Chendke, all others

78 Kamalnayan Bajaj – Architect of the Bajaj Group Chapter 16

Lok Sabha

We are, in our country, suffering from the lack of adequate political leadership, and communal and regional interests are gaining more importance at the cost of the national interests. The political leadership is exploiting the regional, communal, religious and linguistic sentiments in order to gain popularity. Discipline is being undermined and the law and order position is progressively deteriorating. Unless a bold leadership emerges, the conditions are not likely to improve and our security will be vulnerable and economic growth hampered in the prevailing unsettled atmosphere.

Kamalnayan Bajaj, 1969

Kamalnayan Bajaj – Architect of the Bajaj Group 79 An argumentative Indian

It’s almost impossible that there is any other The decade from 1942 to 1952 however saw businessman in the world who has had a rakhi tied on his Kamalnayan putting his business in order. By the boyish wrist by a future prime minister, had his marital time the first Lok Sabha elections were announced, problems advised on by another, cleaned the bedroom the Bajaj Group’s financial position was sound with a of a third and debated endlessly on the Congress party’s management team in place. Electoral engagement drew internal matters with a fourth. Jamnalal may have left Kamalnayan like a wasp to honey. Kamalnayan a fistful of debts on his death, but the political heritage was rich. Bajajwadi was the epicentre The first Lok Sabha poll, India’s first national of the early phase of the freedom movement, where the election, is historic and was emotional. Held four Quit India decision was taken, and while Gandhi lived years after Independence (once the Constituent there, was the philosophical nucleus of the Congress Assembly had finished writing the Constitution), Party. Kamalnayan grew up knowing everyone who was campaigning took place between October 25, 1951 anyone in the Congress party, and more. and February 21, 1952.

(a) (b) (c)

80 Kamalnayan Bajaj – Architect of the Bajaj Group Just before the elections, Syama Prasad Mookerji future PMs were elected: Gulzari Lal Nanda and Lal (Industries Minister under Nehru) broke away to set up Bahadur Shastri. Congress won a landslide victory, the Bharatiya Jana Sangh, a proto-BJP, representing the winning 364 of the 489 seats and 45% of the total votes Hindu right wing. BR Ambedkar formed the Scheduled polled. Nehru became the first democratically elected Caste Federation, later the Republican Party of India. Prime Minister of India. Another high-profile Congress leader, Acharya JB Kriplani, founded the Kisan Mazdoor Praja Party. Ram Rewinding to early 1951, Kamalnayan is wondering Manohar Lohia and JP Narayan were the forces behind if he should contest from Rajasthan or Maharashtra. the Socialist Party. And the Communists (then united), He had a toe-hold in Sikar and more than a foot in having just abandoned an armed struggle in Telangana, Wardha. Shriman Narayan, married to Madalsa, contested 49 seats. The Bolshevik Party of India and the and Rameshwarprasad Nevatia to Kamla, were also Zamindar Party too were among the contestants. planning to contest. The three brothers-in-law debated and decided that Rameshwarprasad would contest Sardar Patel did not live to contest. Ambedkar lost in from Shahabad in UP, Shriman from Wardha in Bombay to Narayan Sadoba Kajrolkar of the Congress. Maharashtra and Kamalnayan from Sikar in Rajasthan. Kakasaheb Kalelkar became an MP, going on to Getting Congress tickets was a cinch. Rameshwarprasad head India’s First Backward Classes Commission (the and Shriman won. Kamalnayan lost. predecessor of the Mandal Commission) in 1953. Two Post elections, as Nehru and Kamalnayan grew into their roles, cracks began to appear in their relationship. Even as Nehru criss-crossed India inaugurating one industrial complex after another constructed by ‘industrialists’, the Fabian socialist laid the foundation for the License Raj. And there were other pin pricks. Such as VK Krishna Menon. An MP and diplomat, Menon was one of Nehru’s most trusted advisors. Nehru received coldly Ramkrishna’s complaints about Menon. The Communists launched a campaign linking businessmen to the CIA. Eye-popping and headline grabbing as it was, the campaign petered out for lack of credibility. But the Bajajs were dragged into the controversy nonetheless.

Relations between the Nehru dynasty and the Bajajs fractured in 1969 when Indira Gandhi split the Congress party. Kamalnayan was a Congress MP at the time.

Growing up with prime ministers: (a) With India's 1st Prime Minister, Jawaharlal Nehru (b) With India's 2nd Prime Minister, Lal Bahadur Shastri (c) With India's 4th Prime Minister, Indira Gandhi (d) (d) With India's 5th Prime Minister, Morarji Desai

Kamalnayan Bajaj – Architect of the Bajaj Group 81 Kamalnayan with co-members of the 2nd Lok Sabha Picture taken on March 14, 1962

82 Kamalnayan Bajaj – Architect of the Bajaj Group Kamalnayan Bajaj – Architect of the Bajaj Group 83 Convinced that her leadership was not in the country’s interest and it would lead to authoritarianism, he chose to remain with old friends in Congress (O). Among them was Morarji Desai.

Mrs. Gandhi’s decision to nationalise banks and the way she did it was perhaps a turning point that firmed Kamalnayan’s thought process.

Fortunately Kamalnayan did not have to oversee a bank under his charge being nationalised. He was the 15th chairman of the Punjab National Bank, one of the fourteen banks that were nationalised, but his three year tenure ended in 1967. Desai was adamant against this step. Mrs. Gandhi stripped Desai of the finance portfolio on July 16, 1969 and promulgated an ordinance three days later.

When Congress finally split, 220 Lok Sabha members stayed with Mrs. Gandhi. Kamalnayan was not one of them, as Mrs. Gandhi noted. Two Communist parties provided the balance of the votes necessary for majority.

Could a upcoming industrial house afford to antagonise the government? Kamalnayan’s response was short and simple. If members of his family did not agree with his views and felt that his stand was not in the family’s interest, he was prepared to sever all connections with the business and go his own way. Everyone knew this was not an idle threat.

The 1971 elections loomed. Mrs. Gandhi’s populist Ten-Point Program and ‘Garibi Hatao’ slogan and mastery over the Congress Party machinery ensured her victory and the rout of Congress (O). Including Kamalnayan’s. Swept away in the whirlpool of national politics with its unending uncertainties, tensions and heart-aches, Kamalnayan, like his father, died young, passing away in 1972 soon after the 1971 (a) Parliament elections.

84 Kamalnayan Bajaj – Architect of the Bajaj Group (a) A rich political legacy. Kamalnayan, DP Mishra, Maniben Patel, Sardar Patel and Ravishankar Shukla at Bajajwadi, Wardha (b) Bajajwadi, Wardha (c) During the freedom struggle days, in ‘pangat’ in Bajajwadi, Wardha: (L-R) Dr. Rajendra Prasad, Sardar Vallabhbhai (b) Patel, Maulana Abdul Kalam Azad and Badshah Khan Abdul Ghaffar Khan

(c)

Kamalnayan Bajaj – Architect of the Bajaj Group 85 On the Campaign Trail – by Rahul Bajaj

I was 19 years old. The 1st Lok Sabha’s term was told the persons concerned that their request was not coming to an end. Elections for the 2nd Lok Sabha justified, and he will not be able to help them. He always were scheduled from February 24th to March 14, 1957. went straight to the heart of a matter and preferred plain Kakaji contested from Wardha, a rural constituency, on speaking above all! an Indian National Congress (INC) ticket. Campaigning in 1957 was nowhere like what it is now. The money In 1969 the Congress split into Congress (I) and spent was insignificant compared to the crores spent on Congress (O). Kakaji stayed with Congress (O) even a single parliament seat now. It was a great learning though Congress (I) was led by Smt Indira Gandhi and experience for me. Under Jawaharlal Nehru’s was the larger faction. Kakaji, however, did not agree leadership, the INC easily won a second term in power, with many of her policies, including the nationalisation taking 371 of the 494 seats with a vote share of 47.8%. of banks. Kakaji stayed with Mr. Morarji Desai’s Congress (O). This annoyed Indiraji who, I believe, Kakaji contested four Lok Sabha elections from Wardha wondered aloud how Jamnalalji’s son could go against between 1957-1971. I campaigned for him in all the Jawaharlalji’s daughter! After all Jawaharlalji and four elections. Each time, Kakaji asked a few of his close Jamnalalji were like brothers. Incidentally, both were associates to let me accompany them for about two born in 1889. In fact, it was Jawaharlalji who gave me weeks. The person with whom I travelled would typically my name Rahul, but that is another story. know a few people in the towns we visited. Politeness dictated we be offered cups of sugary tea which frankly I Kakaji spoke to me frankly after the Congress split. found quite tasty! Sometimes Kakaji would discuss with Because of his decision to stay with Congress (O), he me what happened during the day – this was his way of explained, it was possible that Congress (I) may not teaching me. cooperate with the companies in the Bajaj Group. We may not get expansions, etc. He asked me whether he People from his constituency sometimes came home to should resign as the Chairman and Director of our meet Kakaji when he was in Wardha to petition him to companies to insulate the group from the possible wrath help them in government-related matters. I remember of the government. I straightaway told him that this is an occasion when Kakaji found a request not justified. out of the question and we are not going to succumb to Instead of being placatory and murmuring words to such pressure. the effect “I will see what can be done”, he point blank

86 Kamalnayan Bajaj – Architect of the Bajaj Group Chapter 17

Shishya

Vinoba was spinning. He looked at GD Birla and then started spinning again. Then he said: “Yes. What is it?” Birla asked him how Kamal’s studies were getting along. Vinoba said: “Primarily he does the ashram work.” Birla said: “I am talking about intellectual instruction. He will have the responsibility of running Jamnalal’s business. For this reading and writing is necessary. How else will he look after Jamnalal’s work?” Vinoba replied: “Shivaji conducted the affairs of a kingdom even though he was illiterate; then why should Kamalnayan not be able to run Jamnalal’s business without the so-called schooling?

Rishabdas Ranka, 1927 (Kamalnayan’s school friend and eye-witness)

Kamalnayan Bajaj – Architect of the Bajaj Group 87 Alone in the crowd

When Gandhi gave a call to boycott British-oriented Among Marwaris, daughters were less affected. It schools in 1920, Jamnalal Bajaj promptly did as he was did not matter if their education was rudimentary, told. He enthusiastically organised a conference on they were ‘paraya dhan’ – the wealth of others, biding ‘Basic Education’ in 1937 in Wardha. But no alternative their time in their parents’ home until marriage. In system was in place when Jamnalal’s five children an earlier era, it was not a problem for boys either. were at school-going ages. They paid the price for Jamnalal had to leave school to join the family experimentation: many of the schools they attended business at age nine. But times were different. You did not have a curriculum let alone teachers trained in needed English to negotiate technology ventures with child education. foreign companies, to be able to export to earn foreign

Planning for the young of the new India. Conference on Basic Education, Wardha, 1937. Among those standing are Thakkar Bappa, Jamnalal Bajaj, Kaka Kalekar and Aryanayakam. Among those sitting are Ashadevi Aryanayakam, Zakir Hussain, BG Kher, Rajendra Prasad, Hansa Mehta, Perin Naoroji, Vallabhai Patel, Vishwanath Das, Ravishankar Shukla and Acharya Narendra Dev.

88 Kamalnayan Bajaj – Architect of the Bajaj Group Both were bright. Kamalnayan learnt from scratch enough of the Latin language in three months to pass an exam on the subject at matriculate level. In the mid- 1930s, Cambridge attracted the world’s greatest economists. Its Economic Tripos course was one of the toughest in the world. With no background in the subject – unless you count Gandhian economics which he learnt (a) (b) from its creator - Kamalnayan managed to complete the first year. Ramkrishna read over 250 books during his numerous

In his autobiography, Kakaji, Bapu and Vinoba, Kamalnayan wrote about the three most important incarcerations. people in his life. In this picture, Gandhi selects Vinoba Bhave as the first satyagrahi. The constant shunting marked exchange, to understand machinery and run it. In short Kamalnayan for life. Externally he was lively and to run a modern organisation. witty. Only he knew how lonely he always felt. There was never enough time in one place to build strong In Kamalnayan’s case, being shunted from school friendships. In the thousands of photographs taken over to school caused some serious damage. He attended a fifty year period in the Bajaj archives, there are fewer Vinoba Bhave’s ashram school at Paunar, near Wardha; than the fingers of one hand which show him laughing. Mahatma Gandhi’s Rashtriya Shala in the Sabarmati ashram; Valji Desai’s tutorship in Almora; Jahangir & Cooverbai Vakil’s Pupil’s Own School in Pune, the Ceylonese crammer organised by Bernard Aluvihare, the crammer in the UK who got him through a matriculation degree from Dublin University, before being forced to abort his studies.

Kamalnayan was luckier than Ramkrishna. Most of what Ramkrishna learnt was in jail from other freedom fighters. No doubt the inmates were renowned scholars but they were not used to preparing students for the Senior Cambridge Matriculation examination – a minimum qualification in India, then and now. Ramkrishna had A loving son: Kamalnayan at Podar College, Jaipur with Rajendra Prasad, barely forty days of university education. Ghanshyamdas Birla and Sawai Man Singh, Maharaja of Jaipur

Kamalnayan Bajaj – Architect of the Bajaj Group 89 Elder Brother to Younger – by Kamalnayan Bajaj

Until recently the way of doing business was different. Henceforth, I see very little scope for succeeding in business without a sound educational background... It is very necessary these days to understand commerce and economics and to have some knowledge of politics, history, geography, etc…. I am not much bothered if you study at home or go to school for studies but your studies must attain the standard of B.A. or M.A.

90 Kamalnayan Bajaj – Architect of the Bajaj Group Chapter 18

Cambridge

A couple of times, my husband had teased me that I was only a matriculate, while the girl he was earlier engaged to was a graduate. After I finished my B.A. it was my turn to tease my husband for not possessing any degree. He was not abashed in the least. At a party at home his friends were teasing him for this. He said of course I have a degree - ‘G.W.’ - Graduate Wife.

Savitri Bajaj, 1954

Kamalnayan Bajaj – Architect of the Bajaj Group 91 Eyes wide shut

As a father, Kamalnayan encouraged his sons to earn in a bad shape. Jamnalalji was very much involved with MBA degrees. Rahul chose the Harvard Business the Congress work as well as Gandhiji’s constructive School, Shishir preferred the Stern School of Business, activities. It was very important to Kamalnayan to stay New York. As an elder brother, Kamalnayan urged on in India and see to the business. He never discussed Ramkrishna not to allow business exigencies to engulf the problems with me but I think it must have been a big him and complete his education. Yet he had to cut short sacrifice for him not to finish his education, on which he his own education. had set his heart.”

“After returning to India in July 1938, Kamalnayan That monsoon, Kamalnayan was in a happy mood. He could not go back to Cambridge to complete his tripos,” had successfully passed Cambridge’s stiff Economics notes sadly Savitri in her autobiography. “Business was Tripos’ first year examination. He made a beeline for

Savitri, Tata Institute of Social Kamalnayan in London, studying for his entrance exam. Behind the photograph, he writes: Science diploma ‘Mr. Bajaj is dwelling in a fool’s paradise on the frontier of study or dreaming’.

92 Kamalnayan Bajaj – Architect of the Bajaj Group Kamalnayan leaving for Cambridge, 1937

Cambridge

Kamalnayan Bajaj – Architect of the Bajaj Group 93 Calcutta, anxious to see his new born baby, Rahul, born Jamnalal penned a letter to Gandhi where he poured out on June 10th, and be reunited with Savitri. his mental torment. He would later show the anguished letter to Kamalnayan. In contrast, the mood at the Dukaan was gloomy. As he entered his 50th year, Jamnalal became increasingly The outbreak of World War II in September 1939 despondent. Pain from arthritis in the knee and a finished the job of completely sabotaging Kamalnayan’s botched ear operation after years of neglect and self- dreams. How could a loving son not seek to help doctoring no doubt contributed to the lack of well- in whatever ways he could? With eyes wide shut, being. Depression reached a nadir within weeks of Kamalnayan rolled up his sleeves. Kamalnayan’s return to India. On November 4, 1938

Chilling with friends in London, 1937

94 Kamalnayan Bajaj – Architect of the Bajaj Group Winning over a head master – by Rahul Bajaj

On reaching London, my father made enquiries as House, he discovered, was perhaps the easiest to which is the easiest matriculation examination - this as it was not a major college and its head master was the minimum required to get into Cambridge. He had a soft corner for India. But he also knew that determined that it was the Dublin University one and there would be other Indians with much higher somehow passed that examination. He needed to also qualifications than his. pass Latin, a subject he had never been taught, which he did, I believe, by learning the answers by heart! Kamalnayanji applied and was rejected. He then decided (I doubt whether anyone else would have He then made enquires on which will be the easiest done so) that he would try once more. He found out college in Cambridge to get admission. Fitzwilliam that the head master went home for lunch every day. Every day, fifteen minutes or so before noon, he sat outside the head master’s room. He did not disturb the head master at all. The head master would see him sitting there, and, as expected, after a few days, mentioned to him something to the effect that, “young man, I am going for lunch and I can give you five minutes”.

In the head master’s room, Kamalnayanji gave

Fitzwilliam House, Cambridge

Kamalnayan Bajaj – Architect of the Bajaj Group 95 him a brief background of his family, his stay in the The head master mentioned that he had three two ashrams, his lack of formal education but the applications from India and he can give admission only deep involvement of his family and his own in the to one. Each of the three applicants was highly qualified with a master’s degree from a well-known college. He asked whether it will be fair for him to give admission to Kamalnayanji who was just a Dublin matriculate in preference to the other highly qualified candidates.

Kamalnayanji mentioned that he did not want the head master to be unfair to anyone. He said that the head master should decide whether Fitzwilliam House and Cambridge University really wanted to educate an Indian student like him or to be a rubber stamp for someone who is already highly educated. Kamalnayanji mentioned that this is the first time that a colony was trying to get independence through non- violent means and because of this Gandhiji and his father, Jamnalalji (who was considered the fifth son of Gandhiji) were fully involved in the freedom struggle.

Kamalnayanji asked the head master to consider whether any one of the three highly qualified students or himself would help maintain and improve good relations between Britain and India after India’s independence. In closing, Kamalnayanji mentioned that he would in any case stay on for a year or two in Cambridge to meet the objectives for which he had come there, but if he received admission in Fitzwilliam William Sutherland Thatcher, Head Master, Fitzwilliam House, 1924-1954 House, it would make it easier for him to achieve his freedom struggle including going to a British Jail. objectives, and of course, be able to study economics Kamalnayanji said he came to Cambridge to see how which he wanted to do. the English, who ruled India, looked at the Indian freedom struggle from Britain. He said he wanted After a few days, Kamalnayanji received admission a different insight as back home in India, naturally, to Fitzwilliam House to study for the Economics everyone wanted freedom. Tripos Degree.

96 Kamalnayan Bajaj – Architect of the Bajaj Group Chapter 19

Purab Paschim

Sometimes I used to wonder what would happen to us, your children, because of your generosity as well as your idealism. For example, I have always had respect for girls of the ashram. They may undoubtedly prove ideal housewives. However, I would have never liked to marry a girl from the ashram. I wanted a girl who was lively and mischievous like me. We have always had respect for charkha, takli and prayer, but until charkha, takli and prayer became part of my life, I could not enjoy marriage with a girl who was completely devoted to them. I wanted a girl who accepted the ideals, but was not an image of perfection.

Kamalnayan Bajaj, 1936

Kamalnayan Bajaj – Architect of the Bajaj Group 97 I vow to thee…...

“Have I done the right thing?” Jamnalal asked learn English. Well, he had found a modern girl of himself as he waited for the bridal car to draw up to the many accomplishments for his son. Savitri had studied porch of Bajajwadi. It’s a question that troubles every in Great Britain, rowed in the annual regatta race held parent who has arranged a match for their child. He had by Calcutta’s Lake Club, had travelled to Singapore and tried his best. Rangoon besides Europe. Perhaps Kamalnayan could pick up a tip or two from her. Kamalnayan once wrote to him saying he wanted to learn riding, rowing, swimming, skating and flying. Besides, Gandhi approved of Savitri. With the only seal That he wanted to travel in Europe, and to visit the of approval that mattered and a red khadi saree, the United States, China and Japan. And he wanted to eleven member barat left Wardha for Calcutta.

Jamnalal welcoming Kamalnayan and Savitri to Bajajwadi

98 Kamalnayan Bajaj – Architect of the Bajaj Group The Poddars (L-R) Savitri, Jagdish Prasad, Lalita, Vimla, Urmiladevi, Mahavir Prasad, Laxman Prasad

The Bajajs (L-R): Madalsa, Kamalnayan, Kamla, Jamnalal, Jankidevi, Uma (Ramkrishna was not born)

Kamalnayan Bajaj – Architect of the Bajaj Group 99 God’s plan works – by Savitri Bajaj

Kamalnayan came to Calcutta. He was slim and tall and was very simply dressed in shirt, dhoti and jacket … I do not know whether he was aware of it but the simple Indian clothes he wore suited him very well.

My mother was very keen for an early engagement and marriage. Kamalnayan and his family wished to wait for two or three years, till his education was over. My father took me to Wardha and appealed to Gandhiji. It was decided that the engagement would take place immediately and the marriage after one year. My parents were happy. Kamalnayan was rather pressurised about the whole thing.

My in-laws did not attend marriages where khadi was not worn by the bride and bridegroom. I insisted on wearing the traditional red zari saree, whether khadi No pressure... or not. I wrote to Kamalnayan about it. It was my marriage and my choice should be final. Kamalnayan to movies and horse-racing during the season. My was very understanding about the whole situation. friends were like me, happy-go-lucky, with not a He agreed to my wearing non-khadi, which naturally serious thought in their head. Kamalnayan’s large meant his parents would not attend. It was not a small number of acquaintances, friends and relatives were concession. Luckily the khadi sarees arrived in time a different breed altogether. They talked a language and the embarrassing situation was avoided. quite foreign to me. It bored me... Usually I was always at loggerheads with him. Kamalnayan’s outlook on life was based on a totally different criteria from mine. Life’s basic values were Kamalnayan was no more. I wish I had died. I did ingrained in his mind. On the other hand, I had never not even get an opportunity to express my deepest thought about life seriously. I was an average girl, feelings to him. Inspite of our efforts it is God who western educated and reasonably intelligent who plans for every human being and it is always His Plan liked to live in comfort and enjoy life. I loved to go which works.

100 Kamalnayan Bajaj – Architect of the Bajaj Group Chapter 20

Padma Vibhushan Jankidevi

Shri Jamnalal became the fifth son of Bapu in 1920 and I his fifth daughter-in-law. Khadi revolutionised the religious bent of my mind and filled it with love for the country. Since then Khadi, the Gomata and donating wells - Koopdaan - have become the pillars of my life. This is the essence of my life.

Jankidevi Bajaj, 1965

Kamalnayan Bajaj – Architect of the Bajaj Group 101 Dependence and Independence

Shy, nervous but determined, 67 years old and frail, Jamnalal seventeen, twice her age. She fell deeply in Jankidevi gripped the pick-axe and firmly brought it love with Jamnalal. Of her own volition, she changed crashing down on the ground. A cheer went up from her life for him. Their love letters are tender yet speak in the small crowd. She then carefully sprinkled water, and independent voices. After Jamnalal passed away in 1942, stepped back. As Kamalnayan built factory after factory, Jankidevi gave away everything she had to charity. But Jankidevi got quite used to pick-axes. she did not give up on life. Instead she created a new one.

In 1956, two of Jankidevi’s admirers, Jawaharlal Nehru and Rajendra Prasad, got together to award her the Padma Vibhushan, the second highest civilian honour in India.

Jankidevi’s maternal instincts, however, were quite normal. She fussed over what her five children ate, their health, their life partners. She beat them when they were naughty. But perhaps she had a soft corner for Madalsa who shared her concerns on cruelty to animals, and for Kamalnayan. As Savitri Bajaj, innocently but tellingly, once wrote, “Sometimes she would stay with Ramkrishna in Bombay, but after Kamalnayan’s passing away in 1972, she never came to Bombay.”

Ground-breaking at Bajaj Auto’s scooter and auto-rickshaw plant, Chinchwad, 1961 Her life is an extraordinary one, extraordinary because she deliberately made it so. Four years old when the match was arranged for her with Jamnalal, they were married when Jankidevi was eight and a half, and With husband Jamnalal Young Jankidevi before her khadi days

102 Kamalnayan Bajaj – Architect of the Bajaj Group With Mahatma Gandhi

Prime Minister Indira Gandhi presenting ‘Samarpan aur Sadhna’, a commemorative volume encompassing the life of Jankideviji, on her 80th birthday. New Delhi, 1973 Addressing farmers at Vinoba Bhave’s Bhoodan yatra in Rajasthan, 1950s

(a) (b) (c) (a) At Bajajwadi with Jawaharlal Nehru, 1950s (b) After the Padma Vibhushan Award ceremony, with President Rajendra Prasad and Prime Minister Jawaharlal Nehru (c) At Bajajwadi with Rajendra Prasad

Kamalnayan Bajaj – Architect of the Bajaj Group 103 My mother-in-law – by Savitri Bajaj

Mataji travelled in trains, mostly alone. Inspite of all our persuasion, she refused to have anyone travel with her. She carried her own bundle of clothing and bedding and would not allow even the coolie to touch it. She would reach a particular station (Bombay, Calcutta or any other town). Naturally there was nobody to receive her as she did not inform anyone of her coming. Someone would recognise her and drop her wherever she was to go. We used to get exasperated and unhappy because of her ways. But that is how she was made. Hers was a simple and frugal life and a desire not to bother anyone.

104 Kamalnayan Bajaj – Architect of the Bajaj Group Chapter 21

Match Maker

Darling daughter, try to follow the instructions of Pujya Maiyya with regard to dietary discipline. In a way it is good that both the sons will play and grow together. Yes, it would have been better if one of them would have been a daughter. The children’s nani would not have greatly liked the idea, but your nani would have loved it, because all her five sons and daughters between them have only one daughter. By the grace of God, there is no dearth of sons. Keep that in mind for the future! A friend came to congratulate me that my daughter has given birth to twins. I told him (boastingly) that it is the lioness who bears two cubs. But you shouldn’t take it as a compliment!

Kamalnayan Bajaj, 1962 (Letter to daughter Suman)

Kamalnayan Bajaj – Architect of the Bajaj Group 105 The dependable karta

Kamalnayan and Savitri were concerned about At 19, Vimla, Savitri’s sister, was a bit old to be unmarried Ramkrishna. He seemed forlorn. “I turned twenty by Marwari standards, but perfect for his brother mused today,” Ramkrishna had confessed in his diary on Kamalnayan. Vimla however didn’t want to marry, and September 23, 1943. “I had added one more year, had rejected names her parents had proposed. Savitri but life is shorter by that.” One of the youngest of talked her sister into considering Ramkrishna while Gandhi’s satyagrahis, Ramkrishna had been cumulatively Kamalnayan worked on his brother. Kamalnayan’s incarcerated in various jails for four and a half years. first attempt at match-making turned out to be rather The boy was now 24 and unmarried. And lonely, even if successful. “I was starved of affection. This I got in he didn’t know it himself. abundance from Vimla,” Ramkrishna would write later.

Ramkrishna and Vimla were married on May 2, 1947. “I perched on the Kamalnayan performs the brother’s ritual with Madalsa before she chair’s arm, slightly uncomfortable,” recalled Ramkrishna. begins the saat pheras with Shriman Narayan, Wardha, July 11, 1937

106 Kamalnayan Bajaj – Architect of the Bajaj Group Kamalnayan slipped easily into this facet of the karta’s Bombay Port Trust, had efficiently overseen the evacuation role. His sisters, Kamla, Madalsa and Uma (see family of Sindhi and Sikh refugees fleeing Pakistan during tree) were married before Jamnalalji died. With some Partition. The Bajajs at the time lived nearby in Bhagwati practice, Kamalnayan learnt to keep a continuous Bhavan. Rahul managed to get himself introduced lookout for likely partners for the huge Bajaj pariwar. to Rupa. “We used to see the car but we didn’t know He carefully sought out Naresh Chandra for Suman, Rahul at the time,” recalls Rupa’s sister Chitra Pamnani. Minakshi Jalan for Shishir, Kiran Dhanuka for Shekhar, “Kamalnayanji was very good to Rupa. She was the only and Kumud Bagla for Madhur. Kamalnayan would no non-Marwari daughter-in-law. Rahul went for his MBA to longer be around when Niraj married Minal Agarwala Harvard soon after the wedding. It was Kamalnayanji who and Rahul found Rupa Gholap himself. showed Rupa how a Marwari family works.”

Through an unmissable red convertible. Kiran recounts Kamalnayan’s many kindnesses to her. “I behaved very badly when I first met Tauji. I was Rupa’s father, LT Gholap was an uncompromising ICS sixteen, and I didn’t want to get married. I made him officer who as Controller of Shipping and Chairman of the wait 2½ hours. When I knew he didn’t drink tea, I purposely ordered tea. My family didn’t think the Bajajs would come back, but he did. His confidence in me gave me lot of confidence and strength to live in a culturally very different family.”

Kamalnayan with Shekhar and Kiran, April 25, 1970 Rupa and Rahul with the father of the groom, December 16, 1961

Kamalnayan Bajaj – Architect of the Bajaj Group 107 group’s burgeoning empire. Then Kamalnayan would match jobs with individuals.

As Kamalnayan grew older, his flock bigger, and more young lads entered the business, he finally indulged in his joy of travel. By 1967, KB had visited the US, Europe, the USSR, Egypt, Cyprus, Lebanon, Afghanistan, Ceylon, Malaysia, Philippines and Japan. Annual summer holidays in Europe gradually became a regular fixture in his calendar, not a rarity. An indulgence well earned.

Kiran at the controls of Hind Musafir

“Soon after Shekhar and I were married, when I was hardly 18 years old, Tauji took me with him to a Mukand AGM,” remembers Kiran. “When Shekhar was about to leave for New York for his MBA, Tauji suggested I should enrol in a program on travel and tourism in the US and then work at Hind Musafir, our group travel agency.”

Kiran ran Hind Musafir for 26 years. Over at Bajaj Electricals, Suman Jain has been its advertising consultant for over 40 years.

As the karta of the Bajaj family, Kamalnayan took his responsibilities seriously. He urged all to study and be the best they can be. He made it a point to understand each family member’s character and the work that would best suit each one. Before being allotted a major responsibility, everyone had to undergo a minimum The fond father with daughter Suman before her wedding ceremony with of two years on-the-job training in several parts of the Naresh Chandra, November 27, 1960

108 Kamalnayan Bajaj – Architect of the Bajaj Group (a) Rahul, Suman and Shishir see off their parents for a holiday in Europe, 1954 (a) (b) (b) Kamalnayan on safari

Al fresco picnic with Suman and a Swiss friend, annual Europe trip, 1960

Kamalnayan Bajaj – Architect of the Bajaj Group 109 Seth Bachhraj*- Sadibai* & Kaniram*- Birdibai*

Madhav* Jamnalal*- Jankidevi* Badri Prasad**

Kamla*- Rameshwarprasad Nevatia* Madalsa*- Shriman Narayan* Uma*- Rajnarayan Agrawal* Ramkrishna*- Vimla*

Bharat - Madhu Rajat - Amla Shekhar - Kiran Madhur - Kumud Niraj - Minal Kamalnayan*- Savitri*

Vishwarupe - Anant - Pooja Geetika Kriti Nirav Rahul - Rupa* Suman - Nareshchandra Jain Shishir - Minakshi Priyanka

Rajiv - Deepa Sanjiv - Shefali Sunaina - Tarang - Anurang - Kushagra - Apoorv Ananya - Yan Himanika - Neelima - Aditya Swamy Nimisha - Amit Jaipuria Manish Kejriwal Rochana Varsha Vasavadatta Himanshu Timbadia

Rishab Aryaman Nirvaan Arjun Dhruv Rohan Rhea Ruchira - Jagat Singh Vidula Sopan*- Manjula

Sanjali Siddhant Anandamayi Yugadikrit Vishwarupe Anshul - Shilpa Gokul - Priyanka Vedant

Sushil - Uma Sharad - Sunita Veena - Sitaram Shah Aarti*- Mridula - Prakash* Prakash Jhunjhunwala

Surabhi - Saurabh - Vandan - Anula - Anshuman - Vardhman - Pawan Goliyan Bharti Manisha* Alok Goenka Anjali Sushmita

Niti - Namita - Nikhil - Pankaj* Shailaja - Pankaj Jain * Deceased Sanjay Gupta Anurag Godha Vandana ** Died at Age 13

110 Kamalnayan Bajaj – Architect of the Bajaj Group Seth Bachhraj*- Sadibai* & Kaniram*- Birdibai*