Bajaj Auto to be split into two entities?

New Delhi: According to a Zee News report two-wheeler major Bajaj Auto will be divided into separate auto and finance entities, and would be headed Rahul Bajaj's two sons Rajiv and Sanjiv respectively.

According to the report in the TV channel's online edition, the plan for the demerger to utilise the company's cash surplus will be put before the board of Bajaj Auto at its meeting either in March or May, citing differences between the two brothers, neither of whom could be contacted for comments by the channel.

The report quotes Rahul Bajaj as having said, "I am proud of my sons. They have done a wonderful job for the company. They are individuals in their own rights and if you call it differences, then so be it."

He, however, declined to comment on the demerger.

According to the report, a proposal to demerge the automobile and financial and investments businesses to utilise cash surplus and cash equivalent (investments such as bonds and investments in other companies).

The report, citing source, said that the cash surplus of the company has now grown to about Rs 8,000 crore from about Rs 3,000 crore about three years ago when plans were first mooted to hive-off the financial services and investments to utilise the surplus.