Kamalnayan Bajaj

Architect of the Bajaj Group

Gita Piramal

Kamalnayan Bajaj Charitable Trust

ISBN No. 978-81-922892-3-6

January 2015

© Kamalnayan Bajaj Charitable Trust

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
words that immediately resonate in us. A diya, as noun,
is a small clay bowl with a delicate flickering flame.
Metaphorically it represents big emotions such as hope
and passion, courage and respect. Diya, as verb, can be
interpreted as ‘given’.
Dear reader, the book in your hand is a result of both
the noun and the verb.
Let me explain.
The writing of business history is not for the faint of
heart. To illustrate this point, let me share with you
just one of many herculean chores that have to be
undertaken. Companies have to maintain annual
reports. But as the years pass, they move from office
cabins to a back office before eventually reaching their
resting place in a trunk or a Godrej cupboard in a
warehouse of some kind. I asked for the annual reports
of all the companies in the Bajaj group from 1938 to
1972: the year Kamalnayan Bajaj effectively joined the
family business, until his death. And when I could not
find a specific piece of data, I started asking for minutes
of the meetings of the boards of directors.
Not once did I hear a moan.
Rahul Bajaj gave the word. Shekhar, Madhur and
Niraj readily hunted out documents in the companies
under their charge. It requires real dedication and
passion to dig into dusty, long-forgotten archives.
In addition to their normal duties, group executives
worked extra hours to collect the information.
As one of them exhorted a colleague, “Please help
her. This is about us.”
Nitin Kochar, Mohan Keyyath, R Satyanarayan and
J Sridhar – I owe you a huge debt of gratitude for your
patience, persistence and putting me back on the right
track whenever I veered off it. I do not know the names
of the many, many executives who contributed to this
effort. I request you to thank, on my behalf, each and
every Bajaj executive who put in those extra hours. That
this book exists is not only because the family wanted
a biography. It exists as much because of the respect
Kamalnayan aroused in the descendants of those who
worked for him, and today are either employed in the
Bajaj group or are associates.
In Mumbai, Mukul Upadhyaya, custodian of the
Bajaj family history, not only helped me navigate the
wonderful archive of photographs maintained by the
Jamnalal Bajaj Foundation, but also unlocked the
secrets of old Hindi texts, some of them long forgotten
– but never by him. Over in Pune, Sudhir Sharma
masterminded the book’s design.
While this hectic activity was going on in Bajaj offices
across India, the Bajaj family jumped whole-heartedly
into the project. Suman Jain, Kiran and Kumud shared
not just their photographs and letters, but also their
memories. Minal, Rajiv, Sanjiv and Sunaina, I hope,
had fun remembering childhood days. Relatives-by-
marriage such as Chitra Pamnani, Rupa Bajaj’s sister,
were willy-nilly drawn into the quest. As was Dhirubhai
Mehta, who married Nanda, Radhakrishna Bajaj’s
daughter – read all about them inside the book!
Diya, the noun, came into action.
Of much greater importance than the data collection
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
would not stop digging until they had uncovered every
discoverable fact surrounding a specific event. Gradually
a treasure trove of information emerged. Knowledge
that had lain hidden for decades emerged from darkness
into the light.
Now Diya the verb played its role.
I was given knowledge. Without strings, caveats or
restrictions. This is most unusual. I had complete
freedom. The only other occasion of such delight was
when I was granted unlimited access to the Kasturbhai
Lalbhai letters. When a researcher is trying to figure
out what makes an extraordinary person tick, such
transparency is invaluable.
And by any yardstick Kamalnayan was an extraordinary
man. His many detractors – while he was alive and later
– point to his impatience with detail, his dependence
on managers, his sharp speech. In this biography, I
believe you will find that Kamalnayan was able to build
an impressive business group during one of the most
tumultuous periods in Indian history, precisely because
of these traits.
Had he bogged himself down with detail, Kamalnayan
could not have dreamt big. In 1942, the family bank
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
Had Kamalnayan not depended on managers, he could
not have built sixteen factories and acquired five more.
Was it sharp speech or did he prefer to say the truth as
is? Even those who advised him to use softer language do
not deny his well-meaning nature and willingness to go
out of his way to help those in need.
For a business historian, few experiences can match
the excitement of working with primary data in an
unfettered environment. That too primary data never
used by anyone else. I was in virgin territory. Raw
primary data, however, carries with it the responsibility
of capturing history responsibly, accurately and
truthfully. One discovers so many interesting facts
and insights. Inevitably I wanted to share everything I
discovered. But a reader doesn’t want a PhD. Biography
is as much as helping a reader discover himself or herself
as about the subject of the biography. I have to admit,
curbing myself was difficult.
Writing this book was an amazing ride. Thank you
Rahul for providing me with this opportunity.
– Gita Piramal
Mumbai and Oxford
December 25, 2014
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
dealings in life and business. What I found really amazing
was his ability of independent and original thinking.
Some examples of his original thinking are mentioned
on the back cover of this book. He never accepted ideas
uncritically. He even argued with Gandhiji. This is why
he earned the sobriquet of being a ‘Gandhian’ rebel.
As could be said, he was tutored in the school of life,
unfettered by conventional thinking. His only formal
education was a year at Cambridge. His getting
admission to Cambridge is a story in its own right which
the reader would savour in a chapter in this book.
Kakaji, through the force of his personality, kept the
family together. If any family member had any problems,
he was always there to help. Of course, he also expected
a great deal from all of us in the younger generation. He
had his own way of teaching and guiding us and at the
same time he ensured that we also enjoyed ourselves.
Very often when he went abroad, he took one member
of the younger generation with him. In 1956 he took
me with him to Europe for a month. It was Suman to
Europe for over two months in the summer of 1960,
just before she was married, and it was Madhur in the
summer of 1971, which turned out to be the last trip
abroad of Kakaji.
When I was in Harvard Business School, during the
summer of 1963, Rupa and I travelled all over the U.S.
by car for about three months. Almost half of the time,
he travelled in the car with us.
We stayed in motels, where the cost of a room was $10
per night. He expected us to live like students. But what
was noteworthy was that he also lived like us!
Once I joined the business full time, from January 1965,
whenever we were together in Mumbai and more often
in Pune, we would sit for a discussion after dinner,
starting around 9 p.m. which went on till 2 a.m. I would
disagree with him quite often and at times vehemently.
But, he did not mind at all.
Kakaji gave all of us the freedom to learn and grow by
making mistakes.
His was a rounded personality. He was in business,
politics, involved in the civil society, and in culture
and arts. He travelled widely within and outside India.
Kakaji was also a modern man, a contemporary person.
I am not sure whether this was inspite of his ‘education’
in Vinoba’s and Gandhiji’s ashrams, or because of it!
Unlike many others, his was an agile mind and he kept
changing his thinking and views, based on new facts.
Much has been said and written about Kakaji in books
and articles, but his was not a personality which could be
described in words.
From 1940 when he was 25 years old till he passed
away at the young age of 57 in 1972, the world changed
dramatically. From the second World War, the Korean
and Vietnam wars, periods of growth and recession, the
Cold war, etc., he kept changing with the world.
He kept advising the managers in our companies to keep
up with the latest technological developments globally.
He invited the best partners, whether it was Piaggio
of Italy, Philips of Holland, David Brown of U.K. for
Mukand and many others.
But he did not change his principles. Because of
Gandhiji and Jamnalalji’s commitment to khadi, he not
only wore khadi till he died, but he did not let the group
enter the textile industry. Similarly, though we had a
Sugar Mill from the 1930s, he saw to it that the molasses
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
way of diet or regular exercise. He tried but, with his
travels and partly perhaps because of his temperament,
he did not succeed. He was not good at taking medicines
either. He suffered from diabetes and even after his
heart attack in 1969, he did not take proper care of his
health. Of course, medical science in India in the late
60’s was not what it is today.
When the family decided to celebrate his birth centenary
which falls on 23rd January, 2015, it was suggested to
bring out a pictorial book which in brief would give to
the readers Kakaji’s thought process, value systems and
achievements. This is what this book is all about. It is
not a regular biography. A great deal of material had to
be collected by family members, people working in the
Bajaj group companies and by Mukul Upadhyaya and
his son, Aditya. Sudhir Sharma and Tarun Thakkar
were responsible for the art work and design. We were
really fortunate to get Gita, who is busy doing post-
doctoral research in Oxford University and with
another important project, to agree to author this book
even though she had never met Kakaji.
And, what an author she is and how she made all of
us work! But it was clear that she worked the hardest
of us all.
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
this has been achieved. It was decided to bring out the
book in English and Hindi. The Hindi version will come
out soon.
Though this is a foreword and not an acknowledgement,
I cannot but help put on record the very long association
with the Bajaj family/group of the three major
contributors to this book. 
Mukul is the son of Martand Upadhyaya, who had
compiled/edited all the works of Kakaji, besides
publications related to Jamnalalji.  Sudhir has been
known to Rajiv, Sanjiv and me for about 20 years
and has helped companies like Bajaj Auto and Bajaj
Finserv in their design work.  He also assisted Kumud
in designing the book DEAR RAHUL which the family
brought out on my 70th birthday. Gita of course knows
almost every member of the Bajaj family and I consider
her a very close and special friend, who is a highly
accomplished person in many ways, besides being a
renowned historian of Indian business.
To our forefathers we owe a debt which we can not
repay. This book is a tribute to Pujya Kakaji in fond
remembrance from all of us in the Bajaj family.
– Rahul Bajaj
 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 –
Lal had bought the equipment and built the plants
barely two years earlier, but was unable to run them.
On Gandhi’s suggestion Jamnalal bought the business.
Jamnalal could never refuse Gandhi anything.
And Jamnalal invited his friend Jeewanlal Motichand
Shah, yet another follower of Gandhi, to be a partner
in the business.
The cash crunch was painful, but not the real
problem. Jamnalal and Shah were out of their league.
The Tatas and local Lahore mills were experienced
competitors. Mukand’s plant operations were not
even running properly. The furnaces had not been
erected fully. The foundries spluttered. Power supply
was erratic. By the time the new managing agents
(Jeewan Ltd) got their act together, World War II broke
out and the British Raj took control of India’s iron and
steel industry.
By 1940 a depressed Jamnalal virtually retired from
all business activity. He resigned as chairman and
director of the group’s three big businesses: steel, sugar
and real estate. Rameshwar Das Birla took over as
This picture was taken at Bajajwadi, Wardha in 1954 when Jawaharlal
Nehru paid a visit. Ramkrishna Bajaj is on the extreme left, Kamalnayan
on the extreme right and Rameshwarprasad Nevatia behind Nehru.
chairman of the companies, Kamalnayan as director. At
Kamalnayan’s suggestion Ramkrishna was sent to the
sugar operation at Golagokarannath, United Provinces.
Helping and learning from Rameshwarprasad Nevatia,
their brother-in-law, would become Ramkrishna’s first
major business responsibility.
By July 1941 Jamnalal was in a high state of anxiety.
Fearing a downturn similar to what India went through
after World War I, Jamnalal seriously thought of selling
off his shares in Hindustan Sugar Mills and Mukand
Steel, and was dissuaded from doing so by the Birlas.
On February 11, 1942, Jamnalal passed away.
On the 12th day, Kamalnayan wore Jamnalal’s cap. In
his diary Ramkrishna, 18 years old, wrote, Kamalnayan
“has to now shoulder Kakaji’s responsibilities. Now, for
me, bhai takes the place of father. I must also behave
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
of the past five years. A minimum of Rs. 60 lakh worth
of assets had been lost to Pakistan. Several properties
had to be sold to pay debts. He had to shut down the
Rs. 67.60 lakh to Rs. 76.24 crore; gross profit from
Rs. 12.77 lakh to Rs. 8.41 crore.
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

1954 1954 1954

Electrical Transformers, Lamps and Bulbs, Bulbs and Tube Lights,
Bombay Bombay Shikohabad, UP 1960
Scientific Instruments,
Kothrud, Pune

1953
Batala Steel,
Batala, 1958
Punjab Fans, Bombay

1950s
Ayurvedic
Cosmetics,
Powai

1958
1948 Power
Steel Foundry 1953 Equipment
Kurla Ayurvedic
Cosmetics,
Udaipur
1941 1958
Steel, Kalwe,
Ginning & Pressing Maharashtra
Mill, Baroda

1915
16
1945
Kamalnayan Bajaj – Architect of the Bajaj Group
 1962
Consumer Electricals,
Pune

1967
Sugar, Palia, UP

1966
1962 Forgings, Bombay
Electric Hoists, 1970
Khalapur, Maharashtra Cement, Udaipur

1963
Travel Agency,
Bombay

1961
Scooters CKD
Assembly,
Akurdi, Pune

1972
Madhya Pradesh
lamps
(Unfinished)

1961 1964
Autorikshaws Kitchen Appliances,
CKD Assembly, Bombay
Akurdi, Pune

1972

1965

1960
Greenfield
Acqusitions
Unfinished projects
Kamalnayan Bajaj – Architect of the Bajaj Group 17
 My best teacher – by Rahul Bajaj
Not much can be said about the business
activities during the times of my grandfather. It mainly
involved processing of cotton, less than two hundred
people were engaged in it and the annual turnover
was around a crore of rupees. Moreover, Jamnalalji
always gave away more in charity than what he
earned. As regards business sense, Kakaji
(Kamalnayanji) was far greater than his father. Kakaji
founded and built upon the edifice of our business
almost from ground up.
I do not claim that he did this single-handedly. My
uncle (Ramkrishnaji Bajaj) also played a vital role.
They were ably helped by Shri Rameshwarji Nevatia
and others. And of course there were the loyal and
capable executives. But if the credit for establishing
this business were to go to one person, that person
would undoubtedly be Kakaji.
He never involved himself or spent time in the
minutiae of day-to-day activities, so in this regard,
his absence is perhaps not felt that much by us. His
absence is felt the most when we remember his great
grasp of business matters. If the need arose he could
give such insightful ideas and solutions that none of
us could have ever thought of. It is because of such
inputs that the Bajaj Group could rise to such heights
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
He did not only act by his instincts. He would apply his
intelligence rationally and objectivity to every issue,
and yet with a touch of humanism. He had great faith
in his analytical skills.
His logical way of thinking ensured that he never
sought the refuge of fate. He did believe in God, but
he was not one who keeps complaining about his fate.
He used to say that those who rely on fate achieve
little; whatever one acquires is possible only through
a scientific and objective approach.
He had his own way of explaining work-efficiency.
Assume that we have two light bulbs – one has a
rating of 100 Watts, while the other is rated 10 Watts.
A 100 W bulb that gives off light equivalent to that of
a 65 W bulb, will have to be called an inefficient one.
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
the 100 W one. This was his favourite example.
True to this nature, he was never bothered about
success or failure. He believed only in action. He
believed that a person ought to try his best to
complete a task that has been taken up, irrespective
of how difficult it might be. He felt that the line
dividing success and failure is a very thin one.
 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
became not only much larger but also financially
strong and well diversified – factors critical in a shallow
emerging economy as India was before the 21st century.
Curiously each generation has produced a strong
entrepreneur. When Jamnalal retired, the business was
bigger than what he inherited from Seth Bachhraj.
Ditto for Kamalnayan. Ditto for the third generation.
And it looks as if the trend will continue in the fourth
generation. This is an amazing achievement considering
that family businesses across the world are prone to
the ‘third generation syndrome’: the first generation
starts a business, the second consolidates it, the third
diminishes it.
The key to continuity of success perhaps lies in the
unique Bajaj culture. Influenced by Gandhi and Vinoba
Bhave, Jamnalal created the culture. Immersed in this
unique culture through childhood, Kamalnayan became
the path-finder of its practical application in the modern
management workplace. As diverse dilemmas emerged
and challenged Kamalnayan, he developed a few
20 Kamalnayan Bajaj – Architect of the Bajaj Group
principles on how to deal with them. Ten are described
on the next page.
Distilled like this into bare words, the principles seem
obvious, clichéd, maybe even banal. In real life, each
one of these ten principles is incredibly difficult to
execute. Take ten, and you have a compounding
challenge. These principles are even tougher to
embed in processes. Finally, how do you ensure that
everyone in every group company follows the same
behaviours? Consistently.
Personal example is the only way to initiate fundamental
change. Kamalnayan headed the group for thirty years,
a time sufficiently long for the organisation and all his
stakeholders to test him, his principles and his leadership
style. And only after the grilling, to individually accept
and adopt Kamalnayan’s core principles.
This short biography aims to capture Kamalnayan’s
principles in action through snapshots of defining
moments in the life of a torch-bearer. As you go through
the chapters, keep a look out for them.
 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.
He was handsome, agile and courageous during his
childhood. Once he was challenged to jump into a
well and he actually jumped. This is an example of his
confidence. He seldom cared for the consequence.
In 1942, when Jamnalal Bajajji expired, we were
concerned about how to keep the commitment that
Jamnalalji had made for donating money for various
charitable works. The family did not have many assets
at that time. It was just a few lakh out of which it was
difficult to donate money for all the commitments.
But whatever differences Kamalnayan had with his
father, his admiration for his father and especially
his ideals were not low by any means. He fulfilled the
commitment and invested the property left by him
towards this goal.
After the death of his father, Kamalnayan launched
certain small industries but did not succeed. The
reason was that he did not focus on business and left
everything to managers. The fact is that he did not
like interfering in day-to-day management of things.
He intervened only when serious issues emerged.
This particular weakness stayed life-long with him.
In my opinion, his lack of a systematic education
was the reason behind it as otherwise he possessed
22 Kamalnayan Bajaj – Architect of the Bajaj Group
abundant business acumen and was hugely
optimistic as well.
His brain was really very sharp when it came to
financial issues and the gainful use of capital. It
was his risk-taking professional intelligence that
impressed the most. When he launched Bajaj Auto,
the original company, Bachhraj Trading Corporation,
had lost almost its entire capital in the export business
and his companions were not in a position to think of
any new venture; but at his own risk Kamalnayan took
the help of people who could be helpful in investment
and management. And he proved his mettle by making
Bajaj Auto a successful venture.
Kamalnayan applied the same foresightedness and
initiative to Bajaj Electricals too. Its original name was
Radio Lamps Works. A Sindhi businessman had
launched this company and managed it. During the
partition of India, he found himself in a fix and did not
have the money. He came to Kamalnayan. At that
time, Radio Lamps Works’ sales were not so good, but
Kamalnayan’s foresight saw a rising demand in the
coming days and knew that this would be a profitable
bargain. Therefore, after due deliberation, he took
over this company. Subsequently it turned out to be a
very profitable business.
 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
produce, Kamalnayan knew what it was to be a farmer,
hungry and poor – like most of India. It would take
India decades to upgrade to an emerging economy.
Ever conscious of low consumer purchasing power,
Kamalnayan kept prices of his products minimal. Gains
from productivity or efficiency were promptly passed on
to the consumer.
Pass the benefits of cost reduction programs to consumers,
insisted Kamalnayan - even for small items like electric bulbs.
Bajaj Electricals, 1956.
24 Kamalnayan Bajaj – Architect of the Bajaj Group
In all his companies, Kamalnayan closely monitored his
products against various indices. He took an economist’s
pride whenever a product’s selling price rise was lower
than inflation. His commitment to constant innovation
and improvements in quality spoke of the engineer in
him. And the group’s advertising owed its creativity to
his love of design and impish sense of fun. The salesman
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.
Your labour is worthy of your hire. Mukand, 1957
 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 !
We 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
I was less than three years old. I have faint memories
of his visits to our home in Akurdi, Pune. He always
spent some time chatting with me, and gave us
Cadbury chocolates which I loved.
One saying of his has stayed with me to these times.
It went something like this: ‘vyapar mei daan hona
chahiye’ instead of some people who find ‘daan mei
vyapar’. It was his solemn belief that while we must
do well in business, its benefit must spread across
society. Every action of his was focused not on the
narrow interests of a few but for the larger good. In
recent years, we have been taught about Corporate
Social Responsibility, but Kamalnayanji espoused it
many decades ago. We try to follow him by focusing
on creating long term value in our businesses for all
26 Kamalnayan Bajaj – Architect of the Bajaj Group
stakeholders. Every business must demonstrate how it
delivers superior products and services to customers
vs. our competitors, builds an entrepreneurial work
environment that rewards excellence, thoughtful
risk taking and speedy action – all to provide a stable
value creation opportunity to our shareholders.
In Bajaj Finance, we decided while building our loan
business, we would not charge customers any
pre-payment penalty (an industry norm) and be
completely transparent in other charges, and this has
earned us a loyal set of customers. In Bajaj Allianz
General Insurance, we have built an internal team for
settling motor and health claims so that we provide
a fair, consistent, and speedy experience to our
policyholders in their times of need.
 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
luck, take more chances. Be more active. Show up
more often. It’s unlikely that Kamalnayan would have
heard of this cliché but he demonstrated it often in his
life. Luck led to a technical partnership between Enrico
Piaggio and Kamalnayan Bajaj, two men whose lives
were so different that they could have been living on two
different planets.
Both were born into famous families with strong political
links. But while the Piaggios enjoyed la dolce vita, Jamnalal
taught his family how to live on Rs. 500 a month. He
“reduced his standard of living to that of the lower middle
class,” commented Rammanohar Lohia, a socialist.
The Piaggios used to manufacture aircrafts. Their factory
was heavily bombed during World War II. After the war,
Enrico searched for a new opportunity. There were few
cars left in impoverished Italy but people still needed
cheap transport. Several entrepreneurs jumped at the
opportunity, including Ferdinando Innocenti, whose steel
tube factory too had been bombed out of existence.
Innocenti hired Corradino D’Ascanio, a military
aeronautical engineer who had led the design and
construction of the first modern helicopter. As he
hated motorbikes, D’Ascanio created a revolutionary
vehicle: the scooter. The two men fell out, and
D’Ascanio took his design to Enrico. The Vespa
(wasp in Italian) was born.
28 Kamalnayan Bajaj – Architect of the Bajaj Group
Meanwhile Innocenti introduced the Lambretta. Both
entrepreneurs began exporting their scooters.
An Englishman, William Rootes, introduced the
Lambretta in India. Desi Kamalnayan introduced the
Vespa. It could as easily have been the other way round.
Luck favoured Kamalnayan: the Vespa was undoubtedly
the better looking model. Both began by importing
the scooters. Assembly followed. Finally sales volumes
justified manufacturing. A waiting list emerged for the
Vespa, none for the Lambretta.
Throughout the many vicissitudes that dogged Bajaj
Auto in the 1960s, Enrico and his management team
proved to be patient and loyal partners. India’s foreign
exchange situation was precarious. The government
could barely scrape enough to release some for critical
capital machinery. Awkwardly the Bajajs could not
always pay their partners on time for royalties nor for
components they had not yet learnt to make. Piaggio
continued their support. They recognised the sincerity of
Kamalnayan and his management team: they were not
trying to get out of meeting their dues.
Enrico died on October 16, 1965, age 60. His business
passed on to his son-in-law, Umberto Agnelli. A special
business relationship ended. The newly inherited one
would turn into a legal nightmare.
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
P RO SP EC T US
habit, Kamalnayan kept
1. Consent of the Central Government has been, obtained to this issue by an order of
which a complete copy is open to public inspection at the Head Office of the Company. It must
checking and rechecking
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-
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

His eye paused at Point

expansion to the Company’s existing industrial undertaking of which a copy is open to public
inspection at the Head Office of the Company. It must be distinctly understood that in granting
this undertaking or for the correctness of any of the statements made or opinions expressed in
No :

Number of
regard to it.
5 on Page 1: “The
3. A copy of this Prospectus having attached thereto documents as required under Section
Shares :

Folio:

Companies, Maharashtra, for registration. subscription list will open

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

AUTHORISED CAPITAL: Rs. 1,00,00,000

4. Application will be made to the Bombay Stock Exchange for permission to deal in and
at the commencement of
for an official quotation of the shares of the Company. 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
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
16th day of November, 1960.
day of November, 1960
BAJAJ AUTO LIMITED
and will close at the close
(Incorporated under the Indian Companies Act, 1913)

6. CAPITAL
AUTHORISED :-
1,00,000 Shares of Rs. 100 each
of Banking hours on the
.. .. .. .. Rs. 1,00,00,000
This is to certify that

ALREADY ISSUED, SUBSCRIBED AND PAID UP :

9,900 Equity Shares of Rs. 100 each 19th day of November,
.. .. .. .. Rs. 9,90,000
PRESENT ISSUE : is the Registered Holder of
60,100 Equity Shares of Rs. 100 each
1960, or earlier at the
.. ..
As per Special Resolution passed by the Company on 15th October
.. .. Rs. 60,10,000
Five Ordinary Share of Rupees One Hundred each

discretion of the Directors

1960 these Shares are offered as follows :-- numbered inclusive in
TO EXISTING SHAREHOLDERS :
25,740 Equity Shares of Rs. 100 each at par .. .. .. .. Rs. 25,74,000
BAJAJ AUTO LIMITED

will be subscribed by the Directors and their friends.

but not before the close of
Shares not taken up by the existing shareholders or their nominees
subject to the Memorandum and Articles of Association
thereof and that the sum of Rupees Fifty
has been paid upon each of the said shares.
FOR PUBLIC SUBSCRIPTION :
Banking hours on the 16th
34,360 Equity Shares of Rs. 100 each offered at par to the public
under this Prospectus for subscription in cash .. .. .. .. Rs. 34,36,000
Given under the Common Seal of the said Company at Bombay

day of November, 1960.” Rs. 60,10,000

this day of 1961.
7. DIRECTORS
(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)
(5)
SHRI SHANTANU L. KIRLOSKAR
SHRI M. K. FIRODIA
..
..
Industrialist
Industrialist
“Lakaki,” Poona - 5
Navipeth, Ahmednagar.
EGM (extraordinary NOTE: No transfer of any portion of the shares comprised in this certificate can be registered unless accompanied by this certificate.

(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.
Kamalnayan was not the first to make scooters in India.
That honour went to MA Chidambaram, a talented
entrepreneur from Tamil Nadu. He was handed a
two year lead and a great brand, Lambretta, by a minister
in the Nehru administration, a fellow Tamilian. Nor
was it certain that scooters, rather than motorcycles,
would turn out to be the common person’s choice. In the
beginning, the Nehru administration gave out two scooter
Inside the newly minted factory
Although API initially dominated the scooter market,
Bajaj Auto overtook it fairly quickly. A number of
government and private enterprises also entered the
scooter segment, but “almost all of them disappeared
from the market by the turn of the century,” noted
Arthur Thompson, an industry tracker. “Bajaj Auto
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
small first step - one product for one customer, be that
an individual, an organisation, or a market. It takes him
all the resources at his disposal to make the transition
from having a clever idea to managing a sustainable
business. Inevitably his progressive success reaches a
point where further growth becomes incremental.
The entrepreneur, now emboldened by some notion of
a midas touch, mulls his next product for his satisfied
customer in the hope that the virtuous cycle repeats
itself. Contrary to expectation it often does not,
especially in large, open, competitive markets. We
have experienced this contra-intuitive truth first hand
at Bajaj Auto established by my illustrious grandfather
Shri Kamalnayan Bajaj.
Bajaj Auto started life with a scooter which, in its
legendary avatar as the Chetak, ensured that by the
1980s its maker had sealed its place not only at the
heights of business charts, but also in the depths of
Indian hearts, as ‘Hamara (our) Bajaj’. But every Bajaj
two-wheeler that subsequently followed its scooters in
the form of a moped, motorcycle, or scooterette was,
without exception, a business failure. Moreover, Bajaj
scooters were unable to carry their success overseas,
and the shift in the Indian market over the 1990s from
scooters to motorcycles saw them fade by 2007 into
little more than an endearing memory.
It seemed to us that somewhere in its pursuit of
growth, Bajaj Auto had fallen foul of its founder’s
standard for excellence: Do what you think best, but
be the best at what you do, Kamalnayanji had averred.
34 Kamalnayan Bajaj – Architect of the Bajaj Group
Seeking to grow across multiple segments Bajaj
Auto had mastered only one, and that too only in the
context of its home market.
To be worthy of Kamalnayanji’s scrutiny we thought it
necessary to turn our strategy on its head - from being
the lowest cost manufacturer of various two-wheelers
for the Indian market, to becoming the most profitable
marketer of motorcycles for the world. Our journey
as a global motorcycle specialist began with the
audacious launch of our indigenously developed high
performance sports motorcycle, the Pulsar, in 2001.
Its instant success represented our first experience of
the potency of Kamalnayanji’s business mantra.
Ever since, riding on this new found focus of aligning
the organisation and its value chain - employees,
suppliers, dealers, agencies and other partners - Bajaj
Auto now has market dominating motorcycles across
the world, ranging from the ‘Stronger for Longer’
Boxers in Africa, to the ‘Ready to Race’ KTMs in the
developed markets of the US, Europe, and Japan.
In just thirteen years Bajaj Auto has become the
world’s 3rd largest motorcycle maker, with almost
half its production being exported, and also sports the
highest operating margin of any two-wheeler maker in
the world.
Kamalnayanji exemplified the wisdom of pursuing
excellence and embodied the courage of being
focussed while doing so. Marching to his beat I’m sure
that we will live true to the sentiment that each one of
us at Bajaj Auto cherishes: we are proud of our nation,
and we work to make our nation proud.
 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
Vespas. Ditto for Kamalnayan and Rahul Bajaj. Piaggio
crossed the finishing line in 1956; Bajaj Auto met the
challenge in 1970.
Rahul celebrates the 100,000th Vespa produced in the Akurdi plant
The Indian Vespa became so popular that a flourishing
secondary market developed. A customer fortunate
enough to be allotted one could sell it the next moment
at double the price. Movie directors shot scooter chases.
A Bajaj scooter became a regular dowry demand among
middle-class families.
36 Kamalnayan Bajaj – Architect of the Bajaj Group
The father-son duo refused to exploit the situation.
Holding the price line became an ethical issue, a
modern twist to Gandhian trusteeship concepts
imbibed during childhood. “Ensuring that the
Crashing the 100,000 mark, 1970
consumer obtains the best possible product at the
lowest possible price and the employee gets a fair
wage for a day’s work is the criterion of ethics in
business,” they insisted. The government admitted
that Bajaj Auto had not taken “any undue advantage
of its dominant position”, but it still refused to relax

A news item about Bajaj scooters in a local American newspaper
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
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
1,000 scooters and auto-rickshaws per month. In
1962, we applied to increase manufacturing capacity
to 30,000 scooters and 6,000 auto-rickshaws per
year. In 1963 we applied to increase capacity from
24,000 scooters to 48,000. In 1970 we asked for
100,000. Eventually, in 1971, the government
approved an increase to 48,000. But it was
Rahulbhai was given the task of replying to the
MRTP Commission.
In the meanwhile we had increased production
beyond the licensed limit, and were liable to
prosecution. Rahulbhai told me, “I’m ready to go
to jail just as my parents did for the nation.” Three
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
American court is as bizarre as it gets. The backstory
begins with Antonella, Enrico Piaggio’s adopted
daughter and only child. When Enrico died in 1965,
control of the scooter company passed to her husband,
Umberto Agnelli, not to her. They divorced in 1974.
Piaggio became part of the Agnelli empire. There’s not
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.
Rahul on the 1 millionth Bajaj Chetak c1990
Piaggio’s technical collaboration with Bajaj Auto
ended on April 1, 1971. Piaggio wrote to Kamalnayan,
thanking him for years of “really friendly cooperation”
40 Kamalnayan Bajaj – Architect of the Bajaj Group
and wishing Bajaj Auto “the most successful future”.
Nine years later, the Italians accused Bajaj Auto in
a Californian district court of violating the terms of
their collaboration, of not returning Piaggio’s original
drawings, hence Bajaj had no right to manufacture
scooters. Piaggio’s move was probably a knee-jerk
reaction to Bajaj’s export thrust in the late 1970s.
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.
Some analysts felt the drama, expensive as it was, was a
blessing in disguise. “With Rahul’s tough and disciplined
approach, the company soon found its footing in the
market and Bajaj Chetak and Super became legends,”
said one commentator.
 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
March 31, 1971. Both Piaggio and Bajaj wanted to
renew the agreement for at least another five
years. However, in the 1970s the government did not
renew a single collaboration agreement in the
automobile industry as also many other industries.
We saw a period of extreme socialism starting in
1969. Rajiv Gandhi, when he came to power in 1985,
experimented with liberalisation but it really
started in 1991.
Once I realised that the government is not
going to renew the agreement, I knew I had to drop
the brand name Vespa for our scooters and APE for
3-wheelers. It was clear to me that we should have
the ‘Bajaj’ brand name for our vehicles. I talked
to Pujya Kakaji who was the chairman of the
company, mentioned it to the board, and discussed
it with our advertising agency, headed by
Alyque Padamsee.
The ‘bajaj’ logo was actually taken from Bajaj
Electricals. To celebrate its 25th anniversary, Bajaj
Electricals had decided to change its name from
Radio Lamp Works to Bajaj Electricals. In 1962 it held
an all India contest. Pujya Kakaji selected the logo
out of hundreds of entries. The prize winning logo
was designed by Heros’ Publicity and Bajaj Auto also
adopted it, initially only for its company name. From
April 1, 1971 ‘bajaj’ replaced ‘Vespa’. We needed a
monogram or symbol, and we got Vinayak Purohit,
who used to work for Mukand, to design the ‘B’ in a
hexagonal form.
During the 1970s and 1980s we developed three
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

The national competition winner
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 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
Your biggest competitor invites you to launch a joint
venture. Both of you will continue to compete against
each other in the market. Will you say yes or no?
I suspect most of us would pass on the offer.
Not so Kamalnayan Bajaj. Nor Frederik Jacques ‘Frits’
Philips. Their companies have competed fiercely against
each from the time they opened shop. And continue to
do so. But for decades, the two brands sold light bulbs
and fluorescent tube lights made in one factory: Hind
Lamps, located in Shikohabad, Uttar Pradesh. A factory
which they jointly owned.
44 Kamalnayan Bajaj – Architect of the Bajaj Group
Built to last: the Shikohabad plant still going strong, more than sixty years later
Software companies claim the word co-opetition or
competitive collaboration. Two manufacturers beat
them to it by more than a half century.
The parallels between Kamalnayan and Frits are
uncanningly similar. It’s as if they were of the same
wood but grew in different forests. Born in Eindhoven,
the Netherlands in 1905, Frits had a ten year edge
over Kamalanayan. Kamalnayan saw the underbelly
of the British Raj during the Freedom Movement;
Frits that of Nazi Germany when Adolf Hitler invaded
the Netherlands. Kamalnayan did time in a jail, Frits
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
Kamalnayan the Bajaj group became a top 20 group with
a pan-India presence. In terms of the ability to manage
complexity, the learning curve would be similar.
Of greater interest is the meeting of the minds. Both
had an easy way of communicating with people,
be they factory workers or influential ministers or
rich magnates. Perhaps it had something to do with
family culture and upbringing. If Kamalnayan had
Gandhi as an adopted grandfather, Karl Marx was
Frits’ relative. There was always a ready buck-teeth
smile on Frits’ face, and Kamalnayan could always
Joint ventures only work well when both sides recognise,
respect and acknowledge each other’s contribution. The
chairman of Hind Lamps was always a nominee of the
Bajaj group. Until Kamalnayan’s death in 1972, the
general manager (as CEOs were known in those days)
was always a Dutchman. Philips HO took care to send
Dutch Indophiles to Shikohabad. Most stayed for years
at the plant, rarely asking to be transferred back home.
Secrets of the craft of making bulbs and tube lights were
openly shared with Indian managers and engineers.
The original agreement was that the Bajajs and ELMI
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,
General Electric Company (not to be confused with
USA’s General Electric), Crompton Parkinson and
Associated Electrical Industries. In 1961, Philips offered
Kamalnayan a stake in a tungsten filaments plant it was
planning. He accepted. Kamalnayan saw no reason
to change the agreement even after Philips finally
succeeded in entering electric lamp manufacture by
buying the Bombay-based Osler Electric Lamps
Factory in 1962.
The annual reports show rapid growth in the 1960s.
Owing to a shortage of lamps, the government
removed the industry from the banned list on April
1, 1969. Hind Lamps held a licence to increase
its capacity of 19.4m units by 4m units. Even as
Kamalnayan and Philips speeded the process of
importing the necessary equipment, they drew up
plans for further capacity expansion. Fluorescent tube
production was doubled by starting a second shift
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
expand GLS lamps production by 3m pieces annually
was granted in 1965, but as Kamalnayan noted, “For
want of an import licence for capital goods, it has not
been possible so far to implement the expansion.” The
next year, 1971, Hind Lamps’ application for expansion
under the 4th Five Year Plan was rejected.
Overall, the partnership worked well financially. Sales
shot up from Rs. 18 lakh in FY1953 to Rs. 3.93 crore
Kamalnayan liked to mix business with pleasure. In this picture
ML Gauba, head of all the Bajaj Group’s consumer electricals ventures,
joins Savitri and Kamalnayan in Zurich.
in FY1972, profits from Rs. 4 lakh (FY1953) to
Rs. 13.64 lakh (FY1972). The equity balance changed
in 1973 after the introduction of India’s Foreign
Exchange Regulation Act. UK’s General Electric
Company sold its shareholding to the Bajaj Group,
making Philips a minority partner. The partnership
would eventually end in 2006 when the Bajaj Group
completely bought out Philips. Frits died a centenarian
in 2005.
Hind Lamps certificate of incorporation
Kamalnayan Bajaj – Architect of the Bajaj Group 47
 Alma Mater – by Shekhar Bajaj
Hind Lamps was started in a rural backward
area, devoid of employment opportunities and
industrial culture. Gradually ancillary industries came
up, enhancing employment. In its early days, Hind
Lamps was dependent on its own gas used for blowing
glass. The gas was manufactured from coke and part
of its electric supply by diesel generators. The gas
production gave a quantity of tar that we could not
get rid of other than by tarring our own roads
regularly with the inconvenience of soiling the floors
in the colony.
In 1969 the relationship between management and
the workforce was somewhat strained. To improve
48 Kamalnayan Bajaj – Architect of the Bajaj Group
communication, a gathering was organised on the
lawn in front of the factory, where for the first time,
the workers’ representative addressed his colleagues
with management and staff in attendance. A.J. van
Lierre had just come to us from the Netherlands as
the latest General Manager. He addressed them in
somewhat understandable Hindi. Whereas in other
parts of India, particularly Calcutta, labour relations
were strained, Hind Lamps in the years 1969-72
was peaceful.
As a pioneer in lamp-making, Hind Lamps became a
sort of alma mater for engineers, supplying trained
talent to the industry.
 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


Kamalnayan (centre) at work, guiding Ramkrishna (2nd from left),
trusted advisors and managers. Radio Lamp Works, 1958.
With the balance sheet cleaned up, a capable
management team in place, shareholders getting regular
dividends again, it was time to concentrate on growth.
Over the next decade Kamalnayan transformed Radio
Lamp Works. A clear
strategy map gradually
emerged. Sales climbed
through marketing and
brand building, and the
expansion of multiple
distribution networks. The
company had to be in
Until Kamalnayan came on the
scene, marketing, so critical for
consumer products, barely existed.
Radio Lamp Works did not even
have a logo. The business that
started in 1938 finally got a logo
in 1962.
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
consumer electricals from fans to irons, and from
kettles to more. The wide spectrum product strategy
was achieved through acquisitions, such as the fan
business from the Kathotias (Matchwel), in-house R&D
and outsourcing.
In the 1960s the product portfolio mushroomed.
Kamalnayan opened his doors to anyone who could
make an interesting product. When few thought of
giving importance to the small scale industry and
more than a quarter century before the government
introduced reservation for appliances and luminaires,
Kamalnayan realised that Bajaj Electricals should
act as a marketing umbrella. Small scale has
entrepreneurship, technology and manufacturing
capability. What they lack is marketing and finance
which Bajaj Electricals could take care of. Sixty
years later and counting, more than 70% of Bajaj
Electricals products continue to be sourced from other
manufacturers and at least 50% of that is sourced from
the small scale industry.
Kamalnayan Bajaj – Architect of the Bajaj Group 51
 In management terms, the outsourcing strategy
required developing different competencies within the
organisation. From running a large in-house production
line, managers now had to be taught to go out of the
plant to the ramshackle factories of their vendors. They
had to guide freshly minted entrepreneurs on how
to treat their machines, how to maintain consistent
quality, how to train their even rawer workers. Within
Bajaj Electricals, this meant recruiting managers who
could nurture stubborn and idiosyncratic promoters,
above managers who could critique trained engineers.
The logistics team had to become more dextrous,
Radio Lamp Works pavilion at the ‘India Can Make It’ Exhibition, Bombay, 1959
52 Kamalnayan Bajaj – Architect of the Bajaj Group
the accounts department more vigilant. Brand equity
gradually grew in value.
The bigger challenge in the 1960s, however, was to
popularise and promote better use of electrical appliances.
To generate awareness, the company regularly
participated in trade-cum-consumer fairs. It also had
a lively outreach program for women. One particular
contest attracted over ten thousand entries. “A selection
of Vegetarian Recipes was brought out on the occasion
of the World Vegetarian Congress,” noted the plump,
diabetic and vegetarian chairman with satisfaction.
The company embedded a Bajaj Cookery Centre in
Bombay’s College of Home Science, “to serve as a
laboratory for students to learn the use of electrical
appliances in cooking and also for continuous testing
of our appliances to enable us to effect product
improvement from time to time”, wrote Kamalnayan.
In India, calendars have a universal appeal, and the
company annually brought them out. And tried to win
as many awards as possible for its advertising. Direct
marketing in those days was referred to as ‘public
relations activities’ – and Bajaj Electricals had a busy
schedule for local promotions.
Early print advertisement, 1959 Early mailer, 1968
Once a basic pan-India sales and distribution network
was in place, Kamalnayan joined FMCG companies
like Hindustan Lever in working his way outwards from
cities to penetrate rural India.
On October 1, 1960, Radio Lamp Works became Bajaj
Electricals, and was out of the woods with profits of
Rs. 14 lakh from sales of Rs. 2.39 crore. By 1972, sales
were Rs. 10.98 crore and profits Rs. 68 lakh.
A good turnaround, nodded analysts.
Kamalnayan Bajaj – Architect of the Bajaj Group 53
 Commendable growth – by Kamalnayan Bajaj
During the year despite shortage of raw materials,
and numerous other problems, the Electrical Industry
has had a commendable growth. The production of
items like electric lamps, fluorescent tubes and
transformers has increased steadily. I had mentioned
last year that unless foreign exchange for capital
goods for expanding the manufacture of components
was released immediately no further major expansion
would be possible. It is heartening that the
Government have now realised the need for
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
With the grace of God we have completed twenty-
five years and were able to celebrate Silver Jubilee
functions at all our branches ... In these twenty-five
years, starting from small beginnings with a sale of
Rs. 29,327 in the first year the Company has attained
an annual turnover of nearly Rs. 4 crore. The impact
of the Company’s sales through its thirteen branches
and two territorial agencies is felt throughout the
country. We are proud of our men who are responsible
for this growth.
 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
most industrialised nation as the British Raj converted its
colony into a massive supplier to its war effort. Many an
ailing business was invigorated by war profits – except
the steel business. Governments have a habit
of seizing control over every aspect of steel production
in war-time.
Much before war was declared on September 3,
1939, the threat was in the air. Kamalnayan had
visited Germany during the 1936 Olympics where
Hitler showcased Nazi power. Gandhi kept abreast of
world affairs.
Kamalnayan with Jamnalal, Keshavdeo Nevatia and Ramnath Podar,
Lahore, c1940
56 Kamalnayan Bajaj – Architect of the Bajaj Group
But on May 22, 1939 the board of Mukand Iron & Steel
Works was pre-occupied with smaller matters. After
much effort, the ailing company had made its first profit
in its first year under new management. Rs. 47,348-0-7
is a modest profit but a profit is a profit.
The business would begin its second descent into a
quagmire when the British issued the Iron and Steel
(Control of Production and Distribution) Order, 1941.
Its third descent would be triggered by Partition.
As Partition became more
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
acceptable. In 1948, Kamalnayan calculated the value
of the lost factory to be Rs. 60 lakh. Rameshwarprasad’s
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
Indian town of Batala (Punjab). At age 25 he built the
Lahore unit in 1932, the Batala unit in 1942.
On October 28, 1950, the Indian government
promulgated the Administration of Evacuee Property
Act, 1950. Its object was to take charge of Muslim
evacuee properties and compensate Indian refugees
who had lost their properties in Pakistan. Amongst
the earliest to make an application under the new act
was Kamalnayan.
On November 30, 1950, Kamalnayan updated
Mukand’s shareholders. “The Company has conveyed
its Lahore factory to the Batala Engineering Co
(Pakistan) Ltd, Lahore by way of a Deed of Conveyance
58 Kamalnayan Bajaj – Architect of the Bajaj Group
and executed in favour of that Company in exchange for
shares of the paid up value of Rs. 9,74,357-12-3 of the
Batala Engineering Co Ltd, Batala in the State of Punjab
in India amounting to about 85% of the total paid up
capital of that Company previously held by its Muslim
and other directors and shareholders now in Pakistan
together with land under that factory measuring about
21000 sq yards owned by its Muslim managing director
and his brothers. That company has got at Batala one
factory having mainly machine shop, cast iron foundry
and a small steel re-rolling mill. Part of it is being worked
at present by the Custodian Evacuees Property, Punjab
(India). Out of the above mentioned shares, shares of
the paid up value of about Rs. 9,56,000/- have been
received by us with Transfer Deeds. We have, under the
Administration of Evacuees Property Act 1950, applied
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,
for confirmation of the transfer of the shares in our
name. We have also filed an application with the High
Court at Simla for rectification of Share Register of the
Batala Engineering Co. Ltd., Batala.”
The process dragged on and on for years. But the
Bajajs eventually got control of the Batala unit. It was
not even half the value of what they had lost, but it
was something. The Latifs’ fate was less happy. The
Pakistan government took control of their Lahore
unit in 1972. “At the time it was nationalised, it was
an industry leader with 6,000 employees. It is now an
industrial graveyard,” CM Latif lamented before
his death.
This was the future. 1947 was the now.
The Lahore factory was lost. The Bombay unit was too
small to be a standalone unit. The Batala handover was
a known unknown. The debate in the boardroom was
fierce. Liquidate or continue?
Kamalnayan Bajaj – Architect of the Bajaj Group 59
 Requisitioned, 1947 – by Kamalnayan Bajaj
Due to communal disturbances in Lahore from
the month of May 1947, Lahore Factory could not
work properly and had to remain closed for several
months. During the days immediately preceding and
following the Partition of the country a large
number of the Lahore factory staff continued to
remain there and were thus able to save the factory
from damage to property and stocks from the hands of
the rioters at Lahore. In doing this; they displayed
courage and devotion to duty for which we extend our
warm appreciation and sincere thanks to them.
About middle of September, the factory was restarted
by our two European Engineers who continued to stay
there, with such number of workers as could be
available. To our surprise, however, in the last week of
September 1947, a notice was pasted by the
West Punjab Government on our Lahore factory
gate that the factory has been requisitioned by them
under the West Punjab Economic Rehabilitation
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
Strong protests have been lodged by us with the
West Punjab and Pakistan Government against
this arbitrary action, especially as the factory was
not deserted and some departments had started
working and a labour force continued to increase,
all departments would have commenced working
in due course. As a considerable quantity of coal
from our factory has been taken over by the West
Punjab Government, it was not possible to work some
departments for want of coal. Representations have
also been made to the Government of India requesting
them to take up the matter with the Pakistan
Government. They have informed us that they have
sent communication to the Pakistan Government
regarding our factory.
In view of the above situation, it becomes necessary
that as far as possible, the resources of the company
should be conserved.
 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
The triumvirate: Kamalnayan (5th from left), Viren (4th) and
Rameshwarprasad (8th) at a Mukand AGM
Railways were primary customers for Mukand. In this picture,
Kamalnayan (wearing cap) is showing the Kurla foundry to SK Patil,
Union Railway Minister (centre in white), 1965.
62 Kamalnayan Bajaj – Architect of the Bajaj Group
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.
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
to Polysteels (India) Ltd at Bhavnagar for a mini steel
plant with two electric arc furnaces making ingots and
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
In the quest to bring the best management talent into Mukand, professors
were encouraged to visit and vet the plants. In this picture, Kamalnayan
and Viren Shah discuss plans for growth with Harvard Business School
Professors Milton P Brown and James R Bright, January 1963.
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
for new technologies for which it entered into technical
collaborations with international majors, and invested
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
in science and technology and Mukand was in the
forefront. Under Kamalnayanji’s leadership, Mukand
forged ahead. By 1957, Mukand steel was used in the
building of a new terminal in Santacruz airport, the
Canada-India reactor in Trombay, the Vaitarna Dam
and Churchgate Station of the Western Railways, to
name just a few projects undertaken at the time.
Our growth surged during this period as a result of
several initiatives: in training, in product development
and in launching a new division for capital goods
engineering. At the same time, profits were steadily
invested to increase capacity.
Starting in 1957, Kamalnayanji launched three
major training initiatives. He appointed a wholetime
Industrial Training Officer for workers. For engineers,
Mukand entered into an eight year technical
agreement with the then well-known British steel
foundry, David Brown Industries. The British firm
would help Mukand solve problems in its foundry as
also to train Indian technicians at its Yorkshire plant.
(a) (b)
(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
The third program was for managers. Mukand sent
those who had a minimum of ten years experience
and were likely to shoulder higher responsibilities
to Harvard Business School’s eight month executive
education program. Others were sent to Canada
and Russia for advanced training. Meanwhile,
Kamalnayanji opened up Mukand to students of the
newly established Regional Engineering Schools to
enable experiential training.
On product development, Mukand tied up with several
internationals firms. One example is quite interesting.
We pioneered the manufacture of Automatic Centre
Buffer Couplers for trains, in collaboration with USA’s
National Malleable and Steel Castings Corporation.
One of our biggest achievements was to
indigenously design and build capital machines for
the steel and sugar industries at a fraction of the
cost of similar machinery. Under Kamalnayanji’s
chairmanship (1947-1971) Mukand pioneered frugal
innovation much before it became a buzzword in the
21st century.
(c)
 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
meeting must be held as originally planned. There
was heavy police bandobast at Shivaji Park.
The police, armed with machine guns, had cordoned
off a large area of the maidan. Waves of people were
surging from one end passing over to the other -
breaking the police cordons. When the police lost
patience, they began to burst tear gas shells. But the
people had become used to this since morning. The
Congress volunteers had mastered the technique of
nullifying the tear gas attack. The moment the gas
shells were fired, they were pressed against the grass.
Still, some fumes would leak out. Residents from the
surrounding houses brought buckets full of water and
the people dipped their handkerchieves in water and
pressed them against their eyes.
A large number of people had gathered in one corner
squatting on the ground in a disciplined manner. They
did not disperse even when the gas shells were fired.
Thereafter, they were cane-charged. Still, not one
person got up. Ultimately, the police got tired and
stopped the cane-charge.
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
Still, the meeting must go on. But who else would
speak? Meanwhile, someone suggested that Bhai
Kamalnayan should address the gathering. He had
not come prepared to make a speech. The people
gathered around him and there was complete silence.
He spoke for about 15 minutes. What he said was not
important, The main purpose was to hold the meeting
as originally scheduled.
It was held close to the police cordon. But,
surprisingly, the police remained quiet. Even
otherwise, they were helpless in the face of the
people’s enthusiasm and determination. The meeting
went off without interruption.
For the first time the slogan ‘Kamalnayan Bajaj Ki Jai’
was heard. I felt very happy. While returning home at
night, we saw the slogans ‘Quit India’, ‘Bharat Hamara
Hai’ scrawled on the streets. They were written
on the house walls, trams, at the railway stations
- everywhere possible. To everybody’s surprise
Kamalnayan was not arrested. Perhaps the police had
no instructions to do so. He did not rank high in the
Congress hierarchy.
 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
(d) (e) (e) Kasturba Gandhi with Jankidevi,
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
Bombay reading Gandhi’s press statement published by
the Hindu newspaper. Emotions of pleasure and anxiety
ricocheted inside him. Pleasure because Gandhi had used
the draft Kamalnayan had prepared. Anxiety because
Radhakrishna Bajaj - his cousin, playmate and school
friend - was among the thirty facing a death sentence.
The case had been going on for three years. “In your and
other leaders’ absence, we have done whatever we could,”
Kamalnayan pleaded with Gandhi. “We hope that now
you are released, they will not be hanged. We don’t know
what to do. Their lives are now in your hands. You have
to take up this case. Or else tell us how we should proceed
further. We cannot bear this anymore.”
Kamalnayan once had aspirations to be a lawyer. At
Cambridge, mixing with law students over dinners,
the longing grew. But shivers ran down his spine when
faced with a legal nightmare. Jamnalal was no more.
First challenge: avoid being arrested in order to mount
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


(a) (b)
(a) Kamalnayan and Gandhi deliberate; (b) Bhulabhai Desai, Bombay-
based lawyer who used his legal skills to save freedom fighters, but did
not live long enough to see free India
witnesses who gave false evidence against Radhakrishna.
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
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.
In the Central Provinces, the worst atrocities occurred
in Chimur and Ashti. The first shot was fired at
Wardha to disperse a disorderly Congress meeting. As
the movement gaining momentum, firing became an
integral, frequent feature of government repression.
One constable in Nagpur was speared to death by
protestors. At Chimur, a sub divisional magistrate, a
circle inspector, a naib-tehsildar and one constable
were stoned and burnt alive. At Ashti, a sub-inspector
of police and four constables were brutally murdered.
In retaliation police opened fire 40 times, 43 protestors
died, 156 were injured, 335 were whipped, 8,260 were
arrested, and 5,422 were jailed according to police
records, which make no mention of ad hoc hangings on
village trees. And these numbers are only for the period
between August and December 14, 1942. Radhakrishna
is just one statistic in the carnage.
In June 1943, prominent Congressmen and advocates
at Nagpur formed legal aid committees to provide legal
Delhi
Karachi
Calcutta
Paunar Nagpur
Wardha Chimur
Sevagram
Bombay
Ashti
Madras
Trouble in the Central Provinces, 1945
aid, funds and defence to detainees of Congress
disturbances. Leading Bombay lawyers such as
Bhulabhai Desai pitched in. Narayan Bhaskar Khare,
a member of the newly formed Central Provinces
and Berar Legislative Assembly, formed the Capital
Punishment Relief Society with Anasuya Kale as its
vice-president. Kale worked closely with Gandhi.
The defence discovered a lacuna in the order and the
executions were stayed.
The stay enabled an appeal for mercy on behalf of
the Ashti-Chimur prisoners but the appeal’s rejection
hardened Gandhi’s attitude. He began working
his network, guiding Desai and influencers such as
Manchersha Avari and badgering the Viceroy Lord
Wavell and his personal assistant Evan M Jenkins. The
Viceroy commuted the sentences to life imprisonment
on August 16, 1945. Kamalnayan did the rest of the
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
peak with people inflicting small damages: cutting
telegraph wires and removing rail tracks. A few
workers of the Wardha Ashram were tempted to join.
On this pretext, a dozen leading workers of Vinobaji’s
Ashram including Vallabh Swami and Dattoba Bhau
Panse were arrested.
Congress meetings were held in Bajajwadi, Wardha.
The decision to launch the August Movement was
taken in Bajajwadi. Many members of the Bajaj family
were in jail. For all these reasons, the family was the
target of the fury of the British Raj. The government
was just waiting for the smallest excuse to arrest
Kamalnayan. There was pressure from Delhi to arrest
someone from the Bajaj family. They picked on me.
I was in Buldhana Jail at the time. I was brought to
Wardha and housed in the tehsil court’s special cell.
There I came to know that apart from charges of
destroying public property, the authorities planned
to implicate me in the murder of the policemen.
They hatched the conspiracy that prior to being taken to
Buldana, I had conspired to the murders in secret meetings.
Kamalnayan was mostly living in Bombay in those
days. In order that the Bajaj’s Bombay office may not
assist in my case as also to scare Kamalnayan, the
police arrested two munims – Kaluramji and Motilalji
– from the Bombay office.
The feeling of patriotism was so high that lawyers of
all parties rose to defend us. The only prosecution
lawyer from Wardha was Shri Chendke, all others
78 Kamalnayan Bajaj – Architect of the Bajaj Group
were outsiders. The false murder charge was tried in
the Nagpur High Court under a special ordinance.
The British government was trying to crush the
Movement with full force. People were quite terror
stricken and the government created false witnesses
through bribery. Our problem was how to counter
these false witnesses. But the witnesses got busted
due to the efforts of Kamalnayan, the lawyers of other
friends and society. The State could not sentence me.
Yet under the Defence of India Act, I was kept in jail
for three years. Some were handed sentences, some
were released; this is a long story. I leave it at that.
It was an ordeal-by-fire for Kamalnayan. But without
any hesitation and panic, he threw his whole might
in defending this case. My wife Anusuya would worry
but Kamalnayan looked after his bhabhi and kept her
morale high.
After Gandhiji’s release from jail, some Ashramites
told him that the witnesses were bribed to defect.
Gandhiji became serious. Everyone became
apprehensive. We can’t lie before Bapu. And the truth
may compel him to undertake a fast. We presented
ourselves before Bapu and pushed Kamalnayan
forward to face him. He told Bapu, “Bapuji, these
days people bribe to tell a lie. But we paid money
to witnesses to behave honestly and speak the
truth. What is wrong in that?”
Bapu laughed at Kamalnayan’s strategy and we all
felt relieved.
 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
businessman in the world who has had a rakhi tied on his
boyish wrist by a future prime minister, had his marital
problems advised on by another, cleaned the bedroom
of a third and debated endlessly on the Congress party’s
internal matters with a fourth. Jamnalal may have left
Kamalnayan a fistful of debts on his death, but the
political heritage was rich. Bajajwadi was the epicentre
of the early phase of the freedom movement, where the
Quit India decision was taken, and while Gandhi lived
there, was the philosophical nucleus of the Congress
Party. Kamalnayan grew up knowing everyone who was
anyone in the Congress party, and more.
(a) (b)
80 Kamalnayan Bajaj – Architect of the Bajaj Group
The decade from 1942 to 1952 however saw
Kamalnayan putting his business in order. By the
time the first Lok Sabha elections were announced,
the Bajaj Group’s financial position was sound with a
management team in place. Electoral engagement drew
Kamalnayan like a wasp to honey.
The first Lok Sabha poll, India’s first national
election, is historic and was emotional. Held four
years after Independence (once the Constituent
Assembly had finished writing the Constitution),
campaigning took place between October 25, 1951
and February 21, 1952.
(c)
 Just before the elections, Syama Prasad Mookerji
(Industries Minister under Nehru) broke away to set up
the Bharatiya Jana Sangh, a proto-BJP, representing the
Hindu right wing. BR Ambedkar formed the Scheduled
Caste Federation, later the Republican Party of India.
Another high-profile Congress leader, Acharya JB
Kriplani, founded the Kisan Mazdoor Praja Party. Ram
Manohar Lohia and JP Narayan were the forces behind
the Socialist Party. And the Communists (then united),
having just abandoned an armed struggle in Telangana,
contested 49 seats. The Bolshevik Party of India and the
Zamindar Party too were among the contestants.
Sardar Patel did not live to contest. Ambedkar lost in
Bombay to Narayan Sadoba Kajrolkar of the Congress.
Kakasaheb Kalelkar became an MP, going on to
head India’s First Backward Classes Commission (the
predecessor of the Mandal Commission) in 1953. Two
(d)
future PMs were elected: Gulzari Lal Nanda and Lal
Bahadur Shastri. Congress won a landslide victory,
winning 364 of the 489 seats and 45% of the total votes
polled. Nehru became the first democratically elected
Prime Minister of India.
Rewinding to early 1951, Kamalnayan is wondering
if he should contest from Rajasthan or Maharashtra.
He had a toe-hold in Sikar and more than a foot in
Wardha. Shriman Narayan, married to Madalsa,
and Rameshwarprasad Nevatia to Kamla, were also
planning to contest. The three brothers-in-law debated
and decided that Rameshwarprasad would contest
from Shahabad in UP, Shriman from Wardha in
Maharashtra and Kamalnayan from Sikar in Rajasthan.
Getting Congress tickets was a cinch. Rameshwarprasad
and Shriman won. Kamalnayan lost.
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) 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
coming to an end. Elections for the 2nd Lok Sabha
were scheduled from February 24th to March 14, 1957.
Kakaji contested from Wardha, a rural constituency, on
an Indian National Congress (INC) ticket. Campaigning
in 1957 was nowhere like what it is now. The money
spent was insignificant compared to the crores spent on
a single parliament seat now. It was a great learning
experience for me. Under Jawaharlal Nehru’s
leadership, the INC easily won a second term in power,
taking 371 of the 494 seats with a vote share of 47.8%.
Kakaji contested four Lok Sabha elections from Wardha
between 1957-1971. I campaigned for him in all the
four elections. Each time, Kakaji asked a few of his close
associates to let me accompany them for about two
weeks. The person with whom I travelled would typically
know a few people in the towns we visited. Politeness
dictated we be offered cups of sugary tea which frankly I
found quite tasty! Sometimes Kakaji would discuss with
me what happened during the day – this was his way of
teaching me.
People from his constituency sometimes came home to
meet Kakaji when he was in Wardha to petition him to
help them in government-related matters. I remember
an occasion when Kakaji found a request not justified.
Instead of being placatory and murmuring words to
the effect “I will see what can be done”, he point blank
86 Kamalnayan Bajaj – Architect of the Bajaj Group
told the persons concerned that their request was not
justified, and he will not be able to help them. He always
went straight to the heart of a matter and preferred plain
speaking above all!
In 1969 the Congress split into Congress (I) and
Congress (O). Kakaji stayed with Congress (O) even
though Congress (I) was led by Smt Indira Gandhi and
was the larger faction. Kakaji, however, did not agree
with many of her policies, including the nationalisation
of banks. Kakaji stayed with Mr. Morarji Desai’s
Congress (O). This annoyed Indiraji who, I believe,
wondered aloud how Jamnalalji’s son could go against
Jawaharlalji’s daughter! After all Jawaharlalji and
Jamnalalji were like brothers. Incidentally, both were
born in 1889. In fact, it was Jawaharlalji who gave me
my name Rahul, but that is another story.
Kakaji spoke to me frankly after the Congress split.
Because of his decision to stay with Congress (O), he
explained, it was possible that Congress (I) may not
cooperate with the companies in the Bajaj Group. We
may not get expansions, etc. He asked me whether he
should resign as the Chairman and Director of our
companies to insulate the group from the possible wrath
of the government. I straightaway told him that this is
out of the question and we are not going to succumb to
such pressure.
 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
schools in 1920, Jamnalal Bajaj promptly did as he was
told. He enthusiastically organised a conference on
‘Basic Education’ in 1937 in Wardha. But no alternative
system was in place when Jamnalal’s five children
were at school-going ages. They paid the price for
experimentation: many of the schools they attended
did not have a curriculum let alone teachers trained in
child education.
Among Marwaris, daughters were less affected. It
did not matter if their education was rudimentary,
they were ‘paraya dhan’ – the wealth of others, biding
their time in their parents’ home until marriage. In
an earlier era, it was not a problem for boys either.
Jamnalal had to leave school to join the family
business at age nine. But times were different. You
needed English to negotiate technology ventures with
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
incarcerations.
In his autobiography, Kakaji, Bapu and Vinoba, Kamalnayan wrote about the three most important
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
MBA degrees. Rahul chose the Harvard Business
School, Shishir preferred the Stern School of Business,
New York. As an elder brother, Kamalnayan urged
Ramkrishna not to allow business exigencies to engulf
him and complete his education. Yet he had to cut short
his own education.
in a bad shape. Jamnalalji was very much involved with
the Congress work as well as Gandhiji’s constructive
activities. It was very important to Kamalnayan to stay
on in India and see to the business. He never discussed
the problems with me but I think it must have been a big
sacrifice for him not to finish his education, on which he
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
on June 10th, and be reunited with Savitri.
In contrast, the mood at the Dukaan was gloomy. As he
entered his 50th year, Jamnalal became increasingly
despondent. Pain from arthritis in the knee and a
botched ear operation after years of neglect and self-
doctoring no doubt contributed to the lack of well-
being. Depression reached a nadir within weeks of
Kamalnayan’s return to India. On November 4, 1938
Chilling with friends in London, 1937
94 Kamalnayan Bajaj – Architect of the Bajaj Group
Jamnalal penned a letter to Gandhi where he poured out
his mental torment. He would later show the anguished
letter to Kamalnayan.
The outbreak of World War II in September 1939
finished the job of completely sabotaging Kamalnayan’s
dreams. How could a loving son not seek to help
in whatever ways he could? With eyes wide shut,
Kamalnayan rolled up his sleeves.
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
two ashrams, his lack of formal education but the
deep involvement of his family and his own in the
William Sutherland Thatcher, Head Master, Fitzwilliam House, 1924-1954
freedom struggle including going to a British Jail.
Kamalnayanji said he came to Cambridge to see how
the English, who ruled India, looked at the Indian
freedom struggle from Britain. He said he wanted
a different insight as back home in India, naturally,
everyone wanted freedom.
96 Kamalnayan Bajaj – Architect of the Bajaj Group
The head master mentioned that he had three
applications from India and he can give admission only
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
House, it would make it easier for him to achieve his
objectives, and of course, be able to study economics
which he wanted to do.
After a few days, Kamalnayanji received admission
to Fitzwilliam House to study for the Economics
Tripos Degree.
 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
himself as he waited for the bridal car to draw up to the
porch of Bajajwadi. It’s a question that troubles every
parent who has arranged a match for their child. He had
tried his best.
Kamalnayan once wrote to him saying he wanted to
learn riding, rowing, swimming, skating and flying.
That he wanted to travel in Europe, and to visit the
United States, China and Japan. And he wanted to
Jamnalal welcoming Kamalnayan and Savitri to Bajajwadi
98 Kamalnayan Bajaj – Architect of the Bajaj Group
learn English. Well, he had found a modern girl of
many accomplishments for his son. Savitri had studied
in Great Britain, rowed in the annual regatta race held
by Calcutta’s Lake Club, had travelled to Singapore and
Rangoon besides Europe. Perhaps Kamalnayan could
pick up a tip or two from her.
Besides, Gandhi approved of Savitri. With the only seal
of approval that mattered and a red khadi saree, the
eleven member barat left Wardha for Calcutta.
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
or not. I wrote to Kamalnayan about it. It was my
marriage and my choice should be final. Kamalnayan
was very understanding about the whole situation.
He agreed to my wearing non-khadi, which naturally
meant his parents would not attend. It was not a small
concession. Luckily the khadi sarees arrived in time
and the embarrassing situation was avoided.
Kamalnayan’s outlook on life was based on a totally
different criteria from mine. Life’s basic values were
ingrained in his mind. On the other hand, I had never
thought about life seriously. I was an average girl,
western educated and reasonably intelligent who
liked to live in comfort and enjoy life. I loved to go
No pressure...
to movies and horse-racing during the season. My
friends were like me, happy-go-lucky, with not a
serious thought in their head. Kamalnayan’s large
number of acquaintances, friends and relatives were
a different breed altogether. They talked a language
quite foreign to me. It bored me... Usually I was
always at loggerheads with him.
Kamalnayan was no more. I wish I had died. I did
not even get an opportunity to express my deepest
feelings to him. Inspite of our efforts it is God who
plans for every human being and it is always His Plan
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,
Jankidevi gripped the pick-axe and firmly brought it
crashing down on the ground. A cheer went up from
the small crowd. She then carefully sprinkled water, and
stepped back. As Kamalnayan built factory after factory,
Jankidevi got quite used to pick-axes.
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
102 Kamalnayan Bajaj – Architect of the Bajaj Group
Jamnalal seventeen, twice her age. She fell deeply in
love with Jamnalal. Of her own volition, she changed
her life for him. Their love letters are tender yet speak in
independent voices. After Jamnalal passed away in 1942,
Jankidevi gave away everything she had to charity. But
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.”
With husband Jamnalal Young Jankidevi before her khadi days
 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
Ramkrishna. He seemed forlorn. “I turned twenty
today,” Ramkrishna had confessed in his diary on
September 23, 1943. “I had added one more year,
but life is shorter by that.” One of the youngest of
Gandhi’s satyagrahis, Ramkrishna had been cumulatively
incarcerated in various jails for four and a half years.
The boy was now 24 and unmarried. And lonely, even if
he didn’t know it himself.
Ramkrishna and Vimla were married on May 2, 1947. “I perched on the
chair’s arm, slightly uncomfortable,” recalled Ramkrishna.
106 Kamalnayan Bajaj – Architect of the Bajaj Group
At 19, Vimla, Savitri’s sister, was a bit old to be unmarried
by Marwari standards, but perfect for his brother mused
Kamalnayan. Vimla however didn’t want to marry, and
had rejected names her parents had proposed. Savitri
talked her sister into considering Ramkrishna while
Kamalnayan worked on his brother. Kamalnayan’s
first attempt at match-making turned out to be rather
successful. “I was starved of affection. This I got in
abundance from Vimla,” Ramkrishna would write later.
Kamalnayan performs the brother’s ritual with Madalsa before she
begins the saat pheras with Shriman Narayan, Wardha, July 11, 1937
Kamalnayan slipped easily into this facet of the karta’s
role. His sisters, Kamla, Madalsa and Uma (see family
tree) were married before Jamnalalji died. With some
practice, Kamalnayan learnt to keep a continuous
lookout for likely partners for the huge Bajaj pariwar.
He carefully sought out Naresh Chandra for Suman,
Minakshi Jalan for Shishir, Kiran Dhanuka for Shekhar,
and Kumud Bagla for Madhur. Kamalnayan would no
longer be around when Niraj married Minal Agarwala
and Rahul found Rupa Gholap himself.
Through an unmissable red convertible.
Rupa’s father, LT Gholap was an uncompromising ICS
officer who as Controller of Shipping and Chairman of the
Kamalnayan with Shekhar and Kiran, April 25, 1970
Bombay Port Trust, had efficiently overseen the evacuation
of Sindhi and Sikh refugees fleeing Pakistan during
Partition. The Bajajs at the time lived nearby in Bhagwati
Bhavan. Rahul managed to get himself introduced
to Rupa. “We used to see the car but we didn’t know
Rahul at the time,” recalls Rupa’s sister Chitra Pamnani.
“Kamalnayanji was very good to Rupa. She was the only
non-Marwari daughter-in-law. Rahul went for his MBA to
Harvard soon after the wedding. It was Kamalnayanji who
showed Rupa how a Marwari family works.”
Kiran recounts Kamalnayan’s many kindnesses to her.
“I behaved very badly when I first met Tauji. I was
sixteen, and I didn’t want to get married. I made him
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.”
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*

Kamalnayan*- Savitri*

Rahul - Rupa* Suman - Nareshchandra Jain Shishir - Minakshi

Rajiv - Deepa Sanjiv - Shefali Sunaina - Tarang - Anurang - Kushagra - Apoorv

Manish Kejriwal Rochana Varsha Vasavadatta

Rishab Aryaman Nirvaan Arjun Dhruv Rohan Rhea

Sanjali Siddhant Anandamayi Yugadikrit Vishwarupe

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

Sanjay Gupta Anurag Godha Vandana
110 Kamalnayan Bajaj – Architect of the Bajaj Group
 Madalsa*- Shriman Narayan* Uma*- Rajnarayan Agrawal* Ramkrishna*- Vimla*

Bharat - Madhu Rajat - Amla Shekhar - Kiran Madhur - Kumud Niraj - Minal

Vishwarupe -
Priyanka Anant - Pooja Geetika Kriti Nirav

Ananya - Yan Himanika - Neelima - Aditya Swamy Nimisha - Amit Jaipuria

Himanshu Timbadia

Ruchira - Jagat Singh Vidula Sopan*- Manjula

Anshul - Shilpa Gokul - Priyanka Vedant

* Deceased
** Died at Age 13
Kamalnayan Bajaj – Architect of the Bajaj Group 111
 I know you better than you know yourself – by Madhur Bajaj
I was fortunate to accompany Tauji on his last
foreign trip which was to Europe. For me, this was a
great opportunity to come close to him, understand
his thoughts, life style and idiosyncrasies. He took me
to see places of tourist’s interest though he had
visited them earlier. He felt there was always
something new to learn. He had a knack of adjusting
to everyone. Though we were together for three
months, I did not miss being with my age group
because of his nature, adaptability, supportiveness
and sporting spirit.
Kamalnayan, seen here with a friend (middle) and Madhur (left), enjoying
a game of darts in Germany’s Black Forest. The three month trip to
Europe would be Kamalnayan’s last trip abroad. Summer, 1971.
Once, while walking the streets of Germany, coins
fell continuously on the ground. I picked up each one,
thinking they were falling from Tauji’s pocket. When
I pointed this out to him, he smiled and asked me to
return “his money back to him”, which I promptly did.
Later I realised that it was my pocket that had a hole
112 Kamalnayan Bajaj – Architect of the Bajaj Group
in it. I don’t remember him returning back my money.
A fair punishment for my absent mindedness!
He had a deep understanding of people, issues and
circumstances. He would tell me, “I know you better
than you know yourself!” He shared with me his views
on global events, family episodes and members. I was
fascinated by one story he recounted to me. “Madhur,”
he said to me, “once there was an argument
between your Dadaji and me about who was better
between the two of us. After much debate, I said,
my father is better than your father and my son is
better than your son. So who is better? There was no
argument after that!” A great believer of a joint family
system, he strived hard to keep the family together
and succeeded.
Tauji could effortlessly present a case from more than
one angle. Once I saw him convince a friend that the
“the road was on the left side of the house”. The next
instant, Tauji convinced his friend that it was on the
right side. And so it went on.
He had an amazing ability to convert someone’s
negative mindset about another person. Tauji would
start by pointing out several more negative traits. This
immediately created a bond. Next he would slowly
erode negativity by explaining a rationale for the other
person’s acting the way he did; and then convince the
person he was talking to, to change his mind. This is
how he saved a number of relationships.
He was a good listener which made the speaker
comfortable. He meant a lot to me and I learnt lot
from him.
 Chapter 22

After I Die

Kamalnayan Bajaj – Architect of the Bajaj Group 113

 Kamalnayan suffered a heart attack on March 17, 1969.
He expressed these wishes at the time.
I was never scared of death, more so now. If I am told
to depart in five minutes, I’m still not worried. This
does not mean that I don’t wish to, or would not even
try to, live.
I have no disappointments of any sort or any
regrets. Nor do I feel sadness, sorrow, unhappiness,
dissatisfaction caused by any person. I have no interest
in what happens to my physical body. My only desire is
that there should be no untidiness or spread of disease.
If any part, limb or organ of the body can be used in any
way, then it may be so done.
There should be no grief beyond the natural sadness
when a dear one physically departs. All rituals should be
completed within three days and not stretch to twelve.
Observing six months of mourning is meaningless.
Nobody’s celebration should be deferred because of
my death. Immediately after cremation, if any family
member has to attend a wedding or similar happy event,
they may do so if they can. Death is not a cause for
sorrow, it is a reason for happiness.
Cremation should be done at the place of death as is
generally done. There is no need to take the body to
Wardha. If my death occurs in a city like Bombay,
where an electric crematorium exists, cremate the body
in one. Such a cremation saves time and is hygienic.
Do not use expensive cloth, ghee or costly materials like
sandalwood. If someone desires to make such offerings,
that’s different. Cheap firewood should be used. Use
kerosene to ignite the fire.
Both men and women of the family desirous of attending
the cremation may do so. Nobody should be prevented
114 Kamalnayan Bajaj – Architect of the Bajaj Group
from attending if they want to attend, though noone
should feel they have to attend. Men and women of
any caste, colour or creed can attend. Those attending
should not suffer inconvenience in walking. They can
use a vehicle. If convenient, even the body could be
carried in a vehicle. But there is no insistence.
There is no need to declare a holiday in our business
and industrial establishments. Death should not
adversely affect the country’s production. There is no
harm if some have already declared a holiday but avoid
this if possible.
It is a normal practice that if Parliament is in session,
and a member dies in Delhi, Parliament is adjourned
for the day. This is not necessary. It will be good if
adjourning Parliament can be prevented. Members
desirous of joining the funeral may take leave for a few
hours but the session should continue. (Kamalnayan was a
member of the Lok Sabha at the time.)
My ashes should reach the tree planted in Kakaji’s
memory (at Gopuri, Wardha). If Ma dies before me,
then spread some of my ashes in the soil of her tree
too. Should my ashes be immersed in a river, then it
should be in the Paunar river (near Vinobaji’s Ashram).
In particular, my ashes should not be taken to a place
that entails taking time off and incurring expenses (such
as Haridwar or Varanasi). If someone is already going on
pilgrimage to such a place, he can carry my ashes there.
Otherwise, my ashes should be taken to Kakaji’s on his
punya tithi; and if Ma has gone before me, on hers. This is
purely to respect the sentimental reasons and satisfaction
of those who are left behind. I am not interested. What
to do or not do with the dead body, does not interest me.
No memorial should be erected, and specifically none at
the place of cremation.
Condolence messages should be acknowledged in red
ink (symbolic of festive event unlike black ink used for conveying
bad or sad news). When Kakaji died, acknowledgements
were sent in red ink. He was a pious soul. We had no
right to mourn him yet my inner self felt compelled to
do so. But he was special. I am not a pious soul. What
God does is for good. We may not comprehend it. One
is sad, but we should not observe sorrow. This tenet
should continue.
All my life, I have prayed to God for continuance of
faith in Him. I thought it was enough. Perhaps it is
enough for some. For me, purity of heart fell short of the
desired level. Not to have ill-will against any one should
be prayed for. Pray to God that I may achieve this, don’t
pray for my long life.
Family members should continue to do the work of Bapu
and Vinoba in whatever measure possible. Help other
relatives to do the same. If the family can work following
Kakaji’s principles, they must do so. If others do it, the
family could help by providing for their sustenance.
(The original letter of wishes is in Hindi. Translator comments in
italics and brackets)
Kamalnayan Bajaj – Architect of the Bajaj Group 115
 Kamalnayan Bajaj
Architect of the Bajaj Group

23rd January 1915 — 1st May 1972

116 Kamalnayan Bajaj – Architect of the Bajaj Group