Mumbai: First, the Bajaj group split management responsibilities for various businesses. Then, it split the businesses themselves, creating three Bajajs—Bajaj Auto, Bajaj Finserv, and Bajaj Holdings and Investment—from one (Bajaj Auto). Now, Sanjiv Bajaj is looking to create a new brand identity, including a new logo, for the company he controls, Bajaj Finserv Ltd.
Neutral company: Sanjiv Bajaj of Bajaj Finserv Ltd.
The auto business, headed by Sanjiv Bajaj’s brother Rajiv Bajaj, will continue to use the Bajaj logo, with a bold B.
“We are already working with a brand expert on certain ideas to have a brand identification without diluting the group’s brand,” Sanjiv Bajaj said.
A separate logo and brand identity for Bajaj Finserv is a good move as it will help the company be seen as a separate entity in its own right, said Nabankur Gupta, chairman of Mumbai-based corporate consulting firm Blue Ocean Capital Advisory Services Ltd.
Bajaj’s move isn’t a first among family-controlled conglomerates that have seen a split. One of the most high-profile rebranding exercises in the country came about after after the Ambani brothers, Mukesh and Anil, parted ways in 2005.
Gupta said a new logo and branding could help the company establish itself in other allied areas. “It can also go into a broad spectrum of lending services beyond auto to housing, durables—the opportunities are endless,” he said. “It will also be seen as a neutral company and expanding in areas not integral to Bajaj...”
Sanjiv Bajaj told Mint in a 29 March interview that there was no animosity between him and Rajiv Bajaj, both sons of industrialist Rahul Bajaj.
“Firstly, there is no division. There was only a division of management responsibilities. The ownership is the same,” he said. “However, we do realize that when new businesses come up, there will be opportunities to create a brand.”
Before the split, Sanjiv Bajaj was in charge of Bajaj Auto’s export business. Bajaj Finserv has two joint ventures with Allianz AG, one each for life and general insurance. Bajaj Finserv owns a 74% stake in both ventures. It also owns Bajaj Auto Finance Ltd and has a consumer finance division.