Rahul Bajaj will step down as executive chairman of Bajaj Auto Ltd. and assume a non-executive role with the same designation, the motorcycle maker said on Thursday.
Bajaj, who has been a director of the company since April 1, 1970, was last reappointed by the board for a five-year term with effect from Apr. 1, 2015. His term as executive chairman is expiring on Mar. 31, 2020, the company said in a regulatory filing.
"Due to certain commitments and other pre-occupation, Rahul Bajaj has decided not to continue as a whole-time director of the company after the expiry of his current term on March 31, 2020," it added.
Bajaj Auto further said its board of directors, in a meeting held on Thursday, approved his appointment as non-executive chairman with effect from Apr. 1, 2020, subject to shareholders' approval.
Since Bajaj has already attained the age of 75, shareholders' approval will be sought by moving a special resolution. Voting will be conducted using postal ballots, as per the market regulator's regulations.
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Since Rahul Bajaj took charge of the Bajaj Group in 1965, flagship Bajaj Auto's turnover has grown to Rs 12,000 crore now from just Rs 7.2 crore then. Over the 55-year period, the company has moved from being a market leader in the scooter segment to a force to be reckoned with in the premium-motorcycle segment. Late in 2019, Bajaj Auto revived the iconic Chetak brand to enter India's electric-vehicle space.
Also Read: Here's What Can Make Or Break Bajaj Auto's Electric Chetak Ride
In 2005, Rajiv Bajaj took over from his father day-to-day operations of the company. And with him as the managing director, the firm has truly evolved into a global two-wheeler maker.
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