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PiramelManagement > Asian Management > Lectures > Independent Research > Piramel
Piramel - Business Maharajas (Bajaj)Rahul Bajaj is not the typical leader - he is "colourless" and is completely honest, thought "something of a plodder" and cautious, while Ambani is much more of a risk taker. "You should diversify from a position of strength, not a position of weakness" "Bajaj can be amazingly cruel to those not in his mental league" He does not embellish in status symbols, with the exception of his Mercedes. Although brought up in a political family, Bajaj did not get on well with the government or any of his competitors. Bajaj Auto teamed up with Piaggio in Italy to assemble scooters in Italy in the 1960s. It was a tempestuous relationship and ended in 1971 when Indira Gandhi refused permission to extend the contract When the barriers to the scooter market were lifted in the mid-1980s, Piaggio quickly set up a joint venture with Deepack Singhania and Andgra Pradesh Scooters. The company has been the victim of government paranoia, with two surprise government raids after it was thought that the company committing tax fraud. Each time the raiders left empty-handed. Bajaj had very strong principles and ethics, which he stuck to vehemently. Unfortunately, this may have lead to a string of failed attempted joint ventures. Honda considered Bajaj Auto, but argued that Bajaj "wanted too much" To compete with the Japanese, Bajaj Auto set up Bajaj Finance to help customers who were "strapped for cash", as well as becoming one of India's biggest advertising spenders and introducing four new models with new "whiz kids". "I do not want in my own country to authority making and ownership with a foreigner"
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