Thursday, May 17, 2007

Bajaj Auto redesigned to ride on two new wheels

The board of Bajaj Auto Ltd (BAL) has approved the scheme for demerger of the businesses of the company. The Board of Directors, at its meeting held on May 17, 2007, approved the demerger plan.

It includes demerger of the two and three wheeler manufacturing undertaking, its strategic businesses comprising the generation of wind-energy using wind-farms, the insurance business conducted through its joint ventures Bajaj Allianz Life Insurance Company Ltd and Bajaj Allianz General Insurance Company Ltd, financial products distribution business conducted through Bajaj Allianz Financial Distributors Ltd and interests in retail-consumer finance business conducted by Bajaj Auto Finance Ltd. to two newly incorporated subsidiaries, Bajaj Holdings and Investment Ltd ("BHIL") and Bajaj Finserv Ltd ("BFL").

The board has unanimously approved the proposed demerger of the undertakings of the Company as above, with effect from the closing hours of March 31, 2007, the appointed date.

Read more in The Economic Times article.

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