Bajaj Finserv sets a game plan in path to profit
Bajaj Finserv, the holding company for a clutch of financial firms controlled by the Bajaj group, has chalked out a systematic plan for the subsidiaries, giving a new focus on profitability and setting out strategic footprint to make them grow in the coming years, reports Falaknaaz Syed.autos Updated: Dec 09, 2009 22:35 IST
Bajaj Finserv, the holding company for a clutch of financial firms controlled by the Bajaj group, has chalked out a systematic plan for the subsidiaries, giving a new focus on profitability and setting out strategic footprint to make them grow in the coming years.
The firms are Bajaj Allianz Life, Bajaj Allianz General, Bajaj Auto Finance, Bajaj Allianz Financial Distributors and Bajaj Financial Solutions.
Sanjiv Bajaj, Managing Director, Bajaj Finserv, said Bajaj Auto Finance expected to capture a 5 per cent market share in construction equipment, aiming to disburse Rs. 500 crore in the first year itself.
Bajaj Finserv, which has a joint venture with Germany’s Allianz in insurance, has applied for a licence to start a mutual fund.
“We will build a large low cost distribution model with focus in tier 2, 3 and tier 4 cities,” said Bajaj.
“The life insurance industry’s growth is coming at a loss. We don’t want to grow by making losses as our focus is not on driving market share and valuations. Our focus is growth along with profitability,” added Bajaj.
“Bajaj Allianz Genral is already making profit while Bajaj Allianz Life has registered profits in the first two quarters. By 2011-12, we are targeting to wipe off the accumulated loss of Rs 600 crore which we had in the beginning of this year,” said Bajaj.
He said there was no urgent plan to list the subsidiaries.
“Bajaj Finserv is already listed. I don’t need capital to fund the insurance businesses nor do the shareholders want money back,” Bajaj said.
He also added that Allianz will immediately execute its option of raising its stake to 49 per cent in the life and general insurance companies when the foreign direct investment norms are relaxed from 26 per cent to 49 per cent.