Bajaj Plans Arm For Non-Life Insurance

"We will get into only non-life insurance and will allow up to 49 per cent equity to a strategic foreign partner in the event of the government allowing over 26 per cent to overseas investors, while the balance majority 51 per cent equity will be held by us," Rahul Bajaj, chairman and managing director of Bajaj Auto said.

On buying out the Maharashtra Government's equity stake in Maharahstra Scooters by Bajaj Auto, Bajaj said that the buyout could take place only at the market price. Since the current quoted market price of equity shares of Maharashtra Scooters is very low, the State Government seems to be not interested in disinvesting its stake.

Meanwhile, Bajaj Auto's holding in Bajaj Tempo has risen to 23 per cent.

While Bajaj Tempo's and the Firodia family members share holding in Bajaj Auto is at around 9 per cent.

Bajaj said he was willing to buyout the 9 per cent equity stake of Bajaj Tempo in Bajaj Auto from the Firodias provided the price is not above Rs 400 per equity share. "I had very friendly discussions with Abhay Firodia 10 days back but it did not work out as he expected a much higher price of over Rs 400 per share," Bajaj said.

UPS VEHICLE PRICES:

Meanwhile, Bajaj has quietly hiked the basic prices (excluding taxes and duties) of its two-wheeler and three-wheeler vehicles in the range of Rs 350 to Rs 1,000 with effect from July 1.

The prices of Chetak, Chetak Metallic, Classic SL, Bravo, Legend and Boxer AT have been hiked by Rs 350 which is the lowest hike in the Bajaj stable of vehicles.

While the highest hike of Rs 1,000 was imposed on four-stroke three-wheelers with catalytic convertors: FE autorickshaw, pick-up van, delivery van, drive-away Chassis and diesel autorickshaw.

The prices of Super, Super Metallic scooters, Sunny Spice and Spirit scootterete, RE 4-stroke autoriskshaw with catalytic convertor have been increased by Rs 500.

The price of its popular step-through vehicle M-80 has been increased by Rs 450.

For the quarter ended June 2000, Bajaj Auto's vehicles sales grew by 9.3 per cent during which period it sold 3,24,231 vehicles as against 2,96,514 vehicles sold in the corresponding period of the previous year.

In the first quarter ended June 2000, Bajaj Major (M-80) registered sales growth of 10 per cent to 37,779 units sold, as against 34,295 units sold in the corresponding previous period.

However, in line with the general industry trend, Bajaj Auto's scooter sales continued to take a beating. Bajaj Auto's scooter sales in the first quarter dipped by 15.6 per cent.

The company sold 39,434 three-wheeler vehicles and 1,42,190 scooters in the quarter ended June, as against 37,157 three-wheeler vehicles sold and 1,68,425 scooters sold in the corresponding period of the previous year.

In the scooterettes segment, sales of Bajaj Sunny and Bajaj Spirit accelerated by 107 per cent with 7,876 vehicles sold in June 2000 alone, while in the same month last year, Bajaj Auto had sold around 3,797 scooterettes.