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 • SUBHOMOY BHATTACHARJEE: There is a new type of management structure gaining currency, that is, professionally-run companies. Or non-family firms. You have successfully run a family business where a different structure has evolved over the years. There is renewed interest at institutions such as Harvard in this type of family governance. Would you comment?

In terms of percentages, over 90 per cent of businesses in the US and Europe are still owner-managed. Where is corporate governance in the US? Where is corporate governance in Japan and Korea or Europe?

• COOMI KAPOOR: It is said the Bajaj group has been a beneficiary of the license raj, and when liberalisation came, it was unable to hold its own.

That is a false, inaccurate, misinformed comment. And why pick on Bajaj? Before 1991 under the license-permit raj, we had a shortage economy. But even in a shortage economy you had to survive. In the two-wheeler segment what happened to Lambretta, to Java or Enfield? None of them survived, while there was a 10-year delivery period for Bajaj Chetak. So whether we were efficient or not, did not matter; nor did it matter who was the top manager. You didn’t need to be that efficient. Also, there were limited multinational companies in the market at the time. Post-liberalisation we faced the reality of competition. We had to ask ourselves: how do you learn to be efficient? Which guru do you go to? There is just one guru who not only teaches you to be efficient but also forces you to be efficient, and the name of that guru is competition. So when competition came, you had to be efficient, otherwise you would not survive: you required to lower costs, give the best possible quality, use cutting-edge technology. And you had to see who was the CEO, or the MD. It had to be the most competitive guy available. It could be a relative, a son, a brother or somebody else but it had to be the most efficient person. In the Bajaj family, 98 per cent of wealth is in the equities of the Bajaj Group of companies. So it’s in our selfish interest to get the best guy to manage the company. Today, you can’t have family management if they are not the right people to manage. This is among the reasons why families have split.

• SUBHOMOY BHATTACHARJEE: Who takes the call?

It depends upon the structure of the family. In the case of the Bajaj Group, between 1972 and 1994, it was my uncle. From 1994 onwards, I took the call. You have to competent. If you are not, you are out or should be out. The thing is, if I have to choose between a competent professional and a competent owner, I will choose a competent owner, because he has two things that the professional, for no fault of his, does not have — commitment and continuity.

• SUMANT BANERJEE: As chairman of Bajaj Auto Ltd, why are you unhappy with the budget, considering there is four per cent cut in excise duty? The two-wheeler industry has got something in the budget after approximately 10 years.

I welcome the four per cent reduction to 12 per cent. Till three years ago, there was always a difference in excise duty between four-wheelers and two-wheelers: 24 per cent for four-wheelers and 16 per cent for two-wheelers. Two years ago, Finance Minister P. Chidambaram decided that India will be the hub for small cars, that there will be car exports and the government must do something to encourage growth. So excise was reduced from 24 per cent to 16 per cent for four-wheelers. The two-wheelers were also at 16 per cent. I said, you can consider India as a hub for small cars now, but in two-wheelers and three-wheelers we are already the hub. In 2007-08, Bajaj Auto alone will have exported Rs 2,000 crore-worth of two and three-wheelers. The government was concerned with the slowing growth in the small car segment. In our case, the rate of growth has gone down to negative. Now, small cars have the same excise duty as big cars. I am not saying this is right or wrong. I do not want a further reduction, I am not begging for it, but I am talking logic. Either you accept the logic or you don’t.

• SUMANT BANERJEE: For 13 consecutive months your sales have declined in the two-wheeler segment.

It can’t go down any further — it will go up.

• SUMANT BANERJEE: Is Nano giving you sleepless nights?

Nothing gives me sleepless nights. My problem is getting up in the morning! If there is a Nano, then we will make a second Nano. Ratan Tata has been working to bring out this car for five years. Give my son five years, we will bring out one, too. Either with Nissan-Renault or on our own. Next summer, we will bring out our first four-wheeler, which will be a goods carrier, a pick-up truck carrier like the Ace.

• ZEENAT NAZIR: Two days ago, you were quoted as telling Mr Chidambaram that there should be early elections so that he could come back as finance minister. This comes from an MP who entered the Rajya Sabha with Bharatiya Janata Party and Shiv Sena support. A piquant situation?

I am prepared to say this openly: I want either an NDA (National Democratic Alliance) or a UPA (United Progressive Alliance) government after the next elections. And I want the Congress or BJP to win 200 seats so that they can run the government. If they have only 131-140 seats, it will be a disaster.

• KANDULA SUBRAMANIAM: What is your stand on the Marathi Manoos issue in Maharashtra?

I voted against reservations. I opposed them, openly. We are one country and that means we can stay where we want, we can work where we want. Obviously, Raj Thackeray is not right in his stand against migrants. My view is that if he (Raj) didn’t do this, he would have to leave politics because secular politics will not get him anywhere.