. Bajaj auto Limited has been a leading two wheeler and three wheeler automobile manufacturing company for many years. For quite some time it also engaged in auto finance through its subsidiary Bajaj Auto Finance. In recent years, it set up subsidiaries for doing life insurance business and general insurance business. Given its substantial presence in the auto sector and finance and insurance sector, the company felt the need for separating its auto business and financial assets. In order to do this the company has done a demerger in early 2008.

a. Site the essence of demerger plan of Bajaj auto Limited.

b. State the after effect of the demerger.

c. Discuss the advantages of professional specialization in this context.