Bajaj Electricals Ltd Board of Directors Approves Revision of Company Structure

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Bajaj Electricals Limited (“the Company”) is currently engaged in (i) the consumer products (“CP”) segment (which includes household appliances, fans and consumer lighting products) and (ii) the Engineering and Construction Purchasing (“EPC”) segment (which includes power transmission and power distribution and lighting projects). Given the varied nature and potential opportunities of each of the lines of business and the need for a focused approach to unlock these opportunities, the Board of Directors of the Company has decided that the Company should undertake a comprehensive review of the existing business structure. This will encompass an assessment of the full range of options and alternatives (including split (s), subsidiarization (s), strategic partnerships, etc.).

Accordingly, the Board of Directors authorized BEL’s management to assess and recommend such options and alternatives, and subject to such detailed assessment, to consider hosting the transmission and distribution verticals. electricity as an autonomous / independent legal entity.

The strategic objectives defined by the Board of Directors to undertake such an exercise are as follows:

  • Streamlining of the business structure to improve market positions and generate long-term growth
  • Attract the right talent and provide better growth opportunities for existing talent in accordance with a more precise strategic focus on each business segment under separate entities
  • Capital structure and tailor-made capital allocation policies based on the specific dynamics of the company
  • A more precise and well-defined corporate positioning coupled with unlocking value for all stakeholders
  • Distinct investment profiles to attract deeper and broader investor bases
  • Accelerate sustainable development initiatives and accelerate ESG practices

The Company intends to appoint various advisers / consultants to assist the Board in evaluating the options. It is expected that the board and advisers will complete their assessment and consider the way forward as soon as possible.

Appropriate announcements and public disclosures in accordance with SEBI regulations (Listing Obligations and Disclosure Requirements) and other applicable laws will be made as and when required.

Mr. Shekhar Bajaj, President and CEO, said, “Over the past two years, the power transmission and distribution verticals have refined their operational focus, ensuring project closures, increasing costs. cash flow, debt reduction and most debt repayment, while simultaneously focusing on health and safety and general ESG. We believe that the time has now come to continue on this point and to review our structures to allow unconstrained commercial growth for each business segment. We will continue to build on our heritage and the strengths of our people, project management, operations and manufacturing to better serve our customers and all stakeholders. “

Mr. Anuj Poddar, Executive Director, commented: “This is another critical step in Bajaj Electricals Limited’s transformation journey that we have been part of. This will allow us to create independent, industry-leading and competitive entities – each of them with a strong organizational focus, appropriate capital allocation and the agility required to generate long-term value creation for customers, employees and investors. I have no doubts that this will help each of the business segments to kick-start and unleash growth in an unconstrained manner. “

Bajaj Electricals Limited shares were last trading in BSE at Rs. 1046.65 from the previous close of Rs. 1056.85. The total number of shares traded during the day was 6,830 in more than 1,362 trades.

The action hit an intraday high of Rs. 1,060.40 and an intraday low of 1040.45. The net turnover during the day was Rs. 7155688.00.


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