Bajaj Electricals Ltd Board Approves Corporate Structure Review

Bajaj Electricals Limited (“the Company”) is currently engaged in (i) the consumer products (“CP”) segment (which includes home appliances, fans and consumer lighting products) and (ii) the engineering, procurement and construction (“EPC”) segment (which includes power transmission and power distribution and lighting projects). Given the varied nature and potential opportunities of each of the business segments and the need for a targeted approach to unlocking these opportunities, the Company’s Board of Directors has determined that the Company should undertake a comprehensive review of the existing corporate structure. This will include an assessment of the full range of options and alternatives (including spin-off(s), spin-off(s), strategic partnerships, etc.).

Accordingly, the Board of Directors has 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 for undertaking such an exercise are as follows:

  • Streamlined corporate structure to improve market positions and ensure long-term growth
  • Attracting the right talent and offering better growth opportunities to existing talent, in line with a more precise strategic orientation on each business segment within separate entities
  • Capital structure and capital allocation policies tailored to company-specific dynamics
  • A more precise and well-defined corporate positioning, associated with value creation for all stakeholders
  • Distinct investment profiles to attract deeper and broader investor bases
  • Accelerating sustainability initiatives and accelerating ESG practices

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

Appropriate announcements and public disclosures in accordance with SEBI regulations (registration 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 sharpened their operational focus, securing project closures, increased cash flow, debt reduction and the repayment of most debt, while simultaneously focusing on health, safety and ESG in general. We believe that now is the time to build on this momentum and review our structures to enable unconstrained commercial growth for each business segment. We will continue to build on our heritage and strengths in our people, project management, operations and manufacturing, to better serve our customers and all stakeholders. »

Mr. Anuj Poddar, Managing Director, commented: “This is another critical step in the Bajaj Electricals Limited transformation journey that we have embarked on. This will enable us to create independent, industry-leading and competitive entities – each with precise organizational direction, appropriate capital allocation and the agility required to drive long-term value creation for customers. , employees and investors. I am convinced that this will help each of the business segments to initiate and unleash unconstrained growth. »

Shares of Bajaj Electricals Limited last traded on the BSE at Rs. 1046.65 from the previous close of Rs. 1056.85. The total number of shares traded during the day was 6830 in over 1362 trades.

The stock hit an intraday high of Rs. 1060.40 and intraday low of 1040.45. Net turnover during the day was Rs. 7155688.00.

Source: Stock market bulls

Key words

Company structure
Consumer Product