Bajaj Electricals to review its corporate structure

Calcutta: Bajaj Electricals (BEL), one of the leading white goods and home appliances, plans to review its corporate structure.
The Company is currently engaged in consumer products (CP) segment (which includes household appliances, fans and consumer lighting products) and engineering procurement and construction (EPC) segment ( power transmission and distribution and lighting projects).
“Given the varied nature and potential opportunities of each of the business segments and the need for a focused 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), parentage(s), strategic partnerships,” the company said.
Accordingly for BEL, the Board of Directors has authorized 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 review would include streamlining the corporate structure to improve market positions and generate long-term growth. Attracting the right talent and offering better growth opportunities to existing talent, in line with a more precise strategic direction on each business segment under separate entities and a capital structure and capital allocation policies adapted according to company-specific dynamics.
He said the company intends to appoint various advisors/consultants to help the board evaluate the options. It is expected that the Board and Advisors will complete their assessment and consider the way forward as soon as possible.
Shekhar Bajaj, CMD, said, “Over the past two years, the power transmission and distribution verticals have sharpened their operational focus, ensuring project closure, increased cash flow, debt reduction and the repayment of most debt, while simultaneously focusing on health and 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.