What led to the creation of Bajaj Electricals?
The business in its current form traces its origins to the acquisition of Radio Lamp Works by Kamalnayan Bajaj in 1938. The company used to distribute Italian-made radio lamps. Due to supply disruptions during World War II, it set up a factory in Shikohabad (Firozabad district, Uttar Pradesh) to manufacture them locally. This entity became Bajaj Electric in 1960.
What was the company’s focus in the initial years?
Kamalnayan Bajaj had the vision of creating a marketing umbrella for the small-scale sector. These businesses were efficient, hardworking, and entrepreneurial. However, they lacked adequate funding, branding, and marketing muscle, and that is where we added value. We supported over 100 small-scale industries by sourcing their products, branding them under Bajaj, and distributing them across the country. That was the original thought.
While Bajaj Electricals now has a large portfolio, how did you source and market new products in the early years?
Though it was a small company, we entered into a joint venture (JV) called Hind Lamps with some of the world’s leading lighting companies in 1951. Bajaj Electricals held a 50 per cent stake, while the rest was owned by four European companies — Philips, General Electric, Crompton Parkinson, and Associated Electricals. Despite our modest beginnings, Kamalnayan Bajaj was able to forge a JV that manufactured general lighting service lamps. Besides lighting products, the company expanded into appliances, fans, electrical accessories, and industrial components by the 1960s.
In recent years, competitors have overtaken Bajaj Electricals. How do you plan to counter them?
Yes, it is true that our peers in the FMEG space have performed well, while we were slow to respond to changing market dynamics. However, we believe that with a new team of professionals, we will regain our position. From 2026-27 onwards, you should expect Bajaj Electricals to post faster growth rates.
Our core strength lies in distribution and marketing, and we have built a portfolio of strong brands over the years. Apart from Bajaj and the recently acquired Morphy Richards, our brands include Nirlep and Nex. Our focus is on understanding the marketplace and consumer preferences, while increasing investments in research and development (R&D) and product development. We have also diversified into new product categories and are leveraging our existing distribution network to expand the portfolio while saving on overheads.
Is there a need to focus more on manufacturing and product development as your portfolio expands?
Unlike our competitors, which have a much larger manufacturing footprint (over 70 per cent), historically our manufacturing contribution has been 20-30 per cent. We have preferred an asset-light model, as it helps protect us from sudden technological changes. Our core strength remains distribution and marketing. We have built a portfolio of strong brands over the years, including Bajaj, the recently acquired Morphy Richards, Nirlep, and Nex.
We have increased our focus on R&D, with the condition that new products and variants must improve margins. We are also using artificial intelligence to reduce product development timelines and improve operational efficiencies.
Why was there a need to restructure Bajaj Electricals?
The engineering, procurement, and construction (EPC) business of Bajaj Electricals was demerged to form Bajel Projects. As a result, Bajaj Electricals is now focused on consumer products such as appliances, fans, and lighting, while Bajel Projects caters to the business-to-business segment. Since the EPC business is working-capital intensive, separate entities will be better placed to manage capital allocation decisions. Moreover, the demerger has unlocked value by creating two listed entities, giving investors the option to invest either in a consumer durables company or an EPC business.
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