"At Bajaj Electricals we aspire to bring the latest technology to our customers.We are TAKING THE LEAP INTO A WORLD OF POSSIBILITIES as we embrace digital transformationto create innovative future-ready products"
Dear Fellow Shareholders
I am very happy to share with you my thoughts on the performance and prospects of yourCompany.
The year 2016 shall certainly not be forgotten in a hurry. The unexpected result of theUK's referendum to leave the EU and the surprising election of the Republican candidateMr. Donald J. Trump as the President of the USA are events that will have a long-termrepercussion on global events.
India continued with its growth momentum to emerge as the fastest growing major globaleconomy for the second consecutive year. A near normal monsoon decisive governmentpolicies and bold reforms favourable commodity prices and under-control inflation ensuredthe country's GDP growth of 7.1 per cent for the year. The demonetisation shock inNovember created a short-term aberration in the third quarter. Together with the passageof the GST Bill and its implementation in July 2017 demonetisation and GST are expectedto unleash a new era in India's growth.
While the year did bring its own challenges at Bajaj Electricals we have continued toperform satisfactorily. Though our total revenue declined by 7.10 per cent to ' 4298.26crore compared to ' 4626.70 crore in the previous year our sustained focus on improvingoperational efficiency and implementation of redistribution strategy across the countryhas shown a positive impact on the gross margins and working capital turns. Our EBIDTA forthe year was ' 278.35 crore compared to ' 312.33 crore in the previous year while our PATstood at ' 107.66 crore compared to ' 110.35 crore for the previous year.
During the year a key strategic development was the merger of four consumer-facingbusiness - Kitchen Appliances Domestic Appliances Fans and Lighting into one. TheCompany continues to strengthen its distribution by adding more consumer touch-pointsthrough effective implementation of its Range & Reach Expansion Programme.
The EPC and the Exports businesses of the Company also performed well during the year.The TLT division recorded a growth of 26.9 per cent while the Illumination EPC and theLuminaires businesses saw a resurgence in demand. The Luminaires division won the"Smart Green Building Initiative Award 2017" and "FSAI Awards 2017 for BestIntegrated Project India."
The year saw us continue with our Marketing and Branding initiatives. The "We arefamily" brand theme was communicated powerfully using various communication channels.
As I look ahead the immense opportunity unleashed by the digital transformationexcites me. Connected devices that seamlessly talk' to each other over the internetand make our lives easier are here. The IoT (Internet of Things) is poised to usher inanother revolution in our lifestyles. The Indian consumer is not only ready but eager toevolve into this new world of possibilities as the country marches confidently ahead onits economic highway of growth. The economic outlook is positive and promising as all thekey blocks are in the right place.
At Bajaj Electricals we are poised and prepared for a new phase of growth.
Thank you for your continued confidence and faith in the Company and its management. Iwould also like to extend my gratitude to all our stakeholders particularly ouremployees whose passion and dedication continue to excite me. Let me assure you thatBajaj Electricals will continue on its path of touching lives and moving India.
|Yours sincerely |
|Shekhar Bajaj |
|Chairman & Managing Director |