Bajaj Electricals to review corporate structure

To unlock growth and value creation for all its business segments

Bajaj Electricals is currently engaged in (i) Consumer Product segment ('CP') (which includes appliances, fan and consumer lighting products) and (ii) Engineering Procurement and Construction segment ('EPC') (which includes Power Transmission and Power Distribution and Illumination Projects).

Considering the varied nature and potential opportunities of each of the business segments 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 corporate structure. This will encompass an evaluation of full range of options and alternatives (including demerger(s), subsidarisation(s), strategic partnerships etc.).

Accordingly, the Board of Directors has authorised the BEL Management to evaluate and recommend such options and alternatives, and subject to such detailed evaluation, consider housing the Power Transmission and Power Distribution business verticals as a standalone / independent legal entity.

The strategic objectives outlined by the Board of Directors for undertaking such an exercise are as follows:

Streamlining of the Business Structure to enhance market positions and deliver long term growth
Attracting right talent and providing enhanced growth opportunities to existing talent in line with a sharper strategic focus on each business segment under separate entities
Tailored capital structure and capital allocation policies based on business-specific dynamics
Sharper, well defined corporate positioning coupled with value unlocking for all stakeholders
Distinct investment profiles to attract deeper and broader investor bases
Accelerating sustainability initiatives and expediting ESG practices