Bajaj Electricals eyes Rs 5,000-cr turnover this fiscal

Lighting products and consumer durables maker Bajaj Electricals is looking at a turnover of around Rs 5,000 crore this fiscal, helped by robust growth in its durable and engineering and project segments.
The company is expecting an equal contribution of around Rs 2,500 crore each this fiscal from its both segments - durables and engineering and projects (EPC) divisions.
"We are expecting both the businesses to contribute Rs 2,500 crore each. We are looking at Rs 4,800 crore to Rs 5,000 crore," Bajaj Electricals Chairman and Managing Director Shekhar Bajaj told PTI.
In FY 2015-16, Bajaj Electricals had posted Rs 4,634.80 crore revenue from operations and other income.

The company is presently restructuring its consumer products business by adopting the distribution system from the wholesale model.
"Instead of wholesale model, we are going for a distribution model, which is taking little time," Bajaj added.

Moreover, the Mumbai-based company has now created two verticals. It has merged small appliances and lighting source business to consumer products portfolio, which would handle b2c business.
"Now we have merged the small appliances and lighting source business as one vertical, which is called as consumer products portfolio. It would go through the same outlet," he said adding that the another one is " b2b business, which would have project business and luminaries business".

Bajaj Electricals is also expecting its Engineering & Projects division to have a good performance this fiscal.
"Our Engineering & Projects division is also doing well. It had a business of Rs 1,400 crore last fiscal and this fiscal it would be around Rs 1,700 crore to Rs 1,800 crore," he added.
The company, which is number two into the lighting segment after Philips has also started production of LED lights.
"We have started production in LED in a small way. We are keeping our options open... As it has a very vast range, some products would be manufactured by us and some would be sourced from outside," Bajaj added.

However, he also added that the lighting segment would not have much growth this fiscal as the prices are falling despite a volume increase.
The company is expecting that LED segment to account for around half of its lighting business revenue by 2017-18.
"This year, we are expecting a business of Rs 1,300 crore from the light business, in which around Rs 450 to 500 crore would come from the LED segment," he added.
Last fiscal, the company had total sales of Rs 1,100 crore from the lighting segment, in which LED contributed around Rs 300 crore.