Bajaj Electricals is readying itself for global expansion, for which it plans to set up an integrated research and development centre to create next generation of products.
The company, celebrating 75 years in business, is looking to set up hubs to cater to new global regions as part of plans to scale up export contribution to its turnover from one per cent now.
"One thing we have not done in last the 75 years is to take our products across the globe," Joint Managing Director Anant Bajaj said.
"We are in the process of bringing an integrated R&D centre," Bajaj said, adding the intention was "to become innovation-driven R&D company and to create next generation of products". He, however, did not share details of where the R&D centre would be set up and what kind of investments would be made. Bajaj said: "We may not necessarily have things happening in every single country directly but we would make hubs."
The idea is to cater to peripheral markets through global hubs, he added.
In the past, Bajaj Electricals exported through a Bajaj group company but from last year it has brought it back within the company.
Contribution from export to overall turnover is at one per cent even though the company's products are sold in up to 40 countries, including in those of West Asia, Africa and some markets of Southeast Asia. The company, which had a turnover of around Rs 3,400 crore last financial year, is looking at an overall growth of 20-24 per cent in next three-four year, he added.
The firm is present in three segments - consumer appliances, lighting and engineering products. It sees products such as water purifiers, generators, inverters, and stabilisers as its growth drivers in future.
"Products like water purification, generators, inverters, stabilisers, these products are right now small part of our thing but have a good future because margin and sale is there," Bajaj said. When asked if the company would foray into segments like air conditioner and refrigerator he replied in the negative and said: "It does not makes business sense and neither do they make enough money."
