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Bajaj Electricals to expand global reach, leverage brand

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Bajaj Electricals to expand global reach, leverage brand

In a strategic move, the Rs 503-crore Bajaj Electricals Ltd—part of the Bajaj Group—plans to establish the ‘Bajaj’ brand in 15 to 20 countries in the next few years.

According to Bajaj Electricals Ltd chairman and managing director Shekhar Bajaj: “As part of the strategy, we are planning to spread our wings in the international market for lighting products such as lamps and tubes—from countries such as South Africa and the Middle-East to other parts of Africa such as Nigeria, Kenya, Libya, Morocco, Tunisia and Algeria in 2004.

On the company’s new plans, said Bajaj Electr-icals Ltd president and chief operating officer R Ramakrishnan: “ ‘Bajaj’ fans are being sold in Iraq and the Middle-East and the company has recently started exports of the product to Nigeria as well. The company now wants to leverage ‘Bajaj’ fans in other parts of Africa, the UAE, Jordan, Kuwait, Saudi Arabia and Iran more aggressively. Similarly, ‘Bajaj’ room coolers are going to the UK and now the company aims to export the product to Egypt and Europe too.”

“Besides, we are now planning to export our highmast lighting and galvanised poles to the Middle-East, Saudi Arabia and UAE in 2004,” he added.

The company recently started exports of highmast lighting and galvanised poles to Mauritius and the products have taken off well there. Till date, the engineering and projects business unit has executed the largest number of turnkey projects in lighting and associated electricals with a market share of above 70 per cent in India, explained Mr Bajaj.

Export activities of Bajaj Electricals is being handled by group company Bajaj International.

Bajaj Electricals Ltd is now eyeing Thailand to enter into outsourcing arrangements with companies based there. This is because of certain strategic advantages in terms of cost and product features. The move is in line with the company’s on-going China sourcing strategy for components used in domestic appliances in India, Mr Bajaj added.

“After having entered into brand licensing and strategic sourcing agreement with UK-based home appliance company, Morphy Richards Ltd, we are now in the process of manufacturing dry irons, oven toaster grillers and mixer grinders. Plans are on the anvil to implement manufacture of food processors for Morphy Richards in 2004. With the move, Bajaj Electricals plans to become a global supplier of select domestic home appliances to Morphy Richards,” Mr Ramakrishnan said.

As part of the marketing strategy, Bajaj Electr-icals is planning to introduce a concept of in-shop branding for ‘Morphy Richards’ brand within 100 premium retail outlets across the country. At present, Bajaj Electricals is in the process of marketing ‘Morphy Richards’ products through 2,000 retail outlets, he added.

On the company’s new customer relationship management initiatives, said Mr Ramakrishnan: “We are planning to promote ‘Morphy Richards’ products through appropriate ground-level activities which will include product demonstration, among others, in 25 towns, during Diwali 2004.

Bajaj Electricals is planning to expand its number of retail outlets from 1.25 lakh to 2 lakh within a year. Besides, in the next two years, the company is also planning to beef up its network from 22,000 retailers to 30,000 retailers, Mr Ramakrishnan said.


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