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Bajaj Electricals' new gameplan

By Ramnath Subbu

MUMBAI NOV. 22. Bajaj Electricals (BEL), a significant player in the industry segment of consumer electricals, plans to increase its presence in each of the segments of its operations.

The company has a presence in fans, small appliances, luminaires, lighting and in high mast towers. BEL has a fan-making facility in Chakan, Pune, with a capacity of one million ceiling fans annually and a galvanizing factory at Ranjangaon near Pune to make high mast towers, telecommunication towers with a capacity to make 30,000 tonnes annually of galvanized steel.

Through a 52-year-old joint venture with Philips, Hind Lamps, the company makes bulbs and tubes at Shikohabad in Uttar Pradesh. The luminaires vendors from whom the company sources are at Daman and the small appliances vendors are located in Delhi.

BEL has a tie-up with Midea, world leader in the table-pedestal-wall (TPW) fans and has a 15 per cent share. From a position of six in 2001-02, last year it moved up to number five and aims to be the fourth largest player in the current year. "For fans, we have a strategy. First, introduce new products such as Bahar and Maxima, Midea TPW fans and Crown in TPW segment. Second, we have gone in for a significant network expansion at the dealer level going from 1,200 to 1,800 and at the retail level from 6000 to 10,000," said R. Ramakrishnan, President and Chief Operating Officer, Bajaj Electricals. BEL created a separate network for different segments — economy and premium. "In the current year, I expect the fans market to grow at 10 per cent in volume terms and about 7 per cent in value terms," said Mr. Ramakrishnan.

The tie-up with Morphy Richards is for technology, sourcing as also brand licensing. There is also a three-way tie-up with certain vendors for specific products. In lighting the focus is on expanding retail network and compact fluorescent lamps and domestic fittings are main thrust areas.

In luminaires, Bajaj has introduced energy saving devices such as Trend Setter, a fixture which was used the at National Games stadium in Hyderbad.

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