Bajaj Electricals has announced the formation of a new wholly-owned subsidiary to undertake the business of power transmission & distribution.
In a stock exchange filing, the Mumbai-headquartered Bajaj Electricals announced that a wholly-owned subsidiary “Bajel Projects Ltd” was incorporated on January 19, 2022. The new entity will have an authorized capital of Rs.1 crore, the filing said.
The formation of this new subsidiary has its roots in an announcement by Bajaj Electricals, on December 9, 2021, regarding corporate restructuring.
Bajaj Electricals Ltd is currently engaged in two broad lines of business:
- Consumer products, comprising appliances, fans and consumer lighting products)
- EPC, which includes power T&D and illumination projects
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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 Bajaj Electricals, in a meeting on December 9, 2021, had authorized some of the company’s directors and officials to review the existing corporate structure and to suggest possible corporate restructuring. One option that was considered at the meeting, and eventually pursued, was to consider housing the power T&D business vertical as a standalone subsidiary.
In a company statement of December 9, 2021, Shekhar Bajaj, CMD, Bajaj Electricals, had expressed his view thus: “Over the past couple of years, the Power Transmission and Power Distribution business verticals have sharpened their operational focus, ensuring project closures, increased cash flows, reduction in receivables and repayment of most of the debt, whilst simultaneously focusing on health and safety and ESG in general. We believe the time is now ripe to build further on this and review our structures to enable unconstrained business growth for each business segment.”
Featured photograph (source: Bajaj Electricals) is for representation only