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, which is celebrating the completion of its 75 years, is looking to set up hubs to cater to new global markets as part of plans to scale up contribution of export to its total turnover from the current level of one per cent.
“One thing we have not done in last the 75 years is to take our products across the globe,” Bajaj Electricals Joint Managing Director Anant Bajaj told PTI.
Stating that the company is aspiring to be formidable player not just in Indian market but also globally, he said Bajaj Electricals will focus on innovation for new products.
“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.
Commenting on plans to increase exports, 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 but declined to share which geographies the company was looking to set up regional centres.
In the past, Bajaj Electricals exported through a Bajaj group company but from last year it has brought it back within the company.
Bajaj said at present contribution from exports to overall turnover is just about one per cent although the company’s products are sold in up to 40 countries, including the Middle East, Africa and some markets of South East Asia.
“But whatever we are selling, we are doing in a very good sort of sustained way of making the correct margins and profit. It has been very encouraging,” said Bajaj.
The company, which had a turnover of around Rs 3,400 crore last fiscal, is looking at an overall growth of 20-24 per cent in next three-four years, 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.”