Bajaj Electricals to reposition brand as premium to aid margins

Synopsis "Going forward, Bajaj will be a much more aspirational, contemporary and premium brand," Anuj Poddar, Managing Director, Bajaj Electricals, told ET. "That's what you will see us delivering on in the next many quarters." Bajaj Electricals is looking to reposition itself as a more premium brand as the company works on improving its profitability after years of trailing peers in the consumer-electrical space. "Going forward, Bajaj will be a much more aspirational, contemporary and premium brand," Anuj Poddar , Managing Director, Bajaj Electricals, told ET. "That's what you will see us delivering on in the next many quarters." Bajaj Electricals has a higher exposure to rural markets than peers and its products have also come to be perceived as less premium. This has impacted its pricing power. Legacy cost structures at the nearly 85-years-old company have also reduced its operating margins, compared with peers. The company's 5% EBITDA margin in FY22 was the lowest amongst consumer electrical companies, where rivals including Havells and Crompton Greaves reported EBITDA margin in the range of 9-15%, as per an analysis by ICICI Direct . The brand is now looking to improve its acceptance among "premium, urban, affluent consumers," Poddar said, and it… Read full this story

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