CAMPUS TO CORPORATE CONNECT (C3)

BUSINESS DOSSIER
PRESENTATION
(FMCD)

SUBMITTED BY-
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OVERVIEW
The Consumer Durables industry comprises of products and apparatuses for local utilize, for example,
TVs, fridges, air conditioners and washing machines. Instruments.The sector has been seeing critical
development as of late, helped by a few drivers, for example, the rising retail boom, real estate and
housing demand and more disposable income. This industry has many international as well as national
players, for example, Videocon, Voltas, Blue Star, MIRC Electronics, Bajaj electricals, Whirlpool, LG,
Samsung, etc. The consumer durables industry can be extensively arranged into two sections:
Consumer Electronics and Consumer Appliances and Consumer Appliances can be further classified into
Brown Goods and White Goods.
 EMERGING TRENDS
 Expansion in new segments -

With major firms like Hindustan Unilever and even Voltas announcing their expansion plans to enter the
consumer durables industry, buyers can be assured to see many new products in the market. While
Micromax has already announced it would invest $89.25 million to reinvent itself as a consumer electronic
company, Hindustan Unilever is not too far behind. Targeting the millennials, it will bring a whole new
range of skincare products to India this year.

 Increased affordability of products -

Aggressive price point, year-round discounts on e-commerce, advanced technology becoming cheap and
reduced tax rates after GST- price reductions across various consumer durable product segments have been
on an all-time high. With Make in India initiative also gaining momentum, domestic and Chinese
manufacturers are heavily investing in India. Manufacturing of products is expected to become cheap,
which is further expected to reduce the prices of the products.
  Occasion-based marketing strategies -

From partnering with e-retailers to offering massive discounts during festivals and occasions like anniversaries
and New Year, brands have tapped all sources to reach the consumers. Strategic partnerships with foreign
brands and increasing global presence is also said to add to volume of sales this year.

 Focus on environment-friendly products -

From launching energy-efficient products to reducing e-waste and promoting recycling, companies are leaving
no stone unturned to ensure that their products promote eco-friendly initiatives. With different state
governments also offering perks for eco-friendly products and the increase in consumer awareness will only add
to more brands launching environment-friendly products.

 Growth in luxury market –

Increase in double-income families and increase in spending capacity has ensured that more luxury brands enter
the Indian market. Not only are these brands increasing their presence in malls and high street, they are also
bringing their products to e-commerce marketplace. The exclusive brand websites are another attraction to lure
more customers.
 MAJOR PLAYERS IN THE SECTOR

The noteworthy players in Consumer Durables market in India are, Samsung, Whirlpool, LG, Godrej, Sony,
Hitachi, Videocon, Sony, IFB etc. Prominent Indian consumer durables companies include Bajaj Electricals, Blue
Star, BPL, Godrej, IFB, MIRC Electronics (Onida) and Videocon etc. Multinational companies in India include
Whirlpool, Samsung, Panasonic, LG and Haier etc.
Samsung India Electronics, a subsidiary of South Korea's largest business group, Samsung, tops the revenue chart
among consume durables companies in India. Followed by home- grown Videocon Industries at the second
position. LG, Sony Bajaj Electricals and Whirlpool India follows the revenue list and takes third, fourth, Fifth and
Sixth position respectively
 1. Established distribution network in both urban & rura
STRENGTHS areas
2. Presence of well known brands
3. Organized sector has increased its market share against
the unorganized sector

1. Demand is seasonal & high during festive season

2. Demand relative to good monsoon
3. Poor government spending on infrastructure WEAKNESSES
4. Low purchasing power of consumers
 1. Penetration level low as compared to developed
OPPORTUNITIES countries
2. Unexploited rural market
3. Rapid urbanization Increase in purchasing power
4. Easy finance

1. High import duties on raw materials

2. Stiff competition from different brands for a
solitary item has kept each player on his toes.
THREATS
3. Cheap imports from China, Singapore & other
Asian countries
BAJAJ ELECTRICALS LIMITED
 “EARILER ORGANIZATION MADE INDIVIDUALS
TODAY INDIVIDUALS MAKE AN ORGANIZATION”

- RAHUL BAJAJ
 COMPANY OVERVIEW
BAJAJ ELECTRONIC LIMITED

 Part of the Rs.40894 crores “Bajaj group”

• BEL is a 79 year old trusted company with a turnover of Rs.4977
Crores and market capitalization of around Rs.2000 crores.
• BEL was incorporated on 14 July 1938 as Radio Lamp Works
Limited under the Indian Companies Act, 1913 as a Public company
limited.
• BEL has 19 branch offices spread in different parts of the country
with a chain of about 1000 distributors, 4000 authorized dealers,
over 130,000 retail outlets and over 468+ Customer Care centers.
CORPORATE VISION OF BAJAJ
ELECTRICAL LIMITED

“ Enhancing quality of life and bringing happiness with

sustainability”.
MISSION
 Integrity: Having complete integrity alignment in what we feel, what we speak and what we do, thereby
demonstrating honesty and having strong moral principles. Having firm belief in the reliability, truth and
ability of all stakeholders and company processes.

 Team work: Believing in ‘One for all and all for One’ thereby working together to exceed our expectations
in achieving organizational objectives.

 Empowerment: Creating conditions and enabling people to take responsibility for enhanced contribution
towards personal and organizational objectives.

 Customer Delight: Proactively anticipating internal and external customer needs and relentlessly working
towards exceeding their expectations.

 Innovation: To continuously explore, develop, create and implement new technology, processes, ideas and
products
 BROAD OVERVIEW
BAJAJ ELECTRONICS

 Bajaj Electricals has 6 – Strategic Business units. On a Broader Organizational classification, (Bajaj
Appliances, Bajaj Lighting, Morphy Richards and Bajaj Fans) would come under B2C (Business to
Consumer) business with a separate head while (Bajaj Luminaries and Bajaj E&P) would come under B2B
(Business to Business) with its Own head. This structure provides a lot of synergies including cost benefits.
 While Reporting, Morphy Richards No's would come under Bajaj Appliances. Also on the accounting front,
Consumer Durables include (Appliances, Morphy Richards, Fans), Lighting includes (Luminaries &
Lighting) and Engineering & Projects are accounted separately.
 STRENGTH

 Decades of experience in design, development and manufacturing

 Strong financial performance
 Diversified into many segments and tapping sophisticated markets
 High liquidity has enabled it to invest in new technologies and have grown in
many segments
 Market leadership and price competitiveness
 Has a strong workforce and good brand presence due to TVCs and print ads 
WEAKNESSES

 The brand has less penetration across international market

 Market share is limited due to intense competition

 Company has changed it’s logo, People are not aware of new
one.
OPPORTUNITIY

 Expansion through Strategic Alliances

 Growth in its product line could increase demand
 Population growth and urbanization is increasing the demand
 Emphasis on in-house R&D for Technology Development
 Focus on Technology Intensive Products
 It is less into exports so it can start exporting
THREATS

   Maturing categories, products, or services

 New competitors with new model and new design .

 Cheaper technology – Price wars

COMPETITORS
Havells India Limited is a leading Fast Moving Electrical Goods (FMEG) Company and a
major power distribution equipment manufacturer with a strong global presence. Havells
enjoys enviable market dominance across a wide spectrum of products, including Industrial
& Domestic Circuit Protection Devices, Cables & Wires, Motors, Fans, Modular Switches,
Home Appliances, Air Conditioners, Electric Water Heaters, Power Capacitors, Luminaires
for Domestic, Commercial and Industrial Applications

Voltas continues to stand at the forefront of re-engineering the future through innovative
thinking and smart engineering
As India’s largest air conditioning company, Voltas is also one of the most reputed
engineering solution providers specializing in project management..

Blue Star is India's leading air conditioning and commercial refrigeration company,
with an annual revenue of over ₹5405 crores (812 million USD), a network of 32
offices, 5 modern manufacturing facilities, 2800 employees, and 3880 channel
partners. The Company has 6000 stores for room ACs, packaged air conditioners,
chillers, cold rooms as well as refrigeration products and systems, along with 1060
service associates reaching out to customers in over 900 towns.
MARKET COVERED (APPLIANCES)

5%
10%

42%

27%

17%

BAJAJ ELECTRICALS HAVELLS BLUESTAR VOLTAS OTHERS

 MARKET SHARE
 FANS -:
• Products : Ceiling Fans, Table, Pedestal, Wall mounting Fans, Industrial & Domestic
Exhaust fans, Industrial & Commercial Air Circulators, Personal Fans, Bajaj Disney
Children’s Fans etc.
• Brand position: One of the major player in the Top 5 Brands.
Bajaj Fans contribute 14% to the revenue of Bajaj Electricals

 LUMINARIES -:
• Products :
Luminaries contributes 10% to the revenue of Bajaj electricals and are moving towards
increasing the revenue through innovating the products in luminaries sector
 APPLIANCES -:
• Products -   Mixer , Hand Grinder , Cooker , JMGs & Juicer , Hand Blenders & Chopper,
Pump , Geyser , Room Heaters , Iron , Coolers.
Bajaj appliances plays a major role in contributing to the revenue of bajaj electronics
It contributes around 29% of the total revenue and holds 50% of the market shares.

 LIGHTING -:
• Product - Air Circulators, LED Lamps , Batteries, Panels and Electrical Accessories etc
The Company has decades of experience, expertise and proven track record of providing top-notch
functionality, energy efficient and aesthetically appealing solutions to customers in lighting. It
contributes a total of 13% to the total revenue.

 ENGINEERING & PROJECTS -:

• Works – Power distribution , Transmission line Towers, Illumination EPC.
Engineering and projects contributes the most to the bajaj electronics revenue with a total
Contribution of 34% of the total revenue.
COMBINED REPRESENTATION OF
REVENUE

13% 14%

29%
34%

10%

FANS APPLIANCES LUMINARIES ENGG. & PROJECTS LIGHTING

RECENT EVENTS
(BAJAJ ELECTRICALS LIMITED)
 Bajaj Electricals CFO believes worst is over, expects festive sales to lift
Q3 show
Consumer appliances firm Bajaj Electricals  is now seeing clear signs of growth amidst the coronavirus
pandemic as segments like appliances see a pick-up.
In an interaction with Money control, Anant Purandare, Chief Financial Officer of Bajaj Electricals said
based on the current trends, it could be said the worst is over when it comes to coronavirus-led
disruption.
"We have posted a good set of numbers, be it the topline, profits or the margins. The EPC business has
not seen very high growth because we are taking a calibrated approach in that segment," he added.
Bajaj Electricals was back in black in the September quarter (Q2) and posted a consolidated net profit of
Rs53.11 crore. The company had a net loss of Rs32.54 crore in the year-ago period.
The total revenue from operations grew 11.1 percent YoY to Rs1,217.71 crore in Q2FY21 on a
consolidated basis.