Lighting products and consumer durables maker Bajaj Electricals today said it is eyeing a turnover of Rs 5,000 crore this fiscal, while aiming to double it in the next four years. “There is negative sales in the first quarter (because of GST). We should be able to catch up a little bit in the second quarter, but July was very weak,” Bajaj Electricals Chairman and Managing Director Shekhar Bajaj told PTI here. “For the year, we are still looking at 10 per cent growth in the consumer products and 20 per cent coming from EPC. From Rs 4,300 crore, which was last year, we should do about Rs 5,000 crore,” he said.
Bajaj added that the company will grow at 15-20 per cent year on year and will take four years to become a Rs 10,000 crore company from Rs 5,000 crore. However, he said the company will not look at the revenue share from engineering and projects (EPC) to be more than its consumer durable business. “Our business of EPC, we will not allow it to grow faster than our consumer product business. At least 50 per cent of our sales must come from consumer products because EPC business has its ups and downs and there is risk involved,” he said.
The company is restructuring its consumer products business by adopting the distribution system from wholesale model and Bajaj said the company will complete the process by the fiscal year end. “We have covered 80,000 outlets already and by end of March, we should have covered 1,60,000 outlets, which will be 90 per cent of the market,” he said. Bajaj Electricals has a licensing agreement with Morphy Richards to make, sell, market and distribute products under the brand name in India. It launched a new range of Morphy Richards products in the super premium segment today.
Morphy Richards has a revenue of Rs 230-240 crore in India at present and the company is looking at a turnover of Rs 300 crore this fiscal. “We are looking at over a period of three years our level of Rs 300 crore for Morphy Richards growing to Rs 600 crore. Out of that Rs 600 crore, Rs 100 crore should come out of these new range of products,” Bajaj said. Bajaj Electricals is also exploring opportunities in the internet of things (IoT) space and he said the first product in the cooler category would be out this year. The company has already introduced luminaries with artificial intelligence.