Bajaj Electricals plans lighting unit in Saudi

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Mumbai, Oct 7 : Bajaj Electricals Ltd (BEL) is planning to set up a factory for high-mast lighting systems (tall lighting structures used at airports and factories) in Saudi Arabia, in next 15 to 18 months to cater to the growing demand in the Middle East, Anant Bajaj, executive director, Bajaj Electricals Ltd told FE. According to him, “The investment needed for this has not yet been frozen. We are still exploring and will be in a position to commit a price in the next 100 days.”

Bajaj said, “The demand for high-mast lighting systems, which fall under the engineering and projects business, is gaining momentum. The demand is 10 times more in value terms in the Gulf Cooperation Council (GCC) countries, than in the Indian market. From the factory in Saudi Arabia, the products will be exported to other GCC countries.” In the first six months of 2008, the company’s export revenues have grown 50% more over the previous corresponding period.

Bajaj Electricals has a major thrust on exports. It has already established its products in many countries - Middle-East (UAE, Oman, Qatar, Saudi Arabia, Bahrain, Yemen, and Jordan), Africa (South Africa, Zambia, Kenya, Uganda, Egypt, Sudan, Botswana and Ghana) and neighboring countries (Bangladesh, Sri Lanka, Myanmar). Bajaj said, “We now plan to tap the Latin American markets also.

The products exported to these countries include fans, lighting fittings, lamps, tubes and small appliances. BEL has approval from South African Bureau of Standards (for GLS), Egyptian Standards Organisation (for Irons), and Kenyan Bureau of Standards (for lighting fittings).”

Bajaj said, “We expect order book of engineering and projects (E&P) business unit to exceed Rs 1,000 crore soon, from its current order book of Rs 364 crore.” In India, Bajaj E&P business units has received 4 major rural electrification orders valued at Rs 364 crore, involving over 6 lakh below poverty line (BPL) connection in remote villages of West Bengal, Orissa and Chattisgarh. Besides, we have recently bagged Rs 9 crore lighting order for the Bandra-Worli Sea Link project.”

Shekhar Bajaj, chairman & MD, Bajaj Electricals Ltd said, “Since the crude prices have dipped recently, we will not be hiking prices of fans and lighting products in November 2008 which otherwise we were planning to hike earlier due to rise in input costs.”