- 20 Apr 2023
- ICICIdirect Research
BAJAJ ELECTRICALS FOCUSING ON STRENGTHENING PREMIUM PRODUCT PORTFOLIO
BAJAJELEC - 603 Change: -34.30 (-5.38 %)News: As per media sources, Bajaj Electricals is focusing on gaining market share in the premium fans segment through new product launches. Currently, the company has single digit market share in the premium fans category whereas it has a double digit market share in economy category of ceiling fans. According to Ravindra Singh Negi, COO, Consumer Products at Bajaj Electricals, demand for fans had dropped due to inadvertent rainfall in March. However, fans are now seeing a better offtake with increasing temperatures
Views: The consumer products segment, which consists of appliances, fans and lighting contributes ~78% to the company's topline. The fans segment was facing demand pressure amid transition to BEE norms but we believe the segment is seeing a pick-up in demand on the back of channel filling and seasonal demand. We also believe Bajaj Electricals' focus on premium fans will help drive its margins, going forward
Impact: Positive