Bajaj Electricals ltd

Company Profile:
Bajaj Electricals was incorporated as Radio Lamp Works Limited under the Indian Companies Act, 1913 as a public company limited by shares, pursuant to a certificate of incorporation dated July 14, 1938. Subsequently the name was changed to Bajaj Electricals Limited, pursuant to a fresh certificate of incorporation dated October 1, 1960. In 1964, Matchwell Electricals (India) Limited, ("Matchwell"), a manufacturer of electric fans became a subsidiary of Bajaj Electricals and subsequently, with effect from July 1, 1984, the business and undertaking of Matchwell was amalgamated with Bajaj Electricals. In the financial year 1993-1994, Bajaj Electricals entered into a joint venture with Black & Decker Corporation, United States, for the manufacture and marketing of power tools, household appliances, and related accessories, through a separate company named Black & Decker Bajaj Private Limited, ("Black & Decker Bajaj"). During the financial year 1999-2000 Black & Decker Bajaj became a 100% subsidiary of Bajaj Electricals upon Bajaj Electricals acquiring a further 50% of the shareholding thereof from Black & Decker Corporation, pursuant to which Black & Decker Bajaj was renamed as Bajaj Ventures Limited. However, the financial year 2002-2003, Bajaj Electricals divested 50% of its shareholding in Bajaj Ventures Limited and Bajaj Ventures Limited ceased to be a subsidiary of Bajaj Electricals. In January 1998, Bajaj Electricals established a new manufacturing unit at Chakan near Pune and commenced operations of manufacturing of fans and diecast components. The production of fans at our manufacturing activities of the Matchwell unit also was gradually shifted to Chakan unit. In September 1999, Bajaj Electricals established and commissioned a wind energy generation unit with an installed capacity of 2.8 mega watts at Village Vankusawade, Tal. Patan, District Satara, Maharashtra. In the year 2000-2001 Bajaj Electricals set-up manufacturing facilities including a fabrication unit and a galvanizing plant at Ranjangaon, near Pune for the manufacture of high masts, lattice towers, and related products, and the said

Values: Build Trust : We will conduct all our business dealings with fair and ethical business practices and strive to build trust in the minds of all our stakeholders. In the financial year 2002-2003 Bajaj Electricals discontinued manufacturing die-cast components. Bajaj Electricals entered into a technical collaboration and brand licensing agreement with Morphy Richards. United Kingdom. In November 2002.manufacturing facilities commenced commercial production with effect from April 1. a company engaged in the manufacture of Compact Fluorescent Lamps ("CFLs"). Our vision: Bajaj Electricals aim to bring greater happiness to their customers. we acquired 32% of the share capital of Starlite Lighting Limited. for the sales and marketing of electrical appliances under the brand name of "Morphy Richards" in India. Company philosophy: Trust builds Quality Quality builds Satisfaction Satisfaction builds Relationship Relationship builds Trust We believe in ³Inspiring Trust´. Belief in Excellence : We believe in setting higher levels of Excellence in all our actions and will recognize and reward the excellence achieved by our team members. 2001. through its products and services. while continuously enhancing stakeholder value. . In the year 2005 Bajaj Electricals entered into a Distribution agreement with Trilux Lenze of Germany for high end technical lighting. In the year 2007.

Delighting Customers : We will delight our customers by providing them worldclass products and services and thereby enhance their quality of life.0 FY08 2600.0 1850. All the three divisions have been growing at very healthy growth rates of 20-35% CAGR over the last 5 years and are highly scalable with future growth rates expected to be 20-25% as they are proxy of various growth themes of India such as Consumer Discretionary. Distribution.0 2820. CFLs. Rs mn Appliances Fans Lighting Luminaires Engineering & Projects 1780. Rural Electrification) and Lighting (Lamps.0 1410.2 5230. Towers.0 17730.0 1090.5 .0 1000. Consumer Durables (Brown goods).0 1797.0 10770. Industrial Capex. Infrastructure etc.0 CAGR 35% 28% 20% 24% Total Revenues 6490.0 1550.0 FY10 4640.0 2950.0 2450.0 1210.0 677.0 2090.1 731.0 869. Poles. Engineering & Projects (High Mast.0 1432. Transmission.0 1090. Business Overview: Bajaj Electricals operates in three divisions.0 2300.6 3630.4 385.5 284.0 FY09 3630.4 893. Personal Growth : Every employee will be enabled to learn at the work place with significant opportunities for Personal Growth and Contribution to the organization.0 1340.5 31% 29% 44% 59% FY06 1410.0 1760. LED. Encouraging Teamwork : We will ensure dignity and respect for the individual while encouraging Teamwork.6 138.8 3050. Retail.0 EBIDTA PAT 418.0 2410.0 FY07 1940.0 8440.0 1930. Power Generation. Street Lighting).0 13730.

promotions. . Effectiveness of promotion schemes 16. Service Quality Study 5. Customer Loyalty study 18. Effectiveness of channels (on-line/ Internet) in service delivery 13.product. Advertising effectiveness study 21. Customer Data Analysis 14. marketing objectives 25. Service standards 10. Study of purchase influencing factors 19. Customer Profiling 20. marketing mix and marketing research 24. Study on effectiveness of employee¶s role in service delivery 11. Consumer Perception Survey 4. marketing process 23. Strategic Analysis of market 3. Customer Satisfaction Survey 2. Service Process Mapping ± Back stage. bcg matrix 22. Service Blueprinting 6. Study of Institutional markets 15. price.Marketing ± project topics: 1. Improving service quality using service blueprinting 8. Measurement of Brand awareness and brand perception 17. Effectiveness of channels (distributors/ DSAs) in service delivery 12. on-stage 7. place. the 4 P's . Competition Analysis 9.

based perspectives. we find that brand association is a very important variable which mediate the relationship between brand awareness toward brand loyalty. perceived quality. brand association. We argue that brand association plays as a suppressor in our model that leads to inverse relation between brand awareness and perceived quality. We implement Structural Equation Modelling with LISREL to examine the hypothesis. On the other hand. our finding showed that perceived quality does not play as a mediator role in this study. With respects to the mediating effect of perceived quality to the relationship between brand awareness towards brand loyalty and brand association towards brand loyalty. The finding showed that there is a significant and positive direct effect between brand awareness toward brand associations. and brand association toward perceived quality and brand loyalty. Perceived Quality.1) Measurement of Brand awareness and brand perception: This research investigated direct and indirect relationship between brand equity constructs which includes brand awareness. the financial perspectives and combined perspectives. While this study focus on customer based brand equity. Brand Loyalty. Brand Association. Keywords: Brand Equity. The issue of brand equity emerge as one of the most crucial topics for marketing management in 1990s and its concept and measurement has interested academicians and practitioners for more than one decade. and brand loyalty. . There have been three different perspectives for considering brand equity. Brand awareness. The customer.

and how often you ask these questions are also important. and their permission. If you wait to conduct a survey. the most important thing about conducting a customer satisfaction survey is what you do with their answers. what you ask the customers is important. The results are predictable. How. the customer's response may be less accurate. When you conduct a customer satisfaction survey. That question is. How do we find out whether our customers are satisfied? The best way to find out whether your customers are satisfied is to ask them. when . Her may color his answers because of confusion with other visits. Call them on the phone If you have their phone number. Email them a customer satisfaction survey Be careful to not violate Spam laws Email them an invitation to take a customer satisfaction survey When To Conduct A Customer Satisfaction Survey The best time to conduct a customer satisfaction survey is when the experience is fresh in their minds. However. ask them. you can call them after their visit and ask how satisfied they are. You can ask them: y y y y y Face-to-face As they are about to walk out of your store or office. She may answer about a later event. Mail them a questionnaire This technique has been used for a long time. your products. He may have forgotten some of the details. and the service they received.2) Customer satisfaction survey of Bajaj Electricals: We all know customer satisfaction is essential to the survival of our businesses. "will you buy from me again?" . How You Ask Whether Customers Are Satisfied There are many ways to ask your customers whether or not they are satisfied with your company. What To Ask In A Customer Satisfaction Survey There is a school of thought that you only need to ask a single question in a customer satisfaction survey. She may confuse you with some other company.

You want to ask other questions in a customer satisfaction survey to get closer to the expected behavior and to collect information about what to change and what to keep doing. and your company. What's Next in Customer Satisfaction Surveys? So how do you know what's important? How do you know what really matters to them? More importantly. your service. It is too easy for a customer to answer yes to the "will you buy from me again?". whether they mean it or not. how do you know which things to focus your limited resources on first in order to have the biggest impact on improving customer satisfaction? . By all means ask the basic customer satisfaction questions: y y y How satisfied are you with the purchase you made (of a product or service) How satisfied are you with the service you received? How satisfied are you with our company overall? And ask the customer loyalty questions" y y y How likely are you to buy from us again? How likely are you to recommend our product/service to others How likely are you to recommend our company to others. you miss a lot of valuable information and you can be easily misled. Also ask what the customer liked and didn't like about the product.While it is tempting to reduce your customer satisfaction survey to this supposed "essence".

Otherwise known as ³external environmental analysis´ it is a key step in strategic planning.3) Strategic Analysis of Bajaj Electricals: Strategic analysis is about looking at what is happening outside your organisation now and in the future. about the longer term. Many funders are reassured by strategic analysis because they know that organisations that are well prepared for their future are more likely to use grants. It is the link between getting your overall direction right and making the right decisions. It asks two questions: y y How might what's happening affect you? What would be your response to likely changes? It¶s called strategic because it¶s high level. and about your whole organisation. and a more secure future as you are better prepared for what will happen. The focus is external because factors outside your organisation have a powerful influence on it. Increasingly organisations appreciate that they can learn to manage their response to those influences. . better quality decisions. donations and loans to greatest advantage and to maximise the difference their organisation makes. It¶s called analysis because it¶s about breaking something that¶s big and complex down into more manageable chunks. It's part of the overarching process of strategic planning. Strategic analysis boosts organizational effectiveness Strategic analysis helps to: y y y Anticipate what might happen Evaluate how likely it is to happen Prepare for it happening Strategic analysis will lead to clearer more relevant goals. You will make better decisions if you understand the influences from the outside world to which you might have to respond in the future. rather than assume there is nothing they can do.

. All three businesses are a play on India growth story: All the three divisions have been growing at very healthy growth rates of 20-35% CAGR over the last 5 years and are highly scalable with future growth rates expected to be ~20-25% as they are proxy on various growth themes of India such as Consumer Discretionary. Consumer Durables (Brown goods). However. PAT CAGR is 51%) trading at ~10x its FY11E earnings. Industrial Capex. Bajaj Electricals is trading at the lowest end of the valuations. Power Generation.1600 mn. however If we look at the various businesses of the company and compare them with the sectoral valuations. missing opportunities for beneficiaries. Company Profile: Bajaj Electricals Ltd. The company has grown at these high rates without saturating any of its markets. If you don¶t do strategic analysis you risk being left behind. Towers. Rural Electrification) and Lighting (Lamps. LED. the company has recently done a QIP at Rs. its recent earnings have grown at 62% and 152% in Q1FY10 and Q2FY10 respectively. Street Lighting).The cost of not doing at least a small amount of strategic analysis means missed opportunities (some call this µopportunity cost¶ ± the cost of not doing something). Valuations: There aren't any direct comparable companies to Bajaj Electricals. Poles. Retail. Engineering & Projects (High Mast. Distribution. The company generates significant cash to sustain its operations thereby curtailing the need to raise capital which helps in generating high returns on capital (Average ROE of 40% over the last 4 years).785 per share to raise Rs. is a high growth company (last 5 yr sales CAGR is 30%. Transmission. Infrastructure etc. which would be used as growth capital (hinting acquisitions). with market share ranging between 15-30% implying significant future growth opportunities. Bajaj Electricals operates in three divisions. CFLs.

1 100.1 500031 / BAJAJELEC BJEL.7 10.16.9 FY09 17.3 51.6 26.1485 / Rs .BO BJE IN Equity Dec''10 65.271.1 34.2 14.1 FY11E 25.14.9 2.749.8 42.0 .9 BN/$352.6 1.797.1 1.4 Rs .6 35.3 15.907.815.9 MN 0.2 28.5 84.0 13.0 42.2 1.1 2.0 Sep´10 73.of Shrs o/s i n MN Book Value BSE / NSE Reuters Bloomberg Share holding (%) Period Promoters MF/Banks/FIs FIIs Public & Others Total Rs 876 Rs 1282 46% Rs .2 893.1 17.7 21.2 FY10E 21.7 50.331 Rs .3 265.1 10.5 mn/$0.2 100.3 mn 19.4 2.7 20. dai y vol .2 10.3 10.7 19.3 28.Year Net Sales %growth EBIDTA OPM% PAT %growth EPS PE(x) RoE% RoCE% FY08 13.8 Market Values: Buy Current Price Target Price % upside 52 Week Range Key Share Data Market Cap EV / Sales EV / EBI DTA 1mth avg.240.7 27. No.6 86.7 18.638.779.1 33.295.5 10.0 36.8 7.8 1.432.1 1.0 67.6 45.5 10.0 39.4 731.5 22.

Sign up to vote on this title
UsefulNot useful