Mumbai: Last year was a year of considerable change for Bajaj Electricals, during which it continued on its broad-ranging transformation process that was started in FY 2002-03. The objective was two fold, to help the company weather the downturn and, more importantly, to position it to be a resilient player in a fast changing market place. The company has also completed a smooth transition of operating under the new strategic business units'' structure.

Speaking after the Board Meeting of Bajaj Electricals Limited held in Mumbai on 11^th June, 2004, Mr. Shekhar Bajaj, Chairman & Managing Director stated that for the year ended 31^st March, 2004, the revenue from operations were higher at Rs. 503 crores as against Rs. 433 crores in the previous year showing a growth of 16 per cent

"Our focus was on achieving a turnaround in performance by aiming for sustainable profitable growth. We achieved good revenue growth while controlling operating expenses, improving margins, reducing working capital and certain fixed costs. Cost reduction initiatives at our manufacturing facilities continued, with a strategic sale of non-performing assets to improve the business focus," said Shekhar Bajaj, chairman of Bajaj Electricals.

The profit before tax has improved to Rs.16.72 crores against a loss of Rs.13.48 crores last year. This includes profit on sale of development right on land of Rs. 11.70 crores. The profit after tax has improved to Rs. 11.36 crores as against a loss of Rs.9.80 crores in the previous year. The Directors have recommended an equity dividend after a gap of 2 years of 10 per cent on the enhanced capital after the rights issue.

"The Company has improved its market share in various segments such as fans, appliances, luminaires and engineering & projects during the year with aggressive marketing activities and introduction of new products, " said . R Ramakrishnan, president and coo Bajaj Electricals. "We took a 360 degree view to achieving excellence in the key areas of operations, including sourcing, distribution, cost management and customer care,"

"At the same time, we have also extended our retailer network to more than 125000 outlets across the country," he added

To extend and add further value to its portfolio of products and solutions and to meet differing customer needs, Bajaj Electricals is also constantly exploring strategic alliances with business partners around the globe.

These initiatives will further reinforce the continuous efforts made by Bajaj Electricals to excel in the marketplace and achieve market leadership. Looking ahead, the company will continue to build and leverage on these to deliver value-enhancing and innovative products to its customers.

With the new organisational structure, higher levels of performance and its brand equity, Bajaj Electricals is optimistic about prospects for FY 2004-05. This is also strengthened by the performance of the company in the first two months of FY 2004-05 wherein there has been an increase in revenue of 26 per cent over last year.