Bajaj Elect foray into green buildings
After a new logo and a series of tie-ups with European companies for electric chimneys, mixers and gas stoves, the Shekhar Bajaj-owned Bajaj Electricals is foraying into building management systems for ‘green buildings’ and large electrical projects.
The lighting, electrical distribution and consumer appliances company is diversifying into providing end-to-end solutions to airports, software campuses, special economic zones and shopping malls, and is in talks with corporate as well as government entities for the projects.
Shekhar Bajaj is brother to Rahul Bajaj, chairman of the Bajaj Group. Bajaj Electricals' attempt to target a premium segment of the industrial lighting market comes after it tied up with Nardi of Italy to target the high-end consumer in cook-tops and chimneys.
“From just a lighting and lighting products company, we plan to move to providing architects and consultants with the control systems for large buildings and projects,” said R. Ramakrishnan, executive director, Bajaj Electricals. The company plans to leverage its expertise in various fields to provide integrated solutions to builders and architects.
The company is currently putting together a team for the department, to be known as the ‘automation’ department. Once projects are finalised, the division would be made into a strategic business unit, he added.
Management of ‘green buildings’ would be a major part of Bajaj Electricals' new business, where established players include multinationals Johnson Systems, Honeywell and Siemens. Green buildings are commercial or residential structures where energy intensive activities, including air conditioning, power generation and distribution and information technology, are controlled by computerised systems for maximum efficiency.
Bajaj Electricals was currently setting up a team for the new business, Ramakrishnan said.
The company’s net profits surged on healthy growth in its fan, lights and luminaries business. Bajaj Electricals' net profit for the three months ending March 2008 grew by 75.7 per cent to Rs. 33.2 crore, up from Rs. 18.9 crore in the corresponding period of 2006-07. Net sales for the same time are higher by 21 per cent at Rs. 452.2 crore.
The net profit for the year 2007-08 grew by 89.4 per cent to Rs. 73.1 crore from Rs. 38.6 crore in 2006-07. Income from operations for 2007-08 is higher by about 27.4 per cent at Rs. 1,374.5 crore against Rs. 1,078.9 crore in 2006-2007.