Bajaj Electricals Limited: High Voltage Transformation?


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Case Details:

Case Code : BSTR311
Case Length : 19 Pages
Period : 2000-2008
Pub Date : 2009
Teaching Note : Available
Organization : Bajaj Electricals Ltd.
Industry : Electricals and Electronics
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"One should periodically destroy one's organizational structure. Not because it has become a necessity, but also to avoid complacency setting in."1,2

- Shekhar Bajaj, Chairman and Managing Director, Bajaj Electricals Ltd, 2002.

Introduction

For the financial year ending March 31, 2008, India-based consumer electrical products manufacturing company, Bajaj Electricals Limited (BEL)3, posted a sales turnover of Rs.13744.2 million4 and a net profit of Rs.730.7 million. This signified an annual top-line growth of 27.4 percent over the previous year.

This was in contrast to the dismal picture that the company had presented in the late 1990s and early 2000s. At that time, though BEL had been engaged in multiple businesses, it was operating as a single unit with uniform practices and strategies applied across the product and business lines.

Bajaj Electricals Limited: High Voltage Transformation? - Next Page>>

1] "Recreating Bajaj Electricals,"The Financial Express, November 2, 2002.
2] On this occasion, Shekhar Bajaj was quoting management expert Tom Peters.
3] Bajaj Electricals Ltd. was engaged in the business of manufacturing and marketing electrical products and manufacturing, erecting and commissioning transmission line towers, telecom towers, mobile telecom towers, and wind energy towers. The export of all BEL's products except its Engineering and Projects Business Unit was taken care of by its group company Bajaj International Pvt. Ltd.
4] Rs. Stands for Indian Rupees (INR or Rupee). The exchange rate was US$ 1= Rs.46.6 as of March 31, 2001 and US$1 =Rs.48.5 as of December 20, 2008.

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