BCG Matrix On Bajaj Group

Bajaj Group
The BCG Matrix

Introduction
• Jamnalal Bajaj – Founder
• The group comprises of 27 companies and

was founded in the year 1926. Bajaj Auto is
the flagship of the Bajaj group of
companies.
• It started as a sugar manufacturing factory

in 1931, has grown to become one of the
country’s largest business houses.
A
Grou
p
Built
on
Trust.
..
Bajaj Electricals Ltd. Mukand International Ltd.
Bajaj Auto Ltd. Mukand Engineers Ltd.
Bajaj Hindustan Ltd. Bachhraj Factories Pvt. Ltd.
Mukand Ltd. Mukand Global Finance Ltd.
Maharashtra Scooters Ltd. Bajaj Consumer Care Ltd.
Bajaj Auto Finance Ltd. Bajaj Auto Holdings Ltd.
Hercules Hoists Ltd. Jamnalal Sons Pvt. Ltd.
Hind Lamps Ltd. Jeevan Ltd.
Bajaj Sevashram Pvt Ltd. Bachhraj & Company Pvt. Ltd.
Bajaj Ventures Ltd. The Hindustan Housing Co Ltd.
Bajaj International Pvt Ltd. Baroda Industries Pvt Ltd.
Hind Musafir Agency Pvt Ltd. Stainless India Ltd.
Bajaj Allianz General Insurance Bombay Forgings Ltd.
Company Ltd.
Bajaj Allianz Life Insurance
Company Ltd.
Bajaj Electricals
• A part of the Shekhar Bajaj Group.
• Bajaj Electricals (BEL) is a 69-year-old

Engineering company, with interest in Lighting,
Luminaires, Appliances, Fans, and Engineering &
Projects.
• It has 19 branch offices, a chain of 600

distributors, 3000 authorized dealers, over
1,20,000 retail outlets and over 200 service
franchises spread across the country.
Corporate Vision of Bajaj Electricals
“We aim to bring greater happiness to our

customers by improving their
quality of life, while enhancing
stakeholder value”
Core Values of Bajaj Electricals
• 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.
• 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.
• Delighting Customers:
We will delight our customers by providing them world-
class products and services and thereby enhance their
quality of life.
Core Values of Bajaj Electricals
• Ensuring Accountability:
We will work in a transparent, performance oriented
environment and define clear accountability for our
employees, while empowering them to achieve their
performance goals with speed and efficiency.
• Encouraging Teamwork:
We will ensure dignity and respect for the individual
while encouraging Teamwork.
• Personal Growth:
Every employee will be enabled to learn at the work
place with significant opportunities for Personal
Growth and Contribution to the organization.
Present Scenario…
• Bajaj Electricals has reported a 31% growth in net
sales to Rs 304.89 crore.
• The Net Profit recorded a growth of 117% at Rs.20.96

crore.
• BEL has 5 Strategic Business Units namely –

a) Lighting
b) Lumanries
c) Appliances
d) Fans &
e) Engineering & Projects.
Lighting
• The Lighting BU markets a wide range of lamps
and tube lights, which includes General Lighting
Service (GLS) filament lamps, Fluorescent Tube
Lights (FTL), Compact Fluorescent Lamps
(CFL), miniature lamps and special purpose
lamps.
• A strong distribution network exists for

marketing these lamps both in urban and rural
areas.
Lighting
• The BU has continued to improve its retail
presence by expanding its network and reaching
in over 165000 outlets.
• The consumer durables division has reported

revenue growth of 36% to Rs 257.90 crore
contributing 46% to the total revenue and the
segment PBIT
• It continues to dominate the Iron category by

achieving a record sale of over 1 million Irons in a
financial year.
Lighting
• Bajaj Electricals has acquired 32% Stake in
Starlite Lighting, CFL Manufacturer, due to
which, the company will grow its lightning
business in a big way.
• Starlite has a production capacity of 10 million

CFL’s per annum, of which more than half is
consumed by Bajaj Electricals.
Fans
• Currently, Crompton Greaves is the market leader in
India for fans, followed by Usha, Orient, Khaitan, and
Polar.
• Bajaj Electricals, has recently restructured its businesses

into separate strategic business units (SBUs), has seen
the fan business posting a growth of 40 percent in the
past 7 months as against an industry growth of 5
percent.
• The company has embarked upon a strategy to play the

volume game by bringing in fans at lower price points
and is presently having 12% market share.
Appliances
• Bajaj Electricals is looking to acquire premium brands in
appliances in its pursuit of growth.
• The Rs 1,100-crore company plans to double its turnover in

two years and quadruple it in six years, through acquisitions
in its existing businesses and foraying into new areas that may
include tie-ups with international players.
• The company has already tied up with Italian appliances

major, Nardi, to market its gas-based cooking appliances in
India. The range includes gas stoves and chimneys and this
would be extended to premium and ultra premium offerings.
• The premium products will be brought in as completely built

units and the company will explore the possibility of making
some of the components or assemblies in future.
Engineering & Projects
• The ever increasing demands from the Infrastructure, &
Power Transmission has offered significant opportunity.
• This division contributed 26% to total revenue and 40% to

total PBIT of the company by Rs 80.50 crore compared to
Rs 59.20 crore and a segment PBIT of Rs. 11.66 crore as
against Rs 5.58 crore.
• In FY 2007, this division produced 2,970 nos. of Highmasts

and 17,181 nos. of Poles as against 1,760 nos. and 14,951
nos. respectively in the previous year (06).
Engineering & Projects
• It has maintained its capacity utilization of 100%.
• The Unit also manufactured 25,223 MT of transmission line

towers as against 22,822 MT in the previous year (06).
• The Unit continues to enjoy dominance in Highmast business

with over 65% market share.
• This BU has received prestigious orders from BHEL for power

plant illumination and the work at 14 different power station
sites is under execution.
• The continued focus of the government on infrastructure offers a

good opportunity to this BU's various business portfolios viz. Power
Transmission, Highmast Street Lighting and Special Projects, to
improve its growth and profitability in the future too.
BCG Matrix
High
Stars Question Marks
Cash Cows Dogs
Low
High Low
BCG Matrix of Bajaj Electricals
• According to us, out of all the 5 SBU’s of Bajaj
Electricals - Luminaries, Engineering & Projects and
Lighting are the Stars of the Company as they have
high Market Share and Market Growth.
• Appliances are Question Marks as the company it has

high growth rate but low market share, due to which
it is planning to tie-up with other international
brands.
• Fans are also Question Marks, as it has low market

share its position is 6th in the market.
BCG Matrix
High
Stars Question Marks

Luminaries, Lighting Fans & Appliances
& Engineering &
Projects
Low
Cash Cows Dogs
High Low
Thank you…!!!
Have a Nice Day ahead…!!!

BCG Matrix On Bajaj Group

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Bajaj Group

The BCG Matrix

• The group comprises of 27 companies and

• It started as a sugar manufacturing factory

• Bajaj Electricals (BEL) is a 69-year-old

• It has 19 branch offices, a chain of 600

“We aim to bring greater happiness to our

• The Net Profit recorded a growth of 117% at Rs.20.96

• BEL has 5 Strategic Business Units namely –

• A strong distribution network exists for

• The consumer durables division has reported

• It continues to dominate the Iron category by

• Starlite has a production capacity of 10 million

• Bajaj Electricals, has recently restructured its businesses

• The company has embarked upon a strategy to play the

• The Rs 1,100-crore company plans to double its turnover in

• The company has already tied up with Italian appliances

• The premium products will be brought in as completely built

• This division contributed 26% to total revenue and 40% to

• In FY 2007, this division produced 2,970 nos. of Highmasts

• The Unit also manufactured 25,223 MT of transmission line

• The Unit continues to enjoy dominance in Highmast business

• This BU has received prestigious orders from BHEL for power

• The continued focus of the government on infrastructure offers a

Stars Question Marks

Cash Cows Dogs

• Appliances are Question Marks as the company it has

• Fans are also Question Marks, as it has low market

Stars Question Marks

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