Dear Shareholders,
The year 2022-23 has been a landmark year for your Company in many ways. As we have
shared in earlier investor communications, a few years ago we embarked upon our
transformation journey with a vision to make 2020-2030 the "Decade of Bajaj
Electricals". As we completed Horizon 1 of that strategic roadmap during the year
gone by and have entered Horizon 2, we are beginning to see the clear fruits and
milestones in this journey.
• We became net-debt-free in March 2022 and have exited the year gone by with
surplus cash. We have maintained our record of consistently generating positive cashflow
from operations every quarter, all through the volatile market conditions.
• Our business model is structurally fixed with the right focus on each business
in line with our strategic goals and long-term value creation.
• Our EPC (Power Transmission and Power Distribution) business has delivered a
full turn-around and been profitable on a full-year basis, demonstrating our commitment to
set that business on the right strategic and operating path.
. The scheme of arrangement that we had announced last year for the demerger of our EPC
business into a separate listed entity "Bajel Projects Limited" is in the final
stages of regulatory approvals and the process will be completed in the coming few months.
Operationally the teams are fully geared up for this.
. During the year we relaunched our flagship brand "BAJAJ" with the BUILT FOR
LIFE positioning.
I believe this will be a clear pivot and marker tor the destiny and growth of the BAJAJ
brand for several decades to come - to fortify its relationship with consumers and its
distinct position in the marketplace.
. The investments and efforts in our research and development are beginning to deliver
outcomes in the form of a wide range of new, distinct and innovative products across
various categories.
This along with our renewed brand thrust, has been and will continue to be the key
enabler tor growth in our market shares during the year gone by and the years to come.
• Our financial and operational performance continues to improve. In a year that
has been challenging all around due to continuing impact of the Russia-Ukraine war and
rising interest rates, leading to subdued consumption demand, our performance has been
ahead of industry benchmarks and peers.
. ESG (Environmental, Social, and Governance) is an integral part of our business
strategy.
We prioritize responsible operations and value creation for all stakeholders. Through
targeted initiatives, we reduce our environmental impact, promote social well-being, and
uphold strong governance practices. Our commitment to ESG ensures sustainable growth,
innovation, and positive contributions to the environment, society, and economy.
. We have continued to drive organisational transformation and strengthening, in terms
of talent at all levels, systems and processes and workplace culture. As part of our
commitment to better corporate governance as well as professionalising the management,
during the year our Board decided to split the roles of Chairman and Managing Director.
Accordingly, I continue as Executive Chairman of the Company, while our erstwhile
Executive Director, Anuj Poddar was elevated to the position of Managing Director and
Chief Executive Officer.
It would be worthy to note that all these changes and achievements (not just in the
year gone by, but over the last few years), have been realised in a period that has been
amongst the most volatile and challenging for all of industry and all countries and
economies, based on my experience over the last several decades. That to me, is the most
gratifying aspect of it, as it represents the new Bajaj Electricals Limited - and the
grit, resilient and unwavering executional and strategic focus of our leadership and
teams. So, I am tempted to say that while BUILT FOR LIFE is the positioning of our
flagship consumer brand BAJAJ, it also reflects the ethos of what your company stands for
and will become synonymous with.
Our future is equally exciting: as we soon split into 2 companies going forward - Bajaj
Electricals Limited and Bajel Projects Limited - we have laid strong foundations for each
of them to do well and grow at a faster pace and add more value in their respective
domains.
As always, I remain deeply grateful for the contributions of Anuj Poddar, team Bajaj,
business associates, our entire Board of Directors and you, our shareholders, for your
trust in us.
Yours sincerely,
Shekhar Bajaj
Chairman.