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Bajaj Electricals to be Rs 5,000-cr entity in 4 yrs

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Press Trust of India Bangalore
Last Updated : Jan 21 2013 | 1:47 AM IST

Bajaj Electricals today said it aims to become a Rs 5,000-crore company in four years.

The company expects to generate Rs 4,000 crore revenue from organic growth and Rs 1,000 crore from diversification or acquisition, Bajaj Electricals' Executive Director R Ramakrishnan told reporters here.

Engineering projects, consumer durables and lighting and integrated management building will be the drivers of growth, he said.

Shekhar Bajaj, CMD, Bajaj Electricals said: "The company has been doing very well and recently we completed a QIP for Rs 160 crore at a share of Rs 785. This will help in reducing our interest burden, providing working capital for growth and expenditure. We will also look at possible acquisitions in future."

The company had acquired around 32 per cent stake in Starlite Lighting to manufacture energy saving compact fluorescent lamps (CFL).

Starlite has been doing extremely well and is expected to step up its production capacity from 10 million CFLs per annum to 40 million in two year's time, he said. The company is looking at exports opportunities and deeper penetration for the CFLs.

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Regarding investments in future-oriented sectors, the CMD said that the company is interested in solar products like water heaters and street lighting.

The company during the third quarter registered a 76 per cent growth in its net profit at Rs 34.1 crore. He said, "However, we do not expect to sustain the profit margins in the fourth quarter. Pressure on margins would be witnessed," owing to high cost of raw materials.

During the first nine months of the current year, the net profit had grown by 91 per cent to Rs 79.6 crore. The company had an order book of Rs 835 crore.

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First Published: Feb 08 2010 | 8:04 PM IST

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