Bajaj Electricals Limited (“the Company”) is currently engaged in (i) Consumer Product segment (‘CP’) (which includes appliances, fan and consumer lighting products) and (ii) Engineering Procurement and Construction segment (‘EPC’) (which includes Power Transmission and Power Distribution and Illumination Projects). Considering the varied nature and potential opportunities of each of the business segments and the need for a focused approach to unlock these opportunities, the Board of Directors of the Company has decided that the Company should undertake a comprehensive review of the existing corporate structure. This will encompass an evaluation of full range of options and alternatives (including demerger(s), subsidarisation(s), strategic partnerships etc.).

Accordingly, the Board of Directors has authorised the BEL Management to evaluate and recommend such options and alternatives, and subject to such detailed evaluation, consider housing the Power Transmission and Power Distribution business verticals as a standalone / independent legal entity.

The strategic objectives outlined by the Board of Directors for undertaking such an exercise are as follows:

• Streamlining of the Business Structure to enhance market positions and deliver long term growth

• Attracting right talent and providing enhanced growth opportunities to existing talent in line with a sharper strategic focus on each business segment under separate entities

• Tailored capital structure and capital allocation policies based on business-specific dynamics

• Sharper, well defined corporate positioning coupled with value unlocking for all stakeholders

• Distinct investment profiles to attract deeper and broader investor bases

• Accelerating sustainability initiatives and expediting ESG practices

The Company intends to appoint various advisors / consultants to assist the Board in evaluating the options. It is anticipated that the Board and advisors will complete their evaluation and consider the way forward as soon as practically possible.

Appropriate announcements and public disclosures in accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations and other applicable laws will be made as and when required.

Mr. Shekhar Bajaj, Chairman & Managing Director, said “Over the past couple of years, the Power Transmission and Power Distribution business verticals, have sharpened their operational focus, ensuring project closures, increased cash flows, reduction in receivables and repayment of most of the debt, whilst simultaneously focusing on health and safety and ESG in general. We believe the time is now ripe to build further on this and review our structures to enable unconstrained business growth for each business segment. We will continue to leverage our legacy and our strengths in our people, project management, operations and manufacturing, to better serve our customers and all stakeholders.”

Mr. Anuj Poddar, Executive Director, commented, “This is yet another critical step as part of the transformation journey of Bajaj Electricals Limited that we have been on. This will allow us to create independent, industry leading and competitive entities– each of them with sharp organisational focus, appropriate capital allocation and required agility to drive long-term value creation for customers, employees and investors. I am confident that this will help each of the business segments to bootstrap and unleash growth in an unconstrained manner.”