Bajaj Electricals expects sales growth by 26%

Mumbai: Bajaj Electricals, which sells small electrical appliances, expects sales to grow by at least 26 per cent in the financial year 2009, banking on higher demand for lighting equipment from offices, malls and commercial complexes.

The Mumbai-based company expects sales to cross Rs 1,700 crore this financial year compared with Rs 1,404 crore, Anand Bajaj, executive director, Bajaj Electricals, said. However, he declined to give profit projections.

Bajaj Electricals' fourth quarter profit rose 75 per cent to Rs 33.2 crore from Rs 18.9 crore during the corresponding period last year. The company's net sales in the three months to March 2008 grew by 21 per cent to Rs 452 crore against Rs 372.4 crore for the quarter ended March 2007.

Sales gained 27 per cent to Rs 1,374.5 crore for the financial year 2007-08 as against Rs 1,078.9 crore a year ago. The company's net profit for the year increased by 89 per cent to Rs 73 crore compared with Rs 38.6 crore during the previous financial year. The company, which imports about 8 per cent of its sales, plans to become a supplier of lighting equipment and appliances for other companies, Bajaj said.

'We have been approached by some companies for sourcing their requirement directly from us,'' he said.

Bajaj's appliances division contributed the largest to the net profit with profit of Rs 61 crore against Rs 31 crore during 2006-07. The company plans to increase the manufacturing capacity of fans from 2.7 million units to 3.5 million units.