Bajaj Electricals To Limit Its Engineering Business Due To Higher Risks
Bajaj Electricals Ltd. will take up fewer projects in its engineering, procurement and construction segment in the future on account of inherent risks and heavy capital involvement, according to its Chairman and Managing Director Shekhar Bajaj.
“The consumer business will be higher than the engineering, procurement and construction business next year as the Uttar Pradesh project undertaken will be completed,” Bajaj told BloombergQuint. “Our EPC business should not be more than half of our turnover as it has a certain amount of working capital blocked up.”
Next year we are expecting Rs 3,500 crore from the consumer segment and Rs 3,000-3,200 crore from the EPC business. If there is bigger business we will not take it due to high risks and money involved. It is just not worth it. Consumer business is our core and that will continue.
Bajaj Electricals expects its margin to improve by 1 percent every year over the next three years due to growth in revenue and lesser fixed overhead costs.
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