The reports note that the company is looking at various options for the division, which also includes a possible sale
Aimed at sharpening its focus in the consumer electronics market, Bajaj Electricals has put its loss-making Nirlep cookware unit on the block. The reports noted that the company is looking at various options for the division, which also includes a possible sale.
The company’s board has okayed a restructuring of the cookware business. The reports highlighted that the brand has no synergy with the company’s bigger electronics portfolio. The company is looking at speeding up category expansion into eight to ten new areas and is also working on shifting investment on higher-margin lines.
The move is expected to determine the right structure alignment going ahead as Nirlep functions in a category separate from the company’s primary business. The reports added that the Nirlep business was merged with the parent company last year in March. The division has not been successful in shifting loyalty from big national brands.
The reports added that there has been a growing trend for alternative materials over traditional aluminium-based non-stick cookware. This has dented Nirlep’s presence in the market as the brand has not been able to keep up with newer offering in these trending materials, as per the reports.
Sanjay Sachdeva, the managing director and chief executive officer of Bajaj Electricals, wants to direct the focus towards three brands- Bajaj, Morphy Richards and Nex, the reports pointed out. The company will be working towards minimising the overlap between the three brands on the pricing and distribution fronts.
