This step was taken given the varied nature and potential opportunities of each of the business segments and the need for a focused approach to unlock those opportunities, Bajaj Electricals Ltd (BEL) said in a statement.
The board of directors at its meeting on Thursday authorized management to “assess and recommend such options and alternatives, and subject to such detailed assessment, consider hosting the transmission and distribution verticals. of electricity as an autonomous / independent legal entity “, he added.
BEL President and CEO Shekhar Bajaj said: “Over the past two years, the power transmission and distribution verticals have refined their operational focus, ensuring project closure, increasing cash flow, reducing receivables and paying off most of the debt, while simultaneously focusing on health and safety and ESG in general. ”
He added: “We believe that the time has now come to continue on this path and to review our structures to allow unconstrained commercial growth for each business segment”.
The objective of the exercise, as defined by its board of directors, includes the rationalization of the business structure to improve market positions, generate long-term growth, a tailor-made capital structure and policies of development. ‘allocation based on company-specific dynamics, the company said.
The company also intends to appoint various advisers or consultants to help the board assess options and complete the process to review the way forward as soon as “practically” possible.