Saturday, June 27, 2009

Bajaj Electricals close to completing Delhi project

The Rs 1,700-crore Bajaj Electricals, which had secured an order to upgrade street lighting on important arterial roads and stadiums in Delhi, is providing finishing touches to the contract. The objective of the exercise is to give the Capital a facelift in preparation for the Commonwealth Games next year.

Anant Bajaj, Executive Director, said a major portion of the Rs 52-crore order was complete and the entire job would be finished in three months.

"We are also close to bagging a Rs 4.3-crore order in Chennai from an information technology company. I cannot divulge its name as we have not received the letter of intent yet," he said.

Bajaj Electricals has also secured a Rs 143-crore transmission line transformer (TLT) work order from the Maharashtra State Electricity Transmission Company. Its order book in the TLT segment alone is around Rs 400 crore.

Rural power connections

The company is providing power connections, under the rural electrification project, for below-the-poverty-line households. Nearly five lakh BPL homes are to be covered under the Government programme in Orissa, Jharkhand, Chhattisgarh and West Bengal.

"The first phase of the project to provide electricity to 40,000 houses in Champa, Chhattisgarh is scheduled for completion in July," Bajaj said. Of the Rs 400-crore orders to extend power to rural households, Bajaj Electricals has executed Rs 40 crore worth business so far.

While the company has earmarked projects worth Rs 1,000 crore for completion this fiscal, it expects large orders to flow in with more Government spend on infrastructure. The company has commissioned a greenfield facility in Nashik to make compact fluorescent lamps.

"Last fortnight, we ran a trial run of the production line at a speed of 2,400 an hour and plan to increase output to 40 million units by 2010," Bajaj said.

The market for compact fluorescents grew from Rs 7 crore in 2000 to Rs 20 crore in 2008. Though the general lighting service market size is about Rs 750 crore, compact fluorescents are fast catching up, he said.

"Our conversion rate of tenders translating into orders is 20 per cent compared to our competitors' 10-15 per cent. By the end of this financial year, we hope to reach a turnover of Rs 2,100 crore from Rs 1,801 crore in 2008-09. This will largely be driven by the luminaires and engineering projects," Bajaj said.

Luminaires registered a turnover of Rs 287 crore last fiscal while engineering projects clocked Rs 541 crore. Bajaj Electricals has a tie-up with German-based Trilux for the luminaires division. It has a pact with Italy-based Disano for medium-range lighting solutions.

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