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Bajaj Electricals Sells Nirlep Cookware Amid Restructuring
24 Nov
Summary
- Bajaj Electricals is selling its Nirlep cookware unit to focus on core electronics.
- The 56-year-old Nirlep brand was acquired by Bajaj in 2018 for ₹80 crore.
- The company aims to accelerate expansion into new, higher-margin product categories.
Bajaj Electricals is reportedly divesting its loss-making Nirlep cookware business to sharpen its focus on the core consumer electronics sector. The company's board has sanctioned a restructuring of the cookware division, which has struggled with unprofitable factories and distinct distribution channels. This strategic shift seeks to reallocate resources towards higher-margin product lines and accelerate expansion into approximately eight to ten new product categories.
The 56-year-old Nirlep brand, once a household name in non-stick cookware and acquired by Bajaj in 2018 for approximately ₹80 crore, has faced challenges in retaining customer loyalty against established national brands. Furthermore, changing consumer preferences towards alternative materials have impacted its market presence.
Bajaj Electricals, with a market capitalization exceeding ₹5,600 crore, aims to optimize its brand portfolio. The company plans to minimize overlap between its three key brands: Bajaj, Morphy Richards, and Nex by Bajaj, by differentiating their pricing and distribution strategies.
