Bajaj Electricals shares jumped as much as 9 percent on Monday to hit an intraday high of Rs 530 apiece, after the company reportedly initiated a sale process for its loss-making cookware subsidiary, Nirlep. The stock pared gains but was still trading up 2.6 percent at Rs 500 at around 2 pm on NSE.


The Economic Times reported  today that Bajaj Electricals has reached out to potential buyers, and early-stage discussions are under way. Nirlep, a 65-year-old brand acquired in 2018 for Rs 80 crore, has struggled to scale up in a competitive market dominated by well-established national and regional cookware makers. Despite its legacy, the business has remained loss-making and has not benefited from the broader growth seen across Bajaj Electricals’ consumer portfolio.

The planned exit is part of a strategy to sharpen focus on higher-margin product lines and improve overall profitability, according to unidentified executives cited in the ET report. The management is reviewing various options for the cookware unit as part of a structured evaluation. The move follows Bajaj Electricals’ ongoing portfolio realignment, including the earlier restructuring of its consumer and EPC verticals.

Nirlep’s presence in newer channels has been limited, and the brand currently lacks the scale required to compete effectively with leading players. At the same time, the parent company -- Bajaj Electricals -- is refreshing its revenue strategy in kitchen appliances, with a plan to expand and strengthen the Bajaj and Morphy Richards brands.
Bajaj Electricals’ MD and CEO Sanjay Sehgal said he wants the company to concentrate on higher-margin categories, explaining that the sale would allow a shift of resources toward segments with stronger growth potential, per the report. The broader brand-rationalisation exercise also includes a focus on Morphy Richards products to be sold at a higher price range than ‘Bajaj’ brand; and rebranding Nex as a premium category product line.

The planned divestment comes as Bajaj Electricals continues to emphasise capital discipline and a faster return on investment across its consumer business. A cleaner product portfolio would help the company direct attention and expansion efforts toward categories where it enjoys meaningful competitive strengths, said the executives.