You are on page 1of 2

Expanding into the Global Market: This is a must do the thing for Bajaj.

They can definitely start by


introducing themselves to the neighboring countries of India to create themselves a bigger market.
This lets them taste new things and also helps them create a reputation on an international level.

Introducing better technology: Anything Bajaj has made is always contended by-product for another
company. But now they need to do something that would be totally exclusive to them. They also
need to bring more technology into the lighting field to make it more eco-friendly and energy
efficient.

New and Innovative Products: Yes, Bajaj has lots of product in their range but they need more. They
need to make sleeker products that are more easy to use. Also, luxury electrical products are also
needed in the current Indian market. They can do this to have a better competition in the market.
Growth in its product line could increase demand.

Rapid urbanisation:

Housing for all: India’s urban population as a percentage


of total population was around 32.7% in 2015 and is
expected to rise to 40% by 2030. Under the “Housing For
All” scheme, 60 million houses are to be built which include
40 million in rural areas and 20 million in urban area by
2022. These factors bode
well for the Company’s consumer products segment

Boost for infrastructure development: The


Government is expected to invest highly in the
infrastructure sector, mainly highways, renewable
energy and urban transport. Government’s focus on smart city development
and replacement of conventional systems with
more energy savings options offers tremendous
opportunities for the Company.

Rising demand for automation in household chores: With growing prevalence of working women and
nuclear
families the need for automation in household chores is
on a speedy growth. With higher disposable incomes due
to dual incomes, concept of modular kitchen and use of
modern appliance is gaining traction. ACs, refrigerators,
microwaves etc., are no longer the luxuries but have
become necessity tools of survival for the modern day
consumer.

Space constraints and rising percentage of nuclear families: The growing number of
nuclear and double income families will positively affect
the demand for consumer appliances. Moreover, constrained housing space, especially
in the big cities will make the concept of modular kitchen
more appealing in future thereby driving up the demand for
consumer appliances. Changing lifestyle preferences and
food habits would further fuel this trend.

Rising income levels: Implementation of the 7th Pay


Commission, rationalisation of the basic tax slab and overall
economic improvements are expected to keep prospects
for consumer appliances industry intact in FY 2017-18. India’s per capita income, a
gauge for measuring living standard is expected to grow
to `1,11,782 in FY 2017-18, up 8% as compared to the
previous year. Disposable income in rural India has
increased due to the direct cash transfer scheme. Total
rural income, which is currently at around US$ 572 billion,
is projected to reach US$ 1.8 trillion by FY 2020-21. As income levels
rise there is an uptrend in share of domestic appliance
market.

Growing demand for electronic appliances: By 2020,


the electronics market in India is expected to increase to
US$ 100 billion from US$ 28 billion in FY 2016-17. With all these factors working in favour of the domestic
appliances market, the Company is well positioned to
tap on this growth. There is also growing prevalence of
premium products led by growing middle class segment

Eco-friendly and energy saving products. : Bajaj should focus on making things eco-friendly and help
in innovating devices based on that. This is crucial in case of household lighting as other companies
have already started to focus on that field.