This document provides information about Bajaj Electricals, a consumer electronics company in India. It discusses the consumer electronics industry in India, provides details about Bajaj Electricals history and products. It analyzes the market structure Bajaj operates in as monopolistic competition and discusses demand and supply factors affecting the company. Key challenges for Bajaj Electricals are also mentioned as rapid technology changes requiring heavy R&D investment and increasing competition decreasing market share.

1. Managerial Economics
Project Assignment
Company Chosen- Bajaj Electricals
Industry - Consumer Electronics
Submitted by
Ritik Gaur
Roll No. - 19DM162

2. The Consumer Electronic Industry in India
The origin of the electronic industry dates around the early 1960's In its
initial stages it was limited to development and maintenance of
fundamental communication system including radio broadcasting,
telephonic and telegraphic communication and augmentation of defense
capabilities. Till 1984 the electronic industry was regulated by Government
only and then 1980's witnessed the rapid growth of electronic industry due
to liberalization and globalization of the economy. India is a developing
Country and has increasing technology penetration rate. With the
advancing technology the trend of smart offices and smart homes has
increased where the need of consumer electronics is high. If we talk about
total electronic industry in India, consumer electronics has around 9.5%
market share, with consumption majorly done among the middle-income
group population. Indian appliance and consumer electronic market is now
worth Rs.2.5 Trillion and is expected to increase at 9% to reach Rs.3.5
Trillion in 2022.

3. Bajaj Electricals
Bajaj Electricals came into existence on 14th July 1938 and its name at that
time was Radio Lamp Works Limited under the Indian Company Act, 1913
as a Public company limited. On 1 October 1960 it was renamed to Bajaj
Electrical Limited. In 1964, a company named Matchwell Electricals (India)
Limited, ("Matchwell"), a manufacturer of electric fans became a subsidiary
of the Company and later on, with effect from July 1, 1984, the business
and undertaking of Matchwell was amalgamated with the Company.
Bajaj Electricals Limited (BEL) is a Globally renowned and trusted company
and its turnover for Financial Year 17-18 was Rs.4726 Crores. Its parent
company is BAJAJ GROUP. The company manufactures consumer
products such as Appliances, Fans, Lighting etc. and exports Luminaires
and EPC (Illumination, TransmissionTowers and Power Distribution).
Bajaj Electricals has 19 branch offices which are spread across the entire
nation and are being supported by a large group of distributors, authorized
dealers, retail outlets, exclusive showrooms called ‘Bajaj World’. Hi-End
appliance brands like Platini and Morphy Richards are also owned by the
company.
To make an Indelible Imprint in the electronic Industry Bajaj Electronics has
Marketing arrangements with TELCO Automation of ITALY, tie up with
CREE Lighting of USA and Securiton of Switzerland for Luminaires.
Recently the company has invested in Starlite Lighting for manufacture of
energy saving lamps (CFL).

4. The Market Structure in which Bajaj Electricals Operate
Bajaj Electricals Operates under a monopolistic competition market
structure. It refers to a market situation in which there are many firms which
sell closely related but differentiated products. The market is called
Monopolistic Competition because it contains both the competitive element
and monopoly element.
 Large Number of Firms- The number of firms selling similar product is
fairly large but not very large as in perfect competition. As a result,
firms are in a position to influence the price of their product due to
their brand names.
 Product Differentiation- In this type of market situation a producer can
produce different products but that product should be a close
substitute of to each other. In case of Bajaj Electricals they produce
Kitchen and Domestic Appliances, Fans and Lighting which are also
produced by their competitors
 Selling Cost- It is the expense which are incurred for promoting sales
or inducing customers to buy a piece of goods of a particular brand.
This includes the cost of advertisement through newspaper, television
and radio and cost on each other sales promotional activities.
 Demand Curve- The demand Curve faced by a firm is negatively
sloping (i.e. when price falls, demand rise.

5. The Demand and Supply Factors of Bajaj Electricals
Demand Factors
 Rise in Income of the People - One of the key Factors
affecting demand of the products of Bajaj Electricals is rise in
the disposable income of the people.
The modern world which is dominated by the concept of Smart
Home and smart office environment has persuaded the masses
to consume the modern-day energy saving equipments like
CEILING LED LIGHTS and fancy CFL's.
 Seasonal Purchases – There are seasonal purchases as well,
the sales increase at the time of the beginning of the month and
also near the festive seasons and the marriage seasons. The
reason behind this being the increase in demand and the
increase in the disposal income due to the bonuses or the need
to spend the money.
 Changes in Lifestyle - With the number of working people in
country being at its all time high the demand for consumer
electronics like coffee maker, juicer, electric kettle and pop up
toasters has increased. As it is a fast-moving world barely
anyone spares time to prepare meals for them which in return
has increased the demand of ConsumerElectricals.
 Technological Advancements- Smart Offices has become the
fulcrum of the service industry and with advancing technology it
is quite possible now to support the concept of smart offices.
Without the new consumer electronics, it’s quite impossible to
operate the service industry, from fans
to CFL’s to lamps demand for everything has increased.

6. Supply Factors
 Environment Awareness- This simply means being aware of
the natural environment and making choices that benefits the
earth. Campaigns by the government to make people aware
about the need to protect the environment has considerably
increased the supply of consumer
electronics such as energy efficientlights, fans, LED’s etc.
 Government Policies- Government Initiatives like MAKE IN
INDIA a type of Swadeshi Movement which covers 25 sectors
in the economy encourages the companies to manufacture their
products in India which considerably increased the supply of
products of Bajaj Electricals as they have started producing
more in their Home Land.
 Seasonal Purchases – There are seasonal purchases as well,
the sales increase at the time of the beginning of the month and
also near the festive seasons and the marriage seasons. The
reason behind this being the increase in demand and the
increase in the disposal income due to the bonuses or the need
to spend the money.
 Cost of Raw Materials- The most Commonly used raw material
in consumer electronics is iron, steel, plastic so changes in
prices of the raw material will definitely impact the supply of the
consumer electronics as increase in price of raw material will
force the manufacturer to produce less and in case of decrease
Vice-versa.

7. Challenges Faced by the Company
With each passing day technology is changing at lightning speed and to
keep up with the pace of the market and keep the customers satisfied
Innovation becomes a key challenge for Bajaj Electricals. As Innovation
requires a lot of expenditure on Research and Development and is also a
time-consuming factor this is the most severe challenge for the company.
In the era of Start-Ups which is backed by Government Initiatives like Start
Up India and Make in India competition is at its all time high. Increase in
competition implies decrease in the market share or market captured by the
company which is also a very big challenge for the company as for every
company the main aim is to earn profits and strive forward for success but
increase in competition will decrease the profit as it will shared among the
new competitors .

8. REFERENCES
1. Websites
a) Wikipedia
b) Bajajelectricals.com
c) Intelligenteconomist
2. Books
a) T.S Walia