Synopsis: Shares of Bajaj Electricals Limited surged 10% after the company announced the acquisition of the Morphy Richards brand for Rs 141 crore from Glen Electric Limited. The deal gives Bajaj full ownership of the brand in South Asia, strengthening its premiumisation and multi-brand strategy.
The shares of this company, which is a part of the Bajaj Group of companies and is a leading FMEG company spread across consumer products – appliances, Fans, Lighting, Exports, and more, were in momentum today after the company announced acquisition of Rs 141 crore Morphy Richards-Brand
With a market cap of Rs 4,258 crore, the shares of Bajaj Electricals Ltd jumped 10% in today’s trading session and reached a high of Rs 397.05. When compared to its previous day’s closing price of Rs 360.75. The shares are trading at a PE of 114, whereas their industry’s PE is at 43.2.
About the Acquisition
Bajaj Electricals Limited has signed a definitive agreement with Glen Electric Limited for the acquisition of the Morphy Richards brand name along with the intellectual property rights in the South Asian region, including India, Nepal, Sri Lanka, Bangladesh, Bhutan, and the Maldives.
The acquisition amount for the purchase of the Morphy Richards brand name is the base amount of ₹141.4 crores, which increases to Rs 197.47 crores, including taxes and duties. The payment is made in instalments over the next few years, giving Bajaj Electricals the flexibility to manage the cash outflows while giving the company complete ownership rights.
With the acquisition, the company now has perpetual and irrevocable rights over the trademark, goodwill, domain name, and intellectual properties of the Morphy Richards brand name in the specified regions.
From a strategic perspective, the acquisition gives Bajaj Electricals the flexibility to add multi-brand strength while giving the company complete ownership rights over the Morphy Richards brand name. The company was operating the Morphy Richards brand name through a licensing agreement, which is now terminated with the signing of the definitive agreement with Glen Electric Limited for the acquisition of the Morphy Richards brand name.
The Morphy Richards brand has already gained a significant presence in the Indian market with the help of Bajaj Electricals in the past two decades. The company has already gained knowledge of the Indian market and its consumers. The acquisition of the brand will help the company expands the brand in the market. This will help the company improve its brand positioning and its competitive edge in the market.
Overall, the acquisition is a part of Bajaj Electricals’ long-term strategy of moving up the value chain and focusing more on premiumisation. With the acquisition of the brand, the company will move from being a licensee to a brand owner and will thus be able to benefit more and create more sustainable value for its stakeholders by increasing its footprint in the Indian as well as the neighbouring markets.
Financials
The revenue from operations for the company stood at Rs 1,051 crore in Q3 FY26 compared to the Q3 FY25 revenue of Rs 1,290 crore, down by about 18.5 per cent YoY. Similarly, the net loss stood at Rs 34 crore in Q3 FY26, down compared to the Rs 33 crore profit in Q3 FY25.
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