Home appliances and engineering firm Bajaj Electricals has said that it is looking to set up a dedicated research and development centre to undertake new product development and also innovations of existing products.

“We will look at setting up a dedicated R&D centre this year. We are still scouting for the location. Currently, our R&D is spread at various centres,” Mr Anant Bajaj, Executive Director, Bajaj Electricals Ltd, said. The company said it is testing the market for various products like water purifier, pressure cookers and mixers among others.

“We have done a pilot launch of our water purifier in six to seven locations. We are also looking at other kitchen appliances,” he said.

Net profit up

Bajaj Electricals said its net profit for the third quarter ended December 31, 2010 has grown by 19.1 per cent to Rs 40.6 crore from Rs 34.1 crore in the corresponding period of the previous year.

The net sales/income from operations increased by 18.7 per cent to Rs 689 crore (Rs 580 crore).

“We've been able to achieve good numbers under severe pressure from market forces and raw material price fluctuations. The E&P BU will be focusing on aggressive growth in the fourth quarter thanks to an order book of Rs 1,050 crore while managing the input cost and margin pressures more effectively,” Mr Bajaj said.

The company said that the consumer durables segment witnessed a 34 per cent growth in the quarter and the lighting segment has grown by over 17 per cent.

Asked if the company is looking at acquisitions, Mr Bajaj said if the buy would give advantages like market distribution and technology, then it will consider it.

Bajaj Electricals operates in six verticals – engineering and projects, appliances, lighting, luminaries and Morphy Richards.

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