Bajaj Electricals has acquired additional 28 percent stake in Starlite Lighting, taking their stake to 47 percent from 19 percent. For a company which has revenues of Rs 120 crore, Bajaj Electricals paid only Rs 3.5 lakh.
Speaking on the above development, CMD Shekhar Bajaj said the company had the right to acquired additional stake at a nominal price. The rates were already pre-determined before they had done investment in Starlite and so this was only a formality.
However, going further no further increase in stake in Starlite is on the anvil.
On the goods and services tax front, he said they have absorbed the impact of 1-2 percent and have taken price cuts to maintain prices on consumer products. Going forward he is hopeful of GST rates for them to come down to 18 percent from 28 percent.
The first quarter sales are expected to be flat, he said, adding that sales should stabilise post August-September. Revenues for FY18, in consumers product the growth would be around 10 percent and in EPC group about 20 percent, said Bajaj, adding that overall they would grow around 15 percent and that would take the revenues from Rs 4300 crore to Rs 5,000 crore.
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