Close

Social and Relationship Capital

At Bajaj Electricals, we believe it is imperative to build long-term relationships based on mutual trust and respect. Our relentless pursuit towards meeting the emerging needs of our customers, creating of value for our suppliers and driving inclusive growth for our communities we serve, has contributed to creating significant social and relationship capital.
Material Topics:
  • SUPPLY CHAIN MANAGEMENT
  • QUALITY SERVICE AND DELIVERY
Linkage with UNSDG:

₹ 3.3 crore

CSR Spend

596

Dealers Base

1,111

Local Suppliers

12

CSR Partners

230,546

Retailers Base

Bajaj Electricals has always strived to maintain strong relationships with its internal as well as external stakeholders.

The Company believes that as a responsible organisation, its role is to create shared value for all and benefit the people associated with it. Year after year, Bajaj Electricals has implemented various measures to positively influence its surrounding communities. The Company takes continuous strides to ensure that it address the challenges faced by the communities and meets their expectations through its CSR programmes.

Furthermore, Bajaj Electricals has been constantly working towards providing a quality experience to all its customers. The Company believes that consumer satisfaction can be achieved by engaging with the customers on a regular basis and understanding their expectations from the Company to be able to serve them better.

In addition to this, Bajaj Electricals is focusing on establishing long-term relationships with its suppliers and vendors by implementing significant measures to enable effective supply chain management. The Company is taking constructive efforts to integrate sustainability across its value chain.

Social Initiative

Being a responsible organisation, Bajaj Electricals has continuously worked towards creating positive change in its surrounding communities. To this end, the Company has been periodically implementing meaningful measures to address the pain-points of the society and working towards meeting their expectations. The Company believes that uplifting and developing the local communities is key to overall economic development.

FOCUS AREAS UNDER THE COMPANY’S CSR AGENDA INCLUDE:

Environmental Sustainability

Art and Culture

Health

Education

Community Development

Supporting Policy

Bajaj Electricals has established a Company-wide CSR policy that allows it to implement its CSR programmes. The policy can be accessed here:

Bajaj Electricals Limited - CSR Policy

These focus areas are covered under the Company’s four major pillars, that are

Diversity and inclusion

Employee volunteering

Community initiatives

Sustainability

Bajaj Electricals has a well-established policy on CSR, and it has also constituted a CSR committee to ensure the right implementation and effectiveness of its CSR programmes. The Company regularly implements impactful CSR projects in accordance with the Company’s CSR policy and Schedule VII of the CSR Act.

During the year, Bajaj Electricals executed meaningful interventions to impact the society. The Company spent a total of

₹ 3.3 crore

towards its CSR programmes during the year.

Case Study: 1

Electrification of Villages and Healthcare Upgradation

While assessing the need for implementation of CSR programmes, BEL observed that there was a lack of basic amenities in the Meghalaya region. There was no electrification in the villages along with absence of medical equipment and reliable power supply at PHC. To address this, Bajaj Electricals electrified 2 villages. In addition, the Company provided access to medical equipment and solar power plant at a PHC.

Impact

The measures led to reduction in energy poverty, positive climate action through solar energy, reduced health hazards, and quality education. The benefits achieved from this initiative were as follows:

A. Electrification

441

Individuals impacted directly

9.3

Tonnes of annual reduction in CO2 emission

3,440

Litres of annual reduction in the usage of kerosene oil

₹ 1,72,000

Of annual savings from reduction in usage of kerosene oil

18

Individuals including electricians, videographers, and drivers, amongst others have been indirectly benefited

B. Healthcare

12,000

Villagers impacted directly

74

Catchment villages dependent on the PHC

On an average,

120

Patients attended per day

Case Study: 2

Urban Forestation

The Company undertook this initiative in three locations in Mumbai, Aurangabad and Chennai

Driving force behind this initiative:

The urban areas are under the pressure of urban development to accommodate huge amount of people residing in these areas. Majority of green patches are being destroyed for different types of developmental projects, due to this all these areas are facing high AQI index. The Company through this initiative aims to reduce the carbon footprint in the said urban pockets.

Based on site conditions, a plan for three layered greens — Shrubs and undergrowth, Medium- height trees, Taller canopies — which are an integral component of the urban forestation was done using Miyawaki technique. Supplementing the plantation with Mulching, water supply, retention of water and perforation material like rice husk and use of organic compost, cow dung were undertaken to support their growth

Location:

Tamil Nadu Sports University, Chennai, Tamil Nadu

Tata Memorial Centre – ACTREC, Navi Mumbai, Maharashtra

Dr. Babasaheb Ambedkar Marathwada (BAMU), Aurangabad

Action taken under this initiative:

A Total of

10,000+

Saplings of native species were planted across various locations. The approximate area covered under the tree plantation 61,243 sqft.

Key Outcomes:

Total carbon sequestration per year after initial plantation of 10,000 will be approximately 437 tonne and it is going to increase because of the extensive growth of plants (The assessment was done with the help of standard formula for the calculation of carbon dioxide sequestration stated by scientific publications (Hangarge et al., 2012, Sheikh et al., 2011, Pearson et al., 2005)

Up to 30 times or more Carbon-dioxide absorption as compared to conventional forest. The plants growth is 20 times faster.

The plantation will improve the temperature around the area and overall biodiversity will increase, Afforestation in the region, improves community value, as a lot of people coming together and cherishing the biodiversity

The peripheral temperature is noted to be 2 to 3 degrees Celsius lower than the actual temperature. Regular exposure to forest-type environments improves the health parameters as research based on other forestation using various Miyawaki type of techniques has showcased higher oxygen levels in the surroundings.

Employee Volunteering Programme

1,712

Employees participated

1,751

Volunteering days

1,020

Activities undertaken

9,453

Total trees planted through evp efforts

100

No. of cleanliness drives undertaken through evp efforts

Value Creation for Suppliers

In its endeavour to transition into a sustainable business, the Company is rigorously focusing on implementing result-driven initiatives for its vendors. It engages with all its suppliers on a regular basis to understand their concerns and expectations and take immediate actions to respond to their needs. Additionally, in its journey towards sustainability, Bajaj Electricals is striving to sensitise its suppliers on the critical aspects of ESG and encouraging them to adopt sustainable practices.

A. VENDOR ON-BOARDING

Bajaj Electricals has been fostering long-term fruitful relationships with its suppliers. Bajaj Electricals is consistently working towards providing a healthy and safe working environment for all its partners and suppliers. Bajaj has developed its Suppliers Code of Conduct policy. This policy is applicable to all their suppliers and vendors.

Also, the Company has a dedicated ‘Manual for Purchasing’ that allows it to lay down purchase procedures that include evaluation of new vendor, performance monitoring of existing vendors, review and placement of purchase order, and monitoring of supplies.

While on-boarding a vendor, the Company undertakes vendor assessment to screen them on the parameters such as commercial capability, technical capability, and process management, which is jointly conducted by SCM and Quality Assessment team. Moreover, Bajaj Electricals also screens its suppliers on aspects such as quality management, infrastructure, and resources, amongst others.

B. EASE OF FINANCE FOR VENDORS/SUPPLIERS

Bajaj Electricals is keen on planning various aspects of supply chain management to delivery efficiently. As most the products are outsourced from local vendors, the Company plans the location of the warehouses, the right time for delivery, the logistics for delivering the right product at the right place and financing the small-scale vendors to provide Bajaj with the resources.

C. PARTNERSHIP APPROACH-LOCALISATION

Bajaj Electricals is very keen on sourcing locally. The cornerstone for Bajaj Electricals’ growth and success is, it’s connect with the local stakeholders and their changing demands. Bajaj has endeavoured to capture the urban, semi-urban and rural market through its chain of vendors. The Company outsources the processing activity to the local vendors which help to create job opportunities in the semi-urban, areas.

To support the local vendors Bajaj Electricals developed a digital platform/portal

“Mulya”

which is accessible to all the supply partners. The portals also enable the vendors to contribute to ‘VAVE’ ideas/ initiatives which focus on reducing the coast without compromising on quality. This project helped Bajaj to collaborate with the supply partners with a common target of producing quality products at a competitive price. Through this project more than 1,000 different ideas were collected across all categories.

Project: Hello Local

‘Hello Local’ was undertaken to accelerate the localisation of Imported Products and components required for manufacturing. The objective of this project was de-risking Bajaj Electricals' dependency on imports and emphasising “Make-in-India”products.

Under this project around 20 products contributing to 50% of the total Imported purchase has been localised.

D. TRAINING AND CAPACITY BUILDING

  • Vendors in the semi-urban regions are supported technically and financially by helping them with capacity building programmes.
  • CTQ (Critical to Quality) trainings are conducted for the suppliers to ensure quality of the products manufactured.
  • Supplier’s sites are visited frequently by Bajaj Electricals to ensure the quality of the process and the operational efficiency.

E. OTHER INITIATIVES

  • Paryavaran & Safety audit at Tier 2 Supplier was conducted by CFT where assessment of critical components was carried out.
  • Capacity monitoring at Supplier end was done where, 30% capacity enhancement was recorder across all categories in FY 2021-22.
  • Tool life assessment across 45 SKUs for Mixers & 20 SKUs for Coolers.
  • Supplier Audit for CSD was conducted along with CSD partner governing the compliance related to Infrastructure, Pollution, Safety compliances.
  • Half Yearly assessment of Supply partners is carried out among the CFT members which focuses on the regular adherence to complying Safety checks, and environmental norms.

De-risking of Supply Chain during COVID-19

The COVID-19 epidemic revealed the supply chain's vulnerability. It made businesses realise how reliant they were on their vendors, particularly those who were the sole providers of specific goods. To get over supply chain disruption crisis, Bajaj adopted the following steps to reduce supply chain interruption:

  • Bajaj Electricals retained the anpower during the lockdown which gave thrust to the production post lockdown.
  • Bajaj Electricals collaborated with the internal and external stakeholders at all the levels to aid the flow of real time information across the channel.
  • Excessive internal and external communication was undertaken by Bajaj Electricals, particularly when the surge was unrealistic and had to be met in the quickest period possible.
  • Diversity in product sourcing – Bajaj Electricals made sure that sourcing alignment is done for critical suppliers based on sales location.
  • The productivity of the manufacturing was increased by identifying the bottlenecks and eliminating them by improvements in echnology. This also enhanced the efficiency for the long run and reduced the operating cost for the Company.
  • Bajaj Electricals focused on supplier governance.

Due to the above-mentioned timely actions by Bajaj Electricals the supply capacity enhanced by approximately.

30 %

in all categories fulfilling the requirement in shortest lead time. It also improved the stock availability of all the products at various levels.

Initiative: Sprint

This initiative was taken to de-risk the material availability of ABS. Focusing on standardisation Bajaj Electricals changed the material specification in all the coolers from ABS to PP to resist the sudden price hike in ABS.

The change in specification was done in merely six months.

Value Creation for Customers

A. BETTER QUALITY PRODUCTS FOR CUSTOMER RETENTION/CUSTOMER ON-BOARDING

Bajaj Electricals is focused on providing quality products. Throughout the years, Bajaj Electricals has continuously offered a wide choice of affordable products to several consumers. From the procurement of raw materials to the shipping of the product to the final customer, quality is ensured throughout the process The Company is committed to producing high-quality, energy-efficient products that are both accessible and affordable for the consumers. Bajaj It has offered products under a wide range from Home comfort to cooking essentials. Due to such vast variety, the Company can adhere to every need of the customer.

B. EASE OF FINANCE FOR CUSTOMERS

The dealers and distributors in the General Trade channel of sales are provided channel financing facility, which provides discipline in the overall process of collection and at the same time provides working capital support to the customers.

C. RETAILER BRANDING PROGRAMME

Retail Bonding Programmes are initiated by Bajaj Electricals to increase its reach to the retailers and to keep steady the product availability in the market. Through this programme the Company ensured that the products are reached to the Retailers directly through authorised distributors of Bajaj. The retailers were also provided the platform of ‘Bajaj Electricals Parivar’ App to provide easy access of Bajaj Products and catalogue.

More information about the RBP can be accessed on YouTube https://www.youtube.com/watch?v=lBr2iOTEDss

D. AFTER SALES SERVICES

Bajaj Electricals always tries to provide best after sales service to its customers through its vast network of service franchises across country. At present Bajaj has a service network with service franchisees (called BCCDs) in 456 cities across country employing approximately 3,400 service personnel. The Company serviced 18,914 pin codes during the last financial year during the last financial year.

E. TECH SUPPORT

Bajaj Electricals has upgraded with various support methods for consumers to reach out to us like Voice Call through Call centres, Web Form and Online Chat Bots at Bajaj Electricals and Morphy Richards India website and e-mail support. The Company has deployed the web-based CRM for capturing the customer calls online. The customer calls are registered online on real time basis and almost 95% calls are resolved within two days of call registration. A confirmatory message is sent to each customer with call registration ID instantly on registering the call.

F. CUSTOMER SATISFACTION AND FEEDBACK

The Company has continuously increased agents’ capacity at call centres and expanded the reach of service network to promptly reach the customers. The customer satisfaction is measured through digital online process and it has been above 99% in all the months for delighted and satisfied responses. In case of a customer complaint, each escalation is addressed promptly and followed up for resolution. Any negative response coming during customer survey is also addressed by calling the customer and understanding where we failed to meet his expectations and acted suitably. Recently the Company started WhatsApp chat facility for convenience of customers.

Way Forward

Customer satisfaction is most important to Bajaj Electricals. The Company is committed towards providing the products that are sustainable are sustainable. It intends to cater the changing needs of its customers through ease of availability, innovation, and quality products

The Company is committed to support its suppliers through capacity buildings, trainings, finance and so on. Bajaj Electricals aims to increase its number of suppliers in the future without compromising on the quality of its products.