Bajaj Electricals Shares Skyrocketed 10% on Securing Morphy Richards Brand Rights

Shares of Bajaj Electricals Ltd skyrocketed 10% on 17 March after the company announced the acquisition of Morphy Richards brand rights for Rs 141.4 crore.

The company has inked a binding agreement to purchase Morphy Richards’ intellectual property and brand rights in India and select South Asian markets.

This move expands on a two-decade cooperation under a licensing agreement and provides Bajaj Electricals with complete ownership and control of the brand in India, Nepal, Bhutan, Bangladesh, Sri Lanka, and the Maldives.

Morphy Richards, founded in 1936 in the United Kingdom, is well-known for its high-quality, design-driven household appliances and personal care items.

In India, Bajaj Electricals has managed the brand under a licensing deal since 2002, assisting it in establishing a significant presence across numerous product categories. The licensing agreement was last renewed in 2022 for another 15 years.

With the acquisition, the firm intends to expand its multi-brand strategy and increase investment in innovation, design, and go-to-market execution.

Bajaj Electricals stated that complete ownership of the brand will allow it to create more value for customers, partners, and shareholders.

Commenting on the announcement, Managing Director and CEO Sanjay Sachdeva stated that the acquisition will enable strategic flexibility to drive growth in premium areas through faster innovation and better market execution.

From the seller’s perspective, Glen Dimplex stated that Bajaj Electricals’ strong execution capabilities and awareness of the Indian market position it well to drive the Morphy Richards brand’s next phase of growth.

At 1:15 pm, the shares of Bajaj Electricals were trading 0.86% higher at Rs 364 on NSE.

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