Bajaj Electricals Acquires Morphy Richards for ₹141 Crore

Bajaj Electricals Secures Full Ownership of Morphy Richards

Bajaj Electricals Ltd announced on Monday, March 16, 2026, that it has executed a definitive agreement to acquire the brand rights and intellectual property of Morphy Richards for India and several neighbouring markets. The deal, valued at ₹141.4 crore, transitions a successful two-decade licensing partnership into perpetual ownership, giving Bajaj Electricals complete strategic control over the premium home appliance brand in the region.

The acquisition covers all trademarks, domain names, and associated goodwill for Morphy Richards in India, Nepal, Bhutan, Bangladesh, Sri Lanka, and the Maldives. This move is a significant step for Bajaj Electricals, cementing its position in the premium consumer durables segment.

Details of the Financial Transaction

The payment for the acquisition will be made to Glen Electric Limited, part of Ireland's Glen Dimplex Group, in three tranches. The first instalment of ₹49 crore is due on the transfer date, followed by a second payment of ₹49 crore on or before March 31, 2027. The final instalment of ₹43.4 crore is scheduled for payment on or before March 31, 2028.

While the core acquisition cost is ₹141.4 crore, the total consideration, including withholding tax and stamp duty, amounts to ₹168 crore. The total cash outflow for Bajaj Electricals, after accounting for an 18% Goods and Services Tax (GST) which is recoverable as input tax credit, will be ₹197.47 crore. The transaction also terminates the previous trademark licence agreement from March 2022, with outstanding royalties of £641,780.14 payable by Bajaj Electricals.

A Long-Standing Partnership Culminates in Ownership

Bajaj Electricals has managed the Morphy Richards brand in India since 2002 under an exclusive licensing arrangement. This long-standing relationship has been highly successful, establishing Morphy Richards as a leading international brand in multiple product categories. The brand recorded robust growth of 24% in FY25, driven by strong performance across both online and offline retail channels.

The decision to acquire the brand rights is a natural progression of this partnership. It allows Bajaj Electricals to eliminate royalty payments, potentially improving margins, and provides full autonomy over brand strategy, product innovation, and marketing initiatives. This move aligns with the company's goal of strengthening its portfolio, which includes legacy brands like Nex and Nirlep.

Market Reaction and Stock Performance

Interestingly, the market's reaction to the finalized deal differed from the initial announcement. On March 16, 2026, following the execution of the definitive agreement, shares of Bajaj Electricals Ltd closed at ₹360.05 on the BSE, down by 3.77%.

This contrasts sharply with the market's response in September 2025, when the company's board first approved the proposal. At that time, the stock surged by as much as 13.3%, reflecting strong investor optimism about the long-term strategic benefits of the acquisition. The difference in stock performance may reflect the market having already priced in the news since the initial announcement.

Key Financials of the Acquisition

To provide a clear overview, the key financial aspects of the deal are summarized below.

Strategic Importance for Bajaj Electricals

Morphy Richards, a UK brand founded in 1936, is globally recognized for its premium, design-led home and personal care appliances. For Bajaj Electricals, whose FY25 revenue stood at ₹4,828.43 crore, securing this brand is a critical move. It strengthens its presence in the high-margin premium segment and provides a solid platform for future growth.

Full ownership enables Bajaj Electricals to integrate the Morphy Richards brand more deeply into its operations. This includes tailoring product development specifically for South Asian consumer preferences and launching more aggressive marketing campaigns without the constraints of a licensing agreement. The acquisition is expected to be value-accretive in the long run by securing a key revenue stream and enhancing the company's competitive edge.

Conclusion

The acquisition of Morphy Richards' brand rights marks a pivotal moment for Bajaj Electricals. It transforms a long-term partnership into a permanent asset, providing the company with greater control and financial benefits. While the immediate market reaction was subdued, the long-term strategic rationale for the deal remains strong. The focus now shifts to the seamless integration of the brand and leveraging this ownership to drive growth across South Asia.