Bajaj Electricals Ltd on Thursday said its board has approved a review of its corporate structure, including a move to hive off its power transmission and power distribution business verticals as an independent entity.

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The company -- which is into consumer product segments like appliances, fan and consumer lighting products; and Engineering Procurement and Construction segment (EPC) that includes power transmission and power distribution and illumination projects -- said it would explore a full range of options and alternatives, including demerger, subsidiarisation and strategic partnerships.

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The step has been taken up considering the varied nature and potential opportunities of each of the business segments and the need for a focused approach to unlock these opportunities, Bajaj Electricals Ltd (BEL) said in a statement.

The board at its meeting held on Thursday authorised the management to "evaluate and recommend such options and alternatives, and subject to such detailed evaluation, consider housing the Power Transmission and Power Distribution business verticals as a standalone/independent legal entity", it added.

BEL Chairman and Managing Director Shekhar Bajaj said, "Over the past couple of years, the Power Transmission and Power Distribution business verticals have sharpened their operational focus, ensuring project closures, increased cash flows, reduction in receivables and repayment of most of the debt, whilst simultaneously focusing on health and safety and ESG in general".

He further said, "We believe the time is now ripe to build further on this and review our structures to enable unconstrained business growth for each business segment".

The objective for the exercise, as outlined by its board, includes streamlining the business structure to enhance market positions, deliver long term growth, tailored capital structure and allocation policies based on business-specific dynamics, the company said.

The company also intends to appoint various advisors or consultants to assist the board in evaluating the options and complete the process to consider the way forward as soon as "practically" possible.