"We are looking at options in hydel and wind projects," says P K Ranade, joint managing director of company, who has already visited prospective hydro project sites in Himachal.
The 50-year old company -- set up in 1958 with a meagre investment of a few lakhs -- recently entered the power distribution business too, in an attempt to grow its non-manufacturing business.
It has taken over six distribution projects in Madhya Pradesh from Januray 2008 and is pitching for newer areas for additional revenue generation from the business.
"We are now negotiating for some circles in Haryana and Uttar Pradesh (UP). We have already entered into tie-ups with distribution companies in Delhi, Haryana and Jaipur." Ranade explained.
Distribution as a business however takes time in giving returns, said Ranade.
More From This Section
As for its flagship business of manufacturing, Ranade said that the company had been forced to increase prices of its products as inputs costs had gone up.
"Our transport cost has now gone up by 15-20 percent and transportation plays a key role because we have our suppliers in every corner of the country. The cost of almost all materials has gone up...plastic, metal, steel etc. because everything is related to petroleum," he said.
Nevertheless, Indo Asian has been able to bag a a Rs 9.5 crore order from Haryana government for manufacture and supply of Compact Fluorescent Lamps (CFLs) this quarter. The company was the first in the country to get Bureau of Indian Standard (BIS) approval for CFLs and has recently supplied about 100,000 CFLs for BSES, Delhi.
The company is currently in an investment intensive phase and has recently invested over Rs 70 crore in setting up three equipment manufacturing units at Haridwar for producing lighting equipments, wiring and switchgears. "All of these are operational now," he said.
Indo Asian has planned an overall investment of Rs 100 crore in the current year, out of which Rs 65 crore is to be invested in cables and wiring business and another Rs 30 crore in modernisation of equipment manufacturing plants.
"We have begun many new projects. But the impact of the contribution of our new business activities is yet to affect our results. The depreciation and the interest cost has depressed the earned profits," he said.
The company is yet to announce the annual results for the year.
The company which already has two major joint ventures with overseas firms, is planning to put in place some more JVs to expand its reach. The two JVs already entered into by the company are with Simon Holding (Spain) and Saudi National Glass (Saudi Arabia) for manufacturing lighting equipments and automation systems. The company's shares at the Bombay stock exchange closed today at Rs 29.70, Rs 0.40 lower than the previous day's close.