Korean co plans unit

Heat Engineering Company, a $100-million Korea-based lighting solutions firm, has announced plans to set up a manufacturing unit for compact flourescent lamps (CFL) in Bangalore.

CFL are being increasingly used for saving energy costs compared to conventional bulbs through a unique circuit combination.

The company estimates that in due course, investment in the unit will be in the range of Rs 500 crore with a production capacity of 10 million CFL.

Company officials said that they have identified land for the unit and said that they are yet to finalise the funding pattern for the project.

The company has announced a strategic pact with Sunu Trading for marketing its range of energy-saving products in India. Heat Engineering has estimated the market for such products around Rs 280 crore and is targeting a market share of 30 per cent in an year.

Products will be initially launched in south India in a phased manner and the company will be up against established players like Philips, Bajaj, Crompton Greaves besides others.

A spokesperson for Heat Engineering said, "There is competition from a number of players here. The differentiating factor is that we have a wide range of products, right from 5 watts to 100 watts for industrial, commercial and domestic sectors. As we understand, the competition is limited to a certain range." Heat Engineering also plans to introduce sensor and LED lamps.

The company will price its products from around Rs 110 per CFL bulb and is providing a guarantee of 10,000 hours of light for the same. Heat Engineering has claimed that their CFL products provides a 80 per cent saving on energy bills in an average household.