Mohali firm to invest Rs 1 cr in electronic goods expansion

Mohali-based Gilard Electronics Private Ltd, manufacturers of electronic components for the electronics and automobile industry, will invest Rs 1 crore in expansion. It is also eyeing Germany for exports.

The company recently bagged the Electronic Industries Association of India quality award for 2005-06.

Started in 1961 as a radio components manufacturing company, it later ventured into electronic components for the telecom, instrumentation, entertainment and defence sectors. Over time, it started manufacturing import substitution components.

In 1987 the organisation diversified into the manufacture of components for automobile companies and is now considered the most preferred source for those.

The company supplies electronic components to firms like Denso India, Escorts, Eicher, Honda Siel, International Tractors, Lucas TVS, Punjab Tractors, Swaraj Mazda, BEL, IFB, ITI, and Mitsubishi Electric.

Speaking to Business Standard, Managing Director H S Sethi said, "There is robust demand for electronic components for the electronic and automobile industries. The annual growth rate of the electronic industry is 12 per cent. So in order to cope with the demand we are expanding our manufacturing facilities by investing Rs 1 crore. The job is likely to be completed by March next year."

The firm exports to Singapore, China and Russia. On the demand for auto components, Sethi said, "It is immense. In a single car, around 5,000 electronic components are used. Of that we manufacture 35-40 components. Last year, we achieved a growth rate of 20 per cent but this year with expanded capacity and with new products in our portfolio we are hopeful of achieving a growth rate of 50 per cent." In the last financial year, the turnover of the company was Rs 12 crore.

"We are planning to launch 8-10 items more in the automotive and electronic sectors in the current financial year," he added.

Highlighting the infrastructure problem in the industrial area, Sethi added, "The Punjab government is supposed to have given Rs 260 crore for improving the infrastructure in Mohali, which includes widening roads, etc, but nothing has been done."