HPL sets up Rs 100 cr plant in Himachal

Plant to manufacture switches, electronic meters, UPS systems

HPL India Ltd, a Rs 150-crore company and a leading manufacturer of electrical protection equipment, switchgears, meters, and energy management systems, has set up a new plant with an investment of Rs 100 crore at Jabali in Himachal Pradesh recently.

Spread over an area of four acres (one acre is 43,560 square feet), the plant will manufacture a range of switches, electronic meters, and UPS (uninterrupted power supply) systems. The operations at the plant will commence in March or April next year.

The construction has started with a capital investment of Rs 20 crore and subsequent investments will be made over the next five years. The company has a 50:50 joint venture with Socomec SA of France. This collaboration has been running for 13 years.

The managing director of HPL Nodia Limited, Lalit Seth, told Business Standard here the firm had units in Noida, Delhi, and Gurgaon. What attracted them to Himachal was the industrial-friendly policy of the state and the scenic beauty of the region.

"We chose Himachal over Uttaranchal because of the region's better connectivity," Seth said. The company manufactures about 2 million electronic meters every month, and is supplying to almost all the major states across the country.

"We employ 1,500 people in the existing plants," said Seth, adding that the employment potential of the Jabali plant would be 500-plus.

With 450 dealers and 3,000 retailers, the company has 28 offices in the country.

HPL India has its R&D cell in Gurgaon, which is completely on the lines of Socomec.

HPL deals directly with the states as regards supplying electronic meters. Seth pointed out states differed in specifications and tenders. So the costs vary accordingly.

"Since our concern is now the domestic market, foraying into global markets is not on the cards. There are orders of 1 million electronic meters, to be supplied to various states. Our hands are full," Seth said, adding, "of late, Socomec has started buying back electronic meters."

The company is exporting other products like miniature circuit breaks and distribution boards. Export earnings in 2003 were Rs 4.5 crore.

HPL operates in Sri Lanka, Bangladesh, Malaysia, the United Arab Emirates, and countries of Southeast Asia and Europe.