Indo Asian Fusegear aims to double exports

Indo Asian Fusegear Ltd (IAFL), a manufacturer of electrical switchgear equipment and compact fluorescent lamps (CFLs), is eyeing to double the share of exports in its total sales turnover.

The company eyes considerable business opportunity in Europe as a number of countries have decided to ban mercury lamps from next year as these are considered responsible for land and water pollution.

The company aims to cross export figures of Rs 30 crore during the current fiscal, from just over Rs 15 crore during the financial year 2004-05. IAFL reported sales turnover of Rs 125 crore during the financial year 2004-05.

The major chunk of company's targeted overseas sales will come from IAFL's long term contracts with number of companies based in Europe.

"The European market is going to be an attractive destination for us with great business opportunity. We are already supplying CFLs and electric switchgears to number of companies selling well-established brands in Europe and may add some more shortly. Being the oldest player in the field of lighting we understand the quality and technology sought by the international players better," said Vivek Mahendru, president-operations, IAFL.

Currently, ESEs dominates the cumulative exports of the company. However, Mahendru is hopeful to reverse the ratio between switchgears and CFLs.

Apart from European countries, Australia, South Africa and Middle East countries are also some of the major destinations for IAFL's products.

Commenting on the challenges in the global market by Chinese manufacturers, Mahendru said, "It is true that Chinese manufacturers in our product categories are creating major challenges. But we have quality products from our state of art manufacturing facility to showcase before the potential customers.

"Chinese manufacturers may offer cheaper goods but not the quality. Even Chinese will have to quote higher prices to deliver internationally accepted products and that is where we have level playing field in the highly competitive global market."

Meanwhile, the company has under taken the capacity expansion project that will enable the company to claim itself as the largest producer of CFL in India. IAFL aims to start manufacturing at its new facility in Uttaranchal by July 2005.