Indo Asian Fusegear to expand with Rs 66 cr

Indo Asian Fusegear Ltd (IAFL), the leading manufacturer of compact fluorescent lamps (CFLs), is set to expand by pumping in Rs 66 crore to double its turnover by the next financial year.

"We have four plants, one each in Jalandhar, Sonepat, Noida, and Parwanoo. By the next financial year, three more plants in Haridwar will be in operation to manufacture some new products," V P Mahendru, chairman-cum-managing director of the company said, adding Rs 66 crore would be pumped in for the expansion.

"Currently, the company's turnover is over Rs 200 crore, and after the completion of the expansion, we have the target of doubling it by the next financial year," he said. Of the Rs 66 crore, Rs 20 crore would come from the profit of the firm, Rs 26 crore would be a term loan, and the remaining Rs 20 crore would come from an equity issue, he said.

IAFL was the first Indian company to manufacture MCBs and it was exporting to European countries, Mahendru said. The new products of the company include compact fluorescent lamps (CFLs) and lighting products with sensors.

The company has tied up with the Italian company Nordex Lighting with the capital shares in the ratio 59:41, to manufacture outdoor industrial lighting products. The production will start in the Haridwar units from April. The firm expects a business of about Rs 125 crore through new products in the country, apart from export earnings.

About the new products of industrial lighting, Mahendru said products would have automatic sensors to judge the requirement of light and there would be no need to switch on or off the lights on the roads. Nordex has a presence in about 70 countries with its products in the field of industrial lighting.

IAFL has its base in Jalandhar, where it has established its first unit in 1958. Since then, it has substantially expanded its activities all over the country, including the recent major investments in Uttaranchal and Himachal Pradesh.

The Jalandhar unit of the company was in tune with the company's focus on the R&D activities and it had finalised large contracts for the regular export of large quantities of electrical distribution protection equipment to Europe and the Middle East, Mahendru said.

"After getting a good response from European and Middle East countries, our focus is on new innovative circuit protection and power distribution equipment, and using modern techniques to enhance production capacity," Mahendru added.