Indo Asian in pact with Theben

Indo Asian Fusegear Ltd, India's leading manufacturer and exporter of compact fluorescent lamps, circuit breakers and other lighting equipment, has entered into a strategic partnership with Germany-based Theben AG for producing time switches and motion detectors in the country.

According to the agreement, the 75 million euro firm Theben AG will provide technology to the Delhi-based Indo Asian Fusegear for the manufacture of these intelligent energy-saving devices and other support in setting up the manufacturing plant.

Under the joint venture, 25-30 types of time switches and motion detectors will be produced. Manufacturing is expected to start in March next year. Indo Asian Fusegear, which is setting up three manufacturing facilities in Uttaranchal for producing compact fluorescent lamps and luminaires at Rs 71 crore, plans to invest another Rs 5 crore in the proposed switch gear unit to produce time switches and motion detectors.

The company has six production facilities. Of them, two each are in Noida and Parwanoo in Himachal Pradesh; one each in Jalandhar and Murthal in Haryana.

"There is tremendous potential for time switches, motion detectors and allied products in the Indian market. To tap this potential, Indo Asian Fusegear and Theben AG have agreed to form a joint venture," Thomas Goes, chairman of Theben AG, told Business Standard.

"The demand for energy-saving electrical equipment is growing fast. The government is also stressing the use of high-quality electrical appliances for energy conservation. The joint venture will try to leverage this opportunity," said VP Mahendru, chairman and managing director of Indo Asian Fusegear.

According to Mahendru, in the beginning Theben products will be assembled at the Uttaranchal facility.

"In due course the entire manufacturing will be done, depending upon the requirements of the Indian market," Mahendru said. The company also plans to set up a new facility for these innovative power control systems.

On the future plans, Peter M Speidel, export manager of Theben AG, said the company aimed at developing India as a manufacturing base to export these energy-efficient products to neighbouring countries.

According to Speidel, Theben has a major presence in over 54 countries and plans to expand its operations in south Asia in a strategic partnership with Indo Asian Fusegear.

Apart from India, there was a great demand for intelligent power saving devices in Sri Lanka and Pakistan in this south Asian region, Speidel added. According to Speidel, Theben that clocked a Euro 880 million topline in 2000-05, is investing over 8 per cent of the turnover in research and development.

"The company aims at introducing about 5-6 new products in the Indian market under the strategic partnership with Indo-Asian Fusegear," he said.

Remarking that the Indian market for energy-saving and efficient devices was growing at a healthy rate of 25-30 per cent a year. Mahendru said the impact of the production of new power devices would reflect in Indo-Asian Fusegear balance sheet by next financial year.

"In the next two-three years, we hope to increase our turnover by over 100 per cent," Mahendru added.

In the first six months of the current year, the company's revenues were higher by 13 per cent at Rs 67.74 crore and net profit was higher by 33 per cent at Rs 7.59 crore, compared to last year's first-half figures of Rs 59.85 crore and Rs 5.72 crore, respectively.