Mysore Lamps label leased for Rs 75,000

FIRE SALE OF BRANDS

Two years ago, the lights went off at Mysore Lamps. Now the brand "" which used to be a household name and whose bulbs illuminated the Taj Mahal "" has been leased out by the Karnataka government for a paltry Rs 75,000 to an association of ancillaries which were suppliers to the company while it was functioning.

The lease will continue till the high court passes the liquidation order.

While a senior Karnataka government official confirmed the decision, the move has stunned the industry, especially because of the pittance the government has received for a brand that still has recall.

Said an industry analyst, "It is shocking that the brand has been leased out for just Rs 75,000. Earlier, the government claimed that the brand would be sold for a royalty of around Rs 50 lakh."

Controversy notwithstanding, the brand is already on the block and even if a buyer comes forward, it is unlikely the government will be in a position to negotiate a good bargain.

The story of Mysore Lamps falling from grace is the usual one of government reluctance to let go of the management, maladministration and the intense competition in the electric bulbs segment.

Prior to its slide, the company earned good profits for nearly two decades. It is also understood that the real estate on which the unit is located in the city is expected to fetch a high price as and when the liquidation happens.

Mysore Lamps has been one of the oldest public sector manufacturing units. It was founded in 1936 by Narasimha Iyengar and had grown into a household name in Indian homes.

The decision to shut down the unit was taken in early 2002, when the company was enjoying a marketshare of 20 per cent in Karnataka and around 3 per cent nationwide.

The company's downslide started in the early 1990s and it had accumulated losses of over Rs 75 crore when the decision was taken to shut it down. The main reason cited for the closure was over-staffing, while the workers blamed the management for the company's problems.