Indo Asian Fusegear plans to foray into power generation

New Delhi: Indo Asian Fusegear, a Noida-based manufacturer of electrical lighting and switchgear equipment, is planning to foray into power generation. 'We are looking at options in hydel and wind projects,' said Joint Managing Director P K Ranade. Ranade has already visited prospective hydro project sites in Himachal Pradesh.

The 50-year old company, which clocked annual sales of Rs 225 crore last year, recently entered the power distribution business in an attempt to grow its non-manufacturing business. It has taken over six distribution projects in Madhya Pradesh from January 2008 and is pitching for newer areas for additional revenue generation from the business.

'We are now negotiating for some circles in Haryana and Uttar Pradesh. We have already entered into tie-ups with distribution companies in Delhi, Haryana and Jaipur,' Ranade said. 'Distribution as a business, however, takes time in giving returns,' he added.

Ranade said the company has been forced to increase its product prices as input costs had gone up. Indo Asian has bagged a Rs 9.5 crore order from the Haryana government for the manufacture and supply of Compact Fluorescent Lamps (CFLs) this quarter.

Indo Asian has planned an overall investment of Rs 100 crore in the current year, out of which Rs 65 crore will be invested in cables and wiring business and another Rs 30 crore in the modernisation of equipment manufacturing plants. 'We have begun many new projects. But the impact of the contribution of our new business activities is yet to affect our results. The depreciation and the interest cost has depressed the earned profits,' he said.