The Hindu Business Line : Fan major Khaitan diversifies into fluorescent lamps

The company, which is listed both in NSE and BSE, also plans to introduce a range of domestic appliances such as water heaters, food mixers, irons and adhesive electrical tapes, but it will not enter the white goods market.

Addressing a press conference, Mr Sunil K. Khaitan, Vice-Chairman and Managing Director, said that Khaitan Electricals is also setting up a new factory in Kala Amb at Himachal Pradesh.

"We are investing about Rs 20 crore in the light sector and it will be spread over a period of 8-10 months. Funds for the investment will be generated from internal accruals and it will take care of the working capital needs," Mr Khaitan told reporters.

On Tuesday, apart from a range of CFL, the company launched isolators, distribution boxes, miniature circuit breakers (MCB) and residual current circuit breakers (RCCB).

According to him, the objective behind this diversification is to provide the customer with a complete bouquet of products in electrical solutions in the household sector.

At present, Khaitan Electricals are producing five lakh CFLs from its existing factory in Paonta Sahib in Himachal Pradesh.

In the test run stage, the company claimed that it managed to garner a market share of 6 per cent and hopes to increase it to 10 per cent by the end of March 2006.

In the fan business, the company enjoys a 15 per cent share of the national market. It sells more than 1.7 million fans every year.

Khaitan Electricals earnings from the fan sales were Rs 115 crore in 2004-05 and it is expected to touch the Rs 150-crore mark in 2005-06.

In the last financial year, Khaitan Electricals' registered a gross profit of Rs 5 crore on a total turnover was Rs 129 crore. With the introduction of the total electrical solution, the company hopes to cross the Rs 200-crore turnover in the current financial year.

The company is exporting to neighbouring countries. Exports, Mr Khaitan said, generate approximately 8 per cent of the company's total sales.

On Tuesday, the Khaitan Electricals' share in BSE registered an upward movement.

After opening at Rs 33.50 it reached a high of Rs 35.50. More than 4,000 shares changed hands.

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