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Neha Kaushik

New Delhi , May 21

Private equity firm Actis is set to make its third investment in the auto components sector in India. The firm would be purchasing about 14 per cent stake in Phoenix Lamps Ltd, a manufacturer of halogen lamps for automobile and general lighting and compact fluorescent lamps (CFL), for about $9.5 million (Rs 43 crore).

Actis' previous investments in the auto components sector include Hindustan Motors' components business and Sandhar Locking Devices Ltd, for which it invested $17.8 million and $23 million respectively.

The Rs 245-crore Phoenix Lamps has a dominant market share in both the automotive lamps and CFL segments. The company currently has three plants and is in the process of setting up a new unit in Uttaranchal, which is expected to be completed in the third quarter of the current fiscal. The upcoming unit has a capacity of around 50 million units. The company has in the past said that it is eyeing to increase its revenues to Rs 500 crore by 2008.

Analysts point out that both the CFL and auto lamps segment are set to see sizeable growth over the next few years. In fact, Phoenix's CFL business is the main growth driver for the company.

The auto lamps segment (both original equipment manufacturer (OEM) supplies and after-sales market) is also likely to see steady growth with the automobile sector, particularly two wheelers, maintaining a continued double digit growth rate.

Market analysts add that Phoenix is estimated to have a 70 per cent market share in the auto lamps segment, including both the OEM and the after-sales market.

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