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| MIC charts Rs 240-cr capacity expansion |
| BS Reporter / Chennai/ Hyderabad May 28, 2010, 00:12 IST |
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MIC Electronics Limited, a Hyderabad-based manufacturer of LED screens and lighting products, is embarking on a Rs 240-crore capacity expansion, which will involve setting up three production lines here within the next nine months.
“The expansion will see three production lines for indoor tubelights and down lights, street lighting and portable solar lanterns. While MIC will infuse Rs 40 crore through internal accruals, the rest will be via debt,” MIC Electronics chairman and managing director M V Ramana Rao told mediapersons here on Thursday.
The company has entered into a memorandum of agreement (MoA) with Bihar-based Beltron Telecom Green Energy Systems Limited valued at Rs 66 crore, under which MIC will supply 330,000 LED lanterns for distribution by the latter in the rural areas of Bihar this year. It also launched two new products -- LED tube lights and down lights -- in the Indian market.
Stating that the demand for LED lanterns in Bihar was currently pegged at 30 million units, Rao said the company was targeting sales of around 10 million units in that state over the next three years.
Rao said the company was looking at a tripartite agreement, involving Beltron and the Indian Oil Corporation (IOC) to market its lanterns in Bihar. “We already have a tie up with IOC – which has 17,000 outlets across the country – in seven states. Talks with them for Bihar are in an advanced stage and we expect to sell around half-a-million lanterns in various IOC locations in Bihar,” he said.
MIC Electronics currently enjoys a monopoly in the Indian Railways, garnering revenues of Rs 11 crore during the second quarter. “We currently have Rs 30-crore worth of railway orders on hand and expect this segment to contribute about Rs 100 crore to our revenues this year alone,” Rao said.
The company expects to sell about 2 million lanterns in the next one-and-a-half years, and earn a revenue of about Rs 400 crore. He said it was looking at a 25 per cent growth in top line in the fiscal ending June, as against Rs 250 crore last year.
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