Eon Electric to expand Haridwar unit capacity by 2015

Company intends to spend close to Rs 200 crore for increasing the capacity

Electrical equipment maker Eon Electric plans to ramp up the manufacturing capacity of its Haridwar plant, which produces its signature product LED lamps, to one million units per month by March 2015, a company official said.

"At present, we manufacture 1 lakh LED lamps in a month and we plan to take this number to 1 million (10 lakh) by March 2015," Chairman and Managing Director V P Mahendru Eon Electric told PTI.

Eon Electric is engaged in the business of manufacturing energy meters, lithium ion batteries, LED lamps etc.

He said the process has already started for enhancing the capacity of its Haridwar (Uttarakhand) unit, which primarily caters to LED lamps.

"We intend to spend close to Rs 200 crore for increasing the capacity, we have started sourcing the machines," Mahendru said.

Eon Electric will finance this expansion mainly through internal accruals.

"Mostly the funds will come internally and less than 50 per cent will be debt, which we intend to take from SBI as we have a long association with the bank," he added.

The company is also hopeful of exporting these products overseas.

"Yes, we do intend to export mainly to the European and US markets," Mahendru added.

The company's another facility at Faridabad in Haryana is mainly engaged in battery manufacturing.

The company has a workforce of 500 people which includes 150 marketing professionals, 100 in its corporate office and 250 at its manufacturing facility.