Mysore Lamps brand leased for pittance
State Government may not realise true value
| A senior official of Disinvestment of the Karnataka government confirmed the move. The decision by the government has ruffled quite a few feathers, mainly in view of the pittance the government received for the household brand. |
| Said an industry analyst: "It is shocking that the brand has been leased out for just Rs 75,000. Earlier, the government claimed that the brand would be sold for a royalty of around Rs 50 lakh." |
| Controversy notwithstanding, the product is already in the market and it is expected that even if the government manages to find a buyer for the brand, it is unlikely that it will now be in a position to negotiate a good bargain. |
| The story of Mysore Lamps falling from grace is the usual one of government's reluctance to let go of the management, the maladministration of the company and the intense competition in the electric bulbs segment. |
| Prior to the slide, the company for nearly two decades earned good profits. It is also understood that the real estate on which the unit is located in city is expected to fetch a high price as and when the liquidation happens. |
| Mysore Lamps has been one of the oldest public sector manufacturing units. It was founded in 1936 by Narasimha Iyengar and had grown into a household name across India. |
| Bulbs manufactured by the company have lit up all parts of India including the Taj Mahal. The decision to shut down the unit was taken in early 2002, when the company enjoyed a marketshare of 20 per cent in Karnataka and around 3 per cent nationwide. |
| The company's downslide started in the early 90s and it had accumulated losses of over Rs 75 crore when the decision was taken to shut it down. The main reason cited for the closure was over-staffing, while the workers blamed the management for the company's problems. |
| Lights out |
|