Onida's Rs 400-cr investment plan in Maharashtra on hold

The company says the current government's policy is not conducive enough

The electronic major MIRC Electronics Ltd, which owns the brand Onida, has decided to put its Rs 400 crore investment plan in Maharastra on hold. The company said the current government's policy is not conducive enough.

Speaking to reporters after launching range of air conditioners in Chennai today Gulu Mirchandani, chairman and managing director, MIRC Electronics said "current policy need dramatic change. If nothing is coming out in the near terms then we will not goahead with the investment plan".

He said the industry need certain benefits like sales tax, income tax benefit, duty on imports just as the car industry.

The company has been allocated 100 acres in Maharastra where the company was planning to invest around Rs 400 crore to manufacture ACs.

Meanwhile the company which launched new range of ACs today said by 2015 it is planning to increase its market share to 15% from the current 10% in the room air conditioners category.

The company also said prices are expected to go up by 10-15% mainly due to change in norms and depreciation of Rupee against US Dollar, said Sunil Shankar, business head - Air Conditioners.

He noted, 50% of the components are imported for air conditioners.