Salzer plans to enter wire and cable segment

Rotary switch manufacturing major Salzer Electronics Limited (SEL) is planning to widen its product base by entering into the wire and cable segment in the current fiscal.

The company plans to invest around Rs 30 crore for the expansion. The fund would be raised through a mix of internal accruals and bank financing.

Speaking to Business Standard, D Rajesh, joint managing director, SEL, said, "We plan to invest the amount in two phases (Rs 15 crore during each phase) for setting up a manufacturing facility. The project, with a production capacity of two lakh coils a month, is under implementation and commercial production is likely to begin in April 2007."

SEL is also negotiating with engineering major Larsen & Toubro, which is currently marketing Salzer switches throughout the country, for marketing its wire and cable products too.

Commenting on the export front, he said that the company had plans to enter newer markets like Germany, Poland , Italy and China . Towards achieving this, SEL is planning to exhibit its products at the Beijing electrical trade fair during October 2006. SEL exports its products to more than 30 countries in the American continent.

A year ago, the company developed modular switches for household and commercial applications. The range included basic control switches, power sockets, TV/telephone/computer sockets, dimmers and special products such as human body presence sensors, shock protectors, timers and anti-burglar systems.

For the quarter ended June 30, 2006, its sales turnover stood at Rs 12.21 crore posting a 40 per cent increase over the corresponding period last year. The net profit rose to Rs 8.79 crore as against Rs 4. 27 crore for the same period a year ago.

Currently, exports contribute around 30 per cent of the turnover of the company. This is expected to rise to 35-40 per cent, after SEL's entry into the new product line and markets.