Indo Asian Fusegear ties up with Spain's Simon

New Delhi, Aug 30 (UNI) Electrical equipment major Indo Asian Fusegear Ltd (IAFL) today entered into a 51:49 joint venture with Spain-based Simon to produce low-cost and power conserving electrical products.

The new company -- Indo Asian Simon Pvt Ltd-- will set up a plant in Haridwar with an investment of Rs 30 crore in the first phase during 2007-08. The plant would be operational from April 1, 2007.

The Spanish firm will bear the research and development cost in the first year from the operation of the plant.

''The products of the JV will save considerable amount of electricity, thereby helping bridge the gap between its demand and supply,'' Indo Asian Fusegear CMD V P Mahendru told reporters here.

Mr Mahendru said R&D facilities would be set up at Haridwar for the growth of futuristic designs according to the consumers' needs and energy conservation.

Mr Mahendru said the company, which will hold the majority stake in the JV, expects to earn a 15 per cent profit, depending on the kinds and range of the products from the new venture.

''Joining hands with one of the fast developing economy, will serve the basic need of the customers by cost effective and saving energy products,'' Simon Managing Director Xavier Torra said.

These features will give a cutting edge over its competitors, Mr Torra said, adding that the company will adopt latest technology for its products.

The first product of the JV would be in the market from the next financial year and marketed in India and SAARC region.

The company would make need-based imports of parts of equipments that would be assembled here.

The funds for the investment into this joint venture will be raised through promoters and bankers.

Presently, IAFL has plants one each in Jalandhar, Sonipat, Murthal (Haryana), Parvanu (HP), and two in Noida and two running plants in Haridwar including this joint venture.

The JV will produce wiring accessories, home and office automation products, specially for commercial and industrial use for convenience and energy conservations.

The main feature of the automation equipments is that the products can be pragrammed as per the customers' requirements and controlled from remote locations by phones.

Simon is a leading electrical equipment manufacturing company with specialisation in design, manufacturing, marketing and sales.

It has its manufacturing facilities in France, Brazil, Argentina, Portugal, Mexico, Morocco, Turkey, Poland, Russia, China and now in India.

IAFL is a leading manufacture of LT electrical switchgear equipment. Its sales plan in the current financial year is Rs 325 crore as against Rs 165 crore in the last fiscal.

IAFL has a 60 per cent market of switchgear, 14 per cent of wire and cable and the remaining of lighting.

UNI SBA PV RS1615