LED and battery biz to power Eon Electric

“Our focus will be on LED lighting segment and Li-ion battery segment for the next few years. Our strategy will be to ensure that these two segments drive the overall business of EON,” says Ved Prakash Mahendru, CMD, Eon Electric
Eon Electric Ltd, formerly known as Indo Asian Fusegear Ltd, manufactures a range of high-tech electrical products including lighting, wires and cables. The company has recently enhanced its focus on LED-based lighting and Li-ion batteries. Ved Prakash Mahendru expects that these two segments will drive the overall business of EON.
Formed in 1958, Eon Electric emerged as one of the leading players in high-tech electrical products. How do you view the current scenario in electrical products industry in India?Electrical energy is well established as safe and sound source of energy for use for industrial production, transmission of railway trains and even for the movement of vehicular traffic for men or materials through electric energy stored in batteries. It has established itself to be the most convenient and economic source of energy for running all facets of human life.
Thus, as the variety of end-users is multiplying and the pressure on availability of power is increasing, technology development in use of electric power is crucial.
In fact the development of safer storage batteries with longer life and larger capacity is meeting many mission critical requirements. The large storage capacity of  Lithium Ion (Li-ion )  Batteries are today running our mobile phones, transmission towers apart from keeping transmission stations well energised and running mobikes and automobile cars. High-powered batteries will soon start running aeroplanes duly supported by solar charging.
Also, wires and cables are no longer merely carrying the electric energy from 220 V to 330 KV but also carry transmission of electric signals for communication purposes beneath the sea and where required.
It is almost 4 years passed you have sold your switchgear business. How do you analyse your performance pre- and post restructurisation?Due to our commitment to take up innovative products such as Li-ion batteries, LED lights, special wires and cables; we have hived off our business of electrical switchgear to a French company 2010-11 onwards. Since then, our new business of wires, cables, LED lights, Li-ion batteries and power efficient fans have grown by over five times.
The global slowdown had adversely affected the growth of Indian market. However, in view of the extensive R&D and consequent development of new designs for new products, EON is committed to double digit growth.
How do you find your position in the electrical wires and cables market?Eon Electric has continuously developed new range of wires and cables which are more efficient and cost effective. They are safe despite high environment temperatures in which they need to operate. These wires are fire proof thus adding further safety and security to residential, commercial and industrial buildings.
Could you outline your long- and short-term strategies?Our focus will be on LED lighting segment and Li-ion battery segment for the next few years. Our strategy will be to ensure that these two segments drive the overall business of EON.
How much growth have you witnessed in the last fiscal?EON has achieved a growth of around 175 per cent during the year 2012-13.
What is your expectation for this fiscal?The industry in general and the electrical industry in particular are passing through a difficult phase during the current year. This coupled with the subdued performance of the construction industry (which has been the major buyer of the company’s products) has put a pressure on the sales during the current fiscal. However, EON would be able to maintain its status despite difficult market conditions.
What sort of expansion plans you have in the electrical products business?Growth through new innovative products has been the unique strength of EON and it will continue to develop new innovative products which will not only be power conservative as usual but also safe for the end-users and cost-effective. EON fans because of their energy efficiency are approved under the Star Rating for fans as per BEE.
EON has already established excellent manufacturing capacity for Li-ion batteries for more than hundred varieties of mobile phones apart from 2 million battery chargers. EON has also built-up good capacity for manufacture of power banks the need for which is becoming more critical because of the high power consumption by smart mobile phones.
You have done quite a bit of progress in the Li-ion batteries business. How far you are from launching batteries for hybrid cars? Do you see markets for such products in India?With eventual evolution, we expect hybrid cars to have a market of its own. It depends on the car segment. We believe it will still take some time for hybrid cars to take off to have its own regular, consistent market. EON is always well prepared not only for existing demands for these unique products but it is also well prepared to produce these products as per changing and growing market