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| Edited By: KV Ramana |Source: DNA |Updated: Mar 17, 2018, 04:09 AM IST
MIC Electronics, the Hyderabad-based LED technology company, is planning to expand its existing capacities at an outlay of Rs 240 crore.
The fresh capacities would include three production lines and the expansion is expected to be completed in the next nine months.
The expansion would increase the capacity to produce indoor tube lights, street lighting and portable solar lanterns, all based on LED technology.
“For meeting the funding requirements, the company would infuse about Rs 40 crore through internal accruals and the balance will be brought in through debt,” MV Ramana Rao, MIC’s CMD, said.
The company had a revenue of about Rs 250 crore previous year and is expecting to close this year with a growth of about 25%. The company follows the July-June financial year.
“We are focusing more on solar lanterns and that business should contribute significantly to our topline in the next 12 to 18 months,” he said.
MIC on Thursday entered into an agreement with Beltron Telecom Green Energy Systems, a subsidiary of Bihar government owned Beltron Telecom.
Under the agreement, MIC will supply 3,30,000 LED lanterns to the Bihar-based company for distribution in the rural parts of the state. The order is valued at about Rs 66 crore.
According to Rao, the demand for LED lanterns in Bihar alone is at about 30 million units and it aims to supply about 10 million units to the state in the next three years.
MIC already has an arrangement with Indian Oil for distribution of lanterns in about seven states in the country. The oil company uses its outlets in these states to market the product. “We are planning to enter into a tripartite agreement with Beltron and IOC for distribution of lanterns in Bihar as well,” he said.
MIC has also been targeting the LED requirements in the Railways for sometime now. The company has been piloting a project for introduction of satellite-linked LED display systems in various railway stations.
According to Rao, the Railways order has already brought in about Rs 11 crore revenue and has an order book of about Rs 30 crore from the largest public transport company.
