— V.P. Mahendru, Chairman & MD,
EON Electric Ltd
Eon Electric Ltd, formerly Indo Asian Fusegear Ltd, is a well
established company for over 55 years operating in the electrical
equipment domain. After a strategic sale of its switchgear division
in 2010, Eon is now restructuring its business model and
identifying new growth drivers, which include high-technology LED
lighting and energy efficient products.
V.P. Mahendru while elaborating on the LED lighting business
asserts that EON is committed to offer innovative products so that it
continues to enjoy the faith of its customers, gained over the past
50 years. An interview by
Venugopal Pillai.
At the outset, tell us about the rationale of diversifying into the
LED lighting business.
Eon Electric Ltd (formerly Indo Asian Fusegear Ltd.) has been
one of the leading manufacturers of energy efficient lighting
equipment. Eon (then Indo Asian) was the first company to set
up large plant for the manufacture of CFLs (Compact
Fluorescent Lamps). Its CFLs were certified by BIS (Bureau of
Indian Standards) and carried the mandatory BIS mark.
Since LED is the creative future of most efficient lighting, it is
natural for us to graduate to manufacturing LED based lighting
and luminaries.
Please elaborate on the proposed LED business in terms of the
your manufacturing plant, foreign technology partner, etc
We have finalized an agreement with a large European
company for the manufacture of LED-based lights. The
European company is in the field of advanced lighting
equipment for the last many years. Our plans for assembly,
manufacturing and research & development of LED and LED based
lights and luminaries are in advance stage. The
manufacturing plant is proposed to be set up within NCR.
When do you expect the LED lighting business to start
commercial operations?
Regular commercial production is expected to start by the end
of FY13.
LED is currently believed to be the most efficient lighting source. Tell us about the efficiency of LED
compared with alternatives like GLS, CFL, etc.
Yes, LED is the most efficient source of light as
commonly used, as on date. LEDs (light
emitting diodes) are based on duly packaged
solid state semiconductor chips which are
highly power efficient. These LED based lights
have lifespan of over 20,000 hours compared
to 5,000 hours for CFLs. Also high efficiency
LEDs emit 100 or more lumens of light per watt
as compared to CFLs which emit about 50
lumens per watt.
In the case of LEDs almost all the electrical energy is used up
for producing light unlike GLS lamps where hardly 20 per cent
power is used for lighting and the rest 80 per cent is wasted as
heat. Similarly CFLs also are not capable of fully converting
electrical energy into light.
LED based lights can hence save enormous amount of power
used in lighting. Moreover, LEDs unlike CFLs do not carry
harmful metals like mercury etc which are hazardous for
human health.
We understand that China is making inroads into the LED
market. What is your view and reaction?
Chinese LEDs have made some initial inroads into the LED
market however their products have not delivered the high
performance which LEDs are expected to do.
To make LEDs more acceptable in the Indian market
companies have to win confidence of the consumers on long life
and reliability of LEDs. Indian lighting industry has to ensure
that LEDs deliver long life of 20,000 to 30,000 hours.
We understand that the initial cost of LED lighting is seen as a
big deterrent in a price-sensitive market like India.
Yes, LED lights are more expensive than other conventional
lights. However, as production and sales volumes rise on
account of increased demand, industry, whilst taking
advantage of lower cost for higher volumes,
will be able to offer the lights cost effectively.
This will remove perception of high cost of
LEDs in view of cost / benefit evaluation
among all types of consumers, for making
them more popular.
Do you therefore see the price of LED
becoming more "affordable" in the medium to
long run?
Yes, as already discussed, this can happen as
production and sales volume rise. Of course,
further advancement in R&D/technology can also help lower
the costs of production of LEDs.
Apart from LED lighting, tell us briefly about the various
business segments that Eon will be venturing into.
Apart from venturing into LEDs, EON is expanding its existing
range of wires, wiring accessories, switches etc. Eon is
building up thrust on delivering consumers products. We are
adding batteries, fans and geysers to our existing range of
products.
Accordingly, with its new Home Automation Systems EON is
planning to offer consumers higher safety, security, comfort
and joy. These systems will have sensors duly incorporated
which can detect and warn movement (a) of any intruder in
home (b) leakage of water (c) and gas. These sensors can also
detect movement of any person in a certain area and can switch
on and off the lights automatically to conserve power.
Indo-Asian has been a household name for over 50 years in the
switchgear business, how do you plan to promote and establish
"EON" — the new brand and identity?
At EON Electric, we are specially focusing on new products and
new innovative types and designs of products so that we
continue enjoying the faith of our customers that we have
gained over the last 50 years.