The Hindu : MK Electric floats two new divisions

Online edition of India's National Newspaper
Friday, Jul 12, 2002

Business

Business

MK Electric floats two new divisions

By Our Staff Reporter

CHENNAI JULY 11. MK Electric (India), a subsidiary of MK Electrics of the U.K., manufacturer of modular switches and shutter sockets, has floated an independent division for fully integrated intelligent building management system business. The division will make a complete range of high tech low voltage electrical and electronic control equipment used in buildings. Most of these will be imported. By the end of next year, the company will be launching a separate division for cable management systems too. With the launch of these two divisions, the company will provide a complete end-to-end solution for the customers.

The Managing Director of MK Electric (India), R. Parasuraman, told The Hindu that `we are moving our step forward to become a one-shop supplier for all electrical products.' At present, competition in the organised sector was coming from Anchor Roma, Crabtree, Toyama, Clipsal and Mosaic. However, the major market was from unorganised sector. He said the Bureau of Indian Standards had upgraded the standards for switches in line with the stringent international Electro technical Commission's standard. But the BIS had not made it mandatory for all the manufacturers. As a result, the small manufacturers were still not following the standards. Similarly, the charging of excise duty on the basis of MRP, with an abatement of only 40 per cent, had severely hurt the operations and viability of the manufacturers and the entire supply chain. This would increase the price differential between the organised and unorganised sectors and adversely affect the operations of the organised sector.

The company plans to invest nearly Rs. 6 to 7 crores in the existing line of production of electrical data and systems. For the two new businesses, the company would be importing major items and sell in the Indian market.

The local factory is located at Kuthambakkam Village in Chennai. The MK Electrics of U.K. holds 87 per cent stake in the Indian outfit and the balance is held by 400 odd individual shareholders. The Indian outfit has nearly 300 employees.

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