VP Mahendru, Chairman, EON Electric

"The company’s vision is to be amongst the top five domestic leaders by FY 2020 in the LED lighting segment."

Jul 08, 2016 12:07 IST IIFL Yash Ved |

VP Mahendru, Chairman, EON Electric
VP Mahendru, Chairman, EON Electric graduated from the Delhi University in the year 1952.  In 1958, he promoted Eon Electric Limited for manufacturing and marketing Electrical Distribution and Safety Equipment. He has been the President of Indian Electrical & Electronics Manufacturers Association (IEEMA) for the year 2001-02; President of Rotary Club Jalandhar; President of Northern India Switchgear Manufacturers Association (NISMA); President of Federation of Engineering Industries of India (FEII) and others.
 
Established in 1989, EON Electric manufactures a wide range of energy-efficient electrical products, transforming itself into a multi-product organisation. Its manufacturing plants at Haridwar produce LED based Lighting & Luminaires, world-class Fans, Wires & Cables, Lithium Ion Batteries and other electrical items. Presently, the Company has 20 regional offices and more than 200 Sales/Marketing Executives and Engineers to support 500-plus Dealers/ Distributors across India. EON products are available in all major markets of India and enjoy National/International Certifications of BIS and ISO-9001. The Company’s vision is to be amongst the top five domestic leaders by FY 2020 in the LED lighting segment.
 
Replying to Yash Ved of IIFL, VP Mahendru says "The company’s vision is to be amongst the top five domestic leaders by FY 2020 in the LED lighting segment."
 
What growth do you expect from FY17?
Over the past year and a half, our manufacturing focus primarily has been on the LED lighting segment, which has shown high potential in terms of benefits to the environment, energy saving for the nation, faster revenue growth as well as building up stronger bottom-line for EON.
 
Our sales for FY 2016 stood at Rs.174.67 crore up by 35% over previous year. We are bullish on maintaining and sustaining the same or higher level of growth in future. We believe that with our in house value engineering on our products, our margins will further improve.
 
What was the revenue earned from lighting business?
We earned revenue of Rs 95.78 crore from the lighting business in FY16.
 
When do you expect recovery in cables and wires business?
Presently, we are focusing more on higher margin products and this strategy has paid off  in the last three years. Over the last four years, we have earned about Rs 310 crore revenue from wires and cables business. The wires and cables segment has good potential to grow, though the competition is high and the margins are comparatively thin. In view of this, currently our focus is on lighting which we have earmarked as a high margin, high growth business for us.
 
Your outlook on margins?
The company's annual turnover during FY16 stood at Rs. 174.67 crores. We remain positive about future outlook as far as margins are concerned. Due to increase in EON lighting products demand, favourable policy regime and market ecosystem, the margins are bound to increase due to increase in sales.
 
What is your order book in lighting as well as the cable business?
Our order book in lighting business stands at Rs. 60 crore, while cables segment was at Rs. 68 crore.
 
What is the current debt?
We have no current debt. However, we are enjoying usual working capital facilities from our bankers.
 
What is the company's vision?
The company’s vision is to be amongst the top five domestic leaders by FY 2020 in the LED lighting segment. We believe in constantly improving the quality of performance in whatever the customers need and appreciate. We are committed to undertaking more challenging assignments not only in LED street lighting but in other energy-efficient unique lighting projects as well. Our goal is to sustain the growth rate that we have now set up for ourselves.

Related Story