Fedders Lloyd restructures operations

Our Corporate Bureau
05 December 2002

As part of the restructuring process, which is to be completed by March 2003, the operations of the company will be divided into five major divisions - consumer electronics, railways/defence, chillers/central plant, transport air conditioner/refrigeration, and cold storage.

The company''s focus henceforth will be on the consumer electronics market, through which it will target to achieve a turnover of Rs 600 crore by the year 2005.

According to company officials, the company recently entered into an agreement with Amtron, a Government of Assam undertaking, to start a new manufacturing facility in Guwahati for room air-conditioners. The government of Assam is giving a number of concessions to the company in terms of taxes and excise duties.

Though the pricing for the air-conditioners has not fixed yet, the company says it will pass on the benefit of the concessions given by the government to the consumer.

Commercial production will begin from December 2002. The Guwahati unit can manufacture 1.5 lakh units per annum. It will produce window ACs, split ACs, as well as ducted split ACs.

The company is currently in talks with other domestic air-conditioner brands to serve as a sourcing base and is also expanding its distribution network. The company is also planning to expand its dealer network from 80 dealers and 250 outlets to 450 dealers and 1,000 outlets. The after sales will be taken care of by a separate arm of Fedders Lloyd called Airserco Ltd.