Bajaj Electricals to take controlling stake in Starlite Lighting
09 February 2010
Consumer durables and lighting major, Bajaj Electricals Ltd, plans to acquire a controlling stake in the Nashik-based Starlite Lighting Ltd, in which it already has a 32-per cent stake. Starlite company is planning a foray into marketing solar powered products.
Shekhar Bajaj, chairman and managing director, Bajaj Electricals told reporters in Mumbai on Monday that the company proposed to raise its holding in Starlite which manufactures T3 compact fluorescent lamps (CFL) with technology from GE (General Electric) Hungary to a controlling stake and ramp up production for exports and meeting the growing demand in the domestic market.
In 2007, Bajaj Electricals invested Rs7.5 crore in Starlite which is now set to expand the annual production capacity of CFL to 40 million units by the end of the year, up from its 15 million units per annum capacity.
The company is also looking for acquisitions and diversification into areas where it could leverage synergy.
''We are looking for diversification and acquisitions that will fit our strategic business. We have earmarked about Rs100 crore out of Rs160 crore we raised recently through a QIP issue (qualified institutional placement),'' said Bajaj.
For its foray into marketing solar-powered products, the company has plans to source these from a third-party vendor and would involve solar panels for street lighting and solar lanterns for villages.