Satnam S. Sandhu in Calcutta on Wednesday. A Telegraph picture

Calcutta, June 20: Usha Shriram Enterprises is planning to float its initial public offering next year. “The top management is discussing how the business divisions should be consolidated before the issue,” said Satnam S. Sandhu, senior manager of Usha Shriram (India).

Sandhu today unveiled the Usha Lexus range of compact fluorescent lamps for the eastern region. The lamps are priced between Rs 120 and Rs 695.

In September last year, Usha Shriram started manufacturing the Eurolex brand of fluorescent lamps for the northern market. “Between September 2006 and March 2007, we did a business of Rs 7 crore,” Sandhu said. “With this country-wide launch, we are aiming at a revenue of Rs 40 crore in 2007-08 and Rs 100 crore by 2008-09,” he added.

Sandhu, however, denied that the Lexus range had to face stiff competition on the price front. “Our products are competitively priced vis-à-vis other fluorescent lamp manufacturers. Moreover, the cheap imports from China are also likely to stop after the directive of the Bureau of Indian Standards which prohibits the sale of the lamps without the ISI mark,” he said.

About 93 million fluorescent lamps were sold last year. The market size is growing at a compounded annual growth rate of 46 per cent. At present, 930 million bulbs are sold every year.

People are increasingly switching to the costlier fluorescent lamps because they last longer and are more energy efficient. A fluorescent lamp lasts five to six times longer than an ordinary lamp. A 20-watt fluorescent lamp gives the same amount of light as a 100-watt bulb. Besides, the lamp consumes 60 to 80 per cent less energy than a bulb.

The company plans to roll out products in the commercial and decorative segments by September this year. It is also considering an entry into the consumer electronics business. “DVDs and audio-video products have a synergy with our product portfolio and this could be a natural extension of our business,” Sandhu said.

The company will soon launch other products such as emergency lights, miniature circuit breakers and cable wires. The company is also testing the commercial feasibility of low emitting diode lamps and hopes to launch them next year.

Usha Shriram Enterprises has several business divisions. Usha Lexus is for furniture, water heaters and mixer grinders. Usha Brita is for water purifiers. It reported a revenue of Rs 175 crore in 2006-07.

“During this fiscal, the company aims a revenue of Rs 300 crore, of which the lighting segment will contribute 12 per cent,” Sandhu said.