Guwahati, March 3: Havells India Ltd, a leading fast-moving electrical goods company, will set up its first plant near Changsari in Assam's Kamrup district.

A senior company official said Havells will invest around Rs 300 crore as capital expenditure in the current financial year in expansion of its manufacturing base in Assam and Karnataka.

The official did not specify the investment figure for the Assam plant. A source in the industries department said the initial investment will be around Rs 100 crore which can increase later.

"Work is going on at full pace and production will start soon," the Havells official said, adding that the plant will initially manufacture switchgears.

"The eastern region is a prominent market for us and contributed Rs 1,500 crore to the company's revenue for the fiscal that ended on March 2016. There is an immense potential for growth in the region. We are witnessing a robust increase in demand for our products. The new state-of-the-art manufacturing plant will help us meet the growing demand for quality electrical products," he said.

The move comes at a time when around 75 industrial units with an investment of Rs 6,000 crore are expected to come up and a new industrial policy for the Northeast is expected soon. The Assam government has already passed a bill on ease of doing business and has been holding dialogues with various companies to come and invest in the state.

Havells has seven manufacturing units in the country located at Haridwar, Baddi, Noida, Sahibabad, Faridabad, Alwar and Neemrana.

The organised switchgear market is valued at Rs 2,200 crore, of which Havells is the market leader with 28 per cent market share.

In an electrical power system, switchgear is the combination of electrical disconnect switches, fuses or circuit-breakers used to control, protect and isolate electrical equipment.

The official said the new state-of-the-art manufacturing plant in Assam will generate employment opportunities for people and contribute to the economy.

"By setting up our factory in the region, we will be better positioned to serve its demand for good quality and innovative electrical components and ease other concerns like logistics and easy availability," he said.

The official said the Northeast does present some challenges and bottlenecks to investments. "However, with the focus on developing robust infrastructure in the Northeast and transforming it into an economic, political, strategic and cultural gateway to our Asean neighbours, the region is expected to emerge as an attractive destination for investors," the official said.