Date:07/09/2006 URL: http://www.thehindubusinessline.com/2006/09/07/stories/2006090703040500.htm

Back Deco Group launches compact fluorescent lamp

Virendra Pandit

`Rema' priced 20 pc lower than some competitive brands

Rema would be introduced in two stages to tap the households market.

Ahmedabad , Sept. 6

The Morbi-based ceramic company, Deco Gold Electronics Ltd, part of the country's top 10 manufacturers of vitrified floor and lustre wall tiles, Deco Group, today entered the compact fluorescent lamp (CFL) market by launching money-saver lamp under "Rema" brands for households, promising to save power up to 80 per cent.

Addressing a news conference here, the Deco Group Chairman, Mr Girish M. Pethapara, said the company has launched six different models between five and 21 watts, priced between Rs 125 and Rs 350. The Rema range has been designed to withstand high voltage fluctuations (between 130 and 275 volts) by using current and voltage filters, which also increase life of the light bulb. The lamps have fire-proof plastic coating with a guarantee of 13 months. In order to reach the common households, Rema has been priced 20 per cent lower than some of the competitive brands, he said.

New products

Rema would be introduced in two stages to tap the households market, followed by new products for industrial customers after three months.

Mr Pethapara said there is a huge demand of CFL in the country's residential and industrial markets, to the tune of 18 to 20 lakh pieces per day. However, current production is only about four to five lakh pieces per day. The money-saver Rema range would ensure energy-efficient lamp solutions for Indian households. He urged the Government to regard the CFL bulbs as an essential commodity and a household article and reduce VAT on it from 12.5 per cent to four per cent to help increase its market in order to ensure a pollution-free and environment-friendly domestic lighting system as in Europe.

Deco would be initially producing 20,000 pieces of Rema range per day but aims to increase production to 1.25 lakh pieces per day next year and capture 15 per cent of the market in India. The lamps would be manufactured with material imported from China and other countries and would match international standards. The company also plans to employ more than 1,000 women in its Morbi unit to empower and provide them with economic stability.