OEN Connectors to set up factory in Chennai

Kochi: FCI OEN Connectors, promoted by FCI France, is setting up a factory in Chennai for the exclusive manufacture of electrical connectors. The factory will set up on leased premises this year according to company sources. This will be the third factory of the company after the units in Kochi and Bangalore. The electrical connectors are used in the power equipment mostly of electricity boards.

Telecommunication section is the major customer of the company. Its connectors are made for landline phones, according to company sources. It is also catering more to automotive and power industries now apart from Defence section.

The company is aiming for greater thrust in exports with the introduction of new generation connectors Metral 4000, Modjack, Eyemax and Millipac. Last year, 40 percent of the total sales came from exports. The net sales in the last calendar year was Rs 76.32 crore and the net profit Rs 11.72 crore. For the first quarter of the current year, the sales went up by 32.5 percent to Rs 22.86 crore from Rs 17.24 crore in the corresponding period of the previous year. The net profit rose by 54.21 percent to Rs 3.56 crore from Rs 2.31 crore in the same period. The exports during the quarter were Rs 11.06 crore as against Rs 5.85 crore.

Last year, the company had invested Rs 17.1 crore for capacity enhancement. This year also the company is planning to increase the production capacity. This will be funded from internal accruals and from preferential issue of shares to the promoter company, FCI France. FCI Frances''s shareholding will increase to 67.83 percent from 62.87 percent after the issue.