Remsons diversifies into safety devices
By Usha Somayaji | 08 Dec 2000
Remsons Industries Ltd., manufacturers of automotive cables for the past 40 years, has chosen to diversify into electronic safety devices in the personal and household sector. The company launched the first of these safety devices -- Gas Guard -- an electronic gas leak indicator, in Pune {150 kms away from Mumbai} recently.
The device helps detect LPG and natural gas leaks in homes, hotels, restaurants, factories, and hospitals. The device is capable of detecting gas leaks of as low as 0.2 per cent by volume (ignition occurs at two per cent). "We already have 70 per cent market share in the automobile cables sector. We see in electronic safety devices a good opportunity to grow," says company chairman, Mr. V. Harlalka, explaining the rationale for the diversification.
The Rs 60 crore Remsons Industries manufactures control cables (it is the largest manufacturer of control cables in India), speedometer cables and bonded brake shoe assemblies and exports to international OEMs such as General Motors and Piaggio. It plans to leverage its fault-free manufacturing expertise, R&D and innovation skills to develop new safety devices in the Indian market. The company has obtained zero PPM defects-free certification for its cables exported to General Motors. "We expect to maintain the same reliability in our safety devices," says Mr Harlalka.
The gas leak detector will also be exported to Nepal, Sri Lank and Singapore, "where they have similar gas storage and use practices," he adds.
The USP of the company''s products will be high reliability combined with low prices, says general manager Mr. Pawan Chowdhary. For instance, comparable gas leak indicators (which are mostly imported) cost between Rs 3,000 to Rs 5,000, while Gas Guard has an retail price of Rs 989.
The company proposes to reach sales of one lakh units by the end of the first year and two lakh units by the second year.
