NEW DELHI, Oct 14: ECE Limited, the oldest player in the Indian lighting industry, has sold off its manufacturing facility to the Rs 16,000-cr Osram GmbH of Germany in order to service mounting debts and infuse fresh funds into its other business activities. The company had been scouting for a buyer for quite some time for its lighting division and found it in Osram GmbH, which has paid Rs 42.5 crore for the acquisition.ECE, with business interests in transformers, meters and elevators besides lighting, is faced with Rs 20 crore loans and declining turnover for the first time ever. "Dwindling profits for the last two years made even servicing loans and breaking even a very difficult prospect," ECE industries' president R N Janu told PTI.
But Janu did not rule out re-entry into the lighting business at a future date. "We have been a household name in the lighting market in India for decades," he said.
"Conditions have not been conducive for continuing with our Sonepat factory operations at present. Butwe may reconsider our decision in future," he added.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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