Sources said the 5,600 square feet office space will be taken on a nine-year lease. "The new office of the marketing division of lighting business unit will be at Sohrab Hall on Sasoon Road near the Pune railway station," they said. Philips will spend around Rs 1 crore to renovate the office space.

Philips India's officials were not available for comment. When The Financial Express contacted corporate communications head Patricia Virmani, she said she will get back with their views. After around two hours, she said that the person concerned is not available and she would be able to give Philips' view on the matter only later.

At present, Philips India has two lamp manufacturing units -- one at Calcutta and the other at Kalwa in Maharashtra. Besides, there is a wholly- owned subsidiary, Electric Lamp Manufacturers (India) Ltd, near Calcutta.

It also has a partly-owned subsidiary in lightings -- Punjab Anand Lamp Industries Ltd, in which it holds 28.8 per cent and its Dutch parent Koninklijke Philips Electronics NV 40 per cent.

Company sources said the shifting of the marketing headquarters of the lighting business unit from Calcutta is just the first step of a total revamp of the division.

"The Dutch parent has planned a total revamping of its lighting business in India. It is apprehended that Philips NV will take up a major share in the lighting business in India by acquiring the existing business of Philips India. It may buy some stake of Philips India in Punjab Anand Lamp in the near future," sources said.

Philips India or its Dutch parents is yet to make a formal declaration on this matter.

However, Philips India's 1997 annual report states that the division has achieved high productivity and also launched new products.

"The division also achieved high levels of productivity improvements in manufacturing, distribution and sales process. In line with our commitment to promote the usage of eco-friendly and energy saving products, a new line of `Ecotone' compact fluorescent lamps and a new range of high frequency electronic gear were successfully launched," the report said.