KOLLAM: The state-run United Electrical Industries Ltd (UEIL), one of the pioneers in energy meter manufacturing and switch gear items, is on the path of revival, with major stress on product diversification. As part of the initiative, the PSU, which had to stop production of water meter owing to the lack of patronage, has restarted its production after a gap of five years.
The company claims that it has received all necessary production and quality certificates for manufacturing and marketing water meters. It procures the components, assembles it at its facility and check quality manually before selling the product. The meters are sold at `1,099 a piece, and the premium ones cost `1,249, excluding tax.
UEIL eyes an order from the Kerala Water Authority as it has started giving 5 lakh new connections every year, of which 3.5 lakh are in the rural areas, from this year onwards. Once the Water Authority board approves it, the company can supply multi-jet water meters to people taking new water connection. “The board will study the company’s demand and make a decision in two weeks,” said Ashok Kumar Singh, MD, Kerala Water Authority, during his visit to the production unit at Pallimukku. UEIL claims that it currently has a capacity to make 30,000 meters a month. A favourable decision from the Water Authority only can revive the water meter production, as UEIL chairman C Syam Sunder admitted that marketing the product would be a daunting task for the company.
Meanwhile, UEIL could bring down its losses from `7 crore 2011 fiscal to `3 crore in 2014, thanks to diversification to Air Break Switch Gear for 11 kv transformers and solar installations. Maintaining that there is no more scope for single-product companies, Syam Sunder said: “It will be difficult to survive in market along with private firms, which are far ahead in marketing skills.”