Orange Electric makes strategic move to Singapore

Orange Electric, Sri Lanka’s premier manufacturer of electrical and lighting products, has now entered the South East Asian market through a strategic acquisition of a leading Singaporean Electrical Company.

The 49% acquisition of Shirakawa Denki, led to the creation of Orel Far East. The new partnership will now take Orange to the next level in its strategic marketing plan; positioning the Company’s products across South East Asia.

This strategic move by Orange could be termed as against the grain, considering that the Company, instead of appointing a dealer to manage their products in Singapore initially, chose to go for an acquisition of an existing Singaporean company, in order to give Orange a stronger brand positioning in an extremely competitive and quality conscious market.

Orange Electric Managing Director Kushan S. Kodituwakku, commenting on the new partnership, said that the time has come to expand the Orange product portfolio to international markets and Singapore is an important step.  

“Singapore for us is a strategic market.  We will now be a much stronger entity in terms of taking Sri Lankan manufactured Orange products to sophisticated markets.

“Singapore is a very vibrant market and will open many doors for us such as the Middle Eastern market and it is also a gateway to other far eastern countries.  

“Apart from that, this partnership would not only improve and expand our product portfolio but will allow the development of parallel products for different markets, which we could eventually introduce here in Sri Lanka as well.”

Kushan Kodituwakku says that this unique partnership is a balanced formula for both partners where the suggestions of what the market requires come from the controlling shareholder in Singapore; whereas all decisions on branding of products and manufacturing lie in the hands of Orange Electric Sri Lanka.

Orange Electric, began operations 30 years ago as an Australian Sri Lankan joint venture with Clipsal. Its beginning was a simple assembly line producing a limited range of switches and sockets. The sale of Clipsal Australia to the French multinational company Schneider Electric led to the founding of Orange Electric.  

Today, the Company’s product portfolio ranges from the light meter to the light bulb and everything in between for domestic and industrial applications including switches and sockets, electrical wiring cables, low voltage switch gear, data-com accessories, industrial panel boards and energy saving lamps (CFLs).

But as the company had grown the next objective was to look outside its shores for a sustainable business model.

“We need to create a collaboration culture, to have a multinational input coming in. We need to develop our portfolios, as we have only concentrated on the Sri Lankan markets. But now this will change.

Orel Far East will take our brand to the international arena and create product expansion opportunities. The requirements of Singapore are so different from the local market so we will have to manufacture accordingly.”

Speaking of expansion in the region Kodituwakku said, that this collaboration is the beginning of many and that markets such as Brunei, Cambodia and Philippines are also on the radar.

Looking only for the best

Orel Far East Singapore Managing Director Lim Shien Siong, commenting on the new partnership says, “Singaporeans look only for the best whether it is from Europe or Asia, and Orange is ready for that challenge.

“Orange is not just a domestic company making domestic products; they are now ready to go into the international arena with research and development backing them up. The products they have suit the market and whatever standards they use in manufacturing is the same as in Singapore.

“The plus is also the fact that unlike some manufacturing companies who stick to the status quo and are unwilling to change, Orange is always willing to change and design the product to suit the market.

“If you look at the world economy today it is slowly shifting towards Asia. So why can’t we be on par with the rest of the international brands?

“Orange should go out to the world and opt for joint ventures and grow to become an international company, an international product.

“They have reached a point where they can go beyond a local domestic product where they only serve their country. Orange with their quality standards can be on an equal footing with any international product in the market” he added.

Quality which is the hallmark of all Orange Electric products has been recognised by international buyers over four continents enabling the company to export to the international standards stipulated by these diverse markets.

The Company’s world class state of the art factory is located in Meegoda.

Another remarkable achievement of Orange is the Company’s commitment towards sustainability and its environmental consciousness. The company was instrumental in setting up South Asia’s first ever CFL and Fluorescent bulbs recycling plant to manage the disposal of CFL bulbs in an environmentally friendly manner, without leaving any future environmental liabilities for future generations.

Orange Electric is a 100% Sri Lankan owned company and the country’s largest manufacturer of electrical and lighting products.

The company exports to over ten countries spanning four continents with a turnover of six billion rupees and provides employment for over a 1,000 people.