Financial Daily from THE HINDU group of publications
Friday, Sep 26, 2003
Financial Daily from THE HINDU group of publications Friday, Sep 26, 2003 |
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Corporate
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Announcements Hind Sanitaryware shelves jt venture plans with German co Abhrajit Gangopadhyay
Bangalore , Sept. 25 HINDUSTAN Sanitaryware and Industries Ltd (HSIL) has shelved its plans to float an equal joint venture assembly facility with German firm Grohe AG. "We are happy with the current arrangement wherein we exclusively market Grohe AG products in India. At an opportune time in the future, we will explore the possibility of a joint venture," Mr Sandip Somany, Joint Managing Director, said. Currently, HSIL offers Grohe products as complete bathroom solutions across the country. The company expects its bottomline to grow by 25 per cent and revenue by 10 per cent in the current fiscal against a net profit of Rs 5.54 crore and turnover of Rs 255 crore a year ago. Tier-II towns will drive growth in the short to medium term on account of increased housing activity, Mr Somany said. "We have already identified around 20 of these cities and towns and are expanding our sales and distribution network to these towns to tap this demand," he added. Though new housing initiatives are the primary growth drivers, the replacement market also fuels demand for sanitaryware significantly, he said. "It would not be unfair to say that demand for individual housing due to the availability of easy financing options has been beneficial for us." Mr Somany also said that the company currently did not have a "ready reckoner to benchmark demand from this segment". Exports are also likely to drive growth in the current fiscal as the company forays into Australia. Last year, HSIL reported Rs 20 crore export income from servicing the European and West Asian markets. The company, with a 38 per cent market share in the Rs 600-crore domestic sanitaryware market, plans to increase its retail presence using the shop-in-shop concept. It has 800 dealers and 10,000 sub-dealers and plans to extend its network in the tier II cities in the near term to gain market share. Moreover, HSIL plans to launch new products every three months to deepen its presence in the bathroom accessories segment.
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