The Hindu Business Line : Khaitan Electricals to invest Rs 50 cr in Uttaranchal unit

Khaitan Electricals Ltd has firmed up plans to invest Rs 50 crore in a greenfield manufacturing facility in Uttaranchal. Mr Sunil K. Khaitan, Vice-Chairman & Managing Director, told Business Line that work on the proposed plant would begin by November this year. The investment requirement for the project would be generated through internal accruals and debt.

The plant would manufacture fans, miniature circuit breakers and compact fluorescent lamps (CFLs).Soon, the company proposes to launch water heaters under its brand. Also on the anvil is a range of low-cost modular and semi-modular switches. The company will soon launch "designer fans" in the Rs 5,000-Rs 50,000 range.

Better turnover

Plans to embark upon the manufacture of refrigerators and air conditioners are at an "embryonic stage".

With a diversified product offering, the company is hopeful of notching a turnover of Rs 400 crore in 2006-07, up from Rs 203 crore recorded in 2005-06.

As part of its marketing initiatives, the company proposes to put in place 50 exclusive "Khaitan City" franchisee outlets across the country in 2006-07. About five per cent of the company's turnover would be spent on branding initiatives.

Celebrity endorsements are also being considered, after a gap of 15-16 years.

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