The Hindu Business Line : Khaitan Electricals aims at Rs 1,000-cr topline by 2009

Strategic plans
The company is targeting as high as 60 pc sales from non-fan products
Lining up mix of summer and winter products for ensuring a strong yearlong relationship with dealers

Hyderabad , Sept. 28

Khaitan Electricals Ltd (KEL), the Rs 203-crore, fast-growing electrical solutions company, has drawn up a strategy to evolve into a multi-product conglomerate in the next two-three years while eying a topline of close to Rs 1,000 crore by March 2009.

"The strategy is to capitalise on the unprecedented growth in India's residential, commercial and retail spaces by offering consumers a single convenient location for buying most of their electrical and consumer appliances," KEL Vice-Chairman and Managing Director, Mr Sunil K. Khaitan, said.

From a predominantly fans company drawing around 70 per cent revenues, the company now targets as high as 60 per cent of sales from non-fan product streams. The company is lining up a seasonal mix of summer and winter products towards ensuring a strong year-long relationship with dealers.

"We have already entered a number of downstream electrical products and are in the process of doing so in the case of products such as CFLs, pumps, switchgear, cables and consumer appliances. We are strengthening our product mix by introducing multiple products — low-margin but fast-moving products coupled with high-value but relatively slow moving products," he told Business Line.

According to him, the idea was to capture a growing shelf-space across the dealer and retailers with a wider range of `round-the-year' consumer appliances. The strategy not only helps generate stronger dealer loyalty but also ensures consumer connect, he said.

The company proposes to adopt a flexible approach of direct manufacturing and outsourcing. Wherever it has advantages in direct manufacture, the company plans to go on its own.

"We are also keen on being present in the tax-free zones to retain our cost-effectiveness. As a part of this strategy, we are now setting up a state-of-the-art facility in Uttaranchal, which will take off before next fiscal-end. We will be investing around Rs 50 crore in the next two years on manufacturing facilities," he said.

Stating that the company is confident that the Khaitan brand can be extended beyond fans to synergic products, he said, the company currently has one of the largest and widest distribution networks in the country, wherein over 90 per cent of our dealers have remained with us for the last 20 years.

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