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Fast moving electrical goods maker Havells India has brought on stream a ₹100-crore facility to make water heaters (geyser) at Neemrana in Rajasthan.
Post the beginning of commercial operations, the company is looking at a four-fold jump in revenues from the segment to ₹400 crore over the next two to three years. As of now, its revenues (from the segment) stand at ₹100 crore.
Havells, which entered into the ₹1,500-crore water heater segment some time ago and has a 10 per cent market share, had so far been importing these.
According to Anil Rai Gupta, Chairman and Managing Director, the company is targeting a 21 per cent market share (in water heaters) in three years time.
“With the factory on-stream there will be 100 per cent import subsidisation. The cost benefit arising out of this will be passed on to the consumer,” he told BusinessLine .
The facility, inaugurated by Rajasthan Chief Minister Vasundhara Raje, will have a total capacity of 5,00,000 units per annum. Havells will, initially, be operating at 60 per cent capacity (that is, 3,00,000 per annum).
“Initially, we will start with 1,000 geysers in a single shift. This can be ramped up as demand increases,” Gupta added.
The Delhi-based company reported a consolidated turnover of around ₹8,600 crore last fiscal (FY-15), including 40 per cent exports. It operates in 17 verticals that include switchgear, cables and wires, lighting and lighting fixtures, fans, consumer durables & appliances and LED lights.
Meanwhile, Gupta said the company will invest around ₹25 crore to set up an air cooler plant at Neemrana. The unit is expected to be operational “next season” (2016).
Launched some time back, Havells’ air coolers are mostly imported.
This apart, the company will also invest between ₹100 crore and ₹200 crore as capex this fiscal for maintenance and ramping up existing facilities.
Havells has 11 manufacturing facilities in India — across Baddi (Himachal Pradesh), Haridwar (Uttarakhand), Alwar and Neemrana (Rajasthan), Noida and Sahibabad (Uttar Pradesh) and Faridabad (Haryana).
The overseas facilities are spread across China, the UK, France, Belgium, Germany, Costa Rica, Colombo and Tunisia.
(The writer was at Neemrana at the invitation of Havells India.)
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