The Chennai-based Gandhimathi Appliances Ltd, which sells kitchen appliances under the ‘Butterfly' brand, is confident of securing an order for the supply of mixers, grinders and fans worth Rs 1,000 crore for the Tamil Nadu Government.

Confirming this to Business Line , the company's Managing Director, Mr V.M. Seshadri, said, “The Government's formalities are almost through. Only thing is that we have to match the lowest bid prices, which we are prepared to.”

The order would be executed over the next four years. “We will at least get an order worth Rs 200 crore in the first year,” he said.

While the BSE-listed Gandhimathi Appliances will manufacture and supply mixer grinders and table-top grinders, fans will be outsourced to its sister concern LLM Appliances (owned by the promoters family).

Currently, the Rs 270-crore company has over 30-acre facility at Kanchipuram district near Chennai to manufacture 12 lakh pressure cookers; 18 lakh mixer grinders and three lakh table-top grinders. “In addition, the company has, in the last six months, invested close to Rs 10 crore in capacity expansion, “which will enable us to produce at least 25 per cent more,” he said.

For the whole of last year, the company has sold over eight lakh units of pressure cookers, eight lakh units of mixer grinders, 1.5 lakh table-top grinders and over a million LPG stoves. The company is also in marketing tie-up with HPCL, IOC and BPCL to sell its co-branded LPG stoves.

On Friday (July 22), the company's share closed at Rs 349.35 on BSE.

Published on July 24, 2011