Comments
With growing demand for pressure cookers from the domestic and global markets, Sivanesan Group, which makes the Premier brand of pressure cookers, plans to ramp up its manufacturing capacity from the current 40 lakh units to over 75 lakh units. “We have also developed newer models and are actually waiting for common European standard marking certification,” said Mr Sivaramakrishnan, Vice-President, Sivanesan Group.
The company has earmarked Rs 25-crore capital expenditure for the purpose – to be funded through internal accruals and debt from SBI and Tamilnad Mercantile Bank. The company, which also makes a range of non-stick cookware and kitchen appliances including mixer grinders, wet grinders and gas tables, closed the year 2010-11 with a turnover of Rs 150 crore. It expects to double sales in the current financial year.
Mr Sivaramakrishnan said the demand from domestic and export markets for pressure cookers and non-stick cookware growing at 20-25 per cent year-on-year. “So, besides expanding our manufacturing capacity for pressure cooker, we are also planning to set up a new line of production for non-stick cookware.”
According to him, the size of the pressure cooker market in India is 90 lakh units a year, with 36 per cent of this coming from the South. Premier, with 25-30 per cent share, is the third largest player in this market, after Hawkins and Prestige. Besides, the company also exports its cookers and other cookware to various countries in Europe, West Asia and the US, Canada, Australia, New Zealand and countries in the Asia-Pacific region. “And, major global retailers such as Tesco, Wal-Mart, Metro and Carrefour stock and retail our Premier-branded products in their stores across the world.” In fact, 30 per cent of the company's turnover comes from the export business, he said.
The company recently forayed into the retail segment too with its first exclusive brand outlet in Chennai under the brand Premier Kitchen Craft, through the franchisee model. The company intends to have “at least 20 stores” by the close of the current year, says Mr Sivaramakrishnan. Besides, the company is also in talks with domestic retail majors such as Tata Croma and Future Group for “some exclusive retail arrangements”.
The group even has an aluminium smelter unit and corrugated box manufacturing facilities at Gummidipoondi near Chennai, for captive consumption.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.