Havell’s India Ltd has firmed up plans to invest ₹1,500 crore in five years, including ₹360 cr into the AC manufacturing unit, under its Lloyd’s brand.
The air conditioner unit coming up in Ghilot in Rajasthan, about 100 km from Delhi will be operational by March 2019. It will have a capacity of 6 lakh units per year initially according to Anil Rai Gupta, Chairman & Managing Director of the company.
Havell’s had acquired Lloyd’s in 2017. The AC brand Grande series in three models and two variants was launched in Hyderabad for the Telangana State and Andhra Pradesh markets, where the company was witnessing a healthy 30 per cent growth in its product range over the past few years.
Another segment that will see investment and expansion this fiscal is the R&D facility in Bengaluru. The design studio and research facility with focus on Internet of Things (IoT) applications will get atleast 100 fresh engineers and researchers, Anil Rai told newspersons on Saturday.
In addition to the total of ₹450 cr investment this fiscal, Havell’s is planning to spend ₹1,000 cr more in the next four years on expanding and strengthening its presence in lighting, motors & pumps, consumer products, industrial segment, geysers, ACs etc, he added.
At present, Havell’s India has 11-12 manufacturing plants across 7 locations--Rajasthan (6), Hardwar, Faridabad, Shahibabad in UP; Baddi in Himachal Pradesh and Guwahati in Assam producing various ‘Make in India’ products, Anil Rai said.
Explaining the growth story of the company, the CMD said the last few years challenges posed by demonetisation and GST, which had an impact, have settled down and the company logged 25 per cent growth in the first 6 months of the present fiscal.
Despite the market pressure, Havells invested upto ₹1000 cr in the last three years. The exports have also been slowly growing and stand at nearly 15 per cent of the turnover of around ₹20,000 cr.
Referring to the TS & AP markets he said the company’s products are now available in approximately 1000 stores and the number will be grown by at least 20 per cent in the near future.