Sanitaryware maker Hindustan Sanitaryware and Industries Ltd (HSIL) said it is ramping up its capacity from 3.8 million pieces to 4.2 million pieces in the ceramic sanitaryware category by the year-end.
With institutional sales showing signs of slowdown due to sluggishness in the real estate sector, HSIL said it is focusing more on the retail consumers.
To tap into the mid-segment category, HSIL has introduced its mass market brand Benelave. In 2011, HSIL had acquired Crabtree Faucets and renamed it, Benelave.
“The environment is tough and we hope the business sentiments may improve in the next two quarters,” Sandip Somany, Joint MD, told
He said the company was focusing more on retail as against the institutional sales.
“We are looking at both value and volume. We had no presence in the mid-market range and are looking to tap the into ₹2,000 crore mass market category with Benelave,” he added. Among the brands that HSIL sells include Queo, catering to the super-premium segment, and Hindware Art and Hindware Italian, targeted at the premium segment.
Somany said that Benelave products will be cheaper by 15-20 per cent lower than Hindware products. “We will also have separate distribution for Benelave and it will be targeted at second rung metros,” he added.
It has also roped in Kareena Kapoor as its brand ambassador for the Benelave range.
Somany said that the company it is also ramping its dealer-led retail point Hindware Galleria from 125 to 250 in the next 15 months.
Hindware competes with players such as Parryware and Cera in the sanitaryware category. The sanitaryware market is estimated at ₹10,000 crore as per various reports. The sanitary ware industry that makes up nearly 40 per cent of the overall bath and wash room sector has seen phenomenal change along with the high growth numbers.
Somnay said that its Rajasthan plant which makes faucet will be fully operational by 2015. The company had previously invested ₹150 crore in it.
HSIL’s business comprises two primary business divisions — building products and packaging products. The company’s total turnover in FY14 -15 stood at ₹1,965.03 crore a growth of six per cent over ₹1,855.71 crore in the corresponding period a year ago.
The building products division comprises sanitaryware, faucets among others, while its packaging products division is one of the leading glass bottle manufacturers.
Asked about the investments, Somany said the company will be investing ₹300 crore in 2016-17.
“We are investing in PVC pipes plant and also in a caps and closure projects,” he said.