Companies

Jaquar Group to commission plants for lighting products, water heaters

V Rishi Kumar Hyderabad | Updated on August 18, 2020

Steps up exports, on course with its capex plans

The Jaquar Group, known for its sanitaryware range and lighting products and solutions, is set to commission two new manufacturing plants, one for lighting products and another for water heaters.

Shrugging off the ongoing impact of the pandemic on the business, including manufacturing constraints and supply chain-related issues, the company is on course with its capital expenditure (capex) plans.

Rajesh Mehra, Director & Promoter of Jaquar Group, told BusinessLine, “The Covid-19 pandemic has caused significant disruption to the business over the past quarter. But things are gradually getting back to normalcy. Thus far, about 60-70 per cent business has come back and we expect the year to return to normalcy after shrugging off the slowdown blues.”

“We are a debt-free company and are on course with our capex plans of about ₹300 crore and commissioning of a lighting fittings plant in Bhiwadi shortly and the water heater manufacturing unit at Kundli in October, where we have invested close to ₹200 crore. Currently, we have six manufacturing units, five of them in India, and one in Korea. We will soon add two more plants,” he said.

“While the ₹3,600-crore turnover (as of March 2020) company is debt-free, we will continue to invest and go ahead with our capex plans in spite of this Covid-19 pandemic. The investments we are making will enable us to not only consolidate the domestic market, which is our main focus area, but also step up overseas business,” he said.

“During the Covid-19 pandemic lockdown period, the export business has done reasonably well. Given the supply chain network and infrastructure we have created in more than 16 countries, and our aim to expand this segment, we expect to see exports contributing to about 25-30 per cent of the expanded business over the next five years,” he said.

“From a sanitaryware products manufacturer, we have transformed our company into a sanitary solutions provider for homes and commercial buildings. With the foray into lighting business, which now contributes close to 10 per cent of total revenue, we plan to become a lighting solutions provider with our expanded range of products which will be on offer from the new manufacturing plant,” he said.

The lighting plant was to be commissioned a couple of months ago, but was delayed due to the Covid-19-led lockdown, he said.

“Over the past six decades, we have emerged as the largest player in the country’s sanitaryware market and with our range of lighting products and a new plant, we will also play a significant role in the lighting business in the country,” he said.

Published on August 18, 2020

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