Consumer electrical company, Havells India, is eyeing a ₹500-crore turnover from the recently launched water-purifier business, over the next four-five years.

For the current fiscal , it is expecting a turnover of ₹100 crore from the vertical that it entered in December last year.

Nearly half the group’s turnover as on FY-18, about ₹4,000 crore out of a total of ₹8,250 crore, comes from consumer businesses that include the ‘Lloyd’ brand of white goods.

According to Shashank Shrivastav, Vice- President, Havells, water purifier may be a new verticalbut the scope for growth is “immense”. “Increased demand and ‘our disruptive products’ will drive the growth,” he said.

The company is also spending on in-house research and development (R&D) to ensure that it has a differentiated portfolio of water purifiers which allows it ‘competitive advantage’. Nearly, three per cent of Havells’ annual turnover is spent on R&D. Shrivastav could not share the break-up of R&D spent on purifiers.

“We do have plans to expand the product portfolio over the next one month,” he added.

In line with its policy to have local manufacturing, Havells leveraged space within its Haridwar unit to set-up the water purifier making plant. The facility has a capacity for 500,000 units per annum and can be doubled by adding new lines.

Water purifiers are a ₹6000 crore market in India, with Eureka Forbes and Kent RO Systems being the dominant players. Between the two, they occupy nearly 80 per cent of the organised market.

First time users still account for 65-70 per cent of the market, with 30-35 per cent coming from replacement sales.

“Over the next five years we are targeting a 10 per cent market share,” Shrivastav added.

Apart from making purifiers for domestic use, Havells will also expand product lines to include institutional offerings.

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