HSIL eyeing AP, Gujarat for greenfield sanitaryware plant

V Rishi Kumar Hyderabad | Updated on November 02, 2018 Published on November 02, 2018

HSIL Ltd, the country’s leading sanitaryware company, is considering setting up another greenfield manufacturing plant near the coast in either Andhra Pradesh or Gujarat, to meet the growing domestic demand as also to cater to the exports business.

“Though in principle decision has been taken to work towards the new manufacturing facility to be located near the coast, we are yet to finalise the location. A greenfield unit may entail an investment outlay of about ₹110 crore. A decision on this is yet to be finalised, even though it is under active discussion of the Board” Rajendra K Somany, Chairman and Managing Director of HSIL, said. Explaining about the company growth and expansion plans along with Rajesh Pajnoo, President and Chief, Truflow by Hindware Pipes Division, the CMD said, “the sanitary production units located at Bahadurgarh in Haryana and Bibinagar in Telangana are functioning at their near full capacity necessitating us to expand and set up new facility. The proposes facility under consideration by the company Board, is also aimed at tapping the exports business.”

Mentioning about the recently commissioned Pipes Plant in Telangana, the CMD said “even though it has been under production from August this year, we are looking at further expanding the facility, where it is likely to see additional investments of about ₹90 crore.”

The proposed investment will be met through internal accruals and debt, he said.

The plant has capacity for 30,000 tonnes per annum and it is proposed to increase the production to 45,000 tonnes by 2020.

“Referring to growing input costs due to increase in prices of raw materials, electricity tariffs, transportation and logistics costs, we are hard pressed to pass on the costs to the consumer,” he said.

The company, which closed last fiscal with revenues of ₹2.300 crore has set up the country's first Platinum rated Green Building in the pipes business.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on November 02, 2018
This article is closed for comments.
Please Email the Editor