The slowdown in the construction industry has affected several industries related to the real estate sector which also includes sanitary ware companies.
The sanitary ware segment is estimated at Rs 1,200 crore. It has taken a hit of about 25 per cent, with several large scale real estate projects being either delayed or postponed.
“Sanitary ware industry was growing at a rate of 15-18 per cent for the last three years, riding the economic boom. However, things are sluggish now,” Sanjay Kalra, vice-president (sales), Hindware Sanitaryware & Industries Ltd (HSIL), told Business Standard.
He hoped that by June-end this year, the real estate sector would gain pace, which would boost related industries.
“The banks have softened interest rates and the government is keen to revive the sector.,” he added.
HSIL is India’s largest sanitary ware company with a 40 per cent market share. Its revenues last fiscal were Rs 576 crore.
There are 15 big players in the sanitary ware segment, including foreign companies, which basically serve the premium category, Kalra informed. The unorganised sector accounts for about 40 per cent of the total market.
“We are looking at a revenue of Rs 650 crore in the current financial year and increasing our distribution network by 20 per cent,” he said.
To serve the customer better, HSIL is in the process of sprucing up the outlets and showrooms of its channel partners.
The company has also forayed into large scale retail under the brand name EVOK by opening two stores in Delhi and Faridabad in the National Capital Region (NCR).