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Havells bets big on small home appliances biz

BS Reporter / Chennai Oct 15, 2011, 00:37

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Havells India Ltd, an electrical and power distribution equipment manufacturer based in Noida, expects its recently-launched small home appliances business to reach a Rs 500 crore turnover in next four years.

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Anil Gupta, Joint Managing Director, Havells India, said, “We recently entered the premium domestic appliances market with iron, toasters, oven toaster grillers and rice cookers. Our target is to reach Rs 500 crore revenue in the segment in the next four years.” It has been selling fans for several years and has launched its water heater product last year.

Presently, the company’s revenue from fans and water heater business is around Rs 120 crore. In the small home appliance products business, it would focus on cooking, garment care, home comfort, cooking and brewing.

The products were designed at the company’s R&D facility in China and almost 50 per cent of the manufacturing is outsourced from countries like China, Taiwan, Korea and Malaysia, while the rest of the manufacturing is done in India, he added. Currently, the small home appliances industry in India is around Rs 5000 crore and the premium segment, is around Rs 1,000 crore with high growth. The company has a reach of around 60,000 retailers and around 120 exclusive outlets for its products. It plans to expand Galaxies to 200 doors by the end of this year. Havells Galaxy is an initiative taken by the company for the customers to provide them with its range of electrical products manufactured by Havells and facilitate them with personalised services and support.

The small home appliances would be sold through the Galaxies and around 4000 retailers in the country.

The company has also launched the products in Taiwan, in July, this year.

Meanwhile, the company is also planning to start commercial production in its new lighting fixtures manufacturing plant, at Neemrana in Rajasthan, in November, this year. The 10 acre facility, is expected to be completed with an investment of about Rs 80 crore.

The company has a capex plan of Rs 200 crore for the current fiscal. The capital would go into the lighting fixtures facility along with expansion of cable and wire facilities and fan manufacturing capacity, added Gupta. Further he said, it has launched the switch gears in UK and is planning to take it to other European markets.

The company reported a turnover of around Rs 5,600 crore last fiscal, out of which around Rs 3,000 crore is from India. Of the Indian business, almost 25 per cent is from South India. The Indian business is expected to grow 15-20 per cent this year, he added.