Arise India targets Rs 3,000 crore turnover by 2020

Company is increasing its advertising budget to about Rs 100 crore by next year

Electrical goods maker Arise India is targeting an almost two-and-half-fold increase in turnover to Rs 3,000 crore in six years by expanding its existing business and new product categories such as automotive batteries and mobile handsets.

The company, which is the title sponsor of the upcoming Asia Cup cricket tournament in Bangladesh, is increasing its advertising budget to about Rs 100 crore by next year as it seeks to enter new overseas markets.

"We would be a Rs 3,000 crore company in the next five to six years (2020) with an expected yearly growth of 20%. This financial year we would be around Rs 1,250 crore," Arise India Managing Director Avinash Jain told PTI.

Arise, which makes pump sets, inverters and batteries, and home and kitchen appliances, had sales of Rs 855 crore in the previous financial year.

"This fiscal, we are expecting sales of Rs 300 crore from our home appliances section and around Rs 450 crore each from the pump and the UPS-inverter battery segments," Jain said.

The battery and inverter category would play a crucial role in boosting sales, he added.

"We have increased the production capacity of our plant at Kala Amb in Himachal Pradesh. We have also put up a battery manufacturing plant there. We have also added LED TV in our portfolio along with new varieties of water pumps," Jain said.

Outlining new areas that the company is looking to enhance, he said: "Now we have also started manufacturing automotive batteries."

Jain said: "We would also start focusing on the mobile phone segment. Till now we were focused on pumps, battery and inverter. We hope for a good business in this segment in the coming times."

Arise is expanding its sales network to a pan-India level. Currently, it has 55 branches which will increase to 300 with 6,000 dealers.

As the title sponsor of the Asia Cup cricket tournament to be played from February 25 to March 8, the company is targeting SAARC nations for exports.

"It would provide a new opportunity for us to build relationship with markets of neighbouring countries," said Jain.

The company spent Rs 35 crore on its marketing campaigns last year and is spending about Rs 55 crore this year.

"Next year it may be between Rs 75-100 crore with some title sponsorships and commercials in electronic and print media. We plan to spend 5% of our revenue on advertisements and campaigns," he added.