Somany Home Innovation eyes up to 35% growth in business this fiscal

Somany Home Innovation Ltd (SHIL), which owns brand like Hindware Appliances, is looking at up to 35 per cent growth in business this fiscal on account of growing interest of people for home improvement products, a top company official has said.

SHIL, which operates under segments such as consumer appliances, home retail solutions and furniture and kitchen fittings business, had reported a revenue of Rs 451.44 crore in FY 2019-20.

Under these broad categories, it deals in products like furniture, home decor and furnishing, wall fashion, modular kitchen and wardrobes through its retail stores Evok.

The company -- which has a portfolio consisting brands such as Hindware Kitchen Ensemble and offers a range of products -- has reported a sales growth of 20 per cent in July and 30 per cent in August this year.

"The interest in home improvement needs is very high and as a brand, we are looking at a growth of 30 to 35 per cent over the last year," Somany Home Innovation CEO Rakesh Kaul told PTI.

"Last year, we had achieved a growth of 20 per cent in the business and this year, we have grown more than 20 per cent in July and 30 per cent in August in comparison to the last year," he added.

According to Kaul, this is an exciting time for the company as it has found a new set of consumers looking for products for home improvement needs such as a better chimney, hobs, cooling solution, products for bathroom etc.

"After the unlock, business is going up, particularly in the home innovation space where we are present," he said.

"As consumers are spending more and more time at home, in living room, kitchen, they have found time and mean for certain home innovation products," he said adding "aspiration of the India consumer of home improvement has drastically increased".

Such spends fall under the discretionary category, in which there is an overall decline witnessed after lockdown due to the current economic situation.

The company has suffered a hit this year in its air-cooling business, as the majority of the summer season was lost due to lockdown and subsequent market disruptions.

" But definitely, categories in kitchen appliances, water-heating and water purification are the categories are to be watched for. We have seen huge consumer's interest in our products, he said.

Kaul further said like other industries, SHIL has also witnessed a surge in its online sales. It has touched almost 34 per cent of the sales this year so far. Last year, it was 18 per cent, Kaul said adding that pandemic has accelerated it.

According to him, going forward digitalisation would increase rapidly and the omnichannel is going to be the key growth driver of any brand.

Besides, the company would continue to focus on providing more smart and connected devices in the segment as in consumer appliances and kitchen fittings business.

Over the CAPEX, Kaul said the company would continue to invest in various products and categories.

"As a consumer business, we would continue to invest in Rs 15 to 20 crore to bring new products this year, he said adding that it would on new initiatives and the brand spend.

Under Hindware Kitchen Ensemble, SHIL offers products as cookerhoods, Built-in Hobs, cooktops, built-in ovens, sinks. Its consumer appliances portfolio consists ofHindware Atlantic Water Heaters, Moonbow by Hindware Air and Water Purifiers, Hindware Snow-crest Air Coolers & Ceiling fans and Hindware Vents.