Mitashi eyes doubling sales to Rs 1,000 cr in 3 yrs

Homegrown consumer durables firm Mitashi is aiming to double its turnover to Rs 1,000 crore in the next three years on the back of its entry in new verticals.

The city-based company had posted around Rs 500 crore turnover last fiscal year and aims to grow at 25-30 per cent this fiscal year.

"We see ourselves at Rs 1000 crore in the next three years and this fiscal year we are confident of 25-30 per cent growth because we have introduced two big categories -- refrigerators and washing machines -- in last one and half years," the company's Chairman and Managing Director Rakesh Dugar told PTI.

The refrigerator market is estimated to be around Rs 18,000 crore and washing machines around Rs 9,800 crore, which he said are high growth areas.

The company, which started with gaming consoles, has over the years expanded to television sets, air conditioners, home theatres, washing machines and refrigerators.

Television contributes around half the revenue at present.

Mitashi has tie-ups with e-commerce players like Amazon and Flipkart and online contributes around 30-40 per cent of its sales. Almost of 60-70 per cent of its products are imported from China, while the rest are manufactured in the country through contract manufacturers and the company has no immediate plans of having a greenfield facility.

The rupee depreciation has put pressure on the company's margins but Dugar ruled out price hikes in the near future due to the onset of the festive season.

"Margin pressure is there because cost of exchange has gone up...dollar-rupee (rate) has completely destroyed plans of every company because cost has become so high. Market is not supporting the cost increase because of competition and everybody wants sale and the festive season is here," he said, adding that the players do not want to dampen the consumer sentiment.

However, the company is not very bullish on the festive season this year and the floods in Kerala, a strong market for it, might not augur well for Onam sales.