Usha International pegs pump & light biz to be growth drivers

Consumer durable major Usha International expects the pump and lighting business to be its high growth drivers in the coming years, a top company official said.
"Usha International has been witnessing majority of revenue contributed from fan and sewing machine business.Going forward, I think the scenario will change. We expect our other businesses like pumps and appliances, lighting (other than fan business) will be our high growth drivers," President(Electric Fans and Pumps), Rohit Mathur told PTI.
He said the new businesses would register higher turnover, while fans would remain the mainline business.
"In the pumps business, we are the No 3 brand in India right now. We were largely a North and East centric brand when it comes to pumps. But now we have designed products for Tamil Nadu, Andhra Pradesh, Kerala and Karnataka markets. That contribution to increase the market share will also come up," he said.

He said the electric fan business contributes about 45 per cent of the turnover and it was expected to come down following growth in other business categories.
"I think that by 2020, the contribution of electric fan businesses will come down to 40 per cent from 45 per cent. And the other business segments will grow," he said.

Currently, electric fans business contribute about 45 per cent followed by sewing machines at 20 per cent, appliances 18-20 per cent and the remaining share, from pump business.
Mathur said the company was also looking at expanding the fan business under "new categories."

"We are also strengthening some of our premium sort of categories in the fan category in the Rs 2,000 and above category.. This year we have launched some models.. Some of them will be launched in March and April" he said.
"As a brand we have a very strong association with customers of the South because of electric fans, sewing machines and appliances. We have good revenues here (in South)," he said.
Referring to the pump business, he said the company formed a Strategic Business Unit (SBUs) to bring in focus in the pumps category.
"We believe this can be a high inorganic growth area for Usha International. Organic growth is electric fans, sewing machines. These are our old businesses," he said.

He exuded confidence that the company would be No 2 in electric fans business and said they were the "clear market leader" in sewing machines.
"In the lighting business,we have launched products under the brand name TISVA. We are primarily in the home decorative space, chandeliers and wall lighting," he said.