 "Air conditioner manufacturers raise capacity to cater to demand surge")
Havells India, which owns the appliances brand Lloyd, plans to invest Rs 50-60 crore to increase manufacturing capacity for air conditioners at its two plants in Ghiloth and Sricity.
The investment will be funded through internal accruals and is expected to be completed by the fourth quarter of the ongoing financial year, the company said. It will help the company increase production capacity to 15 lakh units per annum at both the plants. It currently produces nine lakh units at its Ghiloth plant and 11.2 lakh units at Sricity unit.
“With the growing demand for our air conditioners, we are committed to enhancing our production capabilities to meet the market needs. This investment will not only boost our capacity, but also reinforce our position as a leading player in the consumer durables sector,” said Alok Tickoo, executive vice-president, Lloyd.
“We are confident that these enhancements will enable us to serve our customers better and drive further growth for Lloyd and Havells India,” he added.
In March this year, the company had said that it was planning to expand its export markets for residential air conditioners.
The unabating heatwave conditions have led to robust growth in sales for the product, with demand even coming from first time markets like Pune and Bengaluru.
Other players in the market too have spoken about increasing capacities to cater to the growing demand for air conditioners this season.
Earlier this year, Blue Star, had announced that it will be investing approximately Rs 250 crore to increase capacity at its Sricity plant by almost three lakh units. The company expects to see a 25 per cent growth in sales of residential ACs in the June quarter, it had added.