US-based water heater manufacturer AO Smith is planning to invest around $20 million (Rs 100 crore) in India to expand its manufacturing facility from the current 76,000 sft to 150,000 sft.
The company has so far invested around $10 million in India in its manufacturing facility in Bangalore.
It is looking at increasing its manufacturing capacity from the initial level of 400,000 water heater units per annum to around 1.2 million units a year, once it completes the expansion by the middle of 2013, said Tamal Chaudhuri, managing director, A O Smith India Water Heating Pvt Ltd.
“The Indian water heater market is around Rs 800 crore at present and we expect a market share of 14 per cent by end of this calender year. Our aim is to increase the market share by 18 per cent in the next two years,” he added.
Even though there 7-8 players in the water heater market, only three, including AO Smith, has a manufacturing facility in India, he said.
