German hardware major, Hettich India, through its joint venture partner, Adventz of Saroj Poddar Group will set up four different projects in Vadodara with an investment of close to Rs 500 crore in the next five years.
The company on Friday inaugurated its first manufacturing facility in India at Vadodara set up with an investment of Rs 100 crore.
The company will manufacture cargotech wire basket, mainly used in the kitchen modular furniture.
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The company has laid out ambitious expansion plans with an investment of Rs 500 crore over the next five years.
“At present we have invested Rs 100 crore for the basket facility. We are planning second project in 2014. Over the next few years we plan to set up four such projects with an investment in the range of Rs 75-125 crore each,” said Saroj Kumar Poddar, chairman, Adventz.
The plant, which was inaugurated today, will have the capacity to manufacture 2000 units per day. The company aims to export significant portion of its production.
“We have started the first shift of the production line. Looking at the Indian market we expect good growth in the kitchen modular furniture segment. Over a few months we will start second and third shifts as well,” said Andreas Hettich, chairman of the Board of directors, Hettich Holdings GmbH.
The company will fund its investments through a mix of internal accruals and debt. “We have sufficient retained earnings to fund our investment plans. We are generating sufficient revenues from our operations at present. Hence do not require to raise funds from market,” said Poddar.
Hettich has been importing all of its products at present to sell them in the Indian market. The company has total annual sales of around Rs 400 crores.
“We expect to generate around Rs 120 crore from the newly inaugurated basket facility,” said Poddar.
The company commands majority share in the overall modular kitchen furniture fittings market.
The Vadodara facility will be the second largest manufacturing site for Hettich after one in Germany. The company also has facilities in Russia and China besides others with an overall turnover of more than US $ 1.2 billion globally.
