HSIL sees strong sanitaryware demand on 'housing for all'

Sanitary products manufacturer HSIL said the Centre's strong commitment for 'housing for all' would result in a sustained demand for sanitary products.

"The proposal would open up new opportunities for the organised players in the segment," said Rajendra K Somany, chairman and managing director of HSIL.

As the proposal has the potential to expand into the underserved mass market, Somany said HSIL's products for the segment would depend upon the "government's policy and approach". However, he has plans to improve the product range here to suit home buyers choices.

The market for organised sanitaryware is around Rs 3,200-crore, and is growing at 15-18 per cent. With several industry studies indicating housing units shortage in the country at 20 million, the demand growth is quite significant.
 

Speaking to mediapersons at the launch of Hindware Galleria bathroom product line, he said they had targeted to open 100 such direct dealer stores in the country this fiscal year. The company's 1.2 million units per annum Gujarat sanitaryware facility would be ready in the next two years. He projects the company turnover this fiscal to grow 20 per cent from the last fiscal's Rs 1,900-crore.

In discussions to acquire two assets
Somany said the company "was in discussions for acquiring two companies in the segment". Keeping away from the full details, he mentioned at current costs, setting up a new facility would cost at least Rs 100 crore.