Racold Thermo plans to double revenue in three years

Pune-based Racold Thermo Ltd, a wholly owned subsidiary of Italy-based Ariston Thermo Group, on Thursday announced that it is planning to double the business from the Rs 250 crore posted last year, in next three years. The company, which is into manufacturing water heaters, is also planning capacity expansion by 2014, added company officials.

Announcing launch of four water heater products with new technologies in Chennai, Mathew Job, MD of Racold Thermo said, "The total water heater market in India is around Rs 1200 crore and growing at around 10-12 per cent. We have a marketshare of 25 per cent with presence across the three product segments, electric, solar and gas powered water heaters. We expect with doubling the business our market share in India would go up over 30 per cent."

 

The company's manufacturing facility in Chakan, Maharashtra, currently has a capacity to produce 5 lakh water heaters a year. The capacity utilisation is around 75-80 per cent at present.

It is also planning to increase its reach across the market and introduce new technologies to grab the marketshare.

The utilisation of the existing capacity is expected to go up in next two years and it would look at capacity expansion in 2014, said Job.

The company is yet to finalise the various options and details of capacity expansion.

The Rs 1200 crore water heater market consists of Rs 600 crore electric water heater, around Rs 500 crore of solar water heater and around Rs 100 crore of gas powered water heaters, in the country. Racold, which is present in all the three segments, expects the Solar powered water heater market to grow in higher rates, at around 15 per cent.

The company has around 4,000 dealers and around 150 odd service centres at present and plans are the increase this in next two years.

Racold Thermo on Thursday launched products with new technologies, including technology to prevent corrosion of the metal due to contact with hard water and a heating efficient varient.