Kerala-based V-Guard Industries Limited, a Rs 1,000-crore electric equipment manufacturer, is planning to double the wire manufacturing capacity at its Kashipur plant in Uttanchal to 650,000 coils per month with an investment of Rs 25 crore by the end of next year.
“The wire segment is a major revenue contributor, accounting for one-third of our total revenues (Rs 370 crore). Work (at the Kashipur plant) is now under progress,” V Ramachandran, director (marketing and strategy), V-Guard, told mediapersons on Friday.
The company is also in the process of launching two new product categories – switch gear and induction cookers. “We are entering the electronic kitchen appliances space with the launch of induction cooker during this calendar year,” he said.
The company, which has been growing at 35-40 per cent since the last three years, recorded a 36 per cent jump in revenues to Rs 1,006 crore from Rs 737 crore last year. It is expecting a 25 per cent growth in revenues this year, Ramachandran said.
V-Guard on Friday soft-launched Enviro, a series of hi-speed fans, in the Andhra Pradesh market. Enviro, built with maneto motive drive (MMD) technology, has the power to save up to 50 per cent energy. It is priced upwards of Rs 3,490.
According to him, the fan market in Andhra Pradesh is currently pegged at around Rs 500 crore and is growing 20 per cent year-on-year. V-Guard has doubled its fan sales to 100,000 units this year.
“We chose Andhra Pradesh for the pilot launch seeing the growth of the market here. The product will be rolled out in the southern markets in the later part of this year, followed by a pan-India launch,” he said. The company hopes to sell 20,000 units pan-India this year.
V-Guard currently retails 63 categories in the fans segment, which contributes seven per cent to its overall revenues. The company expects to garner Rs 5 crore from the Enviro brand by the end of this year, he said.
