As part of diversification plan V-Guard Industries, a major electrical appliances manufacturer from Kerala, has forayed into home appliances. The company which launched induction cooker tops earlier, now planning to launch mixer grinders. The company expects to clock around Rs 150-200 crore from the home appliances business.
Mithun K Chittilappilly, managing director, V-Guard Industries Ltd said that induction cooker tops were launched in May last year in the state of Kerala and later in Karnataka. The eight month old business has been clocking around Rs 2 crore revenue a month and expects to increase it to Rs 3.5 crore next year.
The induction cooker tops market is estimated to be around Rs 1,200 crore and in the next 4-5 years we are looking at a business of around Rs 150-200 crore from this segment. At present the kitchen appliances market is around Rs 15 crore and next year it expects around Rs 50 crore.
“We see lots of opportunities in the kitchen appliances business, to strengthen the portfolio we will be launching mixer grinder next year”. The focus markets for few years would be South India, where the company has a dominant position, said Chittilappilly.
He added, the company will be importing these products from China going forward in a year or two it will look at setting up an assembling facility at Himachal Pradesh.
Meanwhile, the company has reported a 23% growth in net profit during the third quarter ended December 31 at Rs 15.35 crore as compared to Rs 12.45 crore a year ago. Revenues rose to Rs 349 crore, from Rs 246.60 crore, an increase of 42%.
At present South Indian markets contributes around 77% of the total business, which was 100% 4-5 years back, and this would come down to 60% over the next 3-4 years, said Chittilappilly.
The company has already started focussing on National Capital Region, Punjab, Uttar Pradesh, West Bengal, Orissa, Rajasthan and other parts of the country.
