Bath fittings and sanitaryware major Jaquar Group is eyeing over 25 per cent growth in its turnover to touch Rs 3,000 crore next fiscal as it expects incentives for realty sector announced in Budget 2016-17 to fuel demand.
The group is also revamping its value segment brand Essco to offer "complete bathing solutions" in order to tap tier II & III markets, besides seeking to grow its traditional luxury and premium range of products.
"With the new incentives and initiatives which the government has announced, industry should bounce back. Next year, we are expecting to touch Rs 3,000 crore," Jaquar Group Director & Promoter Rajesh Mehra told PTI.
In the ongoing fiscal, the group is expecting to close at Rs 2,350 crore, he said.
In Budget 2016-17, Finance Minister Arun Jaitley proposed an additional Rs 50,000 deduction on interest on loans for first home buyers and tax incentives on development of affordable housing, besides exempting REITs from dividend distribution tax.
The minister also exempted from service tax construction of affordable houses up to 60 sq metres under any scheme of the central or state government, including PPP schemes.
Real estate sector, particularly housing segment is facing a huge slowdown for the last 2-3 years, resulting in a huge delay in delivery of projects to customers and piling up of unsold inventories.
Mehra said besides developed metro markets, the group is sensing a good potential in the semi-urban and rural market which it is looking to tap with its value brand Essco.
"Now we are giving lot of focus on development of rural markets. We are revamping one of the brands Essco in terms of products, design and feature and giving a complete bathing solution to that level of customer," Mehra said.
The company has created a separate team to develop and promote its products in rural markets. It is also looking for a different segment of dealers for that.
"There has been very encouraging response from the rural market. We expect good results once we run the whole process in full flow," he said adding the initiative will be launched on a large scale in the next three months.
Of the total turnover of Rs 2,350 crore expected this fiscal, he said premium brand Jaquar will contribute about Rs 2,100 crore, luxury brand Artize Rs 125 crore and value segment brand Essco Rs 125 crore.
The group is present in wellness, shower enclosures, water heaters, sanitary ware and lighting segments besides bath fittings.