As realty slumps, Hindware bets big on renovation market

Updated - January 11, 2018 at 04:33 PM.

Sandip Somany

Hindustan Sanitaryware and Industries Ltd (HSIL) is looking to ramp up its sanitaryware and faucets business to tap lifestyle conscious consumers.

Positioning itself as a bathroom expert, the 57-year-old brand is also widely scaling up its distribution network. “Even though the real estate business is a little slow, the retail market is growing. Renovation as a category is doing well and individual consumer sales is growing, backed by lifestyle demands,” Sandip Somany, VCMD, HSIL Ltd told BusinessLine.

Somany said the company has already ramped up its sanitaryware (toilets and washbasins) capacity to 4.2 million units from 3.8 million.

“We are working on expanding our faucet (taps and showers) capacity, which is currently about 2.5 million, to 3.8 million pieces a year,” he said, adding that that division is growing 30 per cent year-on-year.

He also said HSIL’s PVC plant will start operations later this year.

“During the course of this year, we will be spending ₹200-250 crore to commission the PVC plant and expand the faucets and sanitaryware business,” he added.

Hindware competes with players such as Parryware, Cera, Roca and Kolher in the sanitaryware category.

It has roped in fashion designer Manish Malhotra to curate its latest super premium brand, Alchymi. It is also ramping up its dealer-led retail point, Hindware Galleria, from 200 to 400 outlets.

Asked about the threat from foreign brands, Somany said: “Foreign brands are in their own space and many of them have also started producing in India. We have products to cater across all segments and multiple price points.”

To a query on acquisitions, he said: “We are always open to acquisitions. It is a quicker way to grow.”

Published on July 31, 2017 17:17