Havells India is exploring options to set up a new facility to manufacture refrigerators. This is part of the company’s broader plan to make brand Lloyd a complete consumer durables brand. The company already makes air-conditioners and washing machines in Rajasthan.
Speaking at the sidelines of an event organised by the Indian Fan Manufacturers Association, Anil Rai Gupta, Chairman & Managing Director, Havells India said, “We are evaluating setting up a facility to manufacture refrigerators in Giloth, Rajasthan. Currently, refrigerators are made by a third-party partner. So a feasibility study is being done before we finalise our plans. We want Lloyd to become a complete consumer durables brand.”
“We are in the nascent stage of selling refrigerators. We are already in the market with the complete range. To eventually decide to get into our own manufacturing, we are doing this feasibility study. So we are evaluating various aspects including the demand cycles for the Lloyd brand in this space. We are also evaluating the timing of whether we should do it now,“ Gupta added.
‘Hopeful of festive season’
In a BSE filing, the company had said that if it decides to go ahead, it will set up a greenfield facility with a capacity of 10 lakh units with an investment of ₹350 crore. It added that this will help it in backward integration and achieve economies of scale.
Responding to a query on the second half of the year, he said, “We do believe the second half of the year will be better. We are looking forward to the festival season.”
Gupta said that the penetration levels in various categories of consumer appliances are still low.
“There is huge scope for growth across all categories where we have a presence, “ he added.
“Rural demand was impacted due to inflationary pressures. With raw material costs abating and if good monsoons continue, we expect to see improvement in rural demand trends. With electrification happening across villages, we believe eventually rural demand will grow at a much faster pace,” Gupta stated.
Talking about the recent transition the industry has undertaken to selling star-rated fans, Gupta said ,”The industry needs to work towards consumer education as well as education of the trade channel that is selling the star-rated fans to consumers.”