Electrical goods company Havells India Ltd expects to notch up double-digit growth this year in spite of a tough business environment.
“While the overall demand from the industrial sector is likely to be subdued, the requirement in the housing sector will continue. This will ensure healthy double-digit growth for the company. In the last financial year, the company closed with total revenues of Rs 7,248 crore, including its overseas business. The domestic business was up over 20 per cent,” Sunil Sikka, President, Havells India, said.
Addressing a press conference here today to announce the launch of its new range of products spanning mixer-grinders, fans and other electrical products, including a budget range of switches, he said demand from the industrial sector has been under pressure due to the overall slowdown in the economy. GDP has slipped from 8 per cent to about 5-6 per cent impacting demand.
“The company has invested about Rs 1,000 crore during the last five years on capacity expansion and marketing, averaging about Rs 200 crore annually. We also expect to sustain our marketing and advertising spend of about Rs 100 crore during the current financial year,” he said.
Referring to its manufacturing unit commissioned at Neemrana in Rajasthan, Sikka said the company has begun to export from this facility to neighbouring countries. “We expect volumes from this plant to shoot up further and may necessitate us to consider expansion there,” he said.
The company introduced the Reo range of conventional switches expanding its presence beyond the modular range.
Referring to the Andhra Pradesh market, Sikka said the company expects revenues from here to double within three years to Rs 500 crore, up from the Rs 250 crore it registered last year. West Bengal contributes about Rs 600 crore to our sales. “We expect AP will also follow suit as we expand our presence in the State and tap into smaller towns and rural areas,” he said.