Sanitaryware company HSIL Ltd has commissioned a Rs 160-crore manufacturing plant in Telangana, which enables the company to diversify into CPVC and UPVC pipes business. With this backward integration project, the company is well positioned to offer products for the entire bathroom requirements, including pipes.

Located at Ishnapur in Medak district of Telangana, the pipes unit, which has a manufacturing capacity of 30,000 mt, is proposed to be doubled by 2020. Sandip Somany, Vice-Chairman and Managing Director of HSIL, said, “Venturing into the pipes segment is a natural extension of our portfolio of bathroom products streams from “from front of the wall” to “behind the wall.” We aspire to be among the top four brands in the country over the next five years in this space.”

The company has entered into an alliance with Sekisui Chemical Co. Ltd, a leading $9-billion in revenue Japanese company for supply of Chlorinated Polyvinyl Chloride (CPVC) resin that goes into manufacture of these pipes.

“We have entered into this segment and expect to have a turnover of about Rs 500 crore within three years and take it up to Rs 800 crore within five years. The market for such pipes is poised for huge upside in the housing sector, water transport and under the Swatch campaign,” he explained. The company, which closed last financial year with revenues of Rs 2,300 crore, expects to grow at 15-20 per cent per annum. However, the current financial year has been challenging due to various issues, including the transition towards GST implementation. “We may close the current financial year with a growth of 8-10 per cent,” he said.

Referring to its expansion projects taken up with a capex of Rs 350 crore, Somany said the company expects to commission its expanded security bottle caps facility, also in Telangana, by September 2018. This project, set up with an investment of Rs 100 crore, will take the capacity up from 230 million units to one billion units per annum.

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