Havell's Rs 2 cr lab in Noida

Firm to focus also on energy-saving products

Havell's India Ltd, the power distribution equipment major, is focusing on the energy-saving electrical product segment and would set up an R&D laboratory in Noida to turn out new products in this category.

The company, having a leadership position in the domestic switchgear industry, has lined up new launches and innovations to consolidate itself in the growing power-saving equipment market.

"We have introduced a whole new range of power-saving electrical consumer products, compact fluroscent lights (CFL) and fans and have received an overwhelming response," a company official said.

Besides, "A new R&D lab is being set up at an initial investment of Rs 2 crore in our New Delhi facility to manufacture new products in the energy-saving electrical products segment," the official added.

The Rs 665-crore company was also planning capacity expansion for fans and CFL divisions, through the commissioning of two new plants at Hardwar this fiscal, at a cost of Rs 17 crore, the official said.

"Capacity expansion has been the norm for the last two years and would continue even this year. We are expanding capacity in switchgears, CFLs, fans and cables and wires business segments," the official added.

The total investment during the last two years stood at Rs 65 crore while the planned capex this year was about Rs 35 crore. Bouyant over the industry growth of about 20 per cent last year, the company has targeted a turnover of Rs 900 crore during 2005-06, compared with Rs 665 crore during the last financial year.

"The industry is growing at a compound annual growth rate of 20 per cent, which is a good indicator. Havell's, on the other hand, has been showing a growth of 40 per cent for over 10 years now," the official said, adding, the boom in the construction and housing business have been the key drivers of growth in the sector.

Asked about the eastern region market, the sources said, "The eastern market will be a key area of growth for us this year, on account of major economic and business developments in West Bengal."

With more and more information technology and information technology-enabled sectors majors deciding to set up facilities in this region, "We expect a surge in the industrial construction business here, which in turn will bring about a major boost in the power distribution equipment business," the official said.

Currently, the east contributes about Rs 100 crore to the overall sales of the company, which has four branches in the region and a base of over 200 dealers and retailers.

Aiming high

• The company has lined up new launches and innovations to consolidate itself in the growing power-saving equipment market
• The company has targeted a turnover of Rs 900 crore during 2005-06, compared with Rs 665 crore during 2004-05
• The firm is also planning capacity expansion for the fans and lights division, through the commissioning of two new plants at Hardwar
• The company has cited the eastern market as a key area of growth, owing to the major economic developments in West Bengal