M&M eyes Rs 500cr sales from gensets

The engine application business division of Mahindra & Mahindra Limited, engaged in the manufacture of diesel generator sets, is expecting over Rs 500 crore sales turnover this year.

Sachin Nijhawan, head, retail sales (India), told Business Standard that for the year ended March 31, 2007, the company registered a sales turnover of Rs 350 crore by selling diesel generator sets.

It sold 25,000 units to the industrial clients and 4,000 sets to retail clients. In the year 2005-06, the sales turnover was Rs 173 crore, which almost doubled to Rs 350 crore in 2006-07.

Nijhawan said in the mobile service porviders segment, M&M's powerol engine and diesel sets had a 50 per cent market share. It sold over 70,000 gensent to the cellular service providers in the last three years.

The company would soon come out with the genset of 82.5KVA. As of now, it manufacturs in the size ranging from 2.5 KVA to 40 KVA. It is also working on gas-based engines.

Currently, the company has manufacturing facilities at Pune and Delhi, which produce 1,800 diesel generator sets in a month.

The company has a delear network of around 130 at present and about 18 production centres under original equipment manufacturers. He said soon OEMs would be installed at Hyderabad to cover Andhra Pradesh and at Kolkata for the West Bengal market.

On the export front too, it has received enquiries from the Gulf and southeast Asian markets. It currently sells gensets to countries like Australia, Sri Lanka and Bangladesh.

Earlier, formally launching the sale of Mahindra sets in Tamil Nadu, N P Sukumar, managing director of SAR Energy Private Limited, the OEM for Mahindra's in the state, said 500 gensets would be manufactured by SAR Energy this year which would be doubled by next year. Sar has invested Rs 1 crore in its plant at Mathur near Trichy and a similar investment would be made by the end of this fiscal to augment the targeted capacity.