V-Guard Industries to start PVC compounding unit at Coimbatore

As part of its backward integration strategy, V-Guard Industries Ltd, a consumer electrical and electronics company, has set up an in-house PVC compounding unit at its Chavadi (Coimbatore, Tamil Nadu) site. The unit is expected to commence commercial production by end of August 2016.

“The board of directors of the company at its meeting held on July 26, 2016, inter alia, has considered the proposal of commencement of operations of the in-house PVC compounding unit at Chavadi, Coimbatore as part of backward integration and the unit is expected to commence commercial production by end of August, 2016,” said V-Guard Industries Ltd in a BSE filing on July 26, 2016.

The unit will serve the company’s business of house wiring cable, the manufacturing facility of which is also located at Chavadi. In fact, V-Guard is expanding the production capacity of house wiring cable considering the increased demand for the product, especially in South markets.

Meanwhile, the company has reported growth of 15 percent in net revenues to Rs 572.68 crores for the first quarter of 2016-17 compared to Rs 499.28 crores during corresponding period of 2015-16. Its profit after tax for the quarter was Rs 42.78 crores, showing an increase of 70 percent over corresponding period of last financial year (Rs 25.16 crores).

V-Guard also launched Verano, India’s first Internet of Things (IoT) enabled water heater, which can be controlled by a smartphone as well as an infrared (IR) remote.

Commenting on the company's performance, Mithun Chittilappilly, managing director, V-Guard Industries Ltd, said, “The first quarter has been exceptionally well for the company. We have improved the topline growth when compared with the corresponding quarter of the previous year. This quarter witnessed the launch of our most ambitious product, the IoT-enabled water heater, the first of its kind by any company in India. We will continue to focus on strengthening and consolidating our position in the non-south market."

The company is also planning to expand its product portfolio in the coming quarter by launching gas stoves. “The business outlook remains positive and the consumer confidence is high. We expect to perform reasonably well in the coming quarter considering upcoming festive season,” he added.