Anchor eyes 25% growth this fiscal

Anchor Electronics & Electricals expects turnover to cross Rs 750 crore

Anchor Electronics and Electricals Private Limited expects the group's turnover to increase by 25 per cent to cross Rs 750 crore during the current financial year.

The company recorded a turnover of Rs 600 crore during 2003-04. While the electrical division contributed Rs 450 crore, the fast moving consumer goods (FMCG) division contributed Rs 150 crore.

Shashi Nair, president, Anchor Electronics and Electricals Private Limited, told Business Standard that Anchor Daewoo, the white goods division, in addition to its electrical division, would be the main drivers for growth.

Anchor, which took complete control of Korean-based Daewoo brand of consumer durables a couple of months back, expects the turnover of the division to cross Rs 200 crore in the first year of operation.

Anchor Electronics has the exclusive rights for the distribution, manufacturing and operations of Daewoo products in India. The Daewoo brand is available through 1,200 outlets across the country.

"In the next two years, we expect the turnover to cross Rs 500 crore. By 2009, we expect to be among the top three brands in the country," Nair said. The company, which already has televisions and refrigerators in its product range, plans to launch microwave ovens, plasma TVs and air conditioners soon, he added.

Currently, Anchor has an eight per cent market share in the toothpaste segment. It now plans to expand to the shampoo and soap segments in the next three months.

"We expect this division to cross Rs 1,000 crore in the next five years. Though the market is flooded with similar products, our presence across the country would be the USP of our products," Nair said.

The manufacturing facility of the company in Uttaranchal is also nearing completion. "We expect to start production from December this year. The company has invested around Rs 60 crore in this project," he said.

Nair said that the Rs 90-crore compact fluorescent lamp (CFL) manufacturing unit in Kutch, Gujarat, would begin production from March next year.

"We expect to manufacture around 4.6 million CFL units per year initially. The production would be scaled up as per the market requirements," he added.

The company on Friday launched 'Woods', a premium range of electrical accessories for the Andhra Pradesh market. Anchor Electricals has tied up with UK-based British General market 'Woods' in India.

"Woods is entering the market through a 76:24 joint venture between Anchor and British General with an initial investment of Rs 15 crore," Nair said at a press conference.

"The scope of the joint venture includes design, manufacture and sale of Woods range of products in India and Saarc countries to begin with," he said.

The Woods range of switches include British switches and wiring accessories under the brands 'Matrix', ''Viva', 'Scota', 'Elton' and 'Rivoli'. The company expects sales of Anchor Woods to be around Rs 15 crore during the first year.

"Anchor Woods would be positioned in the mid-segment of the company's two popular brands 'Roma', with a Rs 120-crore sales and 'Ave' with sales of around Rs 20 crore, which is in the super premium league," Nair said.

Anchor Woods would be available through 3,000 dealers across the country. "The company is planning to have around 50 dealers in Andhra Pradesh to market Woods," he said. Around three lakh dealers market the company's product range across the country and in the state it has 450 dealers.

The company also unveiled a first-of-its-kind 'Woods light control and home automated system'. The company is targeting hotels, offices and corporates for the Woods range of electrical accessories, Nair said.

The home automation products, priced at Rs 50,000 up to Rs 4 lakh, comprise a complete range of sophisticated home automation products including light control systems or mood lighting, electronic sensors and anti-intrusion alarms.