)
Electrical goods major Havells India today forayed into the Rs 5,000 crore water pumps segment.
The company has launched monoblock pumps of 0.5 Horsepower (HP) and 1 HP capacity targeted at homes and commercial establishments.
Since, Uttar Pradesh contributes about 12% to Havells’ revenue, it chose Lucknow as the pump’s maiden launch pad.
“We would now launch the new product in other markets, including North India and Delhi in phases,” Havells associate director Rakesh Mehrotra said here.
The home pumps market alone is estimated at Rs 2,500 crore, of which monoblock segment accounts for Rs 1,000 crore. The corresponding figures for UP are pegged at Rs 200 crore and Rs 75 crore respectively.
Havells would gradually increase its water pumps portfolio, he informed.
The company is expecting revenue of over Rs 100 crore from monoblock pump space by March 2015.
To a Business Standard query, Mehrotra noted the recent fall in the value of Indian Rupee vis-à-vis US Dollar had pushed input cost of pumps by 7.5%. Copper is amongst its major input materials being imported.
Meanwhile, Havells is in the process of expanding dealership network by adding 150 dealers to the existing tally of 600 in UP.
Currently, 10,000 pumps/month of monoblock pumps are being manufactured at the company’s integrated facility at Neemrana, which would soon ramped up to 25,000/month production.
In UP, Havells has presence in 250 towns with population of over 15,000. It had clocked turnover of about Rs 500 crore in the state last fiscal and is targetting 20% growth during 2013-14.
The count of ‘Havells Galaxy’, which displays its products in a relaxed ambience, is also being increased.
