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Noida-based fast-moving electrical goods (FMEG) company, Havells India Limited, is targeting to double its sales revenues from the Andhra Pradesh market to Rs 500 crore, from Rs 250 crore achieved last fiscal, in the next two years, according to a top official of the company.
“We have a definite plan of reaching out to 40 towns in the state that have a population of between 50,000 and 100,000 besides doubling the number of Havells Galaxy experience stores to 27 from the present 12 by the end of two years,” Sunil Sikka, president of Havells, told mediapersons here on Monday.
Announcing the launch of Havells’ new range of small home appliances in the Andhra Pradesh market, he said AP's growth prospects were much higher when compared with other states as there was a huge demand-supply gap, especially in the housing sector.
The $1.3-billion (or close to Rs 7, 300 crore) company, which according to Sikka has a market capitalisation exceeding Rs 10, 000 crore, is primarily driven by construction and building installation products categories. While India, Asia-Pacific and the US account for 56 per cent, 4 per cent and 16 per cent of its revenues respectively, Europe contributes the rest.
Stating that the company had recently entered the piano switches (conventional) category with the launch of its Reo range, Sikka said Havells was expecting to garner revenues of Rs 150 crore from the brand in the first year.
The company, which reported standalone revenues of Rs 4,200 crore in the last financial year, an increase of 20 per cent over the previous fiscal, is expecting the growth to remain at the same level organically.
