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Havells India today said it is in the process of doubling the production capacity of its manufacturing plant at Baddi in Himachal Pradesh, with an investment of Rs 100 crore.
"Our facility at Baddi in Himachal will begin manufacturing 1 million stock keeping units (SKUs) per day by this month-end, which is just the double of the present capacity of 5 lakh SKUs per day there," Havells India Senior Vice President Deepak Agarwal told reporters.
The fast moving electrical goods (FMEG) company, which makes switch gears & switches at its Baddi plant, is targetting to take the manufacturing capacity of its newly-released conventional range of switches 'REO' there from the existing 2 to 2.5 lakh to up to 5 lakh SKU's per day.
"Depending on the demand we plan to take manufacturing capacity of REO range of switches from the current 2-2.5 lakh to up to 5 lakh SKU's per day there," Agarwal said.
Eyeing penetration in tier-II, III and rural markets with the launch of its REO range of conventional switches, the company is looking to garner a revenue of Rs 200 crore this fiscal, from it.
The $1.3 billion, FMEG company shall be competing with its competitor Anchor, in the conventional switches range segment with the launch of REO. The market size of the conventional and modular range of switches in India, is pegged at over Rs 1,500 crore each. The market for both type of switches is growing at 15 per cent per annum as per industry estimates.
Havells intends to roll out its new switch range across India in a phased manner.
"We launched REO first in Kolkata, then Uttar Pradesh, now in Gujarat today and plan to roll it out across India in a phased manner," a company spokesperson said.
In a bid to have a presence in all 190 towns of Gujarat the company would be appointing 100 more dealers in the state, by this fiscal-end. It also plans to open 15 more 'Havells Galaxy' stores, one touch points for its range of products, in Gujarat over the next two year. The 200 odd such exclusive stores of the company across India, contribute nearly Rs 450 crore to overall revenues of the company.
The company has 14 manufacturing facilities in India, and six overseas. It owns global brands like Crabtree, Sylvania, Concord, Luminance and Standard.
