Hindustan Sanitaryware eyes Rs 3,000-cr turnover in 5 yrs

Hindustan Sanitaryware and Industries Ltd (HSIL) today said that it expects sales to jump by three-and-half times to touch Rs 3,000 crore in the next five years, on the back of expansion plans and an enhanced portfolio.

The company, which closed FY10 at Rs 835 crore, will invest a minimum of Rs 250 crore in the next one year to increase production capacity through the expansion of existing plants and setting up of new ones.

"We are looking at all avenues for growth....Brownfield, greenfield as well as acquisitions, to become a Rs 3,000-crore company in the next five years," HSIL Joint Managing Director Sandip Somany told PTI.

He, however, did not elaborate on the acquisition plans.
    
The company, which sells the Hindware range of sanitary products, claims to command over 40 per cent market share in the estimated Rs 3,000-crore Indian sanitaryware market.
    
In order to meet its five-year target, the firm has also forayed into the lucrative Rs 10,000-crore Indian tiles market. "To start with, we are entering the high-end tiles segment. Gradually, in the next five years, all the segments will be covered," Somany said, adding that HSIL expects Rs 300-400 crore revenue from the segment in this fiscal.
    
He said the company will import tiles from various global locations, including Europe and South America, and currently has no plans to manufacture tiles locally.
    
As part of its expansion plans, the company will enhance manufacturing capacities in Haryana and Andhra Pradesh. "We will be spending Rs 100 crore to raise our capacities to 35 lakh sanitaryware pieces from the present 28 lakh pieces by May 2011," Somany said.
    
Besides, HSIL is looking at setting up a new sanitaryware production site in the western part of the country. "We will be investing Rs 150 crore for the new facility. The site will be finalised in the next 6-8 months and work will commence by next year," he added.
    
The company, which closed FY10 at Rs 835 crore, expects to grow by 30 per cent in the current fiscal to post a revenue of Rs 1,100 crore.
    
To strengthen its portfolio, the company plans to launch high-end ceramic items of UK-based company Barwood Products in the country. It had acquired the firm earlier this year.
    
This fiscal, it also plans to launch faucets of the 'Crabtree' brand, which it acquired in March this year from Havells India.
    
HSIL sells its products through 1,200 distributors and 12,000 retail stockists across the country.