HSIL enters home appliances segment, ties up with French Groupe Atlantic

Groupe Atlantic entered Indian market as it sees demand for water heater increasing in coming years

HSIL, India’s major sanitary-ware manufacturer, has entered into the home appliances segment in association with France-headquartered Groupe Atlantic. HSIL will start selling water heaters manufactured by the French firm through 2,500-odd existing retail partners.

Groupe Atlantic – a Euro 1.3 billion ($ 1.44 billion) heating, ventilation and air conditioning company that sells products in more than 100 countries – entered the Indian market as it sees the demand for water heater increasing in the coming years with growing urbanization.

According to Gilles Romagne, managing director, international division of Groupe Atlantic, although water heaters are “not a necessity product in India”, the market is growing by 15-20% per year.

 

“While, last year, globally we sold some 2.2 million units, the demand for water heaters in India is 2.2 million alone”, Romagne said.

"We have entered into an exclusive distribution tie-up with Groupe Atlantic to sell their water heaters in India. We are targeting Rs 200-250 crore revenue from water heaters within next three years," Sandip Somany, joint managing director HSIL Ltd. said.

Depending on the demand in future, the two companies will consider setting up manufacturing units in India. Currently, HSIL is planning to launch the products in 21 cities across the country.

According to Somany, market size for water heaters in the country is worth Rs 1,500 crore annually, and expected to grow, especially with the proposal for 100 new 'smart cities'. 

Worldwide, Groupe Atlantic currently operates through ten wholly owned subsidiaries and five joint ventures. HSIL, formerly  known as Hindustan Sanitaryware & Industries Limited, is a Rs 1965 crore company.