Knight Queen to set up unit near Jammu

Knight Queen, mosquito repellent manufacturers and suppliers, a young player in the segment manufacturing liquid repellents, coils and mats, is putting up a unit at Badi Brahmana near Jammu.

The company has its only unit at Kala Amb, District Sirmor, in Himachal Pradesh.

Under the industrial package announced by the central government in January 2003, insecticides, pesticides and fungicides cannot be produced in Himachal Pradesh. So the company is setting up a facility in an area of one acre (4,840 square yards) near Jammu at Rs 3 crore. The existing facility at Kala Amb will be used for the company's new venture into food products and health drinks made from aloe vera.

Talking to Business Standard, the managing director of the company, Anupam Batra, said he started this business three years ago and from a turnover of Rs 4 crore in the first year the firm earned a turnover of Rs 25 crore in 2004-05.

He said the target for the current year was Rs 33 crore. The company manufactures liquid repellents, coils and mats. Liquid repellents account for 50 per cent of the sales and this is the thrust area for the company.

According to Batra, the market for coils and mats is stagnant. And, the firm's market was confined to Punjab, Haryana, Delhi, Uttar Pradesh and Himachal Pradesh but now it is expanding in the western part of India. Its focus is on B and C class towns.

According to Batra, he is selling at no profit and no loss, and this is the reason behind his success.

The company has a unit manufacturing black charcoal wick (used for capillary action) in the liquid repellent section. The competitors of the firm import it from China and Japan. The firm has a team to manufacture tools and moulds, which saves import costs.

Before starting this business, the company used to make home appliances, which registered a turnover of Rs 11 crore in 2004-05. Batra said the mosquito repellent business came to him as a sort of diversification.

Batra said the shifting of unit would raise the costs in the short run, but saving of 16 per cent of the excise duty would cover up the losses after a short period.

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Growth trajectory

Under the industrial package announced by the central government in January 2003, insecticides, pesticides and fungicides cannot be produced in Himachal Pradesh. This prompted the company to set up a facility near Jammu at Rs 3 crore

The firm earned a turnover of Rs 4 crore in the first year, and a profit of Rs 25 crore in 2004-05

The company manufactures liquid repellents, coils and mats, where liquid repellants account for 50 per cent of sales

The company has a unit manufacturing black charcoal wick in the liquid repellent section

Before starting this business, the company used to make home appliances, which registered a turnover of Rs 11 cr