Riding on the new manufacturing facility for water heaters, electrical goods maker Havells India Ltd expects nearly Rs.400 crore revenue from the segment by 2018.
"With the launch of new plant, we are looking to enhance our market share in electrical water heaters segment from 10 percent to 21 percent with the revenues of Rs.400 crore in the next 2-3 years," Havells India CMD Anil Rai Gupta told the visiting reporters after inauguration of electrical water heater plant here.
Rajasthan Chief Minister Vasundhara Raje on Saturday (September 12) unveiled the electrical water heater plant which is the company's first manufacturing facility in home appliance segment.
He said the current market size of electrical water heater in India was of around Rs.1,500 crore which was projected to accelerate by around 10-12 percent annually.
"The plant will enable us not only to manufacture safe and high quality products but also help us grab better market share. The soon-to-be expected revival in the housing sector will further our market share,'' Gupta said.
The Noida-based firm has invested Rs.100 crore, excluding land and building costs, to set up the plant which was part of the 40-acre Havells' complex in Rajasthan State Industrial Development and Investment Corporation (RIICO) industrial zone.
The $1.4 billion company has already established three manufacturing plants in the complex for making electric motors, compact fluorescent lamps (CFLs) and light-emitting diode (LED) fixtures.
The new facility, which is the company's 12th manufacturing unit in India, has an annual capacity of making five lakh units of water heater.
"The plant has a capacity of five lakh units a year. We will initially manufacture three lakh units and cut our dependence on imports," the CMD said.
The capacity of water heaters would range from 10 to 120 litres at a price between Rs.3,200 to Rs.25,000.
Gupta said the highly-automated plant is equipped with "best-in-class machines" imported from Switzerland, Japan and Italy.
He said it was the only plant in the country to use 'ferro-glass dry powder technology' that prevents the tank from corrosion, offering long life even in hard water.
"The plant is a part of our commitment to 'Make in India' program... It is another step in realising our dream of self-sufficiency. We will continue to make necessary investments in realising our dreams further," Gupta said.
