Consumer durables firm Haier India will invest Rs 360 crore this year to double manufacturing capacity of its Pune plant.
The company is undertaking capacity expansion to keep pace with its target of clocking around 30 per cent growth to touch a turnover of Rs 2,150 crore in 2015.
"We are looking at major expansion at our factory at Ranjangaon, Pune, and we are looking almost to invest around Rs 360 crore. We expect this additional capacity to go on stream by early 2017," Haier India president Eric Braganza told PTI.
The expansion would be entirely funded by Chinese parent company that is based in Hong Kong, he said, adding that it will almost double plant's capacity and create 1,500 jobs.
"We will double our refrigerator manufacturing capacity to 2 million per annum," Braganza said, adding that for air conditioner units, washing machines, water heaters and TV panels, it would be doubled to 0.5 million units each a year.
The company, however, has put on hold its plan to set up a new plant in North India, while it would utilise additional land of about 40 acre available at its existing plant in Pune.
"Further down, we would have to move to two other locations as the brand develops," Braganza said without specifying details.
On growth of Haier in India, he said: "In the first half of the year, we are expecting close to 30 per cent and presuming that second half also goes well, then there is no reason that this year we would not have around 25-30 per cent growth."
Haier India follows January-December as its fiscal. In 2014 it had a turnover of around Rs 1,750 crore.
"In sales term it would take us to Rs 2,150 crore this year," Braganza said.
He asserted that the growth would come, specially from refrigerators, air-conditioner, washing machine and panels as these three categories will give more value.
Braganza said Haier would also increase its local production up to 80 per cent post expansion.
"Earlier 50 per cent of our product was imported and by 2017 it would come down to 20 per cent. We would start making refrigerators, including the high-end ones, TV panels and some ranges of ACs and washing machine which were imported earlier," he said.
Haier is also strengthening its dealers network focusing smaller tier II & III places.
"We are covering close to 7,000 outlets directly and indirectly and would cross 8,000 by the end of this year," he said.
Haier India, which is currently exporting refrigerators to Middle East, South Asia and African countries, is expecting its export to increase and contribute 10 to 15 per cent of its sales in the coming years post expansion.
"Last year we exported 75,000 refrigerators, which was negligible in value terms but with the enhanced capacity, we will build up our export basket by adding washing machine, water heaters and other products," Braganza said.
