Havells expects double digit growth during current year

Hyderabad, July 29 (IANS) Havells India Limited, a $1.3 billion leading fast moving electrical goods (FMEG) company and a major power distribution equipment manufacturer, expects a double digit growth during the current financial year, despite a slowdown in industrial sector.

Sunil Sikka, president, Havells India, told reporters here Monday that there is some slowdown in industrial growth but he hopes the sales from housing sector will continue to grow due to huge gap between demand and supply.

During 2012-13, Havells grew by about 20 percent but Sikka said it would be very difficult to give a number for this year. "We would like grow by at least double digits," he said.

While stating that the trend in results of the past few quarters were not encouraging, Sikka was confident that it would not be a huge shock. The company's income last year was Rs. 7,248 crore out of which the sales in India were Rs.4,200 crore. The remaining income was contributed by its subsidiaries abroad.

"This year we are seeing slow down in certain sectors like industrial products. Whether it will continue or change we have to see. It depends on the government's policies," he said.

Industrial sector contribute to almost 50 percent of Havells' revenues in India.

He announced that the company plans to double its revenues in Andhra Pradesh to Rs.500 crores in three years by expanding to all towns with 50,000 and above population.

It also plans to double 'Havells Galaxy' stores in the state by adding 15 more stores in two years. There are more than 200 such stores across India.

Sikka hinted that the company may increase capacity of its first large scale Lighting Fixture plant at Neemrana, Rajasthan which was commissioned in October last year. The plant, which came up with an investment of Rs.100 crore, currently has a capacity of Rs.25 crore worth of lighting fixtures per month.

Havells' is also exporting products from this plant to Europe and Latin America. The overall exports are about Rs.4 crore to Rs.5 crore per month. Though the company has three lighting plants in France, Britain and Costa Rica, it exports only those products which are more cost effective. It also exports to Europe from its joint venture in China.

Havells India exports products worth Rs.400 crore every year but as its imports of raw material are also of almost the same value, making it revenue neutral, he said.

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