Ghaziabad, India: Electrical components maker Havells India aims to double revenue from its switchgear business in three years as it expands capacity to meet rising demand, a top executive said on Tuesday.
Havells, which gets half its revenue from Germany’s SLI Sylvania that it acquired in 2007, started production at its new switchgear plant in Ghaziabad near Delhi last month and sees switchgear revenue climbing to Rs 1800 crore.
Havells, which started off as a switchgear maker about 40 years back, has in recently forayed into new product lines including lighting and appliances, and the switchgear segment now contributes less than a third of revenue, its president, Sunil Sikka, told reporters.
“Havells is essentially a switchgear company...We think its time we tighten our belts,” Sikka said.
The new Rs 500 million facility will focus on producing industrial switchgear, Sikka said, adding revenue from the segment is expected to double to Rs 400 crore over two years.
The company has 12 plants in India and six overseas.
Havells is scouting for a joint venture partner in China to boost sales and set up a manufacturing facility there.
“China domestic market is growing very fast...Agencies are looking into it (finding a JV partner),” Sikka said. Havells has lately started shipping its products to China but has only a minor presence.
Last month, Havells’ joint managing director Anil Gupta told Reuters the company will invest Rs 700-800 million over the next two-three years in marketing, research and development of its new home appliances product line.
The products will be launched early next month, Sikka said.
Havells shares, valued at about $1 billion, were down 1.68% at Rs 380.95 by 3 PM in a weak Mumbai market.