Alwar: Electrical products maker Havells India on Wednesday said it expects to double the revenue from its cable and wire business to Rs 2,400 crore in the next three years, as it expands the capacity of its existing plant here.
The company said it has invested Rs 120 crore in doubling the capacity of its cable and wire plant and plans a revenue of Rs 1,800 crore from the segment by FY12.
“We have doubled the capacity from Rs 1,200 crore to Rs 2,400 crore. This means this (Alwar) plant can now produce cable and wires worth Rs 2,400 crore per annum from its existing capacity of Rs 1,200 crore,” Havells India president Sunil Sikka told reporters.
However, the company said it will take two-three years for full utilisation of the capacity. As part of the expansion, it has increased the plant area to 90 acres from 45 acres, besides modernising the existing units.
“By next financial year, 2012, we are confident that this plant can generate a revenue of Rs 1,800 crore. But by FY’13, it could be fully utilised and generate a revenue of Rs 2,400 crore,” he said.
At present, the company has 11 facilities in India and six plants abroad. This is the only plant of the firm, which makes cable and wire for both domestic and overseas markets.
Sikka said the capacity expansion is part of its strategy to maintain the company’s overall growth rate of 37%. Last fiscal, Havells had a consolidated turnover of nearly Rs 5,500 crore.
“We had earmarked an investment of Rs 200 crore. Of which Rs 120 crore went into expansion of this plant,” he said.
With the increase in the capacity, the company is also expecting a significant growth from the overseas. At present, exports contributes upto Rs 50 crore to the business.
“With this expansion, we are also looking at a significant growth from the export market. Now that we have enhanced the capacity, we are planning to set up more warehouses in the Middle East and Africa,” he said, without specifying the details on the kind of growth it is targeting from overseas in future.
Besides, Havells said emerging countries are its focused markets, with around 70 per cent of the overall turnover coming from India, African nations and other Asian countries.
“China, Asean countries and Latin America are our target markets in the near future,” Sikka added.