New Delhi: Electrical goods manufacturer Havells India said it will invest Rs400 crore for increasing its capacities in the country, besides foraying into a new segment.
The company is entering the new segment of manufacturing electrical-motors and is augmenting its capacities in lighting and cables segment. It has earmarked a budget of around Rs400 crore for the purpose and has already spent Rs200 crore in current fiscal, Havells India Ltd Joint Managing Director Anil Gupta told PTI.
Havells is setting up a green-field plant in Rajasthan to manufacture electrical motors ranging from .25 horse power to 500 horse power. The company has already spent Rs150 crore in the plant and will invest Rs50 crore more in it, he said.
“Manufacturing Industries located in the region provide us excellent opportunity to sell electrical motors here and it also synergies with our products,” he said.
The company has also purchased around 17 acres of land near its facility in Alwar to expand the manufacturing capacity of high tension cables and domestic cables.
The company would infuse another Rs40 crore in the next fiscal to augment the capacity of cable manufacturing plant.
“Cable business contribute around Rs1,000 crore in our topline and after executing our expansion plans, we expect it to go up to Rs1,300 crore in near future,” Gupta said.
Havell’s would also invest in increasing the production of compact fluorescent lamps to five crore pieces from the present level of three crore to meet growing demand for such energy-saver lamps in domestic and overseas markets.
Earlier in April 2007, the company had made the country’s biggest acquisition in the electrical product segment by acquiring the Dutch-based SLI Sylvenia’s lighting business for $300 million.
“The facility is expected to contribute around Rs3,000 crore more in the topline of the company from next fiscal,” he said.
The company expects to clock a 29% revenue growth in the current fiscal at Rs2,000 crore as compared to Rs1,550 crore in the last fiscal, on good demand from housing sector.