Sanitaryware manufacturer HSIL is eyeing over two-fold growth to be Rs 6,000 crore company in the next five years, a top company official has said. “With the projects that we already have in the pipeline plus we are putting up two new plants, with those plants getting commissioned, I think we should be closer to Rs 5,500 to 6,000 crore in revenue in five years’ time,” HSIL Vice Chairman and MD Sandip told PTI here. Hindustan Sanitaryware and Industry (HSIL), which sells products under the Hindware brand, had registered a revenue of Rs 2,200 crore last fiscal, and Somany said the company aim to register 15-20 per cent growth each year for the next five years. This fiscal year, it aims to grow at 18 per cent.
The company is setting up a security closure plant and a CPVC pipes plant in Telangana, which will be a backward integration to its building materials business. Somany said the company will be able to to sell Rs 700- 800 crore worth of pipes in the near future. The bathroom solutions firm, which gets more than 50 per cent of its revenue from premium products, recently entered super-premium category with the brand Alchymi and expects luxury and the super-premium segments to grow faster than the normal market. The general market is growing at 10-12 per cent and luxury is growing at 20 per cent. HSIL has a market share of 38 per cent in the Rs 4,000 crore sanitaryware industry and with foray into the super- premium category, it expects it to be 40 per cent in the next two years.
The company plans to add 200 stores by next year to its large format store Hindware Galleria that are owned by dealers and distributors, taking the total number to 400. The smaller towns contribute around 40 per cent of the company’s sales, and Somany said they are growing at a faster rate and in the next three years could account for half their sales. At present, retail segment accounts for 70 per cent of HSIL’s sales, while institutional sales account for the rest.
On the new tax regime of goods and services tax (GST), he said things are settling down and expect a significant improvement for the business from August end. The company, which has 12 per cent market share in the Rs 3,000 crore organised faucet market, has reduced prices in the category post GST, extending the benefit to customers. The company sells its products in Africa, Middle East, South America and some countries in Europe and exports account for Rs 100 crore of the turnover.