Despite prevailing tough times and the economic slowdown, the Hindustan Sanitaryware and Industries (HSIL), leading manufacturer of building products under the brand Hindware is all set to achieve a turnover of Rs 1,000 crore by year 2010 and Rs 2,000 crore turnover by 2014 from the present turnover of Rs 671 crore with a dominant market share of 40% in the industry.
Sanjay Kalra, vice-president, sales told FE here on Tuesday that HSIL?s portfolio of products include building products and container glass and it to increase the sanitaryware portfolio, the company was looking at sizeable acquisition in India as well as overseas market. The focus area for growth will be opening up of exclusive Hindware boutiques, arcades and shop-in-shops. He said that expansion strategy of the company would be three tier like exclusive Hindware boutiques and Arcades in major towns, experience centre and shop-in-shops in small cities. The company plans to set up company owned large format display centres in all major metros and mini metros across the country. He said that cumulative retail expansion investment would be about Rs 300 crore.
The company plans to open four stores in Ludhiana, Chandigarh, Lucknow and Jaipur in the current fiscal and in all 50 large format stores by 2015. Besides the company is planning to expand the capacity of sanitaryware plant at Bibinagar from 18,000 mt to 22,000 mt in the next one year, with an investment of Rs 50 crore.
The HSIL now plans to diversify into vitrified floor, wall tiles with special focus on kitchenware equipment. Kalra disclosed that vitrified tiles market in India was huge Rs 9000 crore market of which the organised sector had a share of only Rs 4,000 crore. He said that the company was planning to launch the wall and floor tile business by February, 2010. He said that the target is five per cent of the market share in the organized tile market, within the next three years.
Kalra told FE that they were also looking at strengthening their kitchen appliance business, which the company had started three years ago. Besides chimneys, hobs and cooking ranges that the company manufactures, it proposes to add other appliances. Most of these appliances will also be manufactured through dedicated vendors.