Expect Rs 1,000 cr in revenue in FY16: Kent RO Chairman Mahesh Gupta

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New Delhi | Updated: June 22, 2016 1:33:12 PM

Water purifier business major Kent RO Systems has recently forayed into two new segments and Chairman Mahesh Gupta talked to FE Online’s Akash Sinha about the company's vision...

The RO purifiers constitute of more than 60% of the Rs 3, 000 market size. The RO purifiers constitute of more than 60% of the Rs 3, 000 market size.

Water purifier business major Kent RO Systems has recently forayed into two new segments and Chairman Mahesh Gupta talked to FE Online’s Akash Sinha about the company’s vision, performance and future expansion plans. Here are the excerpts:

Q. How do you see the water purifier industry in terms of growth?

The present market size of water purifiers is estimated to be around Rs 3000 crore and constitutes of 3 major segments – RO, UV and Gravity water purifiers. The RO purifiers constitute of more than 60% of the market size. The water purifier industry is bound to grow constantly as the quality of water is continuously deteriorating and the awareness about the need for purification is gradually spreading amongst the consumers.

Q. Only a small part of population uses water purifiers and what kind of presence does Kent have in the market?

This is absolutely true. As per survey estimates, the penetration of RO water purifiers is just 1.5% of the population. Kent is the market leader in its RO water purifier category and commands a market share of around 35%.

Q. What is your current revenue? How much growth you expect in next year?

We have been growing at a consistent CAGR of 25% year on year, and we endeavour to continue growing at this pace. Our current revenue is around Rs 800 crore and we expect to reach Rs 1,000 crore figure in FY16-17.

Q. Are you planning to expand?

Yes. We are investing Rs 100 crore in building new manufacturing plant at Sector 87, Noida.

Q. Any acquisition or IPO on cards?

No.

Q. How do you plan to tap small cities and towns?

We are creating more dealers and ramping up distribution networks.

Q. You recently forayed into air purifier & bed cleaner segment. How were the response and growth prospects in this segment?

The response is very good. The market for Air Purifier is at a nascent stage but is catching pace with the increasing awareness on deteriorating quality of air. Consumers are opting for Air Purifiers and using them as a medicine to prevent their family from lung related diseases like asthma, bronchitis etc.

Q. Any CSR initiative?

Kent has adapted 6 villages in extremely remote areas and we have been instrumental in cultivating a habit of using the toilet and purifying one’s drinking water. Under this initiative we have distributed water purifiers in these villages. And also built toilets in the homes where people have been defecating in the open. Local volunteers have also been trained to spread awareness about the need for cleanliness and purifying one’s drinking water so as to prevent water borne diseases.

Q. Are you collaborating with Skill India?

Yes. Through PHD Chamber of Commerce, we are participating in Skill Development Programme.

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