Havells sets up its first home appliances plant in India

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New Delhi | Published: September 18, 2015 12:20:29 AM

Havells India, a $1.4-billion fast-moving electrical goods (FMEG) company, has set up its first home appliance manufacturing plant in the country, in a boost to the make-in-India concept.

Havells India, a $1.4-billion fast-moving electrical goods (FMEG) company, has set up its first home appliance manufacturing plant in the country, in a boost to the make-in-India concept.

Havells, which was earlier dependent on imports of equipment for sales of home appliances under its brand name, has decided to produce water heaters, to start with, at its new manufacturing plant at Neemrana in Rajasthan.

Anil Rai Gupta, the company’s chairman and managing director, said: “This plant is part of our commitment to the ‘Make in India’ programme, which we have been following since the launch of our first plant in 1976.

Today, we manufacture almost 95% of our products in-house.”

The company has invested Rs 100 crore in the Neemrana plant. With this addition, Havells has twelve manufacturing units in the country, apart from eight abroad.

The new plant has a capacity to manufacture 5,00,000 water heaters per annum, although it will initially produce 3,00,000 units a year. The company will be making the entire range of water heaters here and reduce its reliance on imports. Rajasthan chief minister Vasundhara Raje inaugurated the plant over the weekend.

“The plant will enable us not only to manufacture safe and high quality products but also help us achieve better market share. The soon to be expected revival in the housing sector will further our market share,” Gupta said.

Electric water heater sales in the country are estimated to be Rs 1,500 crore a year, which are expected to grow around 10-12% in the coming years.

Havells is looking to enhance its market share in this segment from the current 10% to 21% in the next 2-3 years.

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