Hindustan Sanitaryware & Industries Limited (HSIL) is in expansion mode as it continues to expand its manufacturing capacity in Rajasthan while bracing up to set up another manufacturing unit in Dahej in Gujarat with an outlay of about Rs. 150 crore.
The sanitaryware company, which recently rolled out water heaters in association with French company and European major Groupe Atlantic, expects to see double-digit growth this year and over the next few years as it enters into new segments.
Sandip Somany, Joint Managing Director of HSIL, said the company closed the last financial year with a turnover of Rs. 2,000 crore and expects to see a growth of 12-15 per cent. The Rs. 10,000-crore industry segment is growing at 10-12 per cent per annum.
Speaking on the sidelines of an event to launch water heaters in association with Groupe Atlantic, Somany said this was the beginning of a strategic association with the French company. “We are evaluating bringing several other products from its portfolio into India based on the market analysis. As volumes grow, we may consider setting up a unit for manufacture in India through a joint venture,” he said.
The sanitaryware market is estimated at about Rs. 3,500 crore, where HSIL has a share of over 40 per cent. The faucet market is estimated to be about Rs. 6,000 crore.
The company acquired a 65-acre site at Dahej in Gujarat and expects to take up another plant with a manufacturing capacity of 1.2 million units per annum. The plant would be set up with an outlay of Rs. 150 crore.
In addition, the company capacity of 3.8 million pieces in Rajasthan is being increased to 4.5 million units by de-bottlenecking, he said.
Referring to the association with Groupe Atlantic, Somany said HSIL was evaluating other products for roll-out in India, customised for local requirements, which could include solar water heaters. The plants at Egypt and Thailand were being used for sourcing water heaters, he said.
Somany said HSIL has introduced three water heaters in 5, 10, and 25 litre capacities, and it proposed to come out with l, 2, 3 litre instant water heaters and capacities ranging from 25 to 100 litres later. The company expects to achieve revenues of Rs. 250 crore over the next three years from water heaters, possibly accounting for a market share of 12-14 per cent of the Rs. 2,000-crore market.