Calcutta, May 16: Khaitan Electricals Ltd (KEL) is aiming at a turnover of Rs 400 crore in the current financial year and hopes to cross the Rs 1,000-crore-mark by 2008-09.

The company is foraying into new products in the electrical segment and is adding fresh capacity, vice-chairman and managing director Sunil Khaitan said.

“In the wake of higher sales, we are setting up a new factory in Himachal Pradesh at an investment of Rs 20 crore,” he said.

The company will also enhance the capacity at Calcutta, Faridabad, Hyderabad and Ponta Sahib.

The plant introduced compact fluorescent light bulbs, mixer grinders, domestic and agricultural pumps, electric appliances and miniature circuit breakers (MCBs). Pumps would be the next big thing after fans for the company.

Khaitan would soon foray into electric switches and wires to enhance its product portfolio. The company said it was open to acquiring brands in kitchen appliances, pumps and MCBs in the overseas market to boost the export business. It is targeting an export business of Rs 20 crore from Rs 8 crore at present. It was eyeing the export markets in European nations like Sweden, the UK and France.

KEL exports fans to neighbouring countries like Bangladseh and Sri Lanka at present. The company was also contemplating raising Rs 40 crore from a preferential issue to FIIs and institutions.

“We are planning to make private placement and preferential issue to raise around Rs 40 crore from the market. We had recently made preferential issue to promoters to raise Rs 6 crore at a price of Rs 60 per share,” Khaitan said.

The company’s paid up equity capital would increase to Rs 11 crore from Rs 8.24 crore at present.

Khaitan said with the introduction of VAT, it was likely to reduce the price advantage in the unorganised sector due to tax evasion.

Meanwhile, KEL posted a 200 per cent rise in net profit at Rs 7.5 crore for 2005-06.