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Havells growth push

Revenue Prop

Calcutta, Feb. 23: Electrical goods company Havells India Ltd expects its fan segment to contribute Rs 900 crore to revenues in the next fiscal against Rs 700 crore at present.

The foray by Standard Electricals — a brand acquired by Havells — into the premium range of fans will help the company to garner an additional Rs 100 crore next fiscal. Havells itself expects to rake in another Rs 100 crore.

The Rs 300-crore Standard brand is expected to double its turnover in three years to Rs 600 crore on the back of the new product category and a larger dealer network.

“We have modular switches, miniature circuit breakers and flexible cables in Standard already. But we wanted to make this a bigger brand and a parallel brand to Havells. With that objective in mind, we are now launching Standard fans, the first consumer item we are introducing under this brand,” said Y. K. Gupta, associate director of Havells India.

The company operates in the regular and premium fan segments. The organised domestic fan market is pegged at Rs 5,000 crore. Of this, regular and premium fans account for around Rs 3,200 crore. The company plans to increase its market share to 30 per cent in the next three years from 25 per cent.

The Standard fans priced between Rs 1,650 and Rs 2,500 will be manufactured at its Haridwar plant. Super premium fans priced above Rs 8,000 are also expected to be rolled out in the next 3-4 months.

“We have our own manufacturing unit in Haridwar with an installed capacity of 7 million fans per annum. We have started a third unit there at an investment of Rs 40-50 crore for pedestal, wall, table and exhaust fans,” he said.

 
 
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