Somany Home Innovation targets $1 billion sales
Somany Home Innovation aspires to be a $1-billion (Rs 7,000 crore) company by 2030, driven by new products and a scale-up of capacity.
The company, which was separated from parent HSIL as part of a demerger process of the latter, has acquired six acres in Hyderabad to set up a water heater manufacturing plant with a capacity of 6 lakh units per year.
Expected to be commissioned in the second half of 2021, this unit will be the first owned plant of the company, which mostly depends on contract manufacturers both in India and overseas, including China.
“We aspire for $1 billion in sales by 2030... We are expecting 12-14 per cent of our revenues from connected products,” SHIL CEO and wholetime director Rakesh Kaul said on Thursday at the unveiling of the company’s range of ceiling fans.
“Commercial production at the new plant is expected to begin from August-September 2021,” he said.
SHIL sells kitchen appliances, water heaters, air purifers and fans.
Kaul said SHIL does not foresee any major supply disruption, even though they source some of the products from 15 contract manufacturing plants in China, the epicentre of the coronavirus outbreak. “If the virus issue does not aggravate further, we don’t see much of a problem,” Kaul said.
The company is targeting a turnover of Rs 530- 535 crore in the current fiscal.