HSIL to commission 2 plants in Telangana

Hyderabad: Sanitaryware company HSIL Ltd will commission two plants in April in the State and it's likely set up a production unit for water heaters. Located in Medak district, the two plants will manufacture plastic pipes and security caps and closures, a senior company official said.

Rakesh Kaul, President (Consumer Business), HSIL Ltd, said: "The two plants will be commissioned in April. There could be likelihood of water heaters also coming up (production unit) in Telangana which is in association with our European partner (Groupe) Atlantic International which is a French MNC of $2 billion. We aim to be among the top-3 players in the market by 2020."

The company has kitchen appliances, water-heaters, water and air purifiers and air cooler products under the consumer division, which is on course to clock a business of about Rs 150 crore in the current fiscal, a 140 per cent growth compared to the previous financial year, he said.

The company's consumer business faced 'slight impact' following demonetisation of high-value currency last November but the sales 'rebounded' in December, Kaul said.

“The objective is to be among the top three in each of the category (under consumer business) where we work. As we go up the ladder and get higher market share, we will obviously look at own manufacturing set up for these categories as well,” Kaul said.

The growing market of air coolers of Rs 3,650 crores currently has a low penetration of 10 per cent, however, it's witnessing a volume CAGR of 16 per cent from FY14-FY17.

The organized market is contributing to only one-third of the market size. HSIL believes that its new range of air coolers will help HSIL propel its presence.