Financial Daily from THE HINDU group of publications
Monday, Jul 12, 2004
Havell's India bullish on growth
Kochi , July 11
HAVELL'S India Ltd, the Delhi-based manufacturer of electrical equipment, expects its revenues to rise by over 60 per cent in the current fiscal to Rs 650 crore on the back of strong growth in the housing sector.
Riding on this growth, the total turnover of the company's group, QRG Enterprises, is set to reach Rs 1,000 crore in the year, up from Rs 700 crore last year, said Mr Anil Gupta, Director of Havell's India.
"The growth in housing has helped us in the past ... and we expect this to continue," Mr Gupta told newspersons here.
Apart from the flagship Havell's India, other group companies of QRG include Standard Electricals, TTL, Duke Amics Electronics and Crabtree India Ltd.
Mr Gupta said Havell's was also confident of boosting exports this year by 250 per cent to Rs 100 crore as the company has been emerging as one of the world's lowest-cost producers of electrical equipment such as miniature circuit breakers (MCBs).
"We currently export to 43 countries, with Europe accounting for 40 per cent of our exports. Now that we have got the US certification, that market is also opening up for us," he said.
Though Havell's supplies to other original equipment manufacturers (OEMs) such as Crabtree of the UK, the company is keen on selling more of its own brand in overseas markets, as this strategy would differentiate it from others. "OEMs account for only 30 per cent of our exports. The rest is our own brand," Mr Gupta pointed out. In the next two years, Havell's plans to take exports up to Rs 200 crore.
"The cost advantage we have now may go away in future. So focusing on our own brand will help us in the future," he said.
In order to further consolidate its position in the global markets, Havell's is considering acquisitions. "We are still on the lookout. We've been looking at a company with a revenue of Rs 20 crore to Rs 100 crore," Mr Gupta said.
The company is hopeful that its business in Kerala would touch Rs 100 crore by 2005 as it has rolled out its complete range of products in the State.
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