The Hindu Business Line : Faber India lines up major expansion

Mr K. Hira, Senior Vice-President (Business Strategy), Faber Heatkraft Industries Ltd, demostrating the kitchen products at a press conference in Hyderabad. -- A. Roy Chowdhury

Hyderabad , Sept. 24

FABER Heatkraft Industries Ltd (Faber India), a joint venture between the Italian major Faber SpA and Heatkraft of India, has embarked upon a major expansion programme.

Announcing this here on Friday, the Faber India Senior Vice-President (Business Strategy), Mr Kawal Hira, told newspersons the expansion programme includes marketing network, opening of new exclusive Faber Gallerias, increasing the manufacturing capacity and expanding the alliance networks.

"This year, we are opening another 25 Mini Faber Gallerias across the country with an additional investment of close to Rs 1 crore, taking the total to 55," Mr Hira said.

The company expects to record a growth of around 80 per cent to reach Rs 70 crore, from the Rs 40 crore last fiscal, by implementing new marketing, promotional and expansion initiatives, he said.

Stating that the current size of kitchen chimney market in the country is estimated at around 1.25 lakh units per annum, Mr Hira said it is expected to grow to two lakh units by the current fiscal end, three lakh units by March 2006 and five lakh units in the next five years.

Already having a market share of around 55 per cent in the kitchen chimney market, Faber India targets a share of over 50 per cent in the new emerging market.

Faber India will spend Rs 10 crore on its new marketing and promotional campaign during the next four months of festive season.

This is in addition to the regular advertising and promotional budget of Rs 4 crore earmarked for the current year, Mr Kawal Hira said.

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