Thursday, May 14, 2009

Hindware plans Rs 300 crore retail expansion

HSIL Ltd., the manufacturer of Hindware sanitary ware and kitchen products, is pumping in Rs 300 crore to fuel retail expansion in the country with focus on south India where the company is aiming at leadership position.

As part of this exercise, the company is launching exclusive brand mega stores called Hindware Lacasa in select cities starting from Kochi. Mr Sandip Somany , joint managing director of HSIL Ltd. told ET that company would come up with five stores in the first year with an investment of Rs 5 crore for each store.

The stores each having 6000 sq ft would showcase Hindware's elite product range across all categories which the dealers may not have space to stock. The next concept store will come up in Mumbai, Mr Somany said.

Apart from the concept stores, HSIL will help dealers to improve their showrooms and set up more Evok stores specializing in home interior solutions as part of the retail expansion strategy. Currently the company has 1000 direct dealers and 12,000 sub dealers.

``We are at present the market leaders in north and east India but hold the second position in south India. Our market share in the country is 40 % in sanitary ware products. The company's growth rate exceeded the sanitary ware industry growth rate of 10 to 12 % last year,'' Mr Somany said. With the launch of 200 new products this year, the company is also planning to make its presence felt in smaller towns.

Its turnover touched Rs 700 crore in 2008-09 and in the current year HSIL is hoping to touch the Rs 1000 crore mark. Its existing production capacity will be expanded next year to 3.6 million pieces per year from the current level of 3.2 million pieces per year. Around 12 % of the production is being exported to Australia, Nw Zealand, some European and African countries.

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