Havells India Ltd will complete the expansion of its manufacturing plant at Baddi, Himachal Pradesh, in a month to double the capacity to 10 lakh stock keeping units.
Havells India, a $1.3-billion fast moving electrical goods company, is investing Rs 100 crore on this expansion, Deepak Agarwal, Senior Vice-President, said after the launch of India’s first premium conventional switch, Reo, in the Gujarat market.
The Baddi plant will have a capacity to manufacture up to five lakh Reo switches annually, which carry a 10-year guarantee. Havells India has 20 manufacturing plants, including six abroad, and 17 business verticals.
He said modular and non-modular (conventional) switches have a market size of Rs 1,500 crore each in India. Havells has a 27 per cent share in conventional switch market, and its products have a 15 per cent market in rural India.
Havells, which currently has about 200 Galaxy stores in India, will double the number of these stores in Gujarat to 30 in the next two years. These stores contributed Rs 450 crore to the company’s overall revenues last year.
With the launch of Reo, the company is entering the rural market of Gujarat having huge growth potential. Over the last few years, Tier II and III towns have contributed significantly to the company’s turnover.
Out of 190 towns in Gujarat, the company has a direct presence in 55 towns. By the end of this fiscal, it would have its presence all over the State by adding over 100 new dealers and distributors to the existing 332.