27/01/2015
HSIL to invest Rs 400 crore in over two years for new plants, capex
PTI Jan 26, 2015, 06.18PM IST
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NEW DELHI: Sanitary ware and bathroom equipment maker HSIL will invest Rs 400 crore in the next two and a half years to set up new plants and expand capacity at existing units.
"We will invest Rs 120 crore and Rs 150 crore for greenfield plants of faucets and sanitary ware. We will also invest Rs 60 crore in expanding capacity in our two existing sanitary ware plants and Rs 70 crore towards expanding capacity at greenfield faucet plant," HSIL President R B Kabra told PTI.
The company will fund these investments through internal accruals.
HSIL's new faucet plant in Bhiwadi in Rajasthan has capacity of 2.5 million pieces per annum. The company's new sanitary ware plant will come up in Gujarat.
On the back of new faucet plant, the company is looking at doubling revenue from this segment to Rs 400 crore by March 2016.
"Faucet market is growing at 14 per cent annually. With this new plant, we have three million annual capacity. We are targeting Rs 400 crore revenue from faucets by March 2016. It was Rs 180 crore in the last financial year," Kabra said.
The company also has a small faucet plant in Bhiwadi where it manufactures entry level faucets with production capacity of 0.5 million.
HSIL is also eyeing acquisition of a premium sanitary ware brand in Europe, Kabra said, without disclosing potential targets or timeline.
The company's existing sanitary ware plants are in Bahadurgarh in Haryana and Bibinagar in Telangana. Last fiscal, the company reported revenue of Rs 1,716.83 crore
