By IANS,
New Delhi : Electrical and power equipment major Havells India Wednesday said it has doubled its cable and wire manufacturing capability at an investment of Rs.120 crore (Rs.1.2 billion).
The company, with a market share of 10 percent of the Rs.12,000 crore cable and wire industry in India, expanded its manufacturing plant at Alwar in Rajasthan to make Rs.2,400 crore worth of electrical goods.
“The expansion is in line with the demand the market is witnessing in both the domestic and international markets,” said Sunil Sikka, president, Havells India.
According to him, the capacity expansion will alo help the company in meeting the growing domestic demand and also to target new emerging markets such as the Middle East and Africa region.
“With capacity, demand always follows, and with the expansion, the company would be able to meet the domestic demand as well as target the markets of Middle East and Africa,” Sikka said.
The company expects the demand of its cable and wire products to hit Rs.1,800 crore by 2012 from the organised construction sector and independent home builders.
“We now have the capacity and it’s up to the marketing division to do its job, which they would be able to achieve as there is a 10-15 percent growth in the market,” Sikka said.
Sikka added that the investment of Rs.120 crore was the part of Rs.200 crore expansion plan which the company had earmarked.
“We had earmarked Rs.200 crore for expansion for this fiscal year and this is a part of this. We regularly invest in capex (capital expenditure) for the company’s expansion.”
The state-of-the-art wire and cable plant in Alwar was first acquired by the company in 1996. The plant manufactures various ranges of LT (low tension), HT (high tension) and EHV (electrical high voltage) cables.
Currently, the $1.2 billion company is present in 50 countries with 11 domestic and four international manufacturing plants which churn out products like switchgear, motors, geyser, fans, CFL lamps and luminaries.