Leading sanitaryware company HSIL Ltd, which has forayed into the water heater business with its partnership with French company Groupe Atlantic, on Friday said it has plans to set up a plant in the country in a joint venture with the French company.
"(As of now)... the water heaters are being made at our partner's (Groupe Atlantic) plants and they have plants across the world. These will be imported as fully built up units and we custom clear them and then we will market them (in India) on behalf our partner," HSIL Ltd Joint Managing Director Sandip Somany told reporters.
Replying to a query if the company has plans to make the water heaters in India, Somany said, "Yes, we have an agreement with Groupe Atlantic... when the volumes are justified, we have the option of putting up a plant as a joint venture in India." "... once the volume grows, Yes.
The plant will be highly automated and robotised," he said, declining to give a time-frame when the proposed plant will be set up.
HSIL, that entered into a co-branded marketing arrangement with the French company under Hindware-Atlantic, on Friday launched its new product range of water heaters in the city.
The company expects to have a 12-14 percent market share of the total water heater market in the country at the end of three years and turnover of Rs 200-250 crore per year, Somany said, adding that this industry is growing 20 percent odd a year and "we are entering into a segment which is growing."
Replying to another query, Somany said Groupe Atlantic has portfolio of products and many of these products will have to be customised for India. "It took a long time for them to develop this product (water heater) specifically for India."
"They have many other products and we are studying those in India. These include radiators for heating the room and solar water heaters and heat pumps and we are exploring other products...
we are looking at other products category also to grow the business," he added. Somany further said HSIL will set up its third sanitaryware manufacturing plant near Dahej in Gujarat.
"Our current capacity of sanitary ware is 3.8 million pieces a year and we are raising it to 4.2 million by de-bottle necking the existing two plants and the new plant (capacity) will have 1.2 million pieces a year.
"An investment of about Rs 150-160 crore will be made for the new sanitaryware plant and we will probably start construction of the new plant next year hopefully," Somany added.