'Hindware most profitable in sanitaryware business'
Chennai, Mar 29 (UNI) Hindustan Sanitaryware and Industries Limited (HSIL) may be the second largest in the Rs 750 crore sanitaryware market but it was certainly the ''most profitable,'' its Joint Managing Director Sandip Somany said today.
Sharing insights into the company with the media here, he said ''we may be the second largest but we are the most profitable in the sanitaryware though our premium products are priced three to ten per cent more than our competitor Parryware.'' The turnover of Hindware was 47 per cent more than Parryware, he claimed asserting that the company was growing faster than the market, which witnessed a growth of about 16 per cent.
In the last nine months, the company had posted 42 per cent growth in this segment, he added.
Upbeat on the south market, Mr Somany said it contributed 30 to 35 per cent of the total revenues, hoping to increase it to around 42 per cent. In the last 15 months, the company had introduced 80 new products in the sanitaryware market and proposed to add 20 more products in the next eight months.
He felt the variegated range was a key differentiator to its competitor Parryware with both the players sharing between 78 and 80 per cent of the market.
Mr Somany anticipated that the company would post a 30 to 35 per cent growth, backed by its 980 dealer and 11,000 retailer network.
Over the years, from a sanitaryware manufacturer, it had evolved as a total bathroom solutions provider. Now, it was also entering the kitchen segment with its wide range of sinks, hobs and hoods, he added.
Estimating the kitchen segment to be around Rs 200 crore in which the Rs 55 crore Nirali from west was a major player, Mr Somany said the foray in the kitchen segment seven months ago had been successful. Though the national roll-out was not over yet, he was confident of the company emerging as a number two player in two years time. It was targeting to touch Rs 30 crore next year from this business.
He said in the hoods and hobs segment, HSIL was geared up to face the Rs 70 crore Faber. The company was keen to position itself as a 'home products company.' Of its Rs 330 crore turnover, exports constituted Rs 42 crore while the company was targeting the exports to touch Rs 60 crore out an estimated Rs 415 crore turnover.
''Our facilities are world-class and some are even better.. we are only in the developed market,'' he said adding UK, Italy and Australia, were among its export markets.
Its facility in Bibinagar in Andhra Pradesh had undergone an expansion exercise while along with the Bahadurgarh facility in Haryana, the total annual capacity had risen to 32,000 tonnes, capable of churning out three million pieces annually.
HSIL had introduced products aggressively and over the last five years, it had invested over Rs 250 crore which had gone for upgrading quality, improving productivity and cutting costs, among other things.
Mr Somany said the company had the ''brand advantage,'' also as was revealed by a A C Nielsen study about eight weeks ago showing the company having the ''highest amount of recall.'' Earlier, HSIL opened the second Hindware arcade in the city. It had 23 boutiques across the country besides two arcades, he said adding the company would have another 20 boutiques ''up and running'' in another six months time.