Khaitan Electricals aims at becoming Rs 1,000 cr co. by 2008-09

Kolkata, May 05 (UNI) Khaitan Electricals Limited, which reported Rs 203 crore net sales in 2005-06, is aiming at Rs 1,200 crore turnover by 2008-09.

Company's vice-chairman and managing director Sunil Khaitan told reporters that the company is expecting to double its turnover to Rs 400 crore in 2006-07 with fans contributing around Rs 250 crore of the total business.

The pumps, lamps, switchgear and appliances segments would contribute the rest of the business, he said. The exports were expected to contribute Rs 20 crore in the overall business during 2006-07 with enquiries being received from Sweden, UK and France. Mr Khaitan said the company waiting for the construction approval for setting up a new factory in Kala Amb at Himachal Pradesh in addition to its facilities at Kolkata, Hyderabad, Faridabad and Ponta Sahib.

The total investment in the plant would be Rs 20 crore and major part would be funded through internal accruals.

The company would go for Rs 20 crore preferential allotment in the next three months and the capital base is expected to increase to Rs 11 crore after the allotment, he said.

The company to diversify into switch manufacturing is also looking for acquiring international brands in the appliances, miniature circuit breakers and pumps segment, the executive said.

The ratio of fans contributing around 60 per cent of the business would change by 2008-09 with the fans contributing 40 per cent of the business while the majority portion would come from the diversified electrical devices including pumps, water heaters, mixer grinders, electrical irons, lighting products, distribution boxes, wires and cables, Mr Khaitan said.

The pumps have the best growth potential after fans, he said.

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