New Delhi, Mar 30 (PTI) V-Guard Industries plans to expand in northern, eastern and western regions of the country as it aims to garner over 60 per cent revenue from these regions in the next five-six years, a senior company official said on Wednesday.
Currently, these regions contribute around 42 per cent of the business of the company, which is into manufacturing consumer electrical and electronic goods.
The Kerala-based company is also investing in manufacturing and is setting up new plants in Uttarakhand, Sikkim, and Hyderabad. It is investing more than Rs 400 crore over a period from 2019 to 2024.
The company is expanding its product portfolio and also enhancing its distribution footprints, Chief Operating officer of V-Guard Industries Ramachandran Venkataraman said.
“North, east and west contribute around 42 per cent of our business. Our focus would be to grow around 60 per cent in the next five-six years,” Venkataraman said on the sidelines of a conference.
V-Guard Industries’ revenue for FY21 stood at Rs 2,699 crore.
When asked about the current fiscal, Venkataraman said, “YTD (year-to-date) from April to December, we have been growing about 30-31 per cent.” Like other firms, V-Guard also lost some steam because of the pandemic-related challenges in the market but now expects a good growth going forward, he added.
“At a company level, we would be adding 5,000 to 7,000 partners every year and 70 per cent of this will come from the northern, southern and western region,” he said adding that in the next 12-18 months, “we are looking at adding another four factories at places such as Hyderabad, Uttarakhand and Gujarat.” According to him, the new investment would be around Rs 180-200 crore and the company has already invested around 200 crore.
V-Guard Industries, which started as a voltage stabiliser manufacturer, has also acquired an 18.77 per cent stake in Gegadyne Energy Labs, which is working on alternate battery technology for various applications including electric vehicles.
V-Guard is expanding its play in consumer durables such as Kitchen appliances, while also focusing on fans, water heaters, coolers among others, he added.
“We are strengthening our portfolio in electricals, mainly in switches and switchgear. This is an area of growth for us. We have recently announced the merger of Simon Electric. This is in process and yet to be approved by NCLT,” he added.
On Wednesday, the company launched ‘Romanza Art’, which is a premium decorative dust repellent art fan.
The market for the product is estimated at around Rs 10,000 crore in FY23. PTI KRH KRH RUJ RUJ
