HSIL to set up its third plant in India at Gujarat

Ahmedabad: India’s largest sanitaryware company HSIL Ltd is planning to set up its third manufacturing plant in the country in Gujarat with an investment of about Rs 150 crore, taking its combined capacity to 5 million units per annum by end 2016.

Sandip Somany, joint managing director of HSIL Ltd said, “We have already taken possession of around 70 acres of land near Dahej, and we plan to set up a 1.2 million units per annum plant there. Work on the plant is likely to start in early 2015, and the manufacturing site will go into production by end 2016.” The investment on the plant would be around Rs 150 crore.

The company has two plants, one in Haryana with an installed capacity of 1.8 million units per annum, and another one at Nalgonda district of Telangana with an installed capacity of 2 million units per annum. With the third plant coming onstream, HSIL’s installed capacity would reach 5 million units per annum. Somany says, “With the Gujarat plant coming onstream, we would be one of the top ten sanitaryware players in the world in terms of production capacity. We are already the leading manufacturer in India.”

He adds that the sanitaryware industry in the country is witnessing around 15-16 per cent growth in demand.

HSIL plans to add around 100 large format retail stores per year, and around 600 smaller stores across the country to boost its retail expansion.

Besides, the company is also planning to expand in its existing export markets, which include countries like Fiji, New Zealand, Australia, parts of Europe, and a few African countries like Nigeria, Kenya, Zambia and South Africa.

Somany informed that the company had registered Rs 70 crore in exports last year of its total turnover of around Rs 1800 crore.

It registered a profit after tax of around Rs 82 crore.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.