Havells Doubles Cable Capacity, Keen on Exports

Havells Doubles Cable Capacity, Keen on Exports

Electrical and lighting major, Havells India Ltd has doubled capacity at its cable and wire plant at Alwar in Rajasthan. Post expansion, the plant is now capable of producing goods worth `2400 crore. To achieve this capacity, Havells has shelled out a whopping `120 crore, and now the total plant area is 90 acres.

Asserts Sunil Sikka (sunil.sikka@havells.com), the company’s president, “This expansion has been undertaken to cater to the domestic as well as international demand of our cables and wires. We are now the only electrical and lighting company in the country to possess such a large manufacturing facility. This also gives us the competitive advantage of rolling out world-class products at a much lower cost without compromising on quality. The entire land area at the site is 120 acres, out of which 90 acres have been utilised. If the need arises, we can further expand this plant.” 

Notably, capacity for the entire range of LT, HT and EHV cables has been upgraded. Individually speaking, the production capacity of LT cable has been augmented by 92%, HT cable by 42%, control cable has been doubled, coils of fl exible cable has shot up by 150% and compounds by 67%. Talking of the manufacturing unit, Sikka informs, “The plant houses some of the most stringent processes to ensure manufacturing of high quality cables and wires. There is an in-house R&D set up to constantly upgrade the products. We are also the first company to get our cables and wires accredited by the British Approvals Service for Cables (BASEC).”

Following this expansion, Havells is eyeing a revenue of `1,800 crore from this segment by financial year 2012. “Last year, we spent around `100 crore on promotion and the figure might be higher this time around. We keep coming up with schemes for our trade partners periodically, and it will be no different this time as well. There are plans to further expand the dealer network.” 

An area where Havells is highly focused at the moment is creating an overseas market for its cables and wires, especially in the Middle East and Africa. “These two regions have a huge potential. We are looking for marketing tie-ups there and might even set up our own warehouse if the demand picks up. The other region which looks promising is Latin America,” heavers.

Posted in: Electrical Market News