Havells India Ltd. expects to see steady growth across all business categories, with a focus on capacity expansion, Chairman and Managing Director Anil Rai Gupta said. The company plans to utilise the surplus cash on its balance sheet for expanding capacity as well as exploring new geographies.
Havells India recently used its extra cash in the renewable energy capacity and secured a supply chain for solar energy expansion. Speaking to NDTV Profit, Gupta said the company had plans to venture into the renewable energy space.
The company has undertaken capacity expansion in the underground cable segment, which is witnessing strong growth alongside the company's entry into international markets. Demand is expected to remain robust, he added.
Havells India will be investing around Rs 2,000 crore in its inorganic businesses next year, he further added.
Anil Rai Gupta, Chairman & Managing Director, Havells India Ltd
However, Havells India is not looking into any acquisitions, Gupta said.
It will take at least one more quarter for inventories to normalise at both the manufacturing and channel levels, he said. Inventory clearance has been slow, as tertiary sales did not keep pace with primary sales during the first quarter, he added.
Secondly, inventory clearance has been weaker compared to last year which saw an unusually strong summer in four regions of the country, he said. This year, a good monsoon led to a drop in demand, making the April–June quarter particularly challenging for summer products. However, the outlook is expected to improve in the second half, he added.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
