Jindal Lifestyle Ltd. is looking to set up two new manufacturing lines for the cookware and construction infrastructure verticals in FY24, after merger with its parent Jindal Stainless Ltd.
"The company's current plant utilisation level is around 70%, so there is sufficient capacity to grow 30% more at no additional cost," Rajesh Mohata, chief executive officer and executive director of Jindal Lifestyle, told BQ Prime in an interview.
"However, given the future growth projection of 22-30% in demand from the kitchenware and the construction infrastructure segment over the next five years, we plan to add two new lines in FY24 to cater to this demand," Mohata said.
Rajesh Mohata, CEO and ED, Jindal Lifestyle (Source: Company)
The company has seen growth in the lifestyle segment since the pandemic and expects it to persist as the focus has started to shift to lifestyle, hygiene, sustainability, livelihood and the psychological trait of the young generation—the fear-of-missing out, he said.
According to a study conducted by Jindal Lifestyle as part of its vision document, each segment is projected to grow between 22-30% year-on-year over the next five years.
The lifestyle kitchen segment market size is close to Rs 400 crore and expected to grow at 25% YoY, excluding the unorganised sector growth.
Similarly, the cookware industry, which is worth Rs 3,000 crore, is expected to grow at 30-40%, as people have become health conscious and are shifting from aluminum utensils to other metals like stainless steel. This inspired the company to invest in building the new cookware segment.
The infra sector, which is close to Rs 12,000-15000 crore, is expected to witness moderate growth of 10% since the market size is large.
After the merger, the focus will be on creating better B2C brands and launch products closer to the lifestyle segment of customers, Mohata said.
"Some ranges in the homeware segment, which we were supplying to limited customers, we will now supply to others as well—not just in India but outside India too," he said.
According to Mohata, in the kitchenware vertical—both interior and exterior—the company plans to use different materials such as aluminum, glass, ceramics, wood and stone apart from steel, for which research and development set up is being done.
According to the company, FY23 has been the best year in terms of sales. It expects 20-25% YoY growth in top line in FY24 on account of higher demand from the lifestyle segment.
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