Neemrana, Rajasthan: Electrical goods maker Havells India has said that devaluation of the yuan would not impact its business as exports form only 10 per cent of its total sales.
"I do not think that it (yuan devaluation) really affects us, we do 90 per cent manufacturing in house here (India). Yuan devaluation would increase exports of China. Does it impact Havells in a big way? It does not really," Havells India CMD Anil Rai Gupta said.
"In fact, in such currency devaluation, the export normally should increase and we will take advantage (of devaluation) to that extent," Mr Gupta added.
As much as 40 per cent of the company's business is meant for international markets, the CMD said, adding that exports from India are only 10 per cent of our overall revenue.
Moreover, the $1.4 billion company, would continue its organic as well as inorganic growth as it is constantly looking for acquisition opportunities in both domestic and offshore markets.
"We are already looking for more possibilities of acquiring small companies, medium size companies. We are always on look out," Mr Gupta said.
Besides, Havells would continue to invest up to Rs 200 crore every year to add new unit and upgrade existing ones.
"We do a capex of Rs 100-200 crore every year by investing 20 to 25 per cent of our profit back in the company. In this, we set up new units or capacity expansion somewhere," he said.
Aiming to tap the growing electric water heaters segment, Havells had last week opened a electric water heaters plant at its Neemrana facility with an investment of Rs 100 crore.
"We are looking to enhance our market share in electric water heaters segment from 10 per cent to 21 per cent with revenues of around Rs 400 crore in the next 2-3 years," Havells president Sunil Sikka said.
Currently, the market size for electric water heater segment is estimated to be Rs 1,500 crore. The plant, which would roll out water heaters with capacity ranging from 10 to 120 litres, has a manufacturing capacity of 5,00,000 units per annum.
The new plant would reduce the company's dependence on imports in the segment as it would manufacture its entire range at Neemrana facility.
"This plant is part of our commitment to the 'Make in India' programme. Today, we manufacture almost 95 per cent of our products in-house," said Mr Gupta.
Havells has global footprints in over 50 countries and owns brands such as Crabtree, Sylvania, Concord, Luminance and Standard.
It has 11 manufacturing units in India and 8 in Europe, Latin America, Africa and China.
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