Published On:October 7 2017
Story Viewed 3739 Times
HSIL plans to start production at pipe and fittings facility by December.
HSIL Ltd. (formerly Hindustan Sanitaryware Ltd.) – known for its Hindware range of products – is planning to bring on stream its plastic pipes and fittings manufacturing facility and caps and closures plant (required for packaging) by December. Both the units are in Telangana.
According to Sandip Somany, VC and MD, the company is spending close to ₹160 crore for the first phase of its CPVC and UPVC pipes and fitting manufacturing plant generally used in plumbing and sanitation. Work on the second phase of the pipe making will start two years after phase-1 commences production.
This PVC pipes product line is an extension of its key building materials product portfolio (that includes sanitaryware and home decor).
Additional ₹150 crore has gone towards setting up a plant for the manufacture of security caps and closures.
These are generally required for protection of products from counterfeiting and will be a value addition to its packaging products division. The packaging division (that includes container glass and PET bottles) contributes nearly 38 per cent of its turnover. “Both the pipe and fittings facility, and the caps & closure plant should start commercial production by December this year,” he told BusinessLine.
This apart, the company is also spending another ₹50 crore towards de-bottlenecking at its sanitaryware units in Telangana and Haryana. The de-bottlenecking should help the company take its capacity to 4.2 million pieces. (Its current capacity is 3.8 million pieces.)
According to Somany, the company is looking to clock a turnover of ₹1,000 crore from its consumer business vertical including air purifiers, water purifiers, kitchen appliances and so on.
The segment, he says, has seen an 80-100 per cent growth, and this growth rate is expected to continue.
The segment contributes around ₹150 crore towards HSIL’s turnover, at present.
HSIL, on Friday, launched its RO water purifier ‘Oceanus 3000’ under the Moonbow brand.