JOIN USRacold aims to grow 2-fold
Racold Thermo, which manufactures electrical water heaters and space heating products, plans to double its turnover within the next three years besides increasing its distribution network across the country.
“Our business at the end of FY15 stood at Rs 400 crore. The intention is to double the business every three years,” Mathew Job, managing director at Racold Thermo, told Deccan Herald.
We are expanding our distribution across the country. Currently we are available in around 10,000 stores across the country and the plan is to increase that to about 15,000 in the next three years, Job added.
The company, which has a current capacity of six lakh units per annum, may also expand its facility in a minor way post 2017, according to Mathew Job. “Our current capacity, which stands at six lakh units per annum, would be sufficient till 2017 and then with some minor expansion we can manage for the next few years,” Job said.
The capacity utilisation is currently at around 80-85 per cent. The detailed study is yet to be done as far as expanding the unit is concerned. But with some modifications, the capacity can definitely be increased by at least 25 per cent, Job added.
The company is also exploring the opportunity of growing inorganically but has not found a suitable fit for acquisition in the country so far.
“The company's global philosophy is to look at all options, including inorganic, wherever it makes sense. So the company is always open to looking at inorganic opportunities as well,” Job said.
Incidentally, Racold Thermo is a wholly owned subsidiary of the €1.34 billion Italy-based Ariston Thermo Group.
“There is nothing in advanced stages at the moment. In the past also, the company has evaluated opportunities to see if it makes sense to us, but we have not found anything to take to the next stage at the moment,” Job added.