HSIL set to double consumer biz revenues in FY18

HSIL set to double consumer biz revenues in FY18
Homegrown sanitaryware major HSIL (Hindware) – which has evolved itself as a solutions-oriented company – is bullish on its two-year-old consumer business, which expects to double revenues this year.

Last year, HSIL’s consumer business clocked Rs 129 crore in revenues, which is growing at 100%, en route to hit Rs 270 crore by the end of this year, primarily on the back of kitchen appliance (chimneys and hobs), water heater, and the air cooler categories.

“While our base is still small, being a young company, we’ve been experiencing phenomenal growth. We’ve added more categories and are present in seven areas of the consumer business today,” HSIL President and Chief Executive (Consumer Business) Rakesh Kaul told DH.

Of its over 450 SKUs today, HSIL has a wide range of kitchen appliances and solutions – including chimneys, hobs, cooktops, built-in and freestanding dishwashers, cooking range, built-in ovens, food waste disposers, induction cookers, water purifiers, and kitchen sinks – collectively growing at 85-90%.

Similarly, its other growth drivers, water heaters and air coolers, are seeing big growth too. “In terms of water heaters, we grew at 91% last year, whereas the industry had contracted 1%. This year, we plan to grow by 90%, against an expected industry growth of 10%, selling 1.75 lakh units. Similarly, in the air cooler category, we will sell 100,000 units this year, while we’re seeing a growth of 200%,” Kaul said.

Hindware has been a well-known sanitaryware brand for the last 57 years, with over 16 million customers. The consumer business began as a kitchen solutions business as part of the bathroom business in 2012, and was transferred to a separate consumer business in 2015.

The consumer business sources its wares from Delhi NCR, Ahmedabad, Mumbai, and is looking for OEMs in Telangana. It is present across 635 pin codes, served by 550 distributors, 4,500 retailers, 350 modern trade outlets, and 225 service centres, while 20% of its business comes through ecommerce. 

The consumer business would contribute 10% to HSIL this year, while the remaining 90% would be shared by bathroom and glass.
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