Hindustan Sanitaryware plans takeovers for growth
Delhi-based Hindustan Sanitaryware and Industries Ltd (HSIL) proposes to acquire some companies in the building products sector to further consolidate its position. "We are in serious talks with some players in the sector and the deals will be finalised in the next 3-4 months," Joint Managing Director HSIL, Mr Sandip Somany told Business Line.
The company has earmarked Rs 150 crore for the acquisitions. However, Mr Somany declined to comment on the name or location of the companies he is talking to.
The acquisitions will help the company gain a presence in places where it does not have a manufacturing facility or market share. "These acquisitions will also help in maintaining and gaining momentum in the pace of overall growth of HSIL," Mr Somany said.
The company also plans to expand capacity at its manufacturing plant in Bibinagar, Andhra Pradesh, next year.
"With the growth in demand for sanitaryware products, we will need to increase the capacity at Bibinagar with an investment of Rs 20 crore," said Mr Somany.
The plant’s current capacity is 18,000 tonnes per annum.
On the distribution front, HSIL plans to increase the number of its designer sanitaryware boutiques — Hindware Arcade — to 50 from the existing 30 within a year. It will also increase the number of distributors to 1,200 from 1,000 in the next 1-2 years.
While the company’s turnover stood at Rs 438 crore in March this year, it has set a target of achieving sales of Rs 1,000 crore by 2010.
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