Havells plans to foray into manufacturing for overseas brands

economictimes.indiatimes.com:

Havells India is going to venture into electronic manufacturing service (EMS) or contract manufacturing space for appliances such as air-conditioners and washing machines to cater to the increased demand of global brands to have an Indian manufacturing base, said chairman and managing director Anil Rai Gupta. On a pilot basis, the company has already started manufacturing and product designing of air-conditioners for some of the global brands in markets like the Middle East and the US. Gupta said since Havells is investing heavily into building manufacturing lines and capacities for appliances for its own brand Lloyd, it will utilise the spare capacity for contract manufacturing for brands sold overseas. «We want to cater to China plus-one manufacturing strategy of global brands. We will only manufacture for brands sold overseas since we don't want such products to compete with our own Lloyd brand of appliances. We are also designing the products to ensure they meet the norms of these markets,» said Gupta. Gupta said the company is targeting Rs 1,000 crore revenue from contract manufacturing over the next 3-4 years. He said Havells has started with AC for such manufacturing since it has already built a plant of global standard and has excess capacities. Next will be the washing machine for which it has set up a plant. «As and when we set up plants for manufacturing our own products, we will start contract manufacturing,» he said.

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