Havells India plans Rs 2,000-mn capital expenditure

Kolkata: Havells India has planned a capital expenditure of Rs 200 crore on greenfield and brownfield projects in the current fiscal.

While an amount of Rs 40 crore will be invested in a new miniature circuit breaker (MCB) factory being set up in Himachal Pradesh, a similar amount will be spent on augmenting the company’s cable wire manufacturing capacity. Investments will also be made in augmenting capacities at the company’s other manufacturing units.

In 2007-08, too, Havells India invested Rs 200 crore in setting up and augmenting capacities. This included an investment of Rs 100 crore in an electric motors manufacturing unit that is being set up at Neemrana in Rajasthan. The Neemrana unit will go on stream this month, Mr Anil Gupta, Joint Managing Director of Havells India Ltd, said.

Mr Gupta said over the last four years, the company has invested around Rs 200 crore annually on capacity building. At present, it has 10 manufacturing units in the country. Last year, Havells acquired Sylvania of Germany–which has five manufacturing units in Europe and three in Latin America – for a consideration of $ 300 million.

In 2007-08, Havells recorded a turnover of Rs 2,000 crore. This was expected to grow by about 20 per cent in the current fiscal, Mr Gupta said, adding that the company would spend around Rs 100 crore on branding and promotional initiatives in the current fiscal.