Appliances maker sees rising demand
Orpat Group is investing ₹125 crore to raise manufacturing capacity at its plant in Gujarat to meet growing demand for kitchen and home appliances both in the domestic and export markets.
The group, which operates under the Ajanta brand for wall clocks and Orpat for other products, plans to strengthen its sales network in Tier-3 and Tier-4 cities from where it draws 90% of its customers.
“In the last year we aggressively expanded our distributors’ network and added 80 new distributors to the already existing 450 distributors,” said Nevil Patel, director, Orpat Group. “We are also looking at aggressively ramping up production to cater to the demand for the existing and new products,” he added.
“We are investing ₹125 crore in capacity expansion and to get into new products. We are entirely funding it from internal sources as we are a privately held company,” he said.
He said the capex will compete by December 2021. Mr Patel said the company’s kitchen and home appliances are having high demand in Bangladesh, GCC region and Australia and in FY21 the company witnessed its export revenue growing by 30%.
“Because last year our plants had no production for two and half months and markets were closed due to lock down, we reported single digit growth in revenue but export revenue grew by 30%,” he said.
Mr. Patel said despite the setback from the second wave, demand would pick up in the second half. “We expect 25% growth in top line this year,” he added.
Source: Read Full Article