New Delhi: Consumer durables firm Haier will start manufacturing washing machines, air conditioners and water heaters at its own plant by 2014 instead of outsourcing as it looks for about six-fold jump in revenues to up to Rs 7,500 crore in the next five years.

The company, which currently outsources production of ACs and majority of washing machines models to third parties, will invest Rs 100 crore to set up new lines to produce these items and water heaters at its Rajangaon plant in Pune.

The plant at present manufactures refrigerators, while it imports all TV panels and water heaters from China.

"Our plan is to manufacture almost all our products in our own facility at Ranjangaon by 2014," Haier India President (India Operations) Eric Braganza said at the ongoing Consumer Electronics Expo.

The move is part of the company's strategy to increase revenues from India, which is expected to be Rs 1,250 crore by the end of 2012.

"Our target is to reach at least Rs 1,600 crore next year. In five years time, we are hoping to clock revenue of Rs 7,000-7,500 crore and become one of the top three players in the segments where we are present," he added.

In 2011, the company had a turnover of Rs 972 crore.

Elaborating on the company's production plans, Braganza said: "We will set up assembly lines for ACs and water heaters and will expand the existing capacities of refrigerators. A total of around Rs 100 crore will be invested for this".

At present, the plant has an installed capacity of 10 lakh units of refrigerators annually, which will be ramped up to 20 lakh units in the next two years at an investment of Rs 40 crore, he added.

This year the company will produce 6.5 lakh units of refrigerators.

Currently, Haier India manufactures two models of washing machines at the plant in very insignificant amount and by 2014 it will have an installed capacity of 5 lakh units.

As for the ACs and water heaters, he said the plant will have initial capacity to produce 5 lakh units per annum each.

This year the company is targeting domestic sales of 4.8 lakh units of refrigerators, 2 lakh washing machines, 2.5 lakh TVs, 60,000 ACs and 55,000 water heaters.

Commenting on exports, Braganza said about 20-25 per cent of refrigerator production in India is exported to Africa and CIS countries.

"By 2014, we are expecting to export 20 per cent of all the items produced in India to various existing markets and new neighbouring markets," he said.

The company at present has 170 exclusive stores, apart from being retailed from 4,500 multi-brand outlets. It is increasing this to 250 exclusive outlets and 6,000 other outlets by 2013. It employs 1,300 people.

(Agencies)

Latest News from Business News Desk