V-Guard Eyes 25 per cent Jump in Revenue at Rs 1,700 Crore this Fiscal

1
V-Guard Eyes 25 per cent Jump in Revenue at Rs
1,700 Crore this Fiscal
www.vguard.in
2

• Consumer electricals and electronics major
  V-Guard Industries is eyeing a 25 per cent jump
  in sales revenue this fiscal to Rs 1,700 crore,
  driven by new products, booming electrical cable
  and solar heater businesses and increasing focus
  on non-South markets.
• "Last fiscal our sales revenue stood at Rs
  1,360 crore. We have set a target of netting in
  Rs 1,700 crore this fiscal, which is a growth of
  25 per cent over the previous year," Managing
  Director Mithun Chittilappilly told PTI here.

3

• To achieve higher sales target, the company
  will be focusing on non-south markets, which has
  been its staple since the beginning, in a big
  way, Chittilappilly said.
• He, however, ruled out getting into the white
  goods space saying it is too competitive a
  segment. Similarly, he also ruled out an
  aggressive rollout in Mumbai saying its not
  worth the effort considering the high rentals and
  other costs.

4

• Currently, cable business is Kochi-based
  V-Guard's largest revenue contributor with 28 per
  cent share, followed by stabiliser at 18 per
  cent, inverters chip at 15 per cent and water
  heater business at over 11 per cent share.
• Chittilappilly also said the company will be
  putting in Rs 30 crore in capex this fiscal, most
  of which will be spent on marketing and capacity
  expansion, which includes Rs 18 crore already
  invested on the Kashipur plant and the Rs 10
  crore into the Perumbadurai, Coimbatore plant
  that manufactures solar water heaters.
• V-Guard, which entered the market with voltage
  stabilsers way back in 1977 with just two people,
  has over the years become a household name in the
  South.

5

• In 2000s, the company went on an aggressive
  diversification into invertors digital UPS
  systems, pumps, house wiring/LT cables, electric
  water heaters, fans, solar water heaters and
  induction cookers and switchgears, which it
  launched very recently.Today, the company has
  over 1,750 employees and a nationwide presence
  with 28 branches, over 230 distributors, 2,500
  channel partners and 13,000 retailers serving
  over 50 million customers.
• 32-year-old Chittilappilly, who took over the
  mantle from his father Kochauseppu in 2012,
  further said the company will be investing
  heavily in marketing as it increases its focus to
  the Northern and Western states.

6

• The company nets 21 per cent of its revenue
  from non-south markets, and the rest 79 per cent
  come the Southern markets, he said, adding, out
  of this 28 per cent comes from Kerala, 15 per
  cent each from TN and Karnataka and the rest from
  Andhra. In FY 2008, the southern market share
  stood at 95 per cent of revenues.
• "Our focus in South will continue. Tamilnadu
  and AP are critical markets for us. With our new
  offering -- Pebble brand of induction cooktops --
  we will be able to drive more volumes from the
  premium segment of the market," Chittilappilly
  said, adding, in the non-South markets the focus
  will be on offering a full range in lower and
  middle income products.

7

• He said V-Guard currently has a 15 per cent
  market share in the water heater market, out of
  which 70 per cent comes from Southern markets.
• V-Guard, which outsources 60 per cent of its
  products, some from China too, has manufacturing
  facilities at Coimbatore in Tamil Nadu, Kashipur
  in Uttaranchal and Kala Amb in Himachal, apart
  from RD labs in Kochi and Coimbatore.
• In the June quarter, V-Guard reported a 28 per
  cent spike in revenues while net profit fell 17
  per cent to Rs 17.6 crore, which Chittilappilly
  attributed to heavy spend on the last IPL matches.

8
V-GUARD INDUSTRIES LTD33/2905 F, Vennala High
School Road,Vennala, Kochi-682028,Ph 91 484
3005000Fax [phone],E-mail
mail_at_vguard.inWeb www.vguard.in