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Usha Intl eyes Rs 5-billion turnover this fiscal

BS Bureau

Usha International, a Shriram group enterprise, expects to post Rs 5 billion turnover during the current financial year. The company is planning fresh product launches, models and marketing initiatives.

Sunil Wadhwa, managing director of the company, said: "The domestic market has been growing around 15 per cent for years. This fiscal our exports would rise a robust 30 per cent."

In the last fiscal the company's exports stood at Rs 840 million out of a turnover of Rs 4.10 billion. Its net profit stood of Rs 900 million during the period.

Wadhwa said the company would come out with 30 new models in various categories and 6-7 product launches.

"Ceiling fans contribute 28 per cent of total turnover. So, greater emphasis is being laid on the premium end of this segment."

The company has tied up with Hunter, of US, to launch premium-segment products that start from Rs 90,000.

"Last fiscal we exported 250,000 fans, and the figure could go up to 600,000 this fiscal. The domestic market may absorb around 1.4 million units," Wadhwa said.

He added that the market for fans was more or less equally ruled by the main competitors: Usha, Orient and Crompton. Wadhwa does not see any threat from dumping China.

"The competition is in the low-end segment. Due to higher input costs of plastics in India, the Chinese plastic fans turn out to be cheaper. However, we have a collaborator G D Medea, a major player in China, to source such products and offer them at competitive prices."

The company has started reaping the benefits of enterprise resource planning, implemented at its offices across the country. This has resulted in accurate pricing, elimination of defective stocks and extra capacities.

Wadhwa said supply-chain and customer-relationship management would be put in place this year. He added that the company has no plans to foray into consumer electronics and white goods segments.

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