HSIL eyes acquisitions valued at up to Rs 400 cr

NEW DELHI: Sanitary ware and bathroom equipment maker HSIL today said it is eyeing acquisitions, which could be worth Rs 80 crore to Rs 400 crore to strengthen business.

The firm, which has undertaken an image makeover of its 'Hindware' brand for a more youthful look, however, did not specify if the acquisitions would be in domestic or international markets.

"We continue to look for potential targets to make acquisitions in the segments such as sanitary ware, bathroom equipments and kitchen appliances. We would typically at an acquisition size of Rs 80 crore to Rs 400 crore," HSIL Joint Managing Director Sandip Somany told PTI.

Without giving details on potential targets and timeline, he said the company was financially capable of making an acquisition. "We have a healthy balance sheet and can also raise debt as and when required," Somany said.

Last year HSIL had acquired bathroom fittings and accessories business of Havells India in an all cash deal of Rs 17 crore and a UK-based sanitary ware company called Barwood Products Ltd for one million pounds.

HSIL has also announced a change in the logo of its brand 'Hindware' with an intention to position it as a youthful brand.

Somany said after 20 years, the company has decided to change the look and feel of its brand logo and will invest up to Rs 30 crore in the current fiscal on marketing and promotion.

The red colour logo in a new font has been developed by UK-based design firm Fitch, a part of global advertising and media services agency WPP.

Meanwhile, the company is currently working on expanding production capacity.

"The company has a plan to invest Rs 650 crore to set up a new sanitary ware manufacturing unit in Gujarat along with with a new unit in Rajasthan for making taps and another unit in Andhra Pradesh for container glass," Somany said.

Following the expansion, the glass bottles capacity will increase from 1,050 metric tonnes per day (MTD) to 1,500 MTD, sanitary ware production capacity will be expanded to 5 million pieces per annum from 2.8 million pieces.

Besides, chrome plated bath fittings production capacity will also be hiked to 25 lakh units every year from the current three lakh units per annum.

HSIL is also expanding the chain of 'Evok' retail stores that offer interiors solutions in living, kitchen and bath domains.

Evok stores are operated by HSIL's wholly-owned subsidiary Hindware Home Retail Pvt Ltd.

"Currently we have eight Evok stores up and running and we have plans to open up to eight new stores every year. In the next two-and-a-half years, we will invest Rs 150 crore on retail expansion," Somany added.