BENGALURU: Jaquar and Co Ltd, known for its faucets and bathroom fixtures, is now branching out into more seemingly unrelated vertical. It is looking at lighting for the extension of its brand.
The firm, which earlier saw about 80 per cent of its revenue from faucets aims to bring down the proportion of its revenue from it to about 50 per cent in another three to four years.
“In another three to four years,” according to Rajesh Mehra, Director and Promoter, Jaquar & Company Private Limited, “the revenue from lighting alone could be Rs 500 crore. As the customer segment is same for both water and electricity, lighting is only a natural extension.”
During fiscal 2016-17, the company aims to see revenue of over Rs 100 crore from lighting alone, Mehra added.
While as of now the LED lighting is mostly imported, and in future the company will meet most of its lighting solutions locally. Jaquar, today, has a 150,000 square metre manufacturing plant in Manesar. Jaquar will expand it by adding 30,000 square metre at a cost of Rs 150 crore by June, 2017 which will manufacture LED lights alone. The plant will thus become the biggest such plant in the world, said Mehra.
With a focus on energy conservation with the introduction of LED lighting, the group is funding the expansion through internal accruals alone.
Of the total turnover of Rs 2,350 crore expected this fiscal, he said premium brand Jaquar will contribute about Rs 2,100 crore, the firm’s luxury brand Artize Rs 125 crore and value segment brand Essco Rs 125 crore.
The group, which claims to control 60 per cent of the organised market, is present in wellness, shower enclosures, water heaters, sanitary ware and lighting segments besides bath fittings.