Shares of Havells India surged by 3% on Tuesday, reaching an intraday high of ₹1,664.1. This uptick follows the company’s announcement of a new facility for manufacturing refrigerators in Ghiloth, Rajasthan. The decision has been well-received by investors, highlighting the company's strategic focus on expanding its production capabilities. Share market investment enthusiasts have taken notice of this development, viewing it as a potential growth driver for Havells.
New refrigerator facility to boost production
The refrigerator manufacturing plant in Ghiloth is expected to enhance Havells’ production capacity significantly. Initially, the facility was planned to add 10,00,000 units by the first quarter of FY26 with an investment of ₹350 crore. However, the company has now revised its plans, targeting a capacity increase of 14,00,000 units by the second quarter of FY27, at an investment of ₹480 crore.
Until now, Havells outsourced its refrigerator production. By bringing manufacturing in-house, the company aims to streamline its operations and improve profitability. This strategic shift aligns with its long-term growth objectives.
Market performance and financial highlights
At around 11:38 AM, Havells shares were trading 2.47% higher at ₹1,657.6 on the Bombay Stock Exchange (BSE), compared to the broader Sensex’s gain of 1.33%. The company’s market capitalisation stood at ₹1,03,921.86 crore. Havells’ stock has demonstrated robust performance, gaining 26.3% in the past year, significantly outperforming Sensex’s 17.5% rise over the same period.
The company’s financial results for the September quarter further bolster investor confidence. Havells reported a consolidated net profit of ₹267.77 crore, up 7.5% from ₹249.08 crore a year ago. Revenue from operations increased by 16.38% to ₹4,539.31 crore, reflecting strong consumer demand.
Strategic insights and growth outlook
Havells attributed its growth to improving consumer demand trends and a shift in the festive season, which advanced its advertising and promotional spending. Despite an 18% rise in total expenses to ₹4,268.94 crore during the September quarter, the company maintained a steady profit trajectory.
Analysts have lauded Havells' decision to invest in refrigerator manufacturing, considering it a forward-looking move that could enhance operational efficiency and product quality. For those involved in share market investment, this development signals the potential for sustained growth in Havells’ valuation.
Conclusion
Havells’ decision to set up a refrigerator manufacturing plant in Rajasthan marks a significant step towards expanding its production capabilities and reducing dependency on outsourcing. Coupled with solid financial performance and a positive market response, the company is well-positioned for future growth. Investors and analysts alike will be closely monitoring the impact of this strategic move in the coming years.
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