Electrical appliances manufacturer V Guard Industries is planning to expand its wire manufacturing capacity by setting up a greenfield facility in South India.
The company has a capacity to manufacture 9 million coils per annum, bringing in revenues of Rs 800 crore. At present, 75 per cent of this capacity is utilised earning revenues of Rs 600 crore.
"We would require additional capacity after two years from now. In order to meet that, we are planning to start works on a new facility, which would be ready for operation in two years, in South India," said Mithun K Chittilappilly, its managing director.
V Guard has two facilities to manufacture wires, one in Coimbatore, Tamil Nadu, and another in Kashipur, Uttarakhand. It also has a facility at Periamet in Chennai. While plans are to set up the greenfield facility in the land available at one of these two places in Tamil Nadu, it is also looking at options to set up the facility in some other state offering more incentives, he said. "We have not finalised the place yet," he added.
The company, which entered the kitchen appliances sector almost three years ago, had launched new models of mixer grinder during the September quarter this year.