Usha Intl eyes 25% jump in sales to Rs 1,500 cr this fiscal

NEW DELHI: Home appliances maker Usha International today said it expects about 25 per cent increase in its turnover this fiscal to Rs 1,500 crore, with its sewing machine and fan businesses expected to significantly contributing to it.

"We expect the turnover at the end of the fiscal to be around Rs 1,500 crore. Bouyant economy, large scale advertising, below the line campaign activity, organisational change and development processes are our major growth drivers," Usha International Chairman Siddharth Shriram told PTI.

The company had a turnover of around Rs 1,200 crore in the last fiscal, with sewing machines and fan businesses division accounting for about 70 per cent.

Shriram said the company has invested around Rs 40 crore on marketing and advertising activities this fiscal and may increase it to Rs 50 crore in the next financial year.

He also said the group plans to enter new categories and launch premium products across its existing portfolio soon.

"All product categories are a focus including fans, sewing machines, cooking appliances... The company will focus more on product quality and product service as differentiators and also as customer orientation," he said.

Shriram said the group is looking at bringing in 'premium technology and high quality products in all our existing range'.

Recently, the group renewed its supply contract with Japan's Janome. It plans to set up its first sewing machine facility in India in partnership with the Japanese firm. So far, the group has been outsourcing manufacturing to third parties.

"We have extended supply agreement with Janome for another 20 years with an intent to set up a sewing machine facility here. We will prepare a feasibility report in the next 12 months on it," Shriram had said.

The company had entered into a supply agreement with Janome in 1993 for modern sewing machines to be sold in India.

"We sell around 3.2 million sewing machines every year, of which 10 per cent are modern white sewing machines. In the next two-three years, we would like it to increase to 30 per cent," he said.

Besides, the company plans to enhance its range in the kitchen appliances by launching products such as induction cookers and other innovative cooking products.

It is also currently revamping its retail stores and plans to penetrate deeper into smaller towns and cities.