Havells India to Invest ₹480 Crore in Rajasthan Refrigerator Plant

19 Nov 2024 , 01:23 PM

Havells India approved plans to set up a refrigerator manufacturing facility in Ghiloth, Rajasthan, to be undertaken with an investment of ₹480 Crore.

The project entails a production capacity of 14 lakh units and is slated to become operational by the second quarter of FY27. The entire investment for the project will come from internal accruals of the company, thereby being independent for funding. The growth is to be mainly focused on backward integration to enjoy economies of scale where one enjoys maximum cost efficiency and profitability in the long run.

Havells India delivered a 7.7% year-on-year (YoY) net profit rise for the quarter ended September to ₹268.2 Crore. Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) was the same at ₹374.6 Crore while meeting the expectations of ₹459 Crore remained behind.

EBITDA margin declined 140 basis points to 8.2% during the quarter. Havells stressed its belief in long-term growth, which is reinforced by this very facility, with respect to expanding the appliances segment as well as operational excellence.