- 07 Jul 2022
- ICICIdirect Research
Havells revises capex plan upward toRs. 400 crore to expand AC manufacturing in Sri City, Andhra
HAVELLS - 1936 Change: 43.75 (2.31 %)News: In continuance with its earlier announcement in February 2021, Havells revised its capex plans upward to Rs. 400 crore to expand its AC manufacturing capacity in Sri City
Views: Havells India plans to double its AC manufacturing capacity to ~2 mn units by expanding its manufacturing base in Sri City (Andhra Pradesh) with a capex of Rs. 400 crore (revised from Rs. 250 crore earlier). The said project will be financed through mix of debt and equity and expected to be operationalised by Q1FY24. Havells India had net cash balance of Rs. 2600 crore by the end of FY22. We believe the plant in Sri City (South India) may bring advantage to Havells due to its close proximity of port and optimisation of freight cost by quickly catering to southern and western markets. At present, these regions are served from its sole plant located in North India (Rajasthan)
Impact: Positive