Electrical equipment company, Havells has partnered with Hyundai Electric to manufacture magnetic contactors.

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Industrial switchgears is a core business for the company which so far generates Rs 250 crore and with the partnership, the company aims to add Rs 40-50 crore every year, claims Ameet Gupta, Director, Havells India.

The compound annual growth rate is expected to increase by 25-30 percent for the next 4-5 years.

Gupta said that the new tie-up would involve an investment of USD 10 million for a new production line and tools. "The building and factory is already in place", he added.

"The capital expenditure will be funded through internal accruals", Gupta further added.

Gupta expected that the revenue growth for Havells for the year would be at 14-15 percent.

"Currently, the company is doing 14 percent margins and they aim to maintain it at those levels", he said.

First Published:Mar 15, 2018 9:13 AM IST