Khaitan Electricals Limited
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BSE Code:
504269
NSE Code:
KHAITANELE
Business Profile
Business Profile
Khaitan Electricals (KHATIBEL) is one of the leading fan manufacturing companies in India. It has 19 offices with four factories located across the country.
Besides various categories of fans, the company also manufactures domestic products like home appliances and industrial products like HD exhaust. Its product range includes various models of ceiling and portable fans, a wide range of industrial fans comprising heavy-duty exhaust fans, a range of air coolers, water pumps, compact fluorescent lamps, wire and cables, ..etc. These products are manufactured at factories located in Kolkata (West Bengal), Narsapur Taluk (Andhra Pradesh), Faridabad (Haryana) and Ponta Sahib (Himachal Pradesh). The Faridabad factory is the Company`s R&D hub while the other three factories produce over 100,000 units of fans a month with an installed capacity to produce over 200,000 units a month.
The company is also engaged in exporting its various range of fans to countries like Africa, the Middle East and Asia including Sri Lanka, Bangladesh, Singapore, Myanmar and Nepal. Khaitan`s main mode of business is through its channel partners such as dealers and distributors. The company has a network of more than 3,500 dealers and distributors across the country.
Financials
Khaitan Electricals registered a 52.61% growth in net profit to Rs 16.39 million for the quarter ended December 2006 from a profit of Rs 10.74 million for the quarter ended December 2005.
Net sales for the quarter rose 75.26% to Rs 637.56 million for the quarter ended December 2006 from Rs 363.78 million for the quarter ended December 2005.
Total income rose 74.54% to Rs 638.26 million for the quarter ended December 2006 from Rs 365.69 million for the quarter ended December 2005.
The earnings per share (EPS) of the company stood at Rs 2.13 in the quarter ended December 2006.
Recent Developments
12-MAR-07
On March 12, 2007, the board of directors approved the following:1. Conversion of the balance 500,000 equity share warrants to equity shares for the promoters (1,000,000 warrants allotted to promoters on March 28, 2006, out of which 500,000 were already converted to equity shares on June 30, 2006).2. Conversion of 800,000 equity share warrants to equity shares for the promoters (1,000,000 equity share warrants allotted to promoters Dec. 14, 2006).
Future Plans
Khaitan Electricals has announced its plans to enter into the retail business with the launch of two parallel range of stores, Khaitan City and Khaitan Fantasy, which would be run on the franchisee model. These initiatives are aimed at transforming Khaitan into an electrical solutions conglomerate and to help consumers find all kinds of electrical gadgets under one roof.
The company is setting up the first Khaitan City outlet in Uttar Pradesh at the end of this month. By the end of 2007, the company is planning 200 exclusive Khaitan City outlets all over India.
The first Khaitan Fantasy outlet would come up in Kolkata in January next year and in 17 other locations all over India by March 2007.
Khaitan hopes to garner a business of Rs 2 billion in the next two years from Khaitan City and Rs 1 billion from Khaitan Fantasy within two years
The company is also planning a new manufacturing plant in Dehradun by March 2007 with an investment of Rs 120 million. This plant would have a capacity of 1.5 million fans per year for which Khaitan is also in talks with Wal-Mart stores in U.S.
The company is targeting a turnover of Rs 3.5 billion by the end of this fiscal.