CK Birla Group to target 15-20 percent top line growth

C K Birla group company Orient Electric Ltd today said it was targeting 15-20 percent topline growth during the current fiscal on the back of strong performance in its core businesses.

"In 2017-18, we grew by 12 percent to Rs 1,700 crore against industry growth rate of 7-8 percent. While, in the current fiscal, we hope to maintain strong growth at 15-20 percent in topline," Orient Electric Senior VP and business head, fans Atul Jain said today at a press conference here.

Fans remain the company's mainstay contributing 70 percent to the total revenue. The company has also forayed into appliances, lighting, and switchgear in the last 4-5 years.

Jain said that the company is confident of maintaining profitability in sync with its expansion during the fiscal. On fan business, he said the company has become a leader in the premium segment with 40 percent market share.

"We are targeting to take the market share of a premium fan to 50 percent," Jain said.

Premium fans comprise 15 percent of total fan business of Orient while decorative is 20-25 percent. The rest of the fan revenue comes from mass and entry segment. "In the next 2-3 years, we expect premium and decorative fans to gain ground and command 50 percent of the total fans business," Jain said.

He said the overall fans business in the organized sector has been growing following the implementation of Goods and Services Tax (GST) last year but competition is also getting intense.

Orient exports its fans to some 35 countries which account for 18-20 percent of revenue but in the next 2-3 years the company expects this pie to expand to 25 percent, Jain said.

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