SHIL's subsidiary Hintastica, French Groupe Atlantic to set up plant in Telangana

Hyderabad, Mar 25 (PTI)Somany Home Innovation Limited (SHIL)on Thursday announced thatFrance's Groupe Atlanticis investing Rs 68.3 crore for a 50 per cent stake in its water heater business subsidiary--Hintastica Private Limited-and it will set up a plant in Telangana in partnership with the French company.

Hintastica Private Limited will be setting up a manufacturing plant on 5.7 acres in Jadcherla of Telangana to manufacturea range of water heaters, SHIL said in a release here.

The total project cost is approximately Rs 150 crore and both the joint venture (JV) partners will be investing in equal proportion, it said.

The project will be completed by March 2022, with trial runs expected to commence from May 2022, it said.

Hintastica Private Limitedsaid it expects revenues to the tune of Rs 300 crore in the next 3-4 years from the Joint Venture company.

The proposed plant's production capacity is 6 lakh annually, it said.

Sandip Somany, Chairman and Non-Executive Director of SHIL said: ''We believe that the JV will not only help us further strengthen our position in this (water heater segment) market, but also provide a winning combination, offering consumers a wide range of innovative and exciting products, while enhancing our margins.'' Gilles Romagne, International Managing Director of Groupe Atlantic, said: ''We will together build a best-in-class facility in Telangana, India for manufacturing and marketing of water heaters to meet the future needs of not only India but also the neighbouring nations in the SAARC region.'' The France-headquartered Groupe Atlantic, a Euro 2.2 billion company, is into manufacturing, developing, and distributing eco-friendly heating products and hot water solutions.PTI VVK BN BN

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