In nearby Jadcherla, an equal joint venture between Somany Home Innovation (SHIL) and Groupe Atlantic of France is to build a water heater production facility with an investment of GBP 150 million.
The Hintastica joint venture plant, which covers 5.7 hectares, will have a capacity to produce six lakh units per year. The facility will be completed by March 2022 and trial runs are expected to begin in May of the same year. According to SHIL, this will help directly and indirectly create jobs for over 500 people in the high season.
The project is in line with the centre’s Make in India initiative and all components are locally manufactured or sourced. A press release from SHIL said that Groupe Atlantic, which has a dominant presence in the manufacture, development and sale of environmentally friendly heating products and hot water solutions, will invest £ 68.3 billion in a 50% stake in Hintastica.
The joint venture will use Group Atlantic’s know-how in manufacturing and assembly as well as SHIL’s strengths in marketing and sales to offer consumers in India and the neighboring countries of the SAARC region a range of products and accessories under the “ Hindware Altantic ”.
“We believe the joint venture will help us further strengthen our position in this market,” said SHIL chairman and non-executive director Sandip Somany. The Indian water heater market is estimated at 36 lakhs per year and SHIL has a market share of around 7.3%. The water heater market has grown at a 10% annual CAGR rate for the past four years and is expected to grow at the same rate in the coming years, the press release said.
The international managing director of Groupe Atlantic, Gilles Romagne, said: “We will jointly build a first-class facility in Telangana for the manufacture and marketing of water heaters in order to meet the future requirements not only of India but also of the neighbors in the SAARC region. “