Luminous Power aims to achieve a target of Rs 6,000 crore turnover in the next five years, helped by its solar and the home electrical businesses, said a top company official.
The company, now completely owned by French engineering company Schneider Electric, has planned to invest around Rs 500 crore in the next three years for raising manufacturing capacity and boosting logistics as well as marketing.
Besides, the company is also expanding its network deeper into the domestic market and penetrate in geographical terms and also in share prospective in the international markets.
Luminous Power Technologies Managing Director, Vipul Sabharwal said the company, which currently has a compound annual growth rate (CAGR) of 15 per cent, expects to maintain the growth rate for the coming years.
“We would continue to maintain the same rate of growth as we go along. We have very well invested in our products, brand and consumer-centric innovations. We have a strong pipeline for the products, which would come in the next six months to one year,” Sabharwal said.
Luminous Power would continue its consumer-centric innovations and create categories in solar and home electrical businesses, he added.
“We would be potentially at Rs 6,000 crore turnover in the next four-five years (by FY 2025),” he added.
The company had reported a turnover of around Rs 3,500 crore in 2019-20, in which the power storage business (including inverter, batteries and solar) contributed around 85 per cent and the rest was from its home electrical business and exports.
Sabharwal added that solar energy is a sunrise sector for Luminous and is the fastest-growing segment, with a 20 per cent CAGR, along with its home electrical business.
“In fact, solar and home electrical businesses would be the front runner for the growth,” he said.
Luminous Power operates in categories as fan, lights and switches in the home electrical segment; while in the solar segment, it has a portfolio that includes panels, batteries, controllers, UPS and inverters as well as calculators.
In the solar segment, now, urban India is looking at solar products from the perspective of power-saving besides the rural and semi-urban areas, which use it as an energy source.
“We have mapped the urban, semi-urban and rural portfolio for the solar segment and have a full product portfolio for that.
“Our solar business and home electricals are the fastest growing businesses and are growing more than 20 per cent CAGR for the past 3-4 year and I believe this trend to continue,” he said.
The company has almost achieved its pre-COVID-19 sales number, and Sabharwal said its sales in the second half were ahead from the preceding year on a month-on-month basis.
The company has planned an investment of Rs 500 crore over three years, in which Rs 50-100 crore would be for the Haridwar plant, to create an additional capacity of one lakh lead-acid batteries for inverters and the fan plant, to augment the capacity of 2 lakh fans per month.
“The remaining investment will be made in developing and strengthening existing plants in Himachal Pradesh. Besides this, a major part of the investment will also be focused on strengthening the company’s marketing and brand-building initiatives,” he said.
Sabharwal said Luminous is a debt-free company and its growth has been funded from the internal accruals.
Luminous operates seven plants and has a total installed capacity of 30 lakh battery, 36 lakh inverters and 12 lakh fans.
In 2011, Schneider had acquired a 74 per cent stake in Luminous Power and later acquired the remaining 26 per cent in 2017.