Kent RO Systems to enter US market, targets Rs 2,000 cr turnover in 3 yrs

Home-grown water purifier maker Kent RO System aims to enter the US market next fiscal and expand its appliances portfolio as it targets a Rs 2,000 crore turnover in the next three years, its Chairman & Managing Director Mahesh Gupta said.

Besides, Kent RO Systems, which has invested Rs 500 crore on expansion in the last three years, has plans to invest Rs 300 crore more to set up a new fan manufacturing unit at Yamuna Expressway in Uttar Pradesh, he said.

The company, earlier known for water purifiers, is diversifying its portfolio and enhancing its presence in the appliances segment, especially small kitchen appliances. Gupta expects new categories to contribute half of the revenue in coming years.

Over its foray into the US market, Gupta said Kent RO System has entered into a brand licensing agreement with Black & Decker. As part of that, it will manufacture and ship its range of water purifiers under the brand name of the Maryland US-based manufacturer.

“We will be going to the US market. We have signed the licence agreement with Black & Decker,” Gupta told PTI.

Kent RO Systems would manufacture its water purifiers in India under the Black and Decker brand and ship to the US market.

The company will enter the US market in the next six months, as Kent RO is looking for a threefold increase in its exports to Rs 200 crore in the next three years.

The Noida-headquartered company had a revenue of around Rs 1,200 crore for the financial year that ended on March 31, 2023, in which its water purifier business contributed nearly 80 per cent, Gupta said.

Besides water purifiers, Kent RO also operates in segments such as kitchen appliances, air purifiers, vacuum cleaners, cookware, and some other segments.

When asked about the projected growth for Kent RO Systems, Gupta told PTI: “We are looking to touch Rs 2,000 crore in the next three years (FY27).

As part of the expansion, Kent RO has plans to consolidate its offering in the field of energy conservation products. It has invested around Rs 500 crore in the last two to three years to augment its manufacturing capacity at its existing plants at Roorkee and Noida.

The company, which has entered into fan segments as part of its expansion, is now planning to invest Rs 300 crore to set up a plant at Yamuna Expressway, where it plans to manufacture five star-rated energy-conserving BLDC (brushless DC motors) based fans.

“We have signed an MOU with the UP government for an investment of Rs 300 crores in Yamuna expressway, where we have been allotted land,” said Gupta, adding that the said investment will help it expand Kent into the fan market.

According to Gupta, he is very “optimistic” about its entry into the Rs 10,000 crore fan market.

“This is going to be a Rs 15,000 crore market in the next three years, and in that, we want to have 4-5 per cent market share,” he said adding that the segment offers a huge replacement opportunity as people may shift to energy-efficient BLDC motors based 5 star rated fans.

Over the funding of investment, Gupta said it would be funded internally as Kent RO is a “zero debt” company.

Gupta also ruled out any plans for Kent RO Systems to go for an IPO and get the company listed on stock exchanges.

Over the expansion of new segments, Gupta said Kent RO has plans to enter kitchen chimneys and hobs. As the company is expanding its offering and diversifying successfully beyond its key business of water purifiers, Gupta now expects contributions from other segments to increase in the coming years.

“This would eventually become 50:50,” he said.

First Published: Jan 21 2024 | 12:29 PM IST