New Delhi, Aug 30 (PTI) Business conglomerate DCM Shriram's arm Fenesta has invested around Rs 25 crore to set up a factory in Bhiwadi, Rajasthan for manufacturing of aluminium windows and doors as it seeks to expand portfolio and gain market share.
DCM Shriram, a diversified firm with presence in seeds, fertilisers, chemicals and sugar businesses, entered into UPVC windows and doors business in 2002 through its unit Fenesta Building Systems and is now expanding product portfolio to aluminium.
Fenesta contributed about Rs 420 crore to the DCM Shriram's total turnover, which stood at nearly Rs 7,800 crore during the last fiscal year.
'We have set up a new facility for system aluminium windows and doors. This is located at our existing facility of UPVC doors and windows at Bhiwadi,' Fenesta Business Head Saket Jain told PTI.
The company has invested around Rs 25 crore on this new plant and will infuse Rs 10 crore more over the next one year to grow this business, he said.
'The market size of doors and windows is huge in India at around Rs 15,000 crore annually. Out of this, around 65 per cent is aluminium, 22-23 per cent wood and 12-13 per cent UPVC. We want to increase our market share by entering into the aluminium segment,' Jain said.
However, he said the bulk of the market is unorganised and slowly becoming organised.
Fenesta will target both retail and institutional customers as it does for UPVC doors and windows. The retail customers account for 65-70 per cent of the business. Real estate, hotel and hospital projects account for the rest.
Fenesta wants to transform into a total window and door system provider, from only UPVC proposition, Jain said.
'We are the largest organised windows and doors solution brand in the country. However, we aim to be the leader in the entire windows and doors market. Considering that aluminium still rules with a more than 60 per cent share in this category, it was natural for us to look at that market as well,' he said.
Asked about the impact of coronavirus on the business, Jain said it was a total washout during April-May but the situation has improved a lot in subsequent months to reach 70 per cent of the pre-COVID level.
He did not give any revenue guidance for the current fiscal year, saying it was difficult to predict because of market uncertainties.
'Fenesta business has doubled to Rs 420 crore in the last five years,' Jain said.
Fenesta still receives the majority of its business from mature markets, but sales in tier 2 and tier 3 cities are rising.
Fenesta has three fabrication facilities for UPVC windows and doors in Bhiwadi (Rajasthan), Hyderabad and Chennai. It has nine company-owned showrooms and tied up with more than 200 channel partners showrooms to display and market its products.
Fenesta sells windows and doors across 327 cities in India, as well as in Nepal and Bhutan. PTI MJH MKJ