V-Guard Expands In-House Production Capabilties With Three New Factories
V-Guard, the Kochi-headquartered electrical and electronics manufacturer has announced launch of three new factories in 2025 to increase its in-house production capacity to improve profitability.
The three new factories include a kitchen appliance facility in Vapi, a battery plant in Hyderabad, and a fan production unit also in Hyderabad. As per the company’s official statement, the Vapi-based kitchen appliance manufacturing unit and Hyderabad-based battery plant are already operational and inauguration is expected this month or latest by the next month in February 2025.
New Lead-Acid Battery Plant to Enhance V-Guard’s Manufacturing Capability
V-Guard’s new lead-acid battery plant is located about 45 km from Hyderabad airport. The project is set-up with investment of approximately Rs. 35 crores, which was financed through internal accruals. The factory is designed to produce 3.6 lakh inverter batteries annually. This would help company to increase its share in Rs. 14,000 crore Indian home inverter and battery market.
Additionally, V-Guard has also acquired stakes in Gegadyne Energy, a start-up focused on developing innovative energy storage solutions.
Fan and Kitchen Appliances Factory for Increased Margins in the Segment
V-Guard has set-up a 3 lakh sq ft fan production unit on leased land of 9 acres in the industrial town of Medchal on the Nagpur Highway in Hyderabad. This will significantly help in improving its margin in consumer durable segment which currently amounts to around 27% of its total Revenue.
The Kitchen appliance manufacturing plant in Vapi is also a strategic investment by the company. V-Guard had acquired Sunflame Enterprises Ltd.(SEPL), a major kitchen appliances brand for Rs. 660 Crore in 2023 and is now operating as a wholly owned subsidiary of the company.
Kochi Campus to get New R&D and Training Centre
V-Guard is also investing in research and development and personnel training with new Innovation Campus in Kochi. The Phase-I launch includes an R&D Centre, a Reliability Lab, a Product Design Studio, and a Training Centre.
V-Guard’s Expansion Journey and Market Share
V-Guard started from Kerala as a voltage stabilizer manufacturer in in 1977 and captured major stabilizer market in Southern India during the following decade.
V-Guard then expanded its range of products to Digital UPS, Inverter and Inverter Batteries, Electric Water Heaters, Solar Water Heaters, Domestic Pumps, Agricultural Pumps, Industrial Motors, Domestic Switchgear, Distribution Boards, Wiring Cables, Industrial Cables, Induction Cooktops, Mixer Grinders, Fans, Gas Stoves, Rice Cookers, Modular Switches & Air Coolers.
V-Guard got listed on NSE and BSE in 2008 and with pan-India presence with FY 23-24 revenues reaching Rs.4,856 Cr. and profit margins after tax reaching Rs.257.60 Cr. The estimated market share of V-Guard in Indian Electricals and Consumer goods sectors is: 40-45% in stabilisers, 14-16% in water heaters, 8-9% in wires, 5-7% in inverter batteries, and 5-7% in fans.
