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Bloomberg
After a 3,985 percent rally since its 2008 listing, V-Guard Industries Ltd. that has evolved into one of India’s leading consumer-durable companies has found its next big growth plan: Internet of Things (IOT).
The company, which started 40 years ago with a mere 100,000 rupees, now has products ranging from food mixers to fans and is betting that rising personal incomes in the world’s second-most populous nation and more than a billion mobile-phone connections will boost its sales further.
“IOT is the next big step for our company as smart-phone users are expected to rise every passing day and more people are becoming tech savvy,†Managing Director Mithun Chittilappilly said from Kochi, a city in southern India. The company plans to sell “smart fans†after introducing water heaters and power back-up systems that use similar technology, he said.
V-Guard expects sales to rise 12 percent in the fiscal year through March 31, missing its target of
15 percent annual growth through the end of March 2022, after it passed on a higher tax rate to its customers following the recent introduction of a national goods and services levy. Revenue growth is expected to recover to at least 15 percent in its new financial year starting April, Chittilappilly said.
Revenue will get a further boost as the “price premium of IOT products over normal appliances starts coming down,†Chittilappilly said.