Business

Livpure eyes Rs.800 crore revenue in three years

SAR Group firm Livpure is eyeing nearly five-fold increase in its revenues to about Rs.800 crore by 2019, mainly on the back of expectations of high demand in the segment that is currently in its nascent stage in the country.

The RO water purifier industry is pegged at about Rs.3,500-4,000 crore in India — a sizeable chunk of which is the grey market — with a penetration of just about 6 per cent.

“There is a lot of head room for growth. We expect that the industry will double every five years or so… by 2021 the market could be about Rs.8,000-10,000 crore… We are seeing a shift in consumer preference from grey market products to branded ones. There is also a demand of good looking products…consumer awareness levels, however, are still low,” said Rakesh Malhotra, Founder, Livpure.

Mr. Malhotra, who also built Luminous Power Technologies, founded Livpure Pvt. Ltd., earlier known as Luminous Water Technologies, in 2012. The company is looking at breaking even in the current fiscal with a revenue of Rs.300 crore, double from about Rs.150 crore revenue reported in 2015-16.

No headway

He pointed out that following success of Aquaguard and Kent, which are the two oldest brands in the country, many big brands, including Philips, Panasonic and Tatas have entered the category but none could make much headway. Livpure would focus of IOT (Internet of Things) products and ensuring good after-sales service to achieve growth targets.

“Out of total 1,200 people employed by us, 800 are only for service. We are also working on increasing our service points to 2,000 over the next 2-3 years,” he added.

The company currently has about 400 service centres.

It has till now raised Rs.155 crore in two rounds of funding.

Manesar facility

Livpure has a manufacturing facility at Manesar, which has a production capacity of three lakh units of RO. Mr. Malhotra said it would be easy to double production by increasing shifts to manufacture products to achieve Rs.700-800 crore revenue target. Livpure manufactures about 80 per cent of the components inhouse.

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Printable version | Apr 21, 2021 11:15:17 PM | https://www.thehindu.com/business/Livpure-eyes-Rs.800-crore-revenue-in-three-years/article14469061.ece

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