Somany Home Innovation bets big on IoT products, full range by March 2020

Topics IoT

Somany Home Innovation Ltd (SHIL) is betting big on the Internet of Things (IoT) and plans to introduce the feature in all the products in its portfolio by March next year, according to a senior company official.

The company, which is looking at an overall turnover of around Rs 550 crore in the ongoing fiscal, expects to grow at around 30-40 per cent in the next financial year.

"In the next three to four years any consumer appliance or durables company, security company or a health-related company, if they don't have an IoT product they are looking at grim future," SHIL CEO & Whole Time Director Rakesh Kaul told PTI.

SHIL, which had recently launched its 'iPro' range of IoT-enabled products for water purifier, chimney and water heater, is looking at these new-age appliances to contribute more to its overall revenues going forward.

"As far as our revenues are concerned I believe that in the next ten years I wouldn't be surprised if revenues of our IoT-based appliances, smart appliances are at least 15-16 per cent of our overall revenues," Kaul said.

In terms of overall revenue, he said from just Rs 18 crore four years back, the company has grown manifold.

"This fiscal year ending March 2020 we will definitely cross Rs 550 crore. We have grown at a CAGR of 60 per cent. We will also have IoT product in all the categories that we are present by the same time," he said adding at present IoT products are very small in the overall piece.

SHIL has a range of products under consumer appliances, home retail solutions and furniture and kitchen fittings business.

He said the company will soon launch IoT-enable air purifiers and air coolers as well.

Elaborating on the company's strategy for IoT products, he said, "Our efforts in IoT are predominantly to make meaningful changes to the lives of consumers and also we have been focussed on conserving water and energy efficiency. It is not just about shifting the remote to smartphones."

When asked about the growth outlook for the next fiscal, Kaul said, "In terms of revenue since we have been growing handsomely over the past three to four years, we would like to continue the momentum with another 30-40 per cent growth in the next year as well."

He said the growth will be based on existing portfolio and incremental change in models such as new IoT products.

Commenting on the impact of the economic downturn on sales, Kaul said, "As far as consumer consumption is concerned, there is definitely a downturn in the expected consumer spend...Yes, we can't deny the fact that there is some element of slowdown but we are looking at future which is promising."

He, however, hastened to add, "I would like to believe in the long-term story of India. Long-term today doesn't mean the next ten years. Long-term to us means the next two years. We will continue to stay invested."

SHIL will focus on both physical stores and e-commerce channels to push sales, Kaul added.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel