Polycab To Launch IoT-based FMEG Products Under New Brand HOHMPage Visited: 17
Electrical goods firm Polycab is entering the Internet-of-Things (IoT) product portfolio in its consumer durables business with a launch of a new brand HOHM.
In an interaction with Moneycontrol, Gandharv Tongia, Chief Financial Officer of Polycab, said that HOHM would have products that could be operated from any device, be it a mobile phone or laptop.
“Our products under HOHM can take artificial intelligence to the next level. They are being launched this month. Each individual can set rules for each appliance, depending on his/her preferences,” he added.
For example, water could be heated at a particular time of the day in a particular temperature setting. Similarly, your fan could be set to a particular speed or lights dimmed while you are watching television at a fixed time.
Tongia said that the majority of these products will be manufactured in-house in India. Existing products like water heaters, lights and fans could be tweaked to become IoT-compliant under HOHM.
Global consulting firm Zinnov had estimated that the IoT investments in India were close to USD 5 billion in 2019, and are expected to triple to touch ~USD 15 Billion by 2021 across both technology products and services components.
The study said that by the end of 2019, India had 200-250 Million connected devices. Zinnov had estimated that this number will grow ten-fold to touch 2 billion devices by 2021.
Consumer appliance brands like Samsung, Haier, Philips and even home-grown brands like Syska are present in the IoT products space in India.
Strong Q3 numbers
Polycab posted a 19 percent year-on-year (YoY) growth in its third quarter (ended December, Q3) at Rs 263.6 crore. Revenue grew by 12 percent YoY to Rs 2,798.8 crore.
Tongia said that the FMEG (fast moving electrical goods) business grew by 40 percent YoY to Rs 305.5 crore last year and 25 percent sequentially.
“The real estate revival is helping the company. Similarly, home renovation taken up by retail customers due to work-from-home is also helping FMEG business. We hope that the B2C business will continue to grow at a healthy rate,” he added.
Rise in input costs has been a cause of concern for electrical goods makers with copper, aluminium and PVC seeing cost increases between 40-50 percent. Tongia said that the company has passed on the cost rise to customers in the form of price increase
During the December quarter, the wires and cables business grew 6 percent YoY to Rs 2,270.3 crore. Tongia said that going forward, new construction by real estate players could see a pickup helping the business grow.
“With the COVID-19 vaccine being rolled out, the uncertainty and volatility has reduced in the business. Ambiguity is still there but going by the Q3 numbers, we are looking at a positive outlook in the next quarter as well,” he added.