Kent RO Systems, a water purifier company, is set to become a 350 crore company by the end of this fiscal. In an exclusive interview with Images Retail, Mahesh Gupta, Founder of Kent RO Systems, said: "We are expanding in all directions and hoping to mark a growth of 30 percent in 2011-12 and will be a 350 crore company this fiscal."
Kent RO Systems is aggressive to set out retail plans for more penetration in the Indian market through showcasing the products at "white good" retail outlets and opening exclusive outlets named Kent Shoppe. The company plans about 200 exclusive outlets in the next 1.5 years through franchisee route only. At this stage, the company is keen to cover the major metropolitan and tier I cities.
Kent RO Systems is also expanding through its distributors and dealers. Currently, the company has 600 distributors and 4,000 dealers.
To support the franchisor with the new business, the company will invest around 6–7 lakhs in designing the store to look alike. Gupta said: "Our business model is attractive in terms of booking high ROI. We advertise in franchisee magazines to connect with the franchisors."
Gupta emphasised on company’s overseas presence, it is present in Asian and African markets through distributors. "We keep inviting queries from these countries and tell them about our products. The export business is adding around 5 percent to our total revenue and we are optimistic to increase the share," he added.
Gupta explained that the company is making every effort to create the need for the product which will ultimately become the necessity of every household. An IIT graduate, Gupta revealed: "In India, around 5 million washing machines sell annually and water purifier sales do not even touch the mark of 1 million. So, one can understand the challenge as well as the market potential for these products."
Kent RO Systems is also opening its forth manufacturing unit in Greater Noida, with three already in Roorki, Uttrakhand. The unit would be ready by March 2012. After the Greater Noida plant, the manufacturing capacity would be 7 lakh units.
At present, Kent RO has 50 percent market share in the RO category itself and Kent Grant plus (costing Rs 14,750) is the fastest moving product.