Syska Group - promoted by brothers Rajesh and Govind Uttamchandani - the largest distribution partner for Samsung in India, is diversifying into manufacturing fast moving consumer electrical goods. Syska, which launched LED lights a few years back, is in talks with a leading French company to make and sell switching systems. The products will be made at its factory at Shirwal in Satara district of Maharashtra, where Syska is investing over Rs 250 crore.
"Within a month or so, we will be able to disclose details", said Rajesh Uttamchandani, director, Syska LED.
Syska's factory at Chakan in Pune makes industrial lights and another unit in Thane makes bulbs and panel lights. A year ago, the company ventured into making cables, wires and electrical appliances like torches, batteries and electrical accessories. Syska, with revenues of Rs 800 crore in FY2017/18, posted revenues of over Rs 1400 crore in 2018/19. "In the current year we hope to achieve a turnover of Rs 2000 crore", Rajesh Uttamchandani told Business Today.
He said the company, which does not participate in government supplies of LED lights, sells over 2 crore units in India through 2.5 lakh outlets. Currently 40 per cent of the production is made at its own units. After government brought in anti-dumping measures to protect margins of local electrical goods makers, even multinational companies have started units in India. According to industry sources, Philips leads the LED market in India with about 35-40 per cent, while Syska has 30 per cent. The other leading players in the segment include Havell's, Bajaj and Surya. According to a report by TechSci Research, the country's LED lighting market is projected to register a growth of over 32 percent during 2015-20.
Rajesh Uttamchandani said the Syska Group turnover has crossed Rs 13,000 crore and has been growing at over 30-35 per cent in the past few years. The flagship company SSK Appliances, which deals in trading and distribution of Samsung mobiles and appliances in Maharashtra, Gujarat, Madhya Pradesh, Goa and Chattisgarh, has over Rs 10,000 crore revenues. Baghbahar Appliances, another trading and distribution company selling Samsung's consumer durables, earns over Rs 700 crore. SSK Retail, a retail chain for Samsung's mobiles, has 25 Samsung Smart Cafe's with revenues of over Rs 200 crore. Syska e-Retails, the online platform to sell Syska products, has grown to a Rs 200 crore plus company in three years. Another venture of the group is SSK Infotech, which is into data printing like cheques for the banking sector, has revenues of over Rs 40 crore.
Uttamchandani brothers, who started distributing TVs and VCRs (video cassette recorders) and audio cassettes of Gulshan Kumar's T-Series in the 1980s were distributors Kelvinator, Whirlpool and Nokia Mobile. They have been Samsung's mobile distribution partner in select states for over a decade.