Somany Home - high potential?

Somany home has been an outperformer in the current run.

It is riding on the consumer discretionary spend and the increased purchasing power of the Indian middle class

Background: It is a consumer durables and building materials company. Brilloca is a 100% Subsidiary manufacturing building materials. Products like water heater, chimney, aircoolers, air purifier are household products of SHIL, doing well


Be amongst the Top 3 Players in Consumer Appliances Business Group in India. And, most Importantly build Brand loyalty amongst our Consumers. The company is and will strive to gain consumer’s trust and acceptance. Further, with our immense focus on Research and Development, we aim to revolutionize the Consumer Appliance Industry by bringing Technologies that promise Health, Comfort and Enhanced Lifestyle.

A few triggers for price increase

  • closing down of the loss making / capital intensive retail business
  • Projected 40% cagr
  • Patents
  • New products

It will be useful to get views on the potential of this company.

Risks / concerns : a lot of interest in these segments will lead to competition and impact profitability. Also, this is not a core area of expertise for the somany group.