NEW DELHI: Pune-based water heater maker, Racold Thermo is targeting over 65 per cent per cent increase in turnover to Rs 500 crore by 2014 expecting good growth from solar water heating segment.

"We expect solar water heater sales to double this year. We have been witnessing good growth from this segment due to reduction in payback time of solar equipments and increasing cost of electricity," Racold Thermo MD Mathew Job said.

The company, which reported Rs 300 crore turnover in 2012-13, sells electric, solar and gas based water heaters.

"A 30 per cent subsidy given by the government on solar equipment has reduced payback time to two years, hence making it an attractive option for customers," Job said.

The water heaters market in India is estimated to be around Rs 1,400 to Rs 1,500 crore, out of which electricity based water heater segment comprises Rs 800 crore, solar Rs 500-600 crore and gas Rs 100 crore.

Racold Thermo is a fully-owned subsidiary of Ariston Thermo Group-Italy. The firm has a manufacturing plant at Pune and has the capacity to produce five lakh units annually.

Source : economictimes.indiatimes.com