21 May 2012

Methven pins growth hopes on China and India

7:37 am on 21 May 2012

Methven is pinning its growth hopes on China and India, as sales fall across its key markets in Britain, Australia and New Zealand.

The tapware and shower company managed to grow its annual profit for the year ending March by 36% to $6.5 million, thanks to cost cutting.

But sales fell 13%, due to tough trading conditions in its three key markets.

Methven chief executive Rick Fala says the company is now focused on growing its sales in China.

He says it's small profits and sales at this stage, but China has the highest potential of any of the markets.

Mr Fala says they're pleased and encouraged that after three years it's managed to deliver a small profit.

He says the company is approaching four to five star hotels in China which then leads onto high end project developers, which is quite a different way of marketing than in Methven's core areas.

Mr Fala says Methven will also start researching the Indian market this year, with hopes of setting up a division there soon.