HUSQVARNA (SWEDEN)/NEW DELHI: The $ 14-billion Swedish white goods major AB Electrolux will delink sales from service as part of re-engineering of its India operations.
“We will build on the spread and reach of the Kelvinator’s service and dealer network to address the needs of our customers,” Electrolux-Kelvinator chief Rajiv Karwal said.
“We consider India as a key market and have a long-term view. Like the rest of the world, we want to be No. 1 here also,” Electrolux Home Products international senior executive president Johan Bygge said.
The Indian refrigerators market has been growing six per cent annually. But Electrolux has been slowed down by tangled ownership issues after it took over Kelvinator to enter the market.
Bygge said the right-sizing of the workforce and streamlining of ownership and supply-chain issues will help the company break even by 2005. He expected to increase the share of firm’s total revenue from the Apac region to 20 per cent in 5-10 years.
Karwal said growth will come from new products like 300-plus litre refrigerators, microwaves, washing machines and airconditioners.
Electrolux will not enter into a price war in India with its Korean rivals, it will instead promote brand value through innovation.
Several other Electrolux arms have shown interest in some product innovations, he said.
These include pedals to open the refrigerators, water dispensing systems and technology to keep Indian food fresh longer.
Last year, Electrolux-Kelvinator contributed Rs 480 crore to the Rs 2,600-crore turnover recorded by the Indian refrigerator market. Volume-wise, this works out to a 14 per cent market share.
From The Times Of India