Electrolux Kelvinator Ltd (EKL), part of Electrolux group of Sweden, is targeting to become the largest player in the white goods industry by ’07.
To achieve this, company intends to expand product portfolio in India by introducing air conditioners and microwave ovens apart from strengthening the existing refrigerator and washing machine range.
Presently, EKL is predominantly a refrigerator company with 95 per cent of turnover coming from it.
“In many developed countries the market for AC is now bigger than refrigerators but it is not growing here due to sluggish replacement market. The same trend could be replicated in India as well. We can not let the opportunity go,” Rajeev Karwal, chief executive officer and MD of EKL, said.
EKL is eyeing at 25 per cent stake in overall refrigerator market and another 17-18 per cent share of the washing machine market. At present, it has around 15-16 per cent share in refrigerator.
Refrigerator market with 3.2 million pieces sale is estimated at Rs 2,800 crore.
The AC market with 800,000 pieces with total turnover of Rs 1,200 crore has already taken over washing machine market which sells 1.2 million piece but has turnover of Rs 850 crore only. The microwave oven market is relatively small at Rs 200 crore with 300,000 pieces.
EKL is planning to launch oven range by end of this year while the AC would be introduced early next year, Karwal said. He was in Kolkata to launch new “˜Oxy’ range of direct cool refrigerator.
EKL has branded the direct cool segment as “˜Oxy’ while the frost free segment has been brought under “˜Ozone’ brand. He informed that new models would be periodically launched in both washing machine and refrigerators range.
However, EKL is not setting up any manufacturing base for new products at present. While microwave ovens would be imported, ACs will be outsourced from India through contract manufacturing.
From Business Standard, India