Eureka Forbes has launched an all-out bid to retain and grow its market share as competition in the Rs3,200 crore-a-year water-purifiers market intensifies.
As part of its new strategy, the company, long positioned as a premium player, will offer products in the mass end of the market while simultaneously pushing the premium end higher.
Currently, Eureka Forbes, a joint venture between the Shapoorji Pallonji Group and UK-based Electrolux, sells products priced upwards of Rs7,999.
“Right now, the focus is to get a larger share of the pie in both the mass segment and the premium segment. As a result we are launching several products that are going to be in the sub Rs2,500 range. On the other hand we are also launching products in the premium segment with innovative offerings that will allow you to choose the kind of water that you want such as sparkle or minerals, “ a company spokesperson told DNA.
Going forward, it plans to bring down the price bar to sub-Rs 1,500, said the spokesperson, indicating it will compete in a category that already has several big players, including HUL’s PureIt, Tata Swach and Kent, not to mention several unorganised players.
Eureka Forbes also plans to expand its global footprint further by entering into joint ventures with local players in several countries to produce and market products there.
In line with this plan, Forbes Lux, the joint venture between Lux International & Eureka Forbes has started expanding
in West Asia. With this, the company will be able to market its products in UAE and Oman now.
“We are still evaluating the markets where we plan to enter. But we are definitely revamping the entire business owing to stiff competition,” the spokesperson said.
On Thursday, the company announced a 50:50 joint venture with UK-based Waterlogic to produce more premium-end water purifiers.
A report by industry body Assocham in July forecast the market will double to Rs7,000 crore in the next three years.
Meanwhile, in a diversification effort, Eureka Forbes has also forayed into the fire extinguisher segment. The company expects their product-fireguard to contribute Rs50 crore in the total turnover.
And the company expects this number to double in the subsequent years. The annual revenue of the company now stands at almost Rs1,800 crore. Out of which water is the major contributor and accounts for 70% of the total turnover.