Haier to manufacture all products in India by 2016

The Indian arm of Chinese consumer durables major Haier wants to manufacture all its products in India by 2016. Local production will shield Haier India from the volatile rupee-dollar fluctuations and accelerate growth.

Currently, Haier’s 40-acre Pune plant makes mid-end refrigerators and assembles washing machines, while water-heaters and television panels are imported from China. Manufacture of air conditioners and other products is outsourced. “We have launched 79 new products across six different categories,” said Eric Braganza (pictured), president-India of Haier Appliances.

The Pune unit’s refrigerator capacity will be doubled by next year as refrigerators and freezers contribute about 35% to revenue.

Another unit is being set up in south India to make washing machines and export some to markets like the Middle East and Africa.

Haier wants to boost its turnover by 43% to `1,700 crore by December-end from Rs1,203 crore in 2012, and be among the industry’s top three by 2018.

In the pipeline are some high-octane product launches, said Braganza. Modern retail may form a minuscule part of the product line-up, but the company will add 1,500 new dealers and bolster back-end customer service this year to meet its turnover target.

To combat rising raw material prices, Haier has raised product prices by up to 5%, in tune with the market average of 3-10%. Owing to last year’s sluggish demand, most companies will hike prices again only if demand for air conditioners and refrigerators improves this summer, said Braganza.

@Nupursays