On the back of new launches, category extensions, and improved distribution, Electrolux, a brand owned in India by Videocon Industries, looks to breakeven this fiscal.
MUMBAI: On the back of new launches, category extensions, and improved distribution, Electrolux, a brand owned in India by Videocon Industries, looks to breakeven this fiscal.
“We are targeting revenues of Rs 700 crore in the current financial year and also turn profitable. This year Electrolux expects to achieve refrigerator sales of five lakh units with a market share of more than 11% (from 8% share currently),” said Eric Braganza, chief operating office, Electrolux division, Videocon Industries.
On cards are aggressive new launches in existing categories-refrigerator, air conditioners, microwave ovens, and washing machines-and entry into newer segments like dishwasher and vacuum cleaners.
Braganza spoke at the launch of the company’s new range of high-end frost-free refrigerators. These refrigerators cost about Rs 1 lakh and the Electrolux is confident of selling 10-15,000 this year.
Electrolux had reported a topline of Rs 500 crore last fiscal. The brand came into homegrown appliances major Videocon’s fold in 2005, when it acquired the 92% shareholding of AB Electrolux in its loss-making Indian subsidiary, Electrolux Kelvinator.
Videocon also got two manufacturing units in the country. Another greenfield unit is being set up in the tax-free zone of Uttranchal with an investment of Rs 150 crore. “The plant will have a capacity of 0.5 million refrigerators, 0.3 million air conditioners, 0.2 million washing machines, and about 30-35,000 units of microwave (for distribution in North India),” said Anirudh Dhoot, chief executive office, Electrolux Division. The tax-free zone will greatly help Electrolux cut costs, which would help shore up margins.
Dhoot said Electrolux’s dishwashers and vacuum cleaners would be introduced during Diwali.
Electrolux’s refrigerator division accounts for 55% of the company’s topline. AC (20%), microwave (10%) and washing machine (15%) account for the rest. In the consumer durable business, microwave and ACs carry better margins and hence the company plans to be aggressive in these categories.
On distribution, Dhoot said the company has tied up with chains like Next, Vijay Sales, e-zone, Vivek’s, and Reliance Retail. “Reliance is coming up with exclusive electronics stores. Mumbai alone will have 20 of such stores. So as they expand, our reach would also increase,” Dhoot said.
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