European consumer durables brand Indesit will soon be available in India. The company has tied up with ETA Star Appliances.
MUMBAI: European consumer durables brand Indesit will soon be available in India.
The company has tied up with ETA Star Appliances, a fully owned subsidiary of the $5 billion Dubai-based ETA Ascon Star Group, to sell its frost-free refrigerators, washing machines, dishwashers and kitchen appliances — such as hops and ovens — in the local market.
Massimo D’Ascanio, exports markets manager, Indesit Company, told DNA Money, “We will initially bring in products from our Europe portfolio which are suitable for
Indian markets. In the second phase, we will invest in designs and manufacture products specially for markets such as India and Australia.”
The products would be aimed at premium segment customers. The company will target double-income households, especially younger couples, who give a lot of importance to style and design.
While its premium washing machine Moon will be at least 25% more expensive than the highest available in the market currently, even the other products would be rated
much higher than Indian market average.
ETA Star Appliances, which will handle the marketing for Indesit in India, is targeting a turnover of Rs 1,000 crore in the next 3-4 years.
ETA Ascon Star Group already operates a business of Rs 700 crore in the electromechanical cooling industry and also markets air-conditioners for Japan’s Fujitsu, bringing in revenues of Rs 300 crore.
It already has a distribution network of 300 outlets and retail chains such as Vijay Sales and Croma are also supposed to be on board now.
The products were unveiled for the dealers in Mumbai on Tuesday.
Asked how it planned to compete with the established Korean and Japanese brands, M Ejazuddin, director, ETA Star Appliances Pvt Ltd said, “If LG sells more, then the market expands further. That makes us happy because when these consumers go in for the second buy, they would want to upgrade and then they will come to us.”
The Indian consumer durables market is about Rs 25,000 crore, including both white and brown goods, and growing at 20-25% on an average. Around 10% of this market can be considered premium, the target for Indesit.
Italy-based Indesit is Europe’s third largest manufacturer of household appliances by market share and the world’s fifth.
Listed on the Milan stock exchange since 1987, the group posted sales of over €3 billion in 2007, having turned out over 15 million appliances. Indesit Company operates through 18 production facilities and 24 commercial branches worldwide and employs over 17,000 people.
s_tanvi@dnaindia.net
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