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appliances maker Haier is "buoyant" about the fast-growing Indian
market where it aims to become the second largest player in the next five
years, with increased investments in manufacturing and product portfolio
expansion. Haier Appliances India, a part of the Chinese multinational Haier
Group, is investing around Rs 800 crore on capacity expansion here this year,
and has also lined up future expansion plans” company's India President N
Satish said on 6th March, 2024.
The company
is also increasing indigenisation, which is a key "thrust area" for
the company, where it expects local souring to contribute up to 80 per cent
across products in next two years.
Haier India
is also increasing exports from its Indian operations to other countries and is
scouting for new markets in the Middle East and African countries, besides
expanding its retail business in the domestic markets.
Haier India,
which is growing with a 25 per cent CAGR (Compound Annual Growth Rate) for the
last six years, expects to close this fiscal with a topline of Rs 8,500 crore
and expects to touch the Rs 10,000 crore-mark in FY25.
"Last
fiscal, we closed at around Rs 7,000 crores and our expectation this year is to
do Rs 8,500 crore and next fiscal year is Rs 10,000 crore," Satish told
according to PTI.
India is the
third largest market for Haier Group globally, after China and the US. The
company operates in the country with two manufacturing units at Pune,
Maharashtra and at Greater Noida in Uttar Pradesh. "We are very buoyant
about the Indian market. The overall economics look very positive for the
industry and the business here. We see a lot of positivity among the
consumers," said Satish With the growth of the Indian economy, the company
expects demand for consumer durables, which currently has a very low penetration
in comparison to other countries, to also increase.
According to
Satish, this is one of the "triggers" for demand growth here and
young demography with new-age consumers, who are ready to pay for convenience
and comfort, would create a market for high-end, value-for-money products.
"Our target is to be the number two brand in India in the next five
years," he said.
Haier, which
has completed 20 years in India, is also expanding it product portfolio and now
is present in 11 consumer segments which include the traditional areas such as
TV, washing machine, refrigerators, LED panels and water heaters.
"Today
we are one of the fastest growing in the last seven years with a CAGR growth of
25 per cent, which is unprecedented in this industry. No brand probably has
ever done this kind of growth and that too across all the categories," he
said. When asked about the investments, Satish said Haier has so far invested
Rs 3,500 crore in the Indian market, which has created 35,000 jobs.
"Currently, almost now phase two is at Rs 800 crore which we have already
committed and are investing," he said.
Over future
investment by Haier in India, Satish said: "It's still in the initial
stages probably at this point. I will not be able to comment on that number.
But definitely, we have a huge expansion plan which is lined up."
Currently,
Haier India has a consolidated manufacturing capacity to roll out nine million
units annually combined from both plants. It is the third largest appliance
maker in India and competes with companies such as LG, Samsung, Panasonic,
Whirlpool of India, and Bosch, besides some homegrown manufacturers such as
Godrej Appliances, Bajaj Electricals, and Voltas, among others.
On exports,
Satish said currently the outbound shipments contribute around 5 per cent of
its sales but now Haier India is increasing exports and working on different
standards and certifications for the respective markets where it wants to
export.
"Currently
in our export business, we are growing about 40 per cent year-on-year. There is
a separate dedicated team which works on the export... The team is working on
African markets which are now evolving and also the Middle East," he said,
adding, "Now we have the capacity to cater for these markets after
capacity expansion."
The Indian
appliances industry was estimated to be around Rs 1 lakh crore in 2023 and has
been projected to grow to about Rs 1.48 lakh crore by 2025, according to IBEF
report.
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INDUSTRIAL PRODUCTS FINDER (IPF) is India’s only industrial product portal. Referred to as the ‘Bible’ of the manufacturing sector in India,
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