Kärcher is targeting double-digit growth across segments in India

  • Interviews
  • Nov 29,24
In an interview with Manish Pant, Hartmut Jenner, CEO & Chairman, Alfred Kärcher SE & Co, and Jatinder Kaul, MD, Kärcher India, see India playing a pivotal role in driving the €3.29 billion group’s future expansion.
Kärcher is targeting double-digit growth across segments in India

The Winnenden (Germany)-based Kärcher, the global cleaning equipment maker, has expanded its presence in India by launching advanced cleaning solutions for both professional and consumer segments. In an interview with SME’s Manish Pant, Hartmut Jenner, CEO & Chairman of the Board of Management of Alfred Kärcher SE & Co, and Jatinder Kaul, MD, Kärcher India, see the country playing a pivotal role in driving the €3.29 billion group’s future expansion.

How satisfied are you with Kärcher India’s growth since launching here 13 years ago?
Hartmut Jenner (HJ): To be honest, the first couple of years were not easy. We had expected a better start. But since 2019, we have started moving in the right direction and hope to continue with the current growth momentum. We are optimistic about growing as we are addressing a focused market segment, which will also benefit from investments by Kärcher group in India. We will be adding more value through R&D and other initiatives to achieve our targeted double-digit growth.

When you talk about India, what are the potential high-growth segments that you are looking at?
HJ: As a company, we do about 50 per cent B2C (business-to-consumer) and 50 per cent B2B (business-to-business). Usually, in emerging markets like India, the B2B segment has a higher share than B2C. So, we have two targets: to further expand in B2B and provide an affordable portfolio of products to the B2C market.

Jatinder Kaul (JK): We are doing extremely well in the industrial (cleaning) sector. We already have a strong presence in the automotive segment, and we are also looking at expanding our presence in facility management, particularly in industries such as hospitality. We are also looking at public services because of the government’s emphasis on the Swachh Bharat Abhiyan (Clean India Mission). That’s one of our key focus areas. Then the bigger piece of the whole business is how to enable the shift to mechanised cleaning by households. So, the consumer business will be our focus over the next five years.

Automation and autonomous are the new buzzwords. However, each region has its own unique demands as far as the cleaning services business is concerned. What makes India stand apart?
HJ: What we offer is automated cleaning. Cleaning is seen as something local. Do you know why? Cleaning is socialised by how your parents have taught you to clean; you clean depending on how they clean. The definition of the word ‘clean’ is different for different people. What is clean for me may not be clean for you, and vice versa. Therefore, it’s very important to have a thorough understanding of the application of cleaning in different regions. That’s the reason we are present in several countries.

JK: Yes, cleaning should have a standard. We would, therefore, like a surface’s cleanliness determined scientifically. Whether it’s our home, office or any other space, we look to maintain one cleaning standard across all surfaces. However, we often don’t get that level of cleanliness in India. At home, for example, you get domestic help to sweep and mop the surface. They move from one corner to the next. But in doing that, they spread dirt throughout to collect it at the final point. This results in vitrified tiles, which have high points, turning black in two or three years. However, in mechanised cleaning, dirt is collected from each spot. We need to imbibe that change in our mindset.

Are events like climate change also posing a challenge to your business?
HJ: Due to global warming, the Earth may require more cleaning. Why? Most germs flourish in warmer temperatures. In the last few years, we have experienced more days when the temperature was above 40 degrees. This is happening globally and could create more infections like the bird flu or SARS (Severe Acute Respiratory Syndrome) from animals or birds to humans.

JK: Today, if you compare between a developing country like ours and a developed nation like the US or the EU, why do our kids often require nebulisation or steroids? Due to our cleaning methods, the dust content in the air is very high. In the morning, the sweeper’s big broom creates a sand bubble that, in turn, enters the air conditioning unit. To clean up the accumulated sand, you need a pressure washer. And by using electricity and water, we are only adding to global warming. Thus, we would be better off if we started using mechanised tools. That’s the kind of solution we want to put on the table.

In the future, besides emerging as a major consumer of Kärcher products, do you foresee the Indian market also developing into a major manufacturing centre?
HJ: We already have a lot of services in India. For example, we have a major partnership with HCL providing us with hundreds of electronics engineers. Then the bookkeeping of all the companies in the Kärcher world is done in India. So, it’s not just in manufacturing but also bookkeeping that we have a couple of hundred employees. The Indian market has a huge potential. We plan to add a lot of people in manufacturing. We will then proceed towards our goal of developing the country into a global hub for Kärcher.

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