Indian Economy News

As sales grow steadily, Haier India mulls a second manufacturing plant

New Delhi: Haier India is considering setting up its second plant in India, a move meant to boost its local manufacturing capacity.

But the company is yet to decide where this second plant will be located and when it will be ready.

Expanding capacity

Haier India's CEO Eric Braganza said, “We could look at locations in the North and South, as we need additional manufacturing support. Currently, our plant at Pune is serving consumers across the country and we also have some OEM (original equipment manufacturer) partners in the North. Once there is more clarity on Government policies, we will finalise our decisions.”

Last year, Haier invested extensively in its manufacturing capabilities and service infrastructure. In May, the Pune factory achieved the highest production mark in refrigerators.

The company, which has positioned its products in the mid and premium segment, manufactures all mass products within the country. The company has also started manufacturing its topload semi-automatic washing machines and higher capacity refrigerators here but continues to depend on imports for premium products.

“We have clocked Rs. 1,500 crore in revenues last year and expect to grow to Rs. 2,000 crore this year,” he said, adding that despite the economic conditions, the company has seen healthy growth in sales. “We grew by 37 per cent in the first quarter compared to last year and expect to clock a growth of 33-34 per cent in the April-June quarter.

“There is a feel-good factor in the country. Penetration levels of most product categories are low. So the industry is expected to grow,” he said.

The company plans to invest about Rs. 80 crore this year on marketing.

Key market

In February, the company had launched 71 new products in the country. “We expect to be among the top five players in the consumer durable space by 2015-16 and to have a 9-10 per cent market share by that time,” he said.

For Haier, India is still a small contributor to its global revenues but is among the key markets.

Asked about the growth of the AC segment this summer, Braganza added, “Currently, ACs are not part of our top two products. Next year, we will have a more extensive range of ACs fine tuned for Indian consumers.”

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.