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Food processors -- Inalsa targets 70% market share 

Mukta Magazine  
New Delhi, May 10: Having successfully dented the mixie market since theSeptember launch of its `Maxie' brand of food processors, the Rs 27-croreInalsa Appliances Ltd has set itself ambitious targets for this year: salesof over 15,000 units a month by year-end and a marketshare of 70 per cent.

Says Ashim Dutta, managing director, Inalsa Appliances Ltd,``Our sales haveskyrocketed from 1,300 units per month a year back to 8,500 units per monthduring March 2000, an increase of 650 per cent. Currently, we have a shareof 60 per cent of the food processor market, up from 30 per cent in1998.''

Expecting a positive rub-off from its increased brand pull, it also intendsto introduce six-seven new product categories this year, with the intentionof becoming a one-stop kitchen brand. This would include microwave ovens,pop-up toasters, steam irons, electric kettles, waste disposers and coffeemakers. The company intends to source some of these products from highquality manufacturers abroad.

With the increase in sales, Inalsa has helped increase the size of the foodprocessor market from a meagre 4,500 units per month to 14,000 units permonth nationally by the end of March 2000. Other brands in the categoryinclude Braun, Moulinex, Philips, Sumeet and Singer.

Ambitious though the company's plans may sound, it is supported by anaggressive strategy: It intends to get extensive visibility by deluging themarket-A, B, C category outlets across A, B, C towns-with the Maxie andstrengthening its distribution network. In fact, a factor that has helpeddrive Inalsa's rapid growth has been the setting up of a nationwideextensive distribution network, ensuring easy flow of its products toconsumers. From 25 distributors, 120 cities and 275 dealers in April 1999(essentially North-based) the Inalsa network today stands at around 100distributors servicing 900 cities and towns through 1,850 dealers across theNorth, West and Southern regions, ``By April-end, we will have in place 115distributors and over 2,200 dealers, which will be increased to 3,000 plusby the year-end, making it the biggest network for any household appliancescompany,'' says Dutta.

This year it has also doubled its adspend from last year's Rs 2 crore totake the mixie market headon. It is using demonstrations as a major meansfor driving sales and educating consumers. Innovative trade schemes andconsumer promotions have ensured very high levels of activity andinvolvement and consequently trade loyalty. Besides this, it is constructinga Website to drive consumers to the dealers, for demonstrations and at alater date e-comm enablement.

The sales turnover of the company almost doubled last year to Rs 27 crore.More than 35 per cent of the annual turnover has come in the last quarter(January-March 2000), which is normally considered the dullest period forsales of household appliances. This year it hopes to more than double itsturnover to Rs 70 crore. The Maxie accounts for 60 per cent of the company'stotal turnover, with the other categories - juicers, OTG, cook tops, cookingranges - accounting for the remaining 40 per cent.

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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