New Delhi: Maharaja Appliances Ltd, in a move to expand its operations beyond small appliances, is all set to enter the white goods segment, with products like single tub washers, cooking ranges, water heaters and water purifiers.The company has invested Rs 8-10 crore in the project so far. It has set up a separate manufacturing unit in Gurgaon for this range of products.
The White Goods Division, which will market the products, hopes to achieve a turnover of Rs 50-60 crore in the first year. The products, ``which will be competitively priced'' are targeted at SEC B & C consumers.
While the Maharaja Whiteline water purifier will be launched in July, the launch of the water heaters (in 15, 25 and 40 litre capacity) will follow towards the end of the year. One model of its single tub washer (which is a washing machine without a drying facility), priced at Rs 2,995, was test- marketed in Punjab last year and it has sold 3,000 pieces so far, says the company. It is now expecting sales to touch 10,000 after it goes national in August-September.
In the second phase there are plans to launch low-end cooking ranges.
In another initiative, the company is planning to add more products to its small appliances portfolio. It will launch electric kettles in July, folding steam irons in August, wet grinders in September and economy steam irons in October. It is also considering manufacturing gas tables, low-end wet grinders and meat mincers. All these categories of products would, besides helping in building brand image, also help the company utilise its manufacturing capacities.
With nine factories in and around Delhi, Maharaja has an installed capacity of 100,000 mixer grinders a month, but is at present utilising only 40,000 pieces capacity. Even at peak periods like Diwali, it utilises only 70,000-80,000 capacity, including OEM supplies and cross-promotions. The new products would be one way of utilising excess capacity. Earlier, the company was an OEM supplier to companies like Philips, Tefal and Godrej, which helped in capacity utilisation.
In kitchen appliances, the major chunk of the market is catered to by annual sales of 55 lakh units of mixer grinders, juicer mixer grinders and food processors. Maharaja Whiteline, with its major presence in these categories, has over the last 12 months, made a foray into other appliances like oventoaster grills (OTGs), toasters, citrus juicers and snack toasters.
Says Vivek Sharma, group vice-president, sales & marketing, ``This has helped us achieve a record 30 per cent compounded growth rate last year, against the industry growth of 8-10 per cent.'' He adds, ``A lot of thought has gone into moves to enter new categories. We have been careful to enter categories where customer need is high, and market development is also very high.''
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