Consumer durables major Whirlpool India is looking to double its business from the built-in appliances space. In an interaction with Moneycontrol, Natarajan A, Head, New Business Units, Whirlpool India, said the segment will also double its share in the company's revenue to up to 6 percent, over the course of the next 12 months.
Whirpool India's income stood at Rs 1257.7 crore in the fourth quarter of FY18.
Natarajan said the size of the built-in appliances industry is Rs 1800 crore-2000 crore. “Worldwide this is a core business for Whirlpool and we are now seeing an increased demand from Indian customers,” he added.
Built-in units refer to pre-installed fixtures in the kitchen and include hob and hood, dishwasher, microwave and oven, and refrigerators. These appliances are either fixed at the time of the construction of the house or during renovations.
Triumph looks to ride into smaller cities to maintain sales growth “We have tied-up with real estate players like DLF through which we are able to provide our appliance solutions to their customers,” he said.
However, not all real estate players offer them free of cost to their home-buyers. For this, Whirlpool offers a concept of ‘mock-kitchen’ where prospective customers can browse through the entire range of appliances and choose the one to purchase.
Gujarat, Ludhiana, Jalandhar and Bengaluru are the biggest markets for these units, said Natarajan.
“Built-in business is a reflection of the consumer lifestyle and reflects well-travelled customer who has used them outside India. Due to this, we are growing at 40 percent year-on-year in this space,” he added.
For instance, as part of their partnership with DLF, the modular kitchen consists of hob and hood, dishwasher, microwave, oven, and refrigerator.
Natarajan said their growth is closely linked to that of the real estate market. “If the real estate sector grows and more properties are sold, we are directly benefitted. This is because most of our sales occur when either existing kitchens get renovated or when individuals are buying a new house,” he said further.
The products are usually high-end and come with a premium pricing. For instance, a specialized oven that helps cooking of three different items without aroma getting transferred would be Rs 70,000, while a dishwasher would be Rs 80,000. Hob and hood could range between Rs 25,000 to Rs 1 lakh, while the price of chimneys could go up to Rs 1.5 lakh.
While India is regarded as a price-sensitive market, Natarajan said there is a customer base for such products among high net-worth individuals.
“Every segment has a different need and our products are developed based on global trends. Connected appliances are the new trend and we intend to continue importing these products from Europe.” - Moneycontrol