By IANS
Chennai : Electrolux, a division of consumer goods firm Videocon Industries Ltd, is beefing up its product portfolio to take on the competition, said a top company official.
Launching three new direct-cool refrigerator models here Tuesday, Eric Braganza, chief operating officer of Electrolux division, said it would also introduce new models of microwave ovens, washing machines and air conditioners.
In 2005, Videocon Industries acquired a licence to market Electrolux branded products in India from AB Electrolux of Sweden while buying out the Swedish company’s stakes in Electrolux Kelvinator Ltd.
Presently, the division markets air conditioners, refrigerators, washing machines and microwave ovens under the Electrolux brand.
“There will be five new microwave oven models in grill and convection variants. We will introduce seven more models of washing machines and two new air conditioners,” Braganza said.
According to him the new product launches would increase the division’s market share in all the four product categories.
He said the Electrolux brand enjoys eight percent share in the Indian refrigerator market, 14 percent in microwave oven and 5 percent in the air conditioner segments.
The division hopes to sell around 800,000 refrigerators this year and increase its market share to 11 percent, Braganza said.
The division imports its premium frost-free refrigerators from Thailand. The direct-cool models are made at its two Indian plants.
“The company is putting up a new plant in Uttarakhand and there will be a dedicated line of Electrolux brand refrigerators,” said Madhav Nene, general manager, marketing.
Speaking about the microwave oven market, Anil Hiranandani, general manager, product management group, said during the current year, sales is expected to cross 700,000 units. The division expects to sell over one million units next year.
The division hopes to command a market share 18 percent during 2008-09 with the aid of new models.
Queried about the Korean company LG Electronics’ revised premium positioning of its products and the possible impact on Electrolux, Braganza said, “All along Electrolux is considered as a premium brand and there is no change in that. Ours is a mass premium brand.”
“We will meet the new and the existing competition by launching new products and added features,” he asserted.
According to Braganza, the division hopes to break-even this fiscal with a turnover of Rs.6.5 billion, up from Rs.4.9 billion earned last year.