The Hindu Business Line : Faber to sell Whirlpool's cooking appliance range

WHIRLPOOL of India has struck an alliance with Italian appliances company Faber Heatkraft to introduce its range of cooking appliances in the Indian market. The products consisting of hobs, chimneys and cooking ranges will be distributed and sold by Faber through its dealer network and exclusive outlets.

Faber is also in talks with Whirlpool to manufacture the latter's products at its plant in India. "While some of Whirlpool's cooking appliances will be imported, we are also looking to manufacture a few of these here. We have the capacity at our plant to do so. However, we are yet to finalise which products are to be made here," said Mr Pralhad Bhutada, Managing Director, Faber Heatkraft Industries.

Commenting on the tie-up with Faber, Mr Raj Jain, Managing Director, Whirlpool of India, said, "The distribution channels for the major home appliances (such as refrigerators and washing machines) are quite different to what is required for this category. The objective of this alliance is to leverage the expertise and reach of Faber to grow in India."

Faber is also present in the same categories with products such as chimneys and hobs in its portfolio. However, the company does not see the tie-up with Whirlpool adversely affecting its sales potential in India.

"The cooking appliances category is at a very nascent stage but is poised for growth in the near future. The alliance will only grow the market, and we do not expect any conflicts between the two brands. We are the exclusive sellers for these products in India. We expect Whirlpool to garner 10 per cent of the market in the first year of launch," Mr Bhutada said.

While Whirlpool's cooking appliances will be sold through Faber's network of 1,200 retailers, Faber has the option of utilising Whirlpool's dealership network as well as to retail Faber branded products.

At present, the cooking appliances segment in India is estimated at Rs 80 crore to Rs 100 crore, with Faber commanding a market share of about 50 per cent in the chimneys category.

At present, Faber has a turnover of Rs 40 crore and is looking to raise capacity in India. The company intends to invest Rs 8 crore in its new initiatives, including towards raising installed capacity by 25 per cent to 30 per cent this year.

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