Financial Daily from THE HINDU group of publications
Friday, Feb 11, 2005
Financial Daily from THE HINDU group of publications Friday, Feb 11, 2005 |
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Corporate
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Outlook Electrolux aiming to wipe out losses by 2006 Our Bureau
Mr Ajay Kapila, VP, Sales & Marketing, Electrolux India, flanked by Mr Sanjeev Wadhwa, GM, Marketing, and Ms Seema Arora, Product Head, launching the Built-in Kitchen Appliances in the Capital on Thursday. — Kamal Narang
New Delhi , Feb. 10 HELPED by growing sales of its new product roll-outs, white goods manufacturer Electrolux India is aiming to wipe out its losses by 2006. "The company has reduced its losses by more than half this fiscal, and for the first time its net worth has become positive. It is on its way to turn to black in the next year," Mr Ajay Kapila, Vice-President, Electrolux India said on Thursday. The company had posted a 15 per cent growth in 2004, and was targeting a 20 per cent growth in the current year. "In fact, we should close 2004 with net sales of over Rs 350 crore," he said. Electrolux has been able to effectively diversify its sales portfolio. While in 2003, as much as 95 per cent of its sales came from the refrigerators segment, the figure stands at 70 per cent at present. In fact, the company expects the microwave ovens category to account for about 10 per cent of sales in 2005. Today, the company announced its foray into the built-in kitchen appliances segment (which includes hobs and hoods) and said it would also introduce garden equipment such as lawnmowers and professional saws during the year. "The Rs 150-crore built-in kitchen appliances category is largely dominated by unorganised players. Moreover, this segment, which is growing at over 40 per cent per annum, holds much potential and is expected to cross the Rs 400 crore mark by 2007. We are targeting a market share of about 10 per cent in the first year," Mr Kapila said. While currently the company is importing the kitchen appliances from Italy, it could also source products from Thailand as AB Electrolux is investing in creating capacities for these products in that country. "In fact, with the Free Trade Agreement between India and Thailand in place, we could look at importing other products from there as well," Mr Kapila said. AB Electrolux is also learnt to be investing in creating capacities for washing machines in Thailand.
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