The Hindu Business Line : Empire Home to resurrect Gem brand with new range

The company plans to roll out LCD TVs, air-conditioners, no-frost refrigerators, microwave ovens and high-definition DVD players under the Gem brand name. According to Mr Harish Kumar, Chairman and Managing Director of Empire Home Appliances, the new products will enter the market early next year. In the first phase, Empire plans to launch its range of air-conditioners and LCD TVs by January. The company will source the components for its LCD TVs and HD DVDs from suppliers in South Korea and assemble them at its plant at Baddi in Himachal Pradesh. While window air-conditioners and no-frost refrigerators will be manufactured by the company in the Baddi facility, split air-conditioners will be imported.

Pricing strategy

Talking about the pricing strategy, Mr Kumar said as the products are aimed at the middle-class segment they will priced very competitively. For example, the company is planning to price its 32-inch LCD TV below Rs 30,000 (against the average market price of around Rs 55,000) and 26-inch at Rs 16,000. “We are also planning to bring out 21-inch LCD TVs at Rs 9,000,” he said.

Mr Harish Kumar, who promoted Maharaja International Ltd, brought in the Electrolux brand by forming a joint venture and then became the Vice-Chairman of Electrolux Kelvinator Ltd after the latter took a majority stake in Maharaja. . He resigned from the Electrolux Kelvinator board when the company pulled out of India in 2004. Mr Kumar then set up Empire Home Appliances Ltd and bought the brand Gem from Gem India Ltd and also put up a new manufacturing facility in Himachal Pradesh at an investment of Rs 100 crore.

He also took a 50 per cent stake in Beltek, a consumer electronics brand known for its TVs in the Northern market. Besides, he owns another company – Maharaja Appliances — which is into the manufacturing of small appliances under the brand name Maharaja Whiteline.

Early this year, Empire Home started manufacturing a range of products including CTVs, refrigerators (direct cool models) and washing machines. These products are available in the Northern and Western markets.

Expanding retail horizon

According to Mr Kumar, the company will expand its retail horizon to the South and other parts of the country in phases. “We are likely to be in the South by late this year or early next year,” he said. It also plans to pump in another Rs 100 crore (to be funded through “mostly internal accruals”) in the Baddi plant for creating new production lines for the proposed products.

Currently it supplies its 50 L refrigerators to Metro. “We are also in talks with other major retail brands for manufacturing their private label products,” said Mr Kumar.

The company is also exploring the possibilities of roping in a strategic partner from Europe or West Asia. “There are many companies out there which want to enter the Indian market. We may tie up with one of them to expand our business,” he explained.

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