The Hindu Business Line : Microwave market set for high growth

Of the total of 91 sectors surveyed, the microwave oven category has been identified as the high growth segment, registering a 10-20 per cent growth rate per annum.

Bindu D. Menon

New Delhi, Dec. 21 The microwave market is on a high burner with the category registering a growth of over 40 per cent. Companies are driving sales by introducing newer models, product innovations and a slew of below-the-line activities, to make inroads into the consumer’s kitchen.

“If the present growth in the category continues, than there will be a number of players on this turf. We hope, by next year, the market will sell at least 10 lakh units annually,” Mr Rahul Sethi, Managing Director, Kitchen Appliances India Ltd, told Business Line.

Mr Sethi, whose company owns the Kenstar brand, said product innovation is the core of his marketing agenda. Kenstar commands a 13 per cent market share, below market leaders such as LG (34 per cent) and Samsung (18.6 per cent).

Observing that during 2006-07 production of microwave ovens stood at 6.5 lakh units, he said it is projected to increase to 10 lakh units in 2007-08.

A CII report notes that of the total of 91 sectors surveyed, the microwave oven category has been identified as the high growth segment, registering a 10-20 per cent growth rate per annum.

“The use of microwave has also seen a dramatic increase among home-makers who are using it as a convenience device rather than a luxury item. Besides plain-vanilla products, companies are introducing product innovations to penetrate the market,” Mr Kamal Nandi, Vice-President – Sales and Marketing, Godrej and Boyce, said.

While Godrej has introduced ‘Eon’ steam microwave to retain the nutritional value of food, Kenstar has lined up non-stick tawas and rotisseries. Samsung is playing with the colour scheme by moving away from the white and metallic finishes to blacks and various colour combinations.

“Last year, we introduced the steam microwave as most Indian cooking is based on the premises of steam cooking. This has helped us garner a market share of seven per cent,” Mr Nandi added.

“We have started organising cookery classes in many cities. In addition, we also have cookbooks and booklets to help consumers get a better idea about the product. These below-the-line activities help us get an insight into consumer behaviour,” Mr R. Zutshi, Deputy Managing Director, Samsung India, said. Samsung, introduced the Trio series which played on the colour theme. The company has around 20 models in place.

Mr Manish Gupta, Product Head, Microwave and Vacuum Cleaners, LG, said, “Typically, festivals and winters are the peak season for sales. Our initiatives are to make the purchase an impulsive one rather than a planned one.”

LG is looking to sell at least 3.1 lakh pieces this year.

The company has earmarked Rs 5 crore towards marketing and promotion to make the category more visible.

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