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Bindu D. Menon

New Delhi, July 11 Italian company Merloni TermoSanitari is increasing its focus on the Indian water heater segment. The company is investing in innovative technologies to popularise its products.

“Our flagship brand Racold currently has a 25 per cent market share in the organised sector. We are looking to explore avenues to popularise the solar and gas water heating devices across the country,” Mr A.K. Rathi, Managing Director, MTS Group, told Business Line.

Its water heaters can be operated on electricity, solar energy and LPG.

Noting that water heaters are yet to emerge as a category in the appliances space, he said the demand for water heaters in the country is estimated at 1.5 million units a year.

Mr Rathi said the Government’s decision to remove water heater sector from the small-scale industry category has increased competition and product offerings in the sector. “Earlier, it was reserved in the small scale industry. However, we hope the category will evolve as manufacturers will be able to invest on technology enhancement.”

The company has earmarked an investment of Rs 40 crore in the next two years for technology upgradation and brownfield expansion. It plans to introduce solar water heaters fitted with its new super polymer coating technology.

MTS would start shifting its solar heaters with new Super Polymer High Performance (SPHP) coating technology for energy efficiency and high pressure withstanding capacity from next year.

Currently, it is now restricted for use in the premium electrical water heater segment. “We will be looking both at commercial and domestic applications,” Mr Rathi added.

MTS’ unit in Chakan near Pune has a production capacity of 5 lakh units.

Speaking on the expansion strategy, Mr Rathi said MTS will also be focusing on the modern trade. “It will be a major revenue channel for us in the times to come. This apart, we are also strengthening our distribution network.”

More Stories on : Outlook | Market Shares | Water | Electrical Goods

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