The Hindu Business Line : `TN largest market for front-loading washing machines'

TAMIL NADU is the single largest market for front-loading washing machines accounting for around 20 per cent of the national market, according to Mr Vipul B. Raval, Managing Director, RBS Home Appliances Pvt Ltd, Mumbai, distributor for Siemens Home Appliances.

Speaking to Business Line in Coimbatore, he said the market size for front-loading washing machines in Tamil Nadu is roughly 25,000 units per year out of the all India market of 1.20 lakh units. Some of the major players selling this product include Siemens, LG and IFB.

Tamil Nadu is a `very mature market' that has understood the advantages of using front-loading washing machines. He said the machine gives the best wash, using less water. Other places where the product is in demand include Bangalore, Kochi and Mumbai among others. Surprisingly, Delhi is not a big market for the product.

He said the Siemens' front-loading washing machine of 7 kg capacity requires only 51 litres of water and a more advanced machine that would be launched shortly would need only 48 litres.

But a top-loading machine needs substantially more water. He said the market for front-loading washing machines is growing at the rate of 20 per cent annually and his company is looking at a 20 per cent market share in Tamil Nadu.

He said Tirupur is a big market for dryers and the company has come up with a specific offer for dryers priced under Rs 10,000 for this market during `The Hindu MetroPlus Lifestyle show' to be held in Coimbatore between October 20 and 23. The market for dryers has grown by 300 per cent in India last year.

The normal market size for dryers in the country is about 6,000 units but this year it has already crossed 10,000 units.

Mr Raval said his company has also decided to break the price barrier to popularise the use of dishwashers.

He said the Siemens dishwasher is priced around Rs 30,000 and his company has seen a 20 per cent growth in this market this year.

Efforts are on to launch a new line of dishwashers that would be priced below Rs 20,000 under the `Evolution' brand.

Recently, the company secured an order for equipping the kitchens in 1,000 apartments in New Delhi.

The Siemens' dream kitchen consists of a full range of products — washing machines, dishwasher, microwave oven, kettle, chimney etc and depending on the combination , the cost could vary between Rs 80,000 and Rs 4 lakh per kitchen.

The company will launch Siemens cordless phones next month priced at Rs 2,690 with features such as high voice clarity, lightweight and longer talk-time.

During the year, the company hopes to achieve a sales turnover of Rs 35 crore and this is expected to cross Rs 50 crore next year.

While the company distributes Siemens' products catering to the top end of the market, it sources home appliances from abroad for marketing in India under the `Evolution' brand catering to the price-sensitive market segment. The `Evolution' brand was launched recently. Tamil Nadu contributes to more than 25 per cent of the company's turnover.

Mr Raval said apart from distributing the products through franchisees, the company also owns outlets in Salem, Hyderabad, Mumbai and Chennai. The next outlet would come up at Ahmedabad. Plans are on to have more than 20 outlets before March 2006, he said.

More than 20 per cent of the turnover is expected to come from these company-owned outlets in the near future, he added.

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