The Hindu Business Line : Haier India chalking out plans for production facility

New Delhi May 16 Haier Appliances (India) Pvt Ltd, wholly owned subsidiary of the China-based global consumer durable firm, said that it will set up a manufacturing facility in the country soon.

An announcement will be made once details are worked out next month, the company said.

"India is very high on the Group's agenda, also for its geographical advantages, with close proximity to the West Asian and European countries. Therefore, setting up a production facility does prove to be advantageous in several ways, also if one were to look at possibilities of exporting goods from India," said Mr Pranay Dhabhai, Whole Time Director and Chief Operating Officer (COO), Haier India.

"We are working on the blueprint of the facility. Several things need to be looked into before we make the final decision sometime next month," he added.

Haier currently manufactures products through third-party units. While washing machines, air-conditioners and televisions are manufactured in Uttaranchal, refrigerators are produced at a third-party facility in Pune.

Deciding factors

Among various issues, the company is closely evaluating the feasibility of setting up the unit in an excise-free zone vis-a-vis areas closer to ports. "Decisions on capacity and what category of products from within our portfolio will be manufactured at the facility will also be made in tandem with the other announcements," said Mr Dhabhai.

On investments, he said: "Haier is a major player in the global consumer durable arena. And since we consider India an important market, we will do whatever it takes to set up the unit, since funds are not going to be a problem."

The company has also embarked on an expansion plan to make a strong mark in the domestic consumer durables and appliances market. "Globally the Group is growing at a CAGR of 78 per cent, and we in India also want to reach that level. In fact, we have been doing lots of activities for the past two years to double our turnover," said Mr Dhabhai.

"We are also in the process of consolidation, in terms of better availability of products through increasing our distribution outlets and capturing better shares in the current outlets," he added. The company currently has 4,500 outlets. On product launches, the company plans to launch several locally relevant products under the refrigerator, washing machine and television categories. It has already launched a new range of bottom-mount refrigerators after market research suggested consumer demand for them.

Planet Haier outlets

Haier plans to introduce several categories such as commercial air conditioners, freezers and water heaters from its global portfolio. It plans to add 10-12 exclusive Planet Haier outlets this year to the existing 22.

"To maintain growth and reach a turnover of around Rs 400 crore in 2007, we are going to spend around Rs 30 crore on media campaigns alone. An extra amount will be spent on several below-the-line activities and promotional campaigns," said Mr Dhabhai.

Haier India clocked revenues of Rs 300 crore in 2006.

More Stories on : Outlook | Consumer Electronics

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Hyundai phases out Accent CRDi, Viva models

Tata Tele to spend Rs 600 cr in expanding coverage

Haier India chalking out plans for production facility

Ripley's in tie-up for India foray

Reliance Retail's Bengal foray may be delayed

Munch Design scouting for more biz

Natco launches generic version of multiple sclerosis drug

`Good Princess' launched at Hindusthan Shipyard

Tata Indicom new plan