The Hindu Business Line : Haier India on an expansion spree

Haier Appliances (India) Pvt Ltd, a wholly owned subsidiary of the $16.2-billion Chinese durable giant, is on an expansion spree, which includes beginning production at its newly acquired facility as well as launching a slew of new products in the country.

The company recently acquired a 40-acre facility in Pune owned by Anchor Daewoo. Addressing a group of reporters from India here recently, Mr Pranay Dhabhai, Whole Time Director and COO, Haier India, said: “We completed acquisition of the facility in August last year and are now gearing up to begin production of refrigerators from the facility.” The unit has a capacity to produce 3,30,000 refrigerators per year. “We eventually plan to begin production of our range of washing machines and colour televisions at the Pune facility,” he added.

Acquiring facilities

On the issue of more company owned facilities in the country, Mr Dhabhai said, “Acquisitions are a key part of the Haier strategy of growth not only in India but globally as well. We are definitely looking out for further acquisitions. In fact, we have already been approached by several companies and we are evaluating the possibilities.”

Haier is also planning to make India a manufacturing and exporting hub in the future. Mr Diao Yunfeng, Managing Director, Haier Group Company, said, “Yes we are planning to make India a manufacturing hub to export to other countries.”

Mr Dhabhai said, “In fact, we have already begun exporting from our Pune facility. We recently sent a consignment each to Africa, West Asia and Sri Lanka because of the facilities’ proximity to the port.”

The company also plans to roll out new line up of air conditioners, washing machines and refrigerators in 2008. “We will roll out several new products in the Indian market in 2008. Actually, we have so far been integrating our backward linkages, and now will focus on product roll outs and brand creation.”

Promotion plans

On Haier India’s plans of advertising and promotions, Mr Dhabhai said, “We will focus not only on television, but on print and on-the-ground promotions as well. We will also be working on the visibility factor at the showrooms and departmental chains. Also, a key growth driver will be our after-sales service that has been linked with a customer care centre.”

Haier India already has a distribution strength of 4,500 outlets accompanied by 21 Planet Haier outlets. “We also plan to enter the commercial space through commercial air conditioners and freezers in the country. Also, we are looking at launching a range of water heaters within this year,” said Mr Dhabhai.

The company, which clocked a revenue of Rs 350 crore in 2007, is set to touch the Rs 500-crore mark in 2008.

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