Despite weak consumer demand, the ₹1,500-crore Mirc Electronics, makers of the Onida brand of consumer durables, is boosting capacity of washing machines category by 30 per cent at its plant in Roorkee, Uttarakhand.

“Washing machines are an under-penetrated category and we are increasing production, although demand is still weak in the durables category,” said Gulu Mirchandani, Chairman and Managing Director.

Investment plan

The home-grown durable player, which is set to raise about ₹32 crore from a rights issue, will invest in less penetrated categories as well as in advertising campaigns. The company had recently brought back its erstwhile tagline of ‘Owners Pride’ in its ad campaigns.

Currently, Onida has 6 per cent market share in the washing machine category, while in flat colour televisions, it has managed to get a double digit share of 14 per cent in a slow market. Televisions and air conditioners are Mirc’s two largest product categories

“Demand is still limited in both the urban and rural markets and, today, we get equal contribution from both markets,’’ said Mirchandani.

The company has created a separate brand – Igo- for the rural markets under which it will sell televisions and washing machines.

The company is planning to fight back multinationals by roping in industry veteran and former director-home appliances business at LG Electronics, YV Verma.

Onida will soon exit CRT television sets as its steps up new launches of high-end LED TVs with 50-inch screens to compete with South Korean and Japanese players.

“Today, manufacturing know-how is the same for all players as there is no rocket science in TV manufacturing. Players like LG and Samsung have imported panels as the Government has discouraged local manufacturing by imposing zero import duties,’’ he said. However, the new Government has infused hope for companies such as Mirc Electronics as it hopes there will be improved infrastructure, which will induce manufacturing.

“When there is no power, we cannot run our plants. We hope the new Government will improve infrastructure and encourage manufacturing in the country,” added Mirchandani.

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