Chinese durables major Haier is planning to double its production capacity in Ranjangoan facility near Pune in a bid to consolidate its position in the Indian market in the next two years.

The company acquired the washing machine and refrigerator manufacturing facility, spread over 40 acres, from Daewoo. “We have enough space there to add a couple of more lines to double our capacity to over one million units,” said Eric Braganza, President – India Operations, Haier.

The company has so far invested Rs 120 crore in India, and the expansion project may require another Rs 40-50 crore, he said.

Braganza told Business Line that Haier is the first Chinese brand to establish itself in India in a big way. “In the last eight years, we managed to instil confidence in the minds of the trade that the brand Haier is here to stay,” said Braganza.

Haier India is a wholly-owned subsidiary of the $20-billion Chinese parent. In India, it has over 130 stock keeping units of a range of products including refrigerators, LCD/LED televisions, washing machines, air-conditioners, deep freezers, wine cellars and water heaters.

“We are one of the top six players in categories such as refrigerators, washing machines and panel TVs,” he said.

In India, the brand has consciously decided to stay away from modern and organised retailers, as “they may position our products as a cheap category. But, we will be there when we can be on our terms”. The brand’s immediate priority is to consolidate its position in the market and prove itself to be as good as any other Japanese or Korean brands here.

The brand closed calendar 2011 with a turnover of Rs 975 crore, and is on track to close 2012 at Rs 1,250 crore.

“Our target is to be one of the top three players in the next five to six years,” said Braganza.

>ravikumar.ramanujam@thehindu.co.in

Related Topics
comment COMMENT NOW