BSH Home Appliances India Pvt Ltd, a global manufacturer of high-end appliances, is optimistic about its growth prospects in India. The company aims to lead the trend towards premiumization by enhancing retail experiences and focusing on value-driven sales strategies. It plans to introduce new product categories with strong localization support and expand its distribution network, all aimed at maintaining a robust double-digit growth rate in the country.
“Q1 of this calendar year was good for us. We are more bullish due to the new category launches and we hope to record higher double-digit growth in 2024 when compared with 2023, driven by new categories,” Saif Khan, MD & CEO of BSH Home Appliances India told businessline.
A subsidiary of Germany-based Bosch Group’s BSH Hausgeräte GmbH, the company believes that the premium home appliances market in India is gaining momentum due to factors such as urbanization, increased disposable income, and exposure to global trends.
Khan stated that BSH is leading the premiumization push as a perceived premium brand and will continue to drive this trend through in-store experiences and other initiatives.
In line with its premiumization strategy, the company is transforming its existing showrooms into new Bosch brand stores, starting with Chennai. The new store was launched last week. The company has approximately 115 brand shops across India, in addition to thousands of touchpoints.
Khan mentioned that the company is banking on the new category of products to drive incremental sales, with dishwashers and built-in cooking ranges showing promising momentum.
The company sells its appliances under three brands in India – Bosch, Siemens, and Gaggenau catering to mass premium, premium and luxury markets respectively.
“Among the three brands, Siemens has a strong legacy while Gaggenau has started to pick up, with South and East contributing to the sales. People in these regions are buying new luxury homes, hence the luxury brand is gaining traction,” he said.
A set of 4 or 5 appliances from the Gaggenau brand for a kitchen in a luxury home will cost about ₹45-50 lakh. Currently, these products are imported and sold in India. Siemens brand of products will be 10 per cent lower than Gaggenau, and Bosch’s brand of appliances will be another 10 per cent lower.
The company’s strong growth is supported by its local manufacturing operations. Its Sriperumbudur factory near Chennai, which commenced production in 2014, has been expanded with another production line. The company has so far invested about 90 million euros in the Sriperumbudur unit.
“We are doubling the capacity of front-load washing machines with the launch of a 9 and 10-kg lineup. The second line will come into production next month. Our strategy here is a ‘make in India’ strategy as we design and develop products for the Indian market. We also drive a deeper localization strategy and we intend to increase the local content from about 60 per cent to 70-75 per cent next year,” said Rakesh Desai, CTO and Chairman of the Board (India), BSH Household Appliances Manufacturing Pvt Ltd.