Companies

Haier India aims to touch the one billion mark in revenues

Meenakshi Verma Ambwani New Delhi | Updated on January 16, 2018

Eric Braganza, President, Haier India

Consumer appliances maker Haier India is aiming to touch the one billion dollar revenue mark in the next five years, on the back of increased manufacturing capacity and growth in distribution.

Eric Braganza, President Haier India said, “We have set a tough target to reach the one billion dollar mark (about ₹ 6,500 crore) in the next 4-5 years.”

The company, which aims to be among the top five brands, hopes to close this year with about ₹ 2,200 crore in revenues growing at 30 per cent annually. It is already in the process of expansion of its manufacturing capacity at its plant at Pune with an investment of about ₹ 500 crore.

By 2017, the company will have a capacity to make 2 million refrigerators and also start manufacturing half a million units each of LED TVs, ACs, Washing machines and water heaters in India. “As of now 25 per cent of our turnover comes from imported products and 75 per cent comes from made in India products. Once the new capacity goes on stream ,the contribution of imported products will come down further,” he said.

Braganza said that the company has been focusing on stable growth, strengthening its product portfolio and back-end processes, He said instead of becoming a “price fighter” brand it is focused on value for money positioning.

“ We have witnessed good growth for mid and top end products such as side-by-side refrigerators, bottom mounted refrigerators, large size panels and front load washing machines. There is demand for such products even from tier 2 and rural regions,” he added.

Talking about e-commerce, Braganza said this year nearly 4-5 per cent of its sales will come from this channel, which is expected to grow its contribution to about 7-8 per cent of its sales by next year. He said that as a strategy the company works directly with the e-commerce players and also ensures some of the product models are sold only on e-commerce.

“ This has been good calendar year for us across product categories. Summer season was good for refrigerators and AC sales. Factors such as the Seventh pay commission and good monsoons are expected to boost the festive season sales as well as the wedding season ,” he added.

Published on September 25, 2016

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