Companies

Haier India to invest Rs 360 cr for expanding manufacturing capacity

Meenakshi Verma Ambwani New Delhi | Updated on January 24, 2018

Haier India plans to expand its manufacturing capacity. File Photo   -  Reuters

In line with the NDA government’s ‘Make in India’ programme, Haier India plans to expand its manufacturing capacity for refrigerators as well as start manufacturing washing machines, LED TVs, water heaters and air-conditioners in the country. The company, which plans to invest over Rs 360 crore for putting in these additional capacities, aims to be among the top five brands in India.

Eric Braganza, President, Haier India, told BusinessLine, “At our plant in Ranjangaon, Pune, we plan to increase manufacturing capacity of refrigerators from about one million units to two million units. We will also start manufacturing air-conditioners, LED TVs, washing machines and water heaters in India at the same site.”

The company is planning to put up a capacity of about 0.5 million units each for manufacturing washing machines, LED TV’s , air-conditioners and water heaters at its Pune plant. It expects the additional capacity to go on stream by 2017. While the company is already making refrigerators in India, some of its other products are being sourced through third party original equipment manufacturers or are being imported.

Braganza said the additional capacity will help the company significantly cut down on its imports. Haier India imports nearly 50 per cent of its sales, while the balance is manufactured in India. He said the additional capacities will mean that the company will be manufacturing nearly 75-80 per cent of its sales in India.

Asked for the key factors that led the company to take this decision, Braganza said, “In the past few years we have been growing faster than the market. Looking at the future growth, we need to build these additional internal capacities.”

“We expect to grow by 30 per cent in the January to June period,” he added. The company closed 2014 calendar year with about Rs 1,750 crore in turnover and has seen an overall growth of about 25-30 per cent year-on-year. Refrigerators are the largest contributor for the company followed by LED TVs and air conditioners. .

“Our intention is clear we want to be among the top five brands in the country by 2016-17,” Braganza added. The company has been gradually ramping up its sales and after-sales network and believes it is well positioned to achieve its goal.

On growth in tier 2 and 3 towns, Braganza said, “These towns contribute nearly 40 per cent to our business. We are seeing demand for our high-end products across the country, even in rural regions, as Indian consumers are becoming more and more aspirational and knowledgeable.”

Published on May 28, 2015

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