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Home appliances company Haier India, a 100 per cent subsidiary of Haier Group of China, might soon hike the price of its products by 3-5 per cent.
“Rupee depreciation has been hitting us. We are looking to further hike prices by 3-5 per cent in June if the slide does not stop,” said Mr Eric Briganza, President, Hair Appliances (India).
Thirty five per cent of the company's sales have import content, sourced from other manufacturing facilities in China, Thailand etc.
No new products
Mr Briganza also ruled out entering any new product category in India this year. “We have made most of our investments in manufacturing and research for the year. We will not be introducing any new product category for this year, but will be adding more models to existing categories,” he said.
The company had clocked a 28 per cent growth last calendar year, translating into a sales turnover of Rs 972 crore, and has set a sales turnover target of Rs 1,300 crore for 2012.
Thirty eight per cent of the company's turnover comes from refrigerators sale. Haier India claims it commands 15-20 per cent market share in the commercial refrigerator segment, which contributes 12 per cent of its turnover.
Given its strength in refrigeration, Haier is planning to ramp up capacity of its refrigerator manufacturing plant at Ranjangaon near Pune, from the current 0.8 million units to 1.5 million units by end-2013.
The company allocates 8 per cent of its sales earning to marketing expenditure. “We have always concentrated more on below the line expenditure and strengthening our retail presence than marketing per se,” he added. The company has expanded into 170 exclusive retail stores in the past two years. It has allocated Rs 35 crore on below the line activity for the current calendar year.
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