Shobha Roy
Orient Electric, part of the CK Birla Group, is looking to increase the share of premium fans to 20 per cent of its total turnover in the next one year. The growth will be supported by new product launches in the category.
According to Atul Jain, Senior Vice-President and BU Head — Fans, Orient Electric, premium fans, which are priced at ₹4,000-7,000 a unit, currently account for 15 per cent of its total turnover.
As on March, the company’s turnover was at ₹1,630 crore. Nearly 70 per cent of its turnover comes from fans and appliances, while lighting and switch gears contribute to the remaining 30 per cent.
“We have launched 5-6 new products under the Aero Series range in the last one year and are looking to launch another 5-6 offerings by the end of this year. If we see the recent buying trends, there is a clear shift in focus towards premium fans,” Jain told BusinessLine .
Leading position
Orient, Jain said, enjoys the No.1 position in the premium fans segment with over 40 per cent market share. This is likely to increase to over 50 per cent in the next one year.
In the fans segment, the economy and mass categories priced at ₹800-1,200 and ₹1,300-2,000 respectively, together account for nearly 60 per cent of total sales, the remaining 25 per cent comes from the decorative category priced at ₹2,000-4,000 a unit.
The company expects 15-20 per cent growth in turnover this year.
Exports, which currently account for 18-20 per cent of the turnover, is expected to increase to 25 per cent in the next two-three years.
Orient exports to West Asia, African countries such as Nigeria and South Africa and also to Bangladesh, Nepal and Sri Lanka.
“There is a huge market for fans globally and we expect the share of exports to increase to 25 per cent in two-three years,” he said.