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Usha International, a manufacturer of consumer durable products, expects to gain market share in the growing fan industry by launching new products and reaching out to the rural parts of the country.
The company grew its business by over 25 over cent last fiscal, and increased its market share by about 2 per cent to to 21 per cent, and expects to sustain the momentum this year.
Post-GST gains
Rohit Mathur, President, Fans Business, Usha International, said: “After the GST implementation last year, the fan industry went through a tough phase and sales dropped. However, after the GST Council brought about the much needed change in slab from 28 to 18 per cent, the industry has been doing extremely well.”
The ₹6,000-crore fan market in the country is expected to grow by about 7-9 per cent this year.
What is significant is a shift towards branded products, said Mathur.
“Apart from popularising energy-efficient fans in the country, we are also looking at stepping up out presence and reaching out to the remotest parts of rural India, where there is latent demand. With the government's rural electrification mission, there is a need to develop these markets,” he said.
Mathur further said the company is in the process of expanding its manufacturing facilities in Hyderabad and Kolkata. It is also increasing its supplier network to meet the growing demand.
Price correction
On the potential of price correction, Mathur said the inputs costs have gone up steadily and the prices of aluminium and copper have also increased. All these could potentially mean a price correction of 6-7 per cent in the near term.
Beginning this summer, the company strengthened its portfolio with multiple launches which include the Energia 32, the Technix Plus and the Novello.
The Energia 32 comes with an in-built brushless DC motor that does not generate heat while consuming just 32 Watts of energy.
With disposable incomes going up, customers are purchasing higher end fans which are not only efficient but also decorative, said Mathur.
At least 11 brands are currently operating in the country and, post GST rollout, unorganised sector players are finding the going tough as people are opting for branded products, he said.
Meanwhile, the company’s association with the Mumbai Indians IPL team “continues for the fifth year”. One of the ranges is named ‘Usha Striker’, Mathur remarked.
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