Orient Electric, part of the CK Birla Group, is banking on premium fans to drive its growth. For the company, which gets nearly 70 per cent of its revenues from the fans business, strengthening its presence in the fast-growing premium and super premium segments will be crucial.
In a bid to woo millennial consumers, the company is introducing the Aero range of ceiling fans under the sub-brand Aeroquiet. This range comes with aerodynamic designs, promising maximum air flow and sharp reduction in noise levels, the company said, adding that it would be launching an aggressive advertising campaign this week, featuring MS Dhoni as its brand ambassador.
“Last year, we had introduced Aeroquiet in select markets to gauge consumer response. We received good feedback and have now launched it across the country,” said Rakesh Khanna, CEO, Orient Electric.
The Aeroquiet fans will be priced at about ₹5,000. The company expects the premium segment to contribute about 5 per cent to its revenues initially.
The electric fans segment has been witnessing slower growth rates over the past few years. Fan makers have, therefore, been trying to grow volumes by pepping up the colour options, adding new functionalities and polishing the aesthetics.
Khanna said: “We believe the category is expected to start seeing higher growth rates. This will be driven by the government’s push towards village electrification and low-cost housing. Also, discerning Indian consumers are looking to upgrade to superior products. This is expected to give a boost to the replacement market.” The company is also scaling up distribution to grow its presence in smaller towns, besides launching its own e-commerce portal last year.
Orient’s revenues are pegged at about ₹1,200 crore, of which nearly 70 per cent comes from fans and the rest from other businesses, such as lighting and home appliances.