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Orient Electric, part of the CK Birla Group, is betting big on the home appliance segment as its new growth engine. It aims to be among the top three players in the air-cooler category in the next two years.
Saurabh Baishakhia, Senior Vice-President and Business Head, Appliances, said “ We are focusing on creating a differentiator by bringing in innovative products, in a bid to challenge not just the organised players, but also the unorganised segment in the air-cooler category. We are targeting a market share of close to 20 per cent in the next three years.” With the summer season round the corner, the company is gearing up for the launch of 12 new models in desert coolers, personal coolers, tower coolers and window cooler segments. This will expand the company’s air-cooler range to 34 models.
In addition, it’s ramping up distribution network to about 12,000 retailers from the existing 6,000 retailers in the next four months. “We aim to expand and strengthen the brand’s presence in the top 150 towns. In the next two years, we will expand the distribution further to about 300 towns,” he said.
Higher growth rate
The air-cooler segment has been growing at an estimated 10 per cent CAGR for the past two-three years. Nearly 65-70 per cent share of the air-cooler segment is still held by the unorganised players. So with the implementation of the GST, the organised players believe the industry will grow at a higher growth rate of 10-15 per cent.
“We aim to grow at a higher growth rate than the industry. We have put in place an attractive product and brand strategy that is based on deep consumer insights. At a time when air-coolers are still considered a commodity, we want to create a differentiator and focus on pride of ownership,” Baisakhia added.
Modular coolers
The company, for instance, is set to introduce a range of modular coolers that can be assembled and dismantled in a jiffy, in a bid to shake-off the perception that air coolers are bulky. It has also introduced features such as longer air-throw for better cooling, rust-proof body and is using anti-mosquito breeding material in its products.
In the home appliance segment, Orient Electric has presence in categories such as room heaters, water heaters, kitchen appliances as well as dry irons, besides air coolers.
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