With entry into new verticals, Mitashi eyes ₹2,000-cr turnover

Home-grown consumer electronics brand, Mitashi, is targeting a four-fold jump in turnover to ₹2,000 crore over the next four-five years.

The Mumbai-based company, which began as a video-console distributor in 1991, reported a turnover of ₹500 crore primarily on its portfolio of television sets.

Apart from televisions, its offerings include air-conditioners (the second largest vertical), home theatres and speakers, washing machines and the recently-launched refrigerators.

The focus

While price continues to be a differntiating factor for Mitashi, it is the ‘value- conscious buyer’ that the consumer-durable maker primarily targets.

According to Rakesh Dugar, Chairman and Managing Director, the company is planning a near ₹ 150-crore branding and marketing exercise over the next three years. The focus will be on establishing itself as a “premium value brand” with a portfolio of mid-range offerings.

For this, the marketing and branding budget, will see a near 275 per cent jump compared to the ₹40 crore that the company has spent over the last three years (between FY16 and FY18).

“We are targeting a ₹2,000-crore turnover by 2022-23. I believe, it is an achievable target considering our entry into new verticals,” Dugar told BusinessLine.

Both off-line (distributor network and large format trade) and online channels (e-commerce) will be in focus.

component ecosystem

According to him, the company has already been approached by several private equity players, and investment plans are being discussed. Talks could materialise over the next 12-odd months.

He said the funds raised will be used for marketing and brand expansion.

There are, however, no immediate plans to get into manufacturing.

Most of Mitashi’s products are imported from China or manufactured in India through third-party players (contract manufacturers) .

It will look at manufacturing when the component ecosystem develops in the country.