American kitchen appliance brand steps into India

Hamilton Beach Brands inks pact with HCL Infosystems for distribution, to start local production next year

American kitchen appliances maker Hamilton Beach Brands will now be available in Indian stores. As part of its global expansion that started three years back with China and Brazil, Hamilton Beach has formed a strategic alliance with HCL Infosystems to market and distribute its products in India.

"Global spread is strategic for future and India is an important market for us. Considering the huge potential, we plan to start local production of a few product categories in India next year," said Brian Schwartz, director, International Business Development, Hamilton Beach Brands said. Schwartz is responsible for the company's expansions in Asia Pacific, West Asia, Europe and Africa consumer markets.

At present, markets outside of North America contribute just about five per cent to the company's total revenue from consumer products, said Schwartz. "This number will grow faster. We started stepping into markets outside North America just a few years ago. Over the next year, we'll enter five more markets in Asia Pacific, West Asia, Europe and African region," he added.

The contract between Hamilton Beach and HCL Infosystems is for five years and has the renewal option. While HCL will market and distribute the products, Hamilton will take care of branding and promotions in India.

Initially, the products will be imported from China to India. Next year, Schwartz said, the company will form a 100% subsidiary in India to facilitate local production. However, Hamilton Beach will not have its own manufacturing unit, and it would have a third party for production. To start with, Schwartz said, mixer grinders and steam irons will be produced in India starting next year. Schwartz declined to give any projected investment figure.

At present, most of its consumer appliances are produced in China through third party arrangements. Design and quality of the products are controlled by the 100-year old Hamilton Beach, he added.

Hamilton will initially bring 22 different kitchen appliances to India, and will expand depending on growth in the world's second largest population. Products are positioned premium, and priced between Rs 3,000 and Rs 12,000, about 10% higher than brands like Philips.

HCL Infosystems, which has distribution network for information technology products, mobility products and consumer appliances, will market Hamilton products in a phased manner. Sutikshan Naithani, executive vice president & head (distribution business), HCL Infosystems, said about 25 cities will be covered this year in the first phase and the number will reach 35 next year. "We have about 250 outlets for consumer appliances now. We are expanding it to about 500 by end of this year," he added.

Over the next four to five years, Naithani said Hamilton products will have atleast 10% share in the small appliances market in India. The small appliances market in India is estimated at more than Rs 6,000 crore, and is growing at over 10% year-on-year.

However, few of the Hamilton products are already available on e-commerce portals in India.