Haier targets 40% growth in revenue in 2013

Firm plans to double refrigerator capacity by 2014 to two million units

Chinese consumer durable maker Haier targets a 40 per cent growth in revenue at Rs 1,700 crore in 2013, backed by refrigerators and flat panel TVs, said Eric Braganza, president, Haier India.

The company registered a turnover of Rs 1,203 crore in 2012, up from Rs 972 crore in 2011.

“We plan to ramp up our installed capacity of refrigerators from 10 lakh at present to 20 lakh by 2014,” said Bragnaza.
According to Braganza, refrigerators contribute about 35 per cent to Haier’s total business in India at present, followed by consumer electronics panel business that accounts for 30 per cent of the turnover. The air-conditioning business contributes about 14 per cent and washing machines accounts for about 9 per cent of its sales.

“We are also planning to increase the number of our exclusive stores and shop in shops to 200 from the current 165 and retail outlets from 4,500 to 6,000 in 2013,” Braganza said.

Haier today launched 79 new products across six segments, including ACs, water heaters, refrigerators, commercial freezers.
Last year, the company had said that it would start manufacturing washing machines, air conditioners and water heaters at its own plant by 2014 instead of outsourcing as it looks for about six-fold jump in revenues to up to Rs 7,500 crore over the next five years.

It currently outsources production of ACs and majority of washing machines models to third parties.

The company plans to invest about Rs 100 crore to set up new lines to produce these items and water heaters at its Ranjangaon plant in Pune. Haier India, which is a wholly-owned subsidiary of the $20-billion Chinese parent, intends to produce almost all its models across categories in India, including air-conditioning machines and water heaters, going forward. It currently makes refrigerators at the Ranjangaon plant and imports all TV panels and water heaters from China.

In October, Braganza had told Business Standard that the company has plans to make India as the manufacturing hub for its exports to the neighbouring markets and African region. The company would initially export refrigerators and washing machines, most of which would be produced in India. According to Braganza, the company expects about 25 per cent revenue of Indian operations to come from exports over the next two years.