Kohler mulls increasing production capacity in India

US-based company has started export of products designed to meet needs in India

Kitchen and bath fittings major Kohler plans to expand production in India to serve its key global markets besides meeting local requirements as it looks to leverage on cost advantage of manufacturing in the country.

The US-based company has also started export of products that have been designed to meet needs in India -- one of its three strategic global markets -- to other countries as it aims strengthen operations here.

"To support our commitment to India we are looking at expanding our current facility as the need arises," Kohler Co President & CEO David Kohler told PTI.

Bullish on manufacturing in India, he said the country has a great price advantage "with very productive labour and a singular quality product".

"We are definitely looking at continuing and increasing manufacturing for our key markets USA, Europe, Africa from India," said Kohler.

He further said: "We have designed here number of products based on the needs of the Indian market and we are actually now exporting those products in other countries."

The company exports around 20% of its products from India to its US, Europe and African markets. It has a manufacturing unit in Baroda, Gujarat set up in 2009 manufacturing ceramics.

When asked about future investments, he said "we have invested USD 200 million so far and will continue to invest in the country year on year" without sharing details.

Commenting on plans for India, Kohler said: "India is one of our fastest growing markets and we have a lot of expectations from the country."

He said at present the Indian market contributes in single digit to Kohler's total global revenue and that could become double digits in the coming years without giving any specific timeline.

In order to increase sales in India, the company is looking to add more stores, even in tier II and III cities.

"We plan to have 350 stores by the end of this year spanning over 100 cities. In the next 2-3 years we are looking at adding 50-60 cities and 60-90 stores every year," Kohler said.

According to Kohler Kitchen & Bath, India-Sub Saharan Africa Managing Director, Salil Sadanandan, around 50% of the company's sales in India comes from projects business, where Kohler has pact with luxury flat builders and hospitality sector.

"Project business is very important for us. We work with some of the leading developers, not only in residential but commercial and hospitality. 90% market today is the new building and only 10% is remodelling," he said.

Kohler has association with leading developers as DLF, Lodha, Prestige, Oberoi, Jaypee etc.