MORF India Limited, a Chennai-based company that provides solutions in the field of water purif-ication and sewage treatment, is targeting to achieve revenues of Rs 36 crore from the Kelvinator brand in the 2013-14 financial year, according to managing director MV Praveen. MORF had entered into a five-year brand licensing agreement with over $15-billion Swedish appliances major Electrolux Home Products Inc to market the latter's Kelvinator range of water and air purifiers in India and Sri Lanka with scope to expand the relationship for another 10 years.
“We have a contractual obligation, which starts from FY14, with Electrolux to sell no less than 36,000 units of Kelvinator products a year. Our idea is to consolidate our presence in the south and sell 10,000 units in the region in the next six months before going national by the end of the 2013 calendar,” he told mediapersons here on Friday.
The company has launched two products – Ayoni and Ayoni Plus – under the Kelvinator brand in the Indian market. It plans to introduce air purifiers beginning the 2014 calendar.
Stating that the organised water purifier market in India was pegged at Rs 2,000 crore, dominated by multinationals like Eureka Forbes, Kent and Whirlpool, Praveen said the market was expected to grow to about Rs 6,000 crore by 2015. “Electrolux has over 60 brands and we plan to bring its UV (ultraviolet) purifiers range to the domestic market by the end of this year,” he added.
MORF is in the process of starting an above-the-line and below-the-line campaign for its Kelvinator products, and has mandated investment bankers to help the company raise some equity investment.
“Talks are in advanced stages to raise Rs 10 crore through equity dilution of 25-30 per cent. A substantial amount of this will go for MORF’s own business – execution of large projects – and the remaining towards initiating a brand-building exercise for the Kelvinator brand,” Praveen said.