Salora to focus on own brands, expect to wipe off loss

Consumer electronics firm Salora International is giving its own branded products a push apart from planning to widen its portfolio within a year as it looks to make a turnaround.

The firm, which is a distribution partner for mobile firm Motorola and supplies components to MNCs like Samsung and LG, is also targetting revenue of Rs 150 crore from consumer electronics segment in the next three years.

"We are widening our product range by getting into  new categories like home appliances. Our brand visibility will increase as we focus on enhancing and localising our distribution channels," Salora International General Manager (Operation) M K Khanna told PTI.

The company's consumer electronics business would grow by 20-25% year-on-year. Last fiscal, it had a turnover of Rs 85 crore, Khanna said.

"In the next three years, we should be doing around Rs 150 crore from the consumer electronics segment," he added.

Salora International has been running into losses in the last few quarters and its business had slowed down ever since it split up its distribution tie-up with Sony Ericsson.

 Last fiscal, the firm had a net loss of Rs 9.12 crore and a revenue of Rs 512.04 crore.

"We have now moved away from the difficult times. We are concentrating a lot on product development and marketing our products," he said, adding the company expects to come out of losses by the first quarter of next fiscal.

In the home appliances segment, the company is planning to bring products like microwave, induction cooker and washing machines by next fiscal.

At present, Salora distributes Japanese firm Sharp's appliances range, including microwave ovens, vacuum cleaners and small kitchen appliances across India.

 Besides, the firm is planning to increase the range of its existing products in the television segment.

At present, the company has one facility in the national capital region. While it does not intend to set up any new plant in the country, the company plans to sub-contract to other original equipment manufacturers (OEMS).