Whirlpool breaks even, to hike prices by a further 2-3% this quarter

Home appliance maker Whirlpool of India today said that it has achieved break even in the financial year ended March.

"We have already reported a net profit of Rs 15 crore for April-December 2007 and registered a break-even during the financial year ended March 2008," said Shantanu Das Gupta, vice-president (marketing).

The company had reported a net loss of Rs 5.32 crore on a total income of Rs 496.78 crore in FY07. The company is expecting a 20 per cent increase in turnover from Rs 1,500 crore last year to Rs 1,800 for FY08.

The company plans to increase prices of its products by 2-3 per cent in a phased manner in the April-June quarter due to rising raw material prices.

"We have already increased our prices by 2-3 per cent in January-February and a similar hike will take place in the current quarter," said Arvind Uppal, managing director.

The company, which launched its new range of washing machines, refrigerators and microwave ovens, is bullish on new categories including water purifiers, built-in appliances and accessories, which are part of its product portfolio this year.

It plans to strengthen its existing business to notch a 25 per cent market share in the refrigerator segment, 20 per cent for washing machines and 10 per cent for microwave ovens.

"Our aim is to make Whirlpool No 1 in home appliances in India by 2010," said Gupta.

The company plans to invest around Rs 200 crore on product development over the next three years. "We intend to spend around Rs 60 crore each year for the next three years," said Uppal.

Whirlpool of India, a wholly owned subsidiary of US major Whirlpool Corp, was formed in 1996 with the merger of Whirlpool Washing Machines and Kelvinator India. Whirlpool Corp holds 85 per cent stake in the company.