Electrolux Carting Washing Machines Units To Butibori

Following the merger of its two other subsidiaries, Electrolux India and Intron, into Electrolux Kelvinator, Swedish consumer durable manufacturer AB Electrolux has decided to consolidate its Indian operations. It has begun relocation of the entire washing machine manufacturing facilities to Butibori, 20 kms from Nagpur in Maharashtra.

The existing front-loading washing machine facility at Gurgaon, with a capacity of around 30-35,000 units per annum, is being shifted to the top-load machine manufacturing facility at Butibori.

After the relocation, the Butibori facility will have a capacity between 200,000 to 250,000 units per annum, Ram Ramsunder, chief executive of Electrolux India, said.

 

"The restructuring is aimed at consolidating operations in India to achieve economies of scale. With a view to derive synergistic benefits and improve overall performance and efficiencies, we intend to consolidate our washing machine manufacturing facilities (for top-loading and front loading washers) and have one expanded unit at Butibori," Ramsunder said.

He also said Electrolux Kelvinator will export washing machines out of India, once the product portfolio is enhanced. "We have just started exports in a small way. However, as and when the product portfolio expands, we may be able to export more washing machines out of the Butibori unit," he said.

With a view to developing environment friendly and intelligent products for the Indian market, Electrolux has also invested in a design and R&D centre at Butibori. The centre is engaged in creating innovative and exciting products, which will be of prime importance to future customers, the company said.

Electrolux Kelvinator, a listed firm in which AB Electrolux will hold around 76 per cent stake, is expected to record a turnover of Rs 450 crore this year. It also has three refrigerator manufacturing plants located in north, west and south India.

Over the last six years, AB Electrolux has invested more than $70 million in India and this consolidation should pave the way for a larger and stronger presence of the Electrolux group in the country, Electrolux India said in a statement.