Whirlpool India expects double digit sales surge

Whirlpool of India Limited (WIL), the Indian arm of Whirlpool Corporation, is expecting to post a double digit growth rate by the end of this fiscal despite the economic downturn and increase its market share to more than 20 per cent in the Rs 9,000-10,000 crore domestic home appliances market by 2010.

The company will however adopt a quarter-wise product planning cycle instead of long-term strategy to achieve its target.

Speaking at the launch of its new range of fully automatic top loading and front loading range of washing machines called the Whirlpool Whitemagic range, which WIL launched to celebrate 100 years of its washing machine business, Shantanu Das Gupta, vice president-marketing, WIL said, " We plan to increase WIL's market share across the four categories of home appliances to 20 percent plus by 2010 with more emphasis on washing machines, air conditioners and microwaves where we are not as strongly positioned as in the refrigerator category."

 

WIL claims at present to enjoy a market share of around 22 per cent in the refigerator market which contributes around 55 per cent of the company's turnover, 15 per cent in the washing machine market which contributes around 25 per cent of WIL's turnover and 8-9 per cent market share in the microwave and air conditioner market

These four product categories constitute the 'white goods' market and is estimated to be worth Rs 9000-10,000 crore at present and grow by another Rs 1800-2000 crore more in another two years.

" We hope to achieve strong double digit market share in ACs, microwaves and washing machine category by 2010. Main focus will be washing machines where we intend to increase WIL's market share from 15 to 20 per cent within next year to meet WIL's overall objective of 20 per cent market share in home appliances market by 2010." said Dasgupta.

The company invested Rs 15-20 crore ($ 4 million) in the new Whitemagic range of washing machine and plans to make an annual investment worth $ 15 million (Rs 50-60 crore) in product development in India.

The company launched 13 products in January and had more products for the current year.

"In the product development area the investment in India across all category will be in the region of $25-30 million in the next two years," said Dasgupta.