Italian Appliances Major Targets Indian Homes

Something wrong with your washing machine? Don't worry. It can take care of itself. The in-built modem in the machine, connected to your telephone line, will automatically dial the customer care centre after sensing a fault with the machine. So even before you decide to call the customer care centre, an executive from the centre will call to ask when he could come to rectify the fault!

Welcome to the age of Net-linked appliances. The Net-linked dream machines will be available to Indian consumers by March 2001, claims Merloni Elettrodo-mestici, a Rs 7,000 crore Italian giant which is entering the Indian consumer durable market in July. A leading manufacturer of digital home appliances in Europe, the group sells its products under the brand name of Ariston.

 

The route Merloni has taken to slip into India is an exclusive distribution and marketing Rs 40 crore tieup with Overseas Connexions Ltd (OCL). OCL pioneered the concept of imported modular kitchens in India under the brand name Kitchen Art.

OCL will launch Ariston's range of home appliances including cookers, chimneys, ovens, washing machines, dish washers and refrigerators. The operation is expected to take off gradually with the 100-odd dealers it is planning to appoint by March 2001.

With plans of targeting the upper middle and premium consumer segment in India, OCL managing director Sandeep Sabharwal says, "Differentials are not too large. If we were to compare it with the existing market in India, Ariston products will only be about 10 to 15 per cent higher. However, the products will not filter down to the masses."

Considering Merloni sells more than seven million units of the Ariston range annually in Europe, the market size Sabharwal is looking at in India in the initial year of its launch is between Rs 15 to 20 crore. "If we are able to manage this much, it will be a notable beginning for Ariston. Our focus is not on competition. A discerning owner is what we are looking at," comments Sabharwal.

Despite being higher priced than the Indian brands, Ariston promises to offer value for money. "We are offering the Indian market similar products, but with the latest technology," adds Sabharwal.

Consider the price range: The hobs are priced at Rs 12,500; dish washers between Rs 38-39,000; washing machines between Rs 25-30,000; ovens between Rs 22-33,000, going up to Rs 48,000; cooking ranges between Rs 19-40,000 and so on.

Keeping in mind the Indian market is already satiated with established brands in the segment, Ariston will have to work really hard to create a niche for itself.