Consumer appliances and electronic goods maker Haier India is eyeing 30% increase in sales this year on the back of higher demand during the festive season. “We are looking at 30% increase in sales this year. All our categories are reporting good growth. We expect to clock Rs 2,200 crore sale this fiscal,” says Eric Braganza, Haier India president.
The company, which reported sales of Rs 1,700 crore last fiscal, has set a target to become one of India’s top three brands by 2018 and increase its revenue to $1 billion by 2020 on the back of increased manufacturing capacity and growth in distribution. “We have set a tough target to reach the one billion dollar mark (about Rs 6,500 crore) in the next 4-5 years.”
Haier India recently invested Rs 490 crore to expand capacity at its existing manufacturing facility in Ranjangaon near Pune. “We have invested about Rs 500 crore at our plant at Ranjangaon to double capacity of refrigerator production and make new products too. We had to increase the capacity due to growth in the sales; therefore we had to build up additional manufacturing facility in India.”
The company expects to bring down product imports when its additional capacity at Pune plant becomes operational by October next year. “We expect our imports to go down from 25% at present to 15% when the additional capacity becomes operational. We will continue to import some high-end products,” Braganza adds.
Braganza says that the company has been focusing on stable growth, strengthening its product portfolio and back-end processes, Instead of becoming a ‘price fighter’ brand, the company is focused on value-for-money positioning.