Eureka Forbes eyes 33% revenue from vacuum cleaners by 2014
Home appliances maker Eureka Forbes on Monday said it is targeting one-third of its revenues from the vacuum cleaner business by the turn of 2014.
Mumbai: Home appliances maker Eureka Forbes on Monday said it is targeting one-third of its revenues from the vacuum cleaner business by the turn of 2014.
"The vacuum cleaner business currently contributes to 25 percent of our revenues. We would like that to grow to 33 percent by 2014, because that is definitely a thrust area for our business," Eureka Forbes Chief Executive Officer for Direct Sales and Senior Marketing Vice-president Marzin R Shroff told reporters.
Last year, the company, which also markets water purifiers under the Aquaguard and Aquasure brands, air purifiers, home security systems among others, had posted a gross turnover of Rs 1,250 crore.
Eureka Forbes, earlier a joint venture between the Forbes Group and Electrolux of Sweden, started the concept of door-to-door selling in 1982.
Shroff said the firm will continue to Indianise vacuum cleaners to suit the needs of customers and create accessories that are useful for the domestic market.
"We have evolved heavily around the technology curve around this," he said.
The company currently sells 16 brands in the vacuum cleaner segment, including a robotic one, Euroclean Robocleanz, which cleans the dust on its own.
A part of the Shapoorji Pallonji Group, the company will launch two new products in the category that includes a silent vacuum cleaner.
"Next month, we will be launching a global vacuum cleaner that we have been working with our global counterpart. We have been working on this initiative for over four years now. It will be the most silent vacuum cleaner in the world.
"It is called the EuroClean IQ and it senses the level of dust and automatically powers up or powers down," Shroff said adding it will be priced at Rs 19,999. Shroff further said they would also be launching a 5-in-1 vacuum cleaner by September-end at Rs 25,000.
"It is a dry vacuum cleaner, a wet vacuum cleaner, steam cleaner and extractor, shampooer and a blower," he added.
According to industry estimates, the domestic vacuum cleaner market is around Rs 250 crore and Eureka Forbes claims to enjoy a market share of almost 90 per cent of this. Last month the company had said it would enter the packaged drinking water market by next year.
The company had said it would sell the product under the brand name of AquaSure, in 20 litres and one litre bottles, but has not divulged the prices.
Eureka Forbes, which started the direct selling concept in the country, claims to have 52 percent market share in the Rs 1,500 crore water purifier segment, with Aquaguard and AquaSure brands.
The bottled water segment is estimated to be worth Rs 3,000 crore and is clipping at 25 percent annually. Eureka Forbes has already set up franchised operations for packaged drinking water in Andhra, and plans to enter Andhra, Maharashtra, Tamil Nadu and Gujarat in a phased manner in the next four to six months.