Haier to break even this fiscal with 33% increase in turnover
Consumer durables firm Haier India today said it expects 33 per cent increase in its turnover to Rs 1,600 crore which will help it to break even in the current financial year.
New Delhi: Consumer durables firm Haier India today said it expects 33 per cent increase in its turnover to Rs 1,600 crore which will help it to break even in the current financial year.
The company that had a turnover of Rs 1,200 crore in 2012-13 is also undertaking a brand repositioning in India to peg its products a 'mid-to-high price brand' and break the image of being a company selling 'cheap Chinese products'.
"We are growing significantly and we will break even this year. We will start reporting operating profit," Haier India President Eric Braganza told reporters.
Haier India, a wholly-owned arm of Haier Group started its operations in the country January 2004. The company has so far invested Rs 500 crore in the country, while its accumulated loss is Rs 55 crore till date.
In August 2007, it had acquired a manufacturing facility at Ranjangoan in Pune spread across 40 acres where it manufactures refrigerator and washing machines.
When asked which segments will be the growth drivers for the company, he said: "All segments are growing. My largest turnover is from refrigerators and it accounts up to 36 per cent of the business, 30 per cent is from TV, AC 15 per cent and 11 per cent is from washing machine."
Commenting on the brand repositioning, Braganza said: "The biggest challenge for us has been to change the image of the company. We are positioning Haier as a mid-to-high price brand and offer technologically advanced products from Haier's global portfolio. Haier is number one global company in appliances."
As part of the change drive, the company has set up 170 exclusive Haier showrooms and plans to add another 80 by the end of the current year. All the stores would be franchised.
The company is also expanding its sales network in tier II and tier III markets to drive sales growth apart from plans to set up service centres in those areas.
"In rural India, people are now buying high end products. Money is available there. But after sales service is important in our industry and we build service back up first, then we enter into the small towns," he said.
The company imports 50 per cent of its products, including TV panels and water heaters, from countries like China, Thailand and Italy and manufactures rest in India. It sees the share of locally produced products to go up in future.
"We manufacture mass market products in India like refrigerators. At present, all high-end products are imported. But, we are slowly adding more products to be produced in India. Share of locally manufactured goods will go up in the coming years," Braganza said.
The company is also exporting its refrigerators to CIS countries, Middle East and African markets.