Japanese consumer durables firm Aiwa plans to diversify its product portfolio in India to foray into categories such as air conditioners, washing machines and refrigerators as it eyes revenue of $1 billion from the country in the next 4-5 years, said MD India Ajay Mehta.
The company, which on Wednesday entered the television market with the unveiling of the ‘MAGNIFIQ’ series with prices ranging from ₹29,990-1,39,990, will also be investing about $20 million (about ₹160 crore) in the next two years for expansion.
“We already have audio products in the market. Now, with the launch of our TVs, we aim to close the current fiscal with revenues of about $50 million,” Mr. Mehta said. “Our intent for the next 4-5 years is to be a $1-billion business in India. The aim is to have revenue of about ₹8,000 crore over the next 4-5 years,” he told reporters.
Mr. Mehta added that to achieve the target of $1 billion, the company will need to diversify its products portfolio and was currently looking at consumer durable categories such as ACs, refrigerators, washing machines and small appliances.
While the company’s audio products are imported in India, for TVs, it has entered into a manufacturing contract with Dixon Technologies.
Mr. Mehta said that the company’s products would be priced 20-30% lower than established big brands such as Sony, LG and Samsung. However, it would not be the “cheapest” option available to customers. “We will not be a discount brand or the cheapest brand, but will be reasonably priced. We will focus on customer experience and hence, to begin with will not be selling online.”
The company will sell TVs through 300 retailers across the country initially, increasing the number to about 3,500 retailers in a year.
“TVs are poised to be the biggest category by value for Aiwa India and will be followed by the launch of many other product categories. This is a tangible and a big step towards our goal of a $-1 billion top line for India,” Mr. Mehta added.
A per industry estimates, the TV market in India is pegged at $70-90 million, growing at about 8-9% annually. Aiwa India aims to garner 5% market share in TVs in five years.
