U.S.-based consumer durables firm Westinghouse Electric Corporation on Friday announced its entry into the Indian home appliances market, targeting sales of Rs. 200 crore in the next three years.
The company said it will invest Rs. 70 crore on marketing and product development in the next three years to acquire a significant share of the estimated Rs. 6,000 crore home appliances market currently dominated by Philips and other home grown firms like Usha Lexus and Bajaj Appliances.
“Our goal is to achieve sales of Rs. 200 crore by 2014. We are launching our products in a phased manner starting with North India. By 2013, we expect to go pan-India,” Westinghouse Appliances India director (sales and marketing) R. Venkat told reporters in New Delhi.
The company launched kitchen appliances, including mixers, fryers, grills and microwave ovens on Friday. It also plans to introduce airconditioners in India later.
Westinghouse Electric Corporation had annual sales of $2.6 billion globally and has presence in various segments, including consumer electronics, lighting and domestic appliances.
Hong Kong-based W-Lifestyle Ltd and Dubai-based Mapana Middle East FZCo are the global licensees of the brand, under which the Indian operations will also come.
“Going ahead we believe that 30-40 per cent of our revenue will come from emerging markets. While there are already big players in India, we feel that this is the right time to enter as the country still lacks varieties in products,” W-Lifestyle Limited and Mapana Middle East FZCo chairman and founder Bert Doormalen said.
The company said its products will be positioned in the mid to premium segment of the market and will be available in traditional retail outlets.
Asked if the company will look at setting up a manufacturing plant in India, Mr. Doornmalen said: “If there is economy of scale, we will definitely look at it. At present, we have tied up with local partners to make some of our products here.”
