Italy-based Ariston Thermo Group, which makes and sells water heating systems in India under the Racold brand, is planning to increase its market share over the next 12 months, said a top executive.
“Currently, we are growing at 7% to 8%, which is more on the lines of the market growth,” said V. Ramnath, managing director, Ariston Thermo India Pvt. Ltd. “We are planning to double it by October 2018 through new initiatives.”
As part of its proposal, the company is planning to open 4,000 new retail outlets and 80 service centres across the country within the next 12 months and enter all towns having a population of more than one lakh, in 18 months. While exploring the possibility of exporting some of its products to nearby countries such as West Asia, it is also toying with the idea of introducing international products.
Ariston Thermo acquired Racold’s Pune plant some 10 years ago. It makes a complete range of electrical, gas and solar water heaters and heat pumps. Its institutional sales accounts for about 15% in value terms and would be doubled in three years.
“India is among the top 5 strategic markets for the group. Some 18 months ago, we drew up a vision to capture the growth opportunity in the unorganised sector,” he said.
According to him, only 20% of households in India use branded water heaters. Currently, Racold has one-third share of the organised water heating solutions market, which is estimated to be about ₹1,800 crore to ₹2,000 crore. In India, Racold competes with Havells, Crompton, Bajaj and V-guard.
“My immediate task is to bring the remaining 80% of the household into the branded segment through social awareness campaign about safety and security. Through this method, we can bring nearly 6-7 crore household, which uses immersion rods for heating, into the organised sector,” he said.
Asked about the Chakan facility, he said it had an installed capacity to produce 8 lakh units per annum, while it produced 6 lakh units. “There is still some headway for expansion. Investment is not an issue and budget for 2018 will be finalised next month. We hope to achieve the double digit growth mostly through organic route,” he said.
