Electrolux will enter the Indian air-conditioner market by the end of February. The company will introduce its range of products for all the segments.
“We are planning to enter the market by the end of the next month. The prices of our products will range from Rs 15,990 to Rs one lakh, which is very competitive. During the first year of our launch, we would focus primarily on market penetration and brand building,” said Rajeev Karwal, chief executive officer and managing director, Electrolux Kelvinator Ltd.
The air-conditioners would be manufactured on a service agreement with a unit in Uttaranchal.
“At present, the company’s share in the Indian refrigerators market stands at 14 per cent. It is only 2.5 per cent in the washing machine segment. The company is operating in India since 1995 and expects to achieve breakeven by the end of 2005,” Karwal said. Sales in Indian contributed less than two per cent of its global sales.
The company has sold more than 6.84 lakh units of refrigerators and washing machines in the country in the last financial year and targets to sell more than 15 million of it products in India by 2007 end.
With the recent launch of its microwave ovens and the upcoming launch of air conditioners in the Indian market, the company expects a growth of 10 per cent by the end of the next financial year.
Electrolux Kelvinator’s plants are located at Shahjanpur in Rajasthan and Butibori and Warora in Maharashtra.
AB Electrolux acquired a 51 per cent stake in Maharaja International Ltd in 1995.
The company has a majority stake in Electrolux Kelvinator Ltd, Electrolux India Ltd and Intron Ltd. In 2002, the company amalgamated Electrolux India and Intron with Electrolux Kelvinator to form a single entity, Electrolux Kelvinator Ltd.
At present, all the brands of the company will be promoted under the single brand name Electrolux and the company will spend four per cent of the turnover on brand promotion.
The company on Saturday here launched the ‘Health nourish challenge’ campaign to promote its Ozone range of frost-free refrigerators.
Rajeev Karwal, managing directors and CEO, Electrolux Kelvinator Ltd, said, “Ozone, launched in January 2003, is today the fastest selling frost-free refrigerator brand in the country. The customers have rated Ozone the highest in all parameters, including performance, aesthetics, convenience and nutrient retention. These endorsements are the direct outcome of our work philosophy of making products based on consumers’ insights and strengthening our brand promise of ‘Nurturing hopes, nourishing life.’”
In a nation-wide customer survey conducted by AC Neilson ORG-Marg to rank the customer-friendly frost-free refrigerators in the country, Electrolux Kelvinator’s Ozone frost-free refrigerator emerged the topper, the company said.
The survey gauged the customers’ perceptions on the critical parameters of a refrigerator like aesthetics, space management, features and convenience, the company said.
In another study on nutrients retention by refrigerators, conducted by the Food Research and Analysis Center (FRAC), Ozone ranked highest in terms of nutrient retention of food items, the company said.
The FRAC research confirmed that Ozone frost-free refrigerator retains Vitamin B complex better than other frost-frees up to seven days, the company said.