Electrolux Kelvinator Ltd (EKL) plans to enter the airconditioner market during the middle of next year with niche products. The company will test niche products, which will be imported as completely built units (CBUs) and then take a decision on investing in manufacturing capabilities.
Considering that the airconditioner market constitutes the most competitive among white goods categories, the company would like to break even in their core Indian competencies before taking on anything else. At present, EKL manufactures refrigerators and washing machines in India.
Meanwhile, speaking to press on EKL’s future strategies, EKL chairman Andrew Bentley said company shareholders had approved, at a extraordinary general meeting held on December 4, a preferential capital issue of Rs 150 crore to be fully subscribed by EKL’s Swedish parent company AB Electrolux (ABE).
EKL is also currently awaiting regulatory approvals for a rights issue of Rs 200 crore which is expected to hit the market early next year.