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Cool moves: Kenstar plans national presence

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Cool moves: Kenstar plans national presence

Kenstar — a multi-product company — is on an expansion mode. To start with, Kenstar is for the first time planning a national roll out of its frost-free and direct-cool refrigerators by January 2005. This is part of Kenstar’s strategy to consolidate its presence in the South and other parts of the country to promote ‘Kenstar’ refrigerators.

Prior to the move, it was in the month of March that Kenstar had actually launched its refrigerators in the South, and, the product has taken off well.

On Kenstar’s new plans, said Mr Rahul Sethi, president and chief executive officer, Kenstar: “Our initial focus will be to market seven models of frost-free ‘Kenstar’ refrigerators, since the frost-free refrigerator market is growing at the rate of 16 per cent, per annum. On the other hand, the direct-cool refrigerator is growing at just 5 per cent, per annum. Hence, the ratio of marketing frost-free to direct-cool refrigerators is at the 60:40 ratio, where we have four existing models. With the move, we hope to sell one lakh refrigerators in the first year of operation.”

As part of its marketing strategy, Mr Sethi further added that in order to widen its distribution reach, Kenstar is planning to beef up its distribution network from 3,200 retailers to 3,700 retailers, across the country, within a year.

According to Mr Sethi: “Kenstar is also planning to invest Rs 16.85 crore in launching new mass media advertising campaigns, soon. It will include launching a campaign on microwave ovens, washing machine, food processor and small appliances for the festivities. Another campaign will highlight ‘Kenstar’ refrigerators, ACs, and air coolers for summer season.”

As for the festive season, Kenstar is planning to float a new exchange scheme on ACs, very soon. It is also planning to invest additional Rs 2.5 crore in conducting demo activities for the festive season, and, summer season, as well. It will include conducting live demos on Kenstar microwave oven with Mr Sanjeev Kapoor, being the brand ambassador of Kenstar, he informed.

Said Mr Sethi: “As for exports, we are planning to increase our capacity for exports o Kenstar air coolers from 40,000 to 60,000 units this year to countries such as Portugal, Spain, UK, Middle East, Australia, USA, Vietnam, Sudan and Mildle elast. In fact, we are supplying ‘Kenstar’ mixer grinders to a large extent in the Middle-East.”

Further, Mr Sethi added that in the 3 lakh piecesfood procesors market, Kenstar hopes to grow its market share from 18 per cent to 20 per cent, and, the market is expected to grow at the rate of 25 per cent, per annum. “We hope exports contribution to grow from 5 to 7 per cent to our overall sales turnover, within a year. With the new initiatives, we hope to garner a sales turnover to the tune of Rs 300 crore,” he added.


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