Electrolux plans to expand range

By Our Corporate Bureau | 24 Oct 2007

New Delhi: Electrolux India is looking to break even during this fiscal, which is its second year of operations after coming under the wing of Videocon Industries.

Videocon acquired the company in 2005. It now operates with only the Electrolux brand. The Kelvinator brand, which was with Electrolux prior to the acquisition, has been housed with another company in the Videocon fold.

Presently, Electrolux markets refrigerators, washing machines, air conditioners and microwave ovens, with the range soon to cover new product lines.

For Electrolux, the financial year should close with sales of Rs 600 crore, and a profit of Rs 15 crore, if it has to achieve the targets it has set for itself. Last year, it had posted a net loss of Rs 42 crore.

Electrolux presently claims an eight per cent share of the refrigerator market, and a 4 per cent share of the washing machine segment.

Reports indicate that the company is also looking to introduce some products from its Swedish parent's stable, which could include dishwashers, vacuum cleaners, hobs and hoods, coffee makers and mixers. Reportedly, the company plans to introduce dishwashers and front-loading washing machines in the Indian market during the coming year, initially importing them, and later on moving them to local production lines.

By February 2008, other products in its portfolio would commence manufacture at a greenfield facility at Kashipur (Uttarakhand), which is common for other appliances companies in the Videocon stable.

Currently, Electrolux's Direct Cool refrigerators are being manufactured at its Shahjahanpur facility in Rajasthan. At the Nagpur facility, the company makes the smaller frost-free fridges (smaller than the 280 litre capacity).