Onida sees tepid close to year with just 8% revenue growth

Onida

Homegrown consumer durables brand Onida expects tepid revenue growth this year given the sluggish consumer sentiment and see sales notching up around 8 percent at around Rs 800 crore by March, a senior company official has said.

The company had clocked a turnover of Rs 736.37 crore in the year to March 2018.

"We are expecting 8 percent growth in FY19, which would take our revenue to Rs 795 crore. The market conditions and economy at large are not conducive for consumer spending and everyone is equally hit by this," Mirc Electronics (Onida) managing director Vijay Mansukhani told PTI.

Televisions and air conditioners continue to dominate the company's business, while washing machines has emerged as fast growing segment.

The revenue breakup of its product mix of televisions, air conditioners and washing machines is 45, 37 and 16 percent respectively, and microwave ovens as a segment chips in with the remaining 2 per cent.

Onida has a 5 percent market share in televisions, 2 percent in air conditioners and 3 percent in washing machines.

The current size of the television industry is pegged at around Rs 8,100 crore, air conditioners at about Rs 13,7500 crore and washing machines approximately at Rs 8,500 crore.

Metros still dominate, with 60 percent of its sales, however, Mansukhani said the scenario in non-metros is improving and will definitely catch up.

Currently 10 percent of its sales come from online and it has different product offerings for offline and online to avoid conflict with dealers.

The company has 3,500 active dealers spread across the country, though its presence is more in the southern states followed by the west and the north.