Home appliances maker Haier expects rural demand to revive after this year's general elections, which will help grow the company’s revenues. A top official said the company also aims to become the second largest player in the next five years, backed by increased investments in manufacturing and product portfolio expansion.
“Last year, the biggest challenge was that entry-level consumers were holding back on their investments post-COVID for some reason. They haven't come back in full force. Even in January and February's wedding season, their involvement in the category was less. It is a good opportunity, and they will return.” Haier India President N Satish told Moneycontrol.
The executive added that the premiumisation trend will help drive sales across categories such as smart TVs, air conditioners, and washing machines in 2024. “The technology change will drive premiumisation for us. Additionally, we expect first-time buyers in the entry segment to help drive growth in the second half after the elections across our product line.”
The company also expects its new-age product categories, such as commercial kitchens, home kitchens, and commercial air conditioning, to drive growth in 2024.
“The overall economics look very positive for the industry and the business here. We see a lot of positivity among the consumers. India’s young demographic with new-age consumers will unlock our growth.”
Haier Appliances India, part of the Chinese multinational Haier Group, is investing Rs 800 crore to increase capacity at the Greater Noida plant to serve local and export demand.
“As of now, we have invested Rs 3,500 crore. Phase two has started, under which we are investing Rs 800 crore. The future is about localisation through internal efforts and external partners. In the next 24 months, we aim to localise as much as possible to improve time to market, cost, and quality,” he said.
Haier expects to start production under phase two of the expansion by November 2024.
The executive said that the Haier management has yet to close its investment plan for 2025. “But, it will be purely for localisation and to become more efficient with automation and robotics.”
The company has two factories in Pune and Greater Noida. It exports to seven countries from these factories and plans to export its products to more countries in the Middle East and Africa.
“It is a small part of our business now. So far, we didn't have the capacity. With these two plants running, the time has come for us to expand."
Haier India expects to close this fiscal with a topline of Rs 8,500 crore and touch the Rs 10,000 crore-mark in FY25. "We closed at Rs 7,000 crore in the 2023 fiscal year and expect to do Rs 8,500 crore and Rs 10,000 crore in 2025," Satish said.
The company follows the January-December period.
Haier has completed 20 years in India and is present in 11 consumer segments. It has a consolidated manufacturing capacity to roll out nine million units annually combined from both plants. It is the third largest appliance maker in India after Samsung and LG.
The company also competes with Panasonic, Whirlpool of India, Bosch, Godrej Appliances and Bajaj Electricals, among others.
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