Preethi Kitchen Appliances Pvt Ltd has entered the commercial segment by launching its first product — a professional mixer grinder — today. The company is looking at supplying the product to institutional customers including medium-sized restaurants, hotels, canteens and hostels.
Vijay Srinivasan, managing director, said the company was creating a new market in the institutional segment, which had so far been addressed by appliances manufactured for domestic purpose and by some small-scale local manufacturers.
“The institutional segment requires products with more power and which can withstand the wear and tear of usage in restaurants, hotels and canteens. The initial estimates are that the mixer grinder for institutional segment has a potential of around Rs 100 crore,” he said while launching the product at the Sica Culinary Competition and Exhibition 2012 organised by the South India Culinary Association (Sica).
The product was developed by the research and development (R&D) wing of Preethi and manufactured at its Chennai facility. The company is planning to promote the brand among institutional players through related organisations like Sica.
It is planning to roll out more products including cutting, slicing and chopping equipment on a standalone and combined platform. The product expansion in this segment is expected to take place in early next year.
The company has a market share of 40-45 per cent in the South, which accounts for a total sales of 5 million units of mixer grinder a year. The replacement market is also growing, with customers replacing the mixer grinder in four years.
“Over the last 8-9 years, the replacement period came down from 15 years to seven years and now to four years,” he added.
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It also expects the Tamil Nadu market to open more opportunities on the back of the government scheme, which aims to provide a fan-mixie-grinder package to women in 18.3 million families holding family cards.
The company is also looking at expanding its presence in the overseas market.
Preethi Kitchen Appliances, which has a range of products including mixer grinders, auto cooker and warmers, induction cooktops and coffee makers among others, was acquired by Royal Philips Electronics in early 2011 for an undisclosed amount.