Electrolux may become export hub for parent

AB Electrolux of Sweden, the parent company of Electrolux Kelvinator, is increasingly aligning with its Indian arm and is exploring the possibility of making it a sourcing base for exports.

Ajay Kapila, vice-president, sales & marketing, Electrolux Kelvinator, said that a survey was currently being undertaken to examine whether India could be a sourcing base for AB Electrolux's export markets.

AB Electrolux at present has a 88 per cent stake in the company.

Kapila said, India could become a sourcing base for some of the niche products manufactured by the company and among the potential markets was south east Asia.

Electrolux currently has three manufacturing facilities in India located at Shahjanpur (Rajasthan) and Warora (Maharashtra) producing refrigerators and Butibori (Maharashtra) producing washing machines.

The company used to have more manufacturing facilities but, as part of the restructuring exercise, two of its units have been closed down, said Kapila.

The Electrolux group has a global presence in more than 150 countries and sells products under more than 19 powered appliance brands. In India, the group sells its products under the Electrolux brand only.

AB Electrolux entered India through a joint venture with Eureka Forbes in 1982. With the company acquiring a 51 per cent stake in Maharaja International in 1995, the company increased its presence in India. Electrolux went on to acquire a majority stake in three companies, Electrolux Kelvinator, Electrolux India and Intron.

In 2002, with the amalgamation of Electrolux India, Intron and Electrolux Kelvinator, one single corporate entity was formed named Electrolux Kelvinator.

Eletrolux employs around 1,500 employs in India, spread across its three plants and eighteen branch offices. Kapila said, some rationalisation of workforce was done, in keeping with the restructuring exercise.