Swedish household appliances maker Electrolux has entered into India’s fast-growing water purifier segment through a brand licensing agreement with Kent RO Systems.
According to the deal, Kent RO will manufacture and sell a premium range of water purifiers under the Electrolux brand, priced between Rs 18,000 and Rs 19,000. The Swedish firm will get royalty for the brand and a percentage of revenue for each product sold.
Electrolux said it was planning to export water purifiers from India to other South Asian markets, Latin America and Africa. “Water purifier is a new area for us. We have never sold water purifier anywhere in the world. But we see very good potential for the products in certain countries. We will explore exporting opportunities in Latin America, Africa and South Asian nations soon,” said Mathew Young, head of brand licencing, Electrolux.
The $17.6-billion firm also has brand licencing agreements with Videocon Industries for selling Kelvinator-branded home appliances, including refrigerators and air-conditioners. In June last year, Electrolux had entered into another brand-licencing agreement with Chennai-based Morf India to sell water and air purifiers under the Kelvinator brand in India and Sri Lanka.
While entry-level water purifiers are available at as low as Rs 499, there are products available at Rs 40,000 as well. The water purifier market in India is estimated at Rs 3,800 crore at present. The market is projected to grow to Rs 7,000 crore by 2015, according to a recent study by industry body Assocham.
According to Mahesh Gupta, chairman and managing director, Kent RO Systems, the company will set up separate sales and distribution network for the Electrolux brand. “In the first year, we will establish distribution for Electrolux in 50 top towns across the country. We expect to sell 50,000 units of the Electrolux range of water purifiers this year.”
While entry-level water purifiers are available at as low as Rs 499, there are products available at Rs 40,000 as well. The water purifier market in India is estimated at Rs 3,800 crore at present. The market is projected to grow to Rs 7,000 crore by 2015, according to a recent study by industry body Assocham.
