Eveready targets 5% market share in small appliances market by 2021

The consumer small appliances market which is growing at 12% per annum, according to the company, will touch Rs. 25,000 cr by 2021 from the current Rs 10,000 cr

After launching its range of consumer home appliances, Eveready Industries India is targeting to capture atleast five per cent of the market in the coming five years.

The consumer small appliances market, which is growing at 12 per cent per annum, according to the company, will touch Rs. 25,000 crore by 2021 from the current Rs 10,000 crore.

Positioning itself in as a 'value for money' in the upper srata as well a 'premium' brand, the company is in the process of rolling out small appliances in 19 categories and is likely to compete with well-established names like Bajaj, Crompton Greaves, Philips, Morphy Richards and others.

 

While the company will contain its manufacturing priorities to battery only, it is importing about 65 per cent of the products from China while outsourcing the rest to Indian manufacturers. However, its entire range of fans will be sourced from Indian vendors only.

"While we have introduced some of the products under various categories now, we will expand the portfolio and launch more than 60 products over the first three months next fiscal year onwards", the company's chairman Amritanshu Khaitan said.

Furthermore, expecting atleast 30 per cent of the sales to take place via the online route, specific products which will be available exclusively on specific online domains are also under consideration. Also, 25 per cent of its entry-level product range will be sold through FMCG channels.

It is also expecting a big push in its sales via large format retails (LFR) on account of the newly laucnhed products. The LFRs, comprising of Reliance, Spencers, Metro, Walmart and others contribute to 7-8 per cent of the company's consolidated sales which is expected to scale up to 15 per cent.

However, this year, the company will focus on its LED bulbs business for promotional and related marketing activities.

Currently, the company spends around 5-6 per cent of its turnover on marketing activities which is likely to scale up.

"We will not hesitate to change it down the line", Khaitan said adding that he wants the company to diversify its business and enter new segments.

"Through a study conducted internally, it was found that Eveready is a brand perceived in the energy segment but was limited to batteries only. Thus we thought of diversifying in the power-related businesses", he added.