Faber plans to up sales in Rajasthan

Company eyes half of India's kitchen chimney market

Faber India has launched a major marketing drive in Rajasthan. The company, which is a joint venture of Faber SpA of Italy and Heatkraft of Pune, plans to up its sales by over 50 per cent in the state, and to achieve this the company has launched a marketing and promotional campaign called "Faber Chappar Phad Ke Jeeto."

Stating this here at a press conference, K Hira, senior vice-president (business strategy), Faber Heatkraft Industries Ltd, said the target was to earn a turnover of Rs 1.5 crore from the state during this financial year. During the past financial year, it was Rs 1 crore, he added.

He said Faber pioneered the concept of Italian kitchen chimneys in India. "The size of the kitchen chimney market in India is around 125,000 units per annum, which is expected to touch 200,000 by March 2005, and 300,000 units by March 2006. We are targeting a share of more than 50 per cent in this new emerging market.

We are geared to keep pace with this expected high growth," he said.

"Last month, with an additional investment of Rs 40 lakh, we added a new assembly line at the existing manufacturing facility, taking the total manufacturing capacity to 10,000 chimneys per month, 3,000 gas hobs, and 1,000 cooking ranges per month," Hira said.

The company was expanding its marketing network, he said. "This year we are opening 25 more mini Faber gallerias across the country, of which one each coming up in Baroda, Mumbai, Mangalore, Chennai, Delhi, and Meerut. The company will invest another Rs 75 lakh in setting up the 25 new mini gallerias this year. This will increase the total number of Faber gallerias to 55 from 30 at present," he added.

He said the marketing campaign, coupled with other initiatives being undertaken by the company like the expansion of the marketing network, opening of new exclusive Faber gallerias, increase in manufacturing capacity, etc., would bolster the brand value of Faber and help the company in achieving a growth rate of almost 80 per cent by March 2005.

Commenting on the projected sales for the current financial year, Hira said, "Whereas last year from September to December, Faber sold 25,000 chimneys, this year with the new promotional campaign we are confident of achieving a sale of 50,000 in the same period. Sales during the current year are expected to exceed 100,000 units."

Faber Heatkraft closed the last financial year with a turnover of Rs 40 crore. This year with the new marketing, promotional, and expansion initiatives, the turnover is estimated to be around Rs 70 crore, which shows a growth rate of 75 per cent over last year.

Recently, Faber SpA of Italy, as part of its long-term plan for the Indian market, has increased its equity stake in the Indian joint venture, i.e. Faber Heatkraft Industries Ltd, to 75 per cent from 51 per cent. Faber has identified India as a priority market. The Italian major is now planning to further strengthen its Indian joint venture with latest technology and R&D support.