Hansgrohe to invest euro 1 mn in Indian market

Hansgrohe India, a newly-formed subsidiary of German plumbing product company Hansgrohe, aims to become the biggest imported brand of showers and fittings in India. The company plans to invest euro 1 million (around Rs 5.6 crore) in the Indian market over 2009.

Speaking to Business Standard, Nicholas Matten, managing director, Hansgrohe India, said, "As of now we have 40 per cent of the imported bathroom fittings and showers segment in India. The presence of Hansgrohe employees in India will help in developing the market."

The German plumbing manufacturer has set up a 100 per cent wholly owned subsidiary in Pune.

According to experts, imported showers and fittings account for 15 per cent of the Rs 1,000 crore organised Indian sanitary market, and are expected to grow by 30-40 per cent over the next three years. This growth is largely driven by increased spending in the residential and commercial housing sector.

"India has become a priority market for us and we hope that by 2010, it will become the biggest export market for us," Matten added.

Hansgrohe, which has been present in India since 1999 in cooperation with Jaquar & Company "� a national manufacturer of bathroom fittings "� will continue to sell the German brand in India.

The company has introduced three of its premium and luxury brands - Hansgrohe, Axor and Pharo - in the country.

"The aim of establishing the subsidiary is mainly to undertake both below the line and above the line marketing initiatives to establish the brands in India. The new facility in Pune will be followed by offices in key cities such as New Delhi, Bangalore and Chennai," Matten said.

On the issue of the high import duty, he said, "Since all importers are facing the same duty structure, competition in this segment is not an issue for us. We are not looking at domestic players as our competitors."

Aimed at the top-end property dealers, hotels and luxury real estate sellers, Hansgrohe is positive that the burgeoning middle-class will also become a big consumer of its products.

Hansgrohe's economic range of complete bathroom accessories ranges between Rs 18,000 and Rs 45,000. Its Raindance range of showers vary from 7 inches to 24 inches diameter, at a price range between Rs 18,000 and Rs 2,40,000.

In 2006, Hansgrohe generated worldwide sales of euro 569 million, an increase of 20 per cent in the previous year and is expecting a double digit growth figures for the current financial year.