 "David Kohler")
Founded in the nineteenth century, the Wisconsin-headquartered Kohler is a major player in plumbing, furniture and cabinetry. David Kohler, president and chief executive, tells Arnab Dutta about the company’s increased focus in India. Edited excerpts:
What does the Indian market mean to you?
India is a dynamic country and the fastest growing economy. India is one of our most important markets strategically. The US, China and India will be the three most important markets for us in the future. We are focused on building our position here. Although India is not the third largest now, it figures among the top ten markets for us.
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We are growing at 14 per cent, which is twice the rate of the market here. And after gaining significant market share in the past three years, we are the number one international brand in India.
Are you also increasing your production here?
We will continue to increase our manufacturing capacity in India. We also plan to transform India into an export hub. Here, labour cost is competitive, productivity is good and the quality of the workforce is excellent. We manufacture products for our plumbing business in a few facilities in Gujarat and engines and generators in Aurangabad. Since we started we have invested about $200 million in India.
Where do you plan to export from here?
We can export to Europe and the US and some other surrounding markets from here.
Are you increasing distribution as well?
We have 300 distribution outlets or showrooms across India and a presence in more than 100 cities, which we want keep increasing.
Does the push towards urbanisation by the government help your business here?
Urbanisation is happening naturally with or without the government’s support. Big cities like Delhi and Bengaluru are growing fast. This provides employment opportunities to people who move there as well as help our business.
The real estate market has slowed. Does this hurt your business?
Although, the projects market is slower now than the peak, we have not felt the impact on demand. We have witnessed projects being delayed, but this is a natural cycle. I thinks the real estate market will improve in next one to two years.
How do you plan to increase the visibility of your brand?
It is important to offer technologically advanced products consistently. We are introducing new products every year. Second, we are expanding showrooms across India. Third, we will keep advertising on TV and other media. We are among the top three spenders in the category.
Are you planning to introduce more customised products for India?
We have built products based on the needs of the Indian market, apart from introducing international products. And some of the products built for India are now receiving attention in other markets where we have introduced them.
