Kohler plans $200 mn manufacturing facility

Bath and kitchen accessories manufacturer, Kohler India, plans to invest $200 million to build a manufacturing facility in Baroda. The factory, commencing production by 2009, will focus on manufacturing sanitaryware.

Kohler India is the wholly owned subsidiary of the more than century-old US-headquartered company, Kohler. David Kohler, promoter of the privately held $5.2 billion company and group president, kitchen and bath group, is currently in India to finalise plans for the manufacturing facility and strengthen relationships with prominent property developers and other channel partners.

Over the next two years, the company plans to expand its Indian operations, employing up to 1,000 people by mid-2008 from around 60 employees, at present. Until recently, Kohler had a limited presence in India through its distributors.

In May last year, Kohler decided to focus on the emerging market and is now present in 26 cities across the country, with its range of bathroom products, ranging from toilets to faucets, bathtubs and showers.

Kohler said, "As Indian consumers are growing in affluence, they are demanding sophisticated and stylish products."

The sanitaryware market in India is pegged at Rs 700 crore, plumbing (faucets) at Rs 1,200 crore and bathroom accessories at Rs 500 crore.

Kohler is positioned at the middle- and premium-end of the spectrum with prices starting from Rs 1,200 for a faucet and whirlpool spas going up to Rs 7 lakh.