Single-product firms plan expansion

As organised large format retail takes shape in consumer durables, Indian companies which were once synonymous with single products, are now banking on showcasing a multi-category presence.

Onida, largest in a television brand, hopes its range of air conditioners and washing machines will boost its presence in larger format showrooms.

Godrej Appliances, which is traditionally associated with refrigerators and washing machines is now optimistic about its air conditioners, DVD players and microwave ovens which will help it in future growth areas.

MIRC Electronics, the manufacturers of Onida, the company is highly dependent on TVs as a primary source of revenue which has been decreasing in recent years.

For instance, televisions made 76 per cent of MIRC's revenues in 2005, while company executives expects revenue to go down by 65 per cent this year.

"We are no longer specified to colour television company, but a multi product durable company. Last summer, washing machine sales showed positive growth and we are also expecting value growth from air conditioners and LCDs," said Vivek Sharma, vice president sales and marketing, MIRC Electronics.

Televisions continues to drive growth, MIRC hopes upgrading consumers will look at its air conditioners and fully automatic washing machines.

Answering to the questions, will Onida expand into refrigerators? Sharma did not deny this but said appropriate announcements will be made at the right time.

"Customers tend to buy multiple products of the same brand. We are looking at other categories, but it would be too early to comment," he added.

Company admitted that the multiple categories also give them increased shelf space and better sourcing preference in an organised retail environment.

Kamal Nandi, vice president sales and marketing, Godrej Appliances said, "Visibility plays an important factor while selling any brand as customers tend to buy what they see on the shelves. The brand's shelf space should be more than that of the market share."