"We are looking at the option of setting up a water heater plant in India. Normally, for the domestic market, we set up a plant locally," AO Smith National Sales and Marketing manager Tamak Chaudhuri said. |
AO Smith entered the Indian market two years ago and has been studying the local market that is growing at 12 per cent per annum.
Today AO Smith entered into a strategic tie up with Jaquar, manufacturer and exporter of bath fittings, to sell the US company's water heaters in India.
"India holds a great potential and a huge market space. With this alliance the company is entering into Indian market and is set to offer its premium and technological advanced products to the consumer," Chaudhuri said.
If the company sets up a plant, then it would invest anywhere between Rs 60 crore and Rs 70 crore, he said.
And it takes at least two years to set up a plant with a capacity to make 2 lakh water heaters annually, he added.
The water heaters that it would be selling in India are sourced from the company's Chinese plant. It set up a plant in China about 10 years ago.
