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Consumer appliances maker Whirlpool of India Ltd is cutting down on fresh hiring in divisions other than sales and marketing, while it focuses on improving operational efficiencies in the wake of demand slowdown.
The company, which has already put on hold capital expenditure plans for this fiscal, is working to bring more efficient ways all areas, including procurement, logistics, manufacturing, sales, marketing, service and human resources tide over the current tough market conditions.
"The company has become more judicious in hiring non- essential workforce in all divisions other than the sales and marketing team," Whirlpool of India Vice-President (Corporate Affairs & Strategy Asia South) Shantanu Das Gupta told PTI.
Explaining the reasons for the steps taken up by the company, he said: "...Demand is going to be soft, one cannot assume any cost leverage arising out of volume growth."
These measures would help company in realising better margins, he said adding: "The intention is to safeguard margin by delivering a higher rate of productivity in all areas of the business."
This year, the company will invest only in refreshing products.
Whirlpool of India Chairman and Managing Director Arvind Uppal had also emphasised on improving cost in his address to shareholders in the annual report 2012-13.
"Looking ahead, we expect demand for appliances to remain soft for the current financial year," he said adding the company's "strong focus behind cost and productivity" and operational focus would to allow it to "grow faster than the market in the year ahead".
Giving growth outlook for the home appliances industry, Uppal said soft demand, spiralling costs and consumer prices have affected the appliances industry which includes washing machines, refrigerators, microwave and air conditioners.
In the annual report, the company also expressed concerns over increasing advertising spends in the industry.
During the first quarter ended June 30 of the current fiscal, Whirlpool of India reported 23.17% decline in net profit at Rs 49.59 crore. Net sales declined marginally to Rs 855.89 crore from Rs 872.14 crore a year earlier.
