Whirpool expects to earn profit in 2007-08

Consumer durables major Whirlpool India is hopeful of registering net profit during the current financial year 2007-08.

The company, which had incurred losses in the past, expects to become profitable by 2008, with the launch of innovative product line and focusing on tier-II and tier-III cities.

The company's operating profit for April-December 2006 stood at Rs 44 crore while the net sales for the period stood at Rs 1,245 crore.

This year, the company expects to notch up a 27 per cent market share in the refrigerator category, 20 per cent in washing machine category and 10 per cent in the air conditioner category in the country.

At present, it has a 25 per cent share in the refrigerator category and 18 per cent in the washing machine category. The AC's have been launched recently.

The company today unveiled its new products in four categories "� refrigerators, washing machines, air conditioners & dryers for the Punjab market.

Speaking to Business Standard, Vice-President(Sales) Tamal Kanti Saha said, "The newly launched products will be supported by a multi-media campaign including an advertising featuring our brand ambassadors Kajol and Ajay Devgan and a host of other activities such as innovative marketing tie-ups, in-shop display, promotions, direct marketing, and product demonstrations."

The total advertising and marketing expenditure earmarked for this year is Rs 70 crore.

He said Punjab has huge potential and the company would focus on Tier-II & Tier-III cities having population more than 1 lakh. Punjab contributes about 8 per cent of the total sales.

After achieving leadership in the direct cool (refrigerator) segment, the company aims to gain leadership in the frost free (refrigerator) segment with the launch of the mastermind frost free refrigerator.

"This year, our aim would be to further consolidate and grow across all categories. With the innovative product line being launched today, we are confident of achieving our goal of sustainable and a profitable growth ," he added.