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In the nineties, the glass carafes and serving bowls of Borosil were coveted tableware for the middle class. Keeping Borosil company were a few other brands, not necessarily with the same product line, such as La Opala, Yera, Corelle and Milton. But consumers are spoilt for choice now, given the in-roads made by e-commerce and modern retail. Be it with brands from Italy (Bormioli), Germany (Devnow) or the indigenous ones (Roxx), pockets of every size can now afford fancy tableware. As its core segment changes, Borosil is diversifying into small kitchen appliances.
The world of mixers, induction cook-tops, juicers, toasters etc. is, however, crowded. And, it is increasingly looking homogenous, with most players rolling out products in much the same categories. For example, the name synonymous with sewing machines, Usha International, now has food processors, mixer-grinders, stick blenders and electric kettles, mirroring the additions made by popular fan manufacturer Orient Electric (of CK Birla group).
Nilesh Gupta, MD, Vijay Sales, a Mumbai-based consumer goods retail chain, says the leading players are Bajaj Electricals, Morphy Richards (distributed by Bajaj) and Philips. Later entrants include Prestige, Havells, Maharaja and Sunflame. Even regional players such as south-based Butterfly have made their mark. Retail chains, too, have their private labels, catering mostly to the lower end, while international brands such as Siemens and Bosch cater to premium users.
Glass to kitchen
Shreevar Kheruka, the MD of Borosil Glass Works, the company owning the brand, says, "In the Indian kitchen, there is a lot more automation now. Our surveys showed consumers associated us with glass and quality. So, the idea was to retain the quality and move beyond glassware, to being a kitchen and home brand."
Industry experts agree with the plan. Gupta says, "Borosil getting into kitchen appliances is not too divergent because of its heritage." Pinaki Ranjan Mishra, partner and national leader, EY, says, "Borosil is a reasonably well-recognised brand."
It has been testing the water since last year. "We started with induction cookers because of the connect, these have a glasstop, too," says Kheruka. It also has mixer-grinders and sandwich-makers, with more to follow in 2015.
Mishra says that the market can be punishing, since the replacement cycle is quicker, and a bad experience can keep customers from going back to the brand. "Borosil will have to find ways to differentiate itself," he says. But it is a category which is also difficult to differentiate in. As the experts point out, it is often done by either tweaking the power of the motor or experimenting with the looks. The easy access to manufacturing and assembly has led to commoditisation.
Kheruka says that Borosil is tweaking its products, wherever possible, to customise for Indian usage. Its mixer-grinders, for instance, are made from higher-grade stainless steel (304) and not the widely-used 302-grade alloy. "Indian homes grind haldi (turmeric) at times, and need sturdier blades," says Kheruka.
At the same time, Borosil is trying to hold the fort in its core category. Kheruka says, " We have been highly specialised in glassware and continue to innovate. It will remain our core." In consumer glassware (it also manufactures industrial and scientific products such as test tubes), the company has expanded its line of storage and serveware. Kheruka wants to populate the four needs of a kitchen: "Storage of the ingredients, appliances to process them, serveware and storage for refrigeration, reheating".
Modus operandi
Appliances, however, will be challenging. Gupta says that the lower the ticket-size, the less involved the consumer is with the brand. Vijay Sales stocks around five-six brands.
Kheruka estimates the market size for small kitchen appliances to be at Rs 15,000 crore. Borosil had to make a move since, glassware, in which it has a headstart, is only worth Rs 60 crore. In FY-14, the company's consumerware arm made Rs 66 crore in revenues.
Borosil wants to play in the higher-end of the market, like Morphy Richards and Black & Decker.
What Borosil is betting on is the ambition of crockery and kitchenware stores that have been stocking its glassware. "These retailers are loyal and most don't have an appliance range but are interested in one, to grow. It gives them a higher ticket size for the same shelf space," says Kheruka.
Borosil has also taken to e-commerce, with six warehouses across India to cater to the orders logged through its own website, besides tying up with multi-brand portals.
Kheruka says his target is a joint venture with an overseas brand to market in India.
Bajaj has the longest-running association with the UK-based Morphy Richards. In FY-14, Bajaj Electricals earned around Rs 1,115 crore from its own brand in domestic and kitchen appliances and Rs 190 crore from its tie-up with Morphy Richards.
Other categories that Borosil has entered, but which are smaller in scope, are melamine and plastic ware and home decor (with diya lights).
