Samsung India Aims to Strengthen Home Appliances Business
Apr 25, 2005
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Samsung India said it plans to strengthen its Home Appliances business this year and has chalked out an aggressive strategy to achieve the same. More than 45 new models of home appliances -- 31 new frost-free refrigerator models, eight air-conditioner models, and washing machines with Silver Nano(TM) technology -- are being launched by the company in the country.
Samsung said it is also in the process of strengthening its Home Appliance channel and S&S network for air-conditioners (ACs) this year. While the Home Appliance channel is being expanded by over 20 percent, the S&S channel for ACs is being trebled this year.
"We are aiming at an over 40 percent growth in Home Appliances this year," said Ravinder Zutshi, director of Sales & Marketing, Samsung India. "The major driver for this growth will be our new home appliances range with Silver Nano technology that is being launched in the country."
The Silver Nano technology has been developed by Samsung Electronics researchers who worked for 3 years to perfect the technology. With more than U.S. $10 million invested in R&D, Silver Nano is incorporated into refrigerators by coating the inner surface to keep germs from growing. By keeping the cooling environment germ-free, food stays fresher for up to 15 days longer and a Silver Nano deodorizer keeps bad odors from affecting food taste, according to Samsung.
Mr. Zutshi also said Samsung plans to double the sale of air-conditioners in the country this Year and expects to achieve more than 50-percent growth in refrigerator and microwave oven product categories. "We expect to consolidate our position at the number-two slot in air-conditioners this year and are expecting to achieve a leadership position in frost-free refrigerators by the year 2006," he said.
Samsung also said it aims to attain a premium brand position in the Indian home appliances market by the end of the year.
The company also announced the commencement of exports of 'Made in India' refrigerators to Africa, the Middle East, and CIS countries. Refrigerators is the second product category in Samsung's Consumer Electronics and Home Appliances portfolio that is being exported from India, in addition to color televisions. Samsung plans to export refrigerators to SAARC countries in the near future as well.
"We plan to export 50,000 frost-free refrigerators in various capacities ranging from 180 L to 380 L this Year," stated Mr. Zutshi. The company also plans to export 100,000 color televisions from its Noida facility this year.
Samsung India has ambitious plans laid out for Andhra Pradesh (AP) in 2005. "We are targeting a growth of over 70 percent in AP this year and expect to achieve a turnover of Rs 250 crores from our Consumer Electronics and Home Appliances business in the state," said Mr. Zutshi. "This growth will be primarily driven by flat TVs, ACs, and refrigerators. To enhance our brand image here, we plan to set up five new Samsung Digital Homes / Plazas in AP this Year. Samsung plazas in Vizag and Vijaywada will be set up next month itself."
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