With the recent takeover of home appliances major Electrolux India Ltd by Videocon, India will be made a hub for Electrolux to source products for Southeast Asia, Electrolux vice-president, sales and marketing, Ajay Kapila said. Mr. Kapila said as per the takeover agreement last month, Videocon had acquired 91 percent equity in Electrolux. Under the agreement, Videocon can market Electrolux products for 5 years.
While Electrolux would have the option of using Videocon's 18 manufacturing units, the global home appliances major would in turn help the Indian company with product development. ''The tie-up with Videocon will give Electrolux access to high capacity and cost efficient manufacturing footprint. It would make the Electrolux presence in India more stable,'' Mr. Kapila said. Globally also, consolidation was the order of things in the home appliances and consumer durables sectors, he added.
Despite the home appliances sector facing a squeeze recently, following a nearly 30 percent hike in input costs, Electrolux had improved its financial performance by 100 percent in the last year, he said. With a target of grabbing a 15 percent market share across all categories, Electrolux was planning to increase its presence in the 'B' and 'C' class towns, he added. (NewKerala.com)
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