Delhi, India-based appliance maker Maharaja Appliances Ltd. has acquired Kelvinator’s Gem brand as part of its plans to enter the white goods segment.
The company said it will launch TVs, refrigerators and microwave ovens under the GEM brand name by February 2006.
Dinesh Jamwal, marketing manager of Maharaja, said, "The company has registered a turnover of Rs 150 crore (approx. U.S. 34 million) in the fiscal year 2004-2005. We expect our turnover to increase to Rs 250 crore (approx. $56.8 million) in the current fiscal. We also hope that our foray into white goods products will further boost our turnover to Rs 450 crore (approx. $102.2 million) by 2006-2007.” Sources said the company has invested Rs 20 crore (approx. $4.5 million) so far and will further invest Rs 50 crore (approx. $11.4 million) in the next fiscal.
Industry experts said after 4 years of downturn, sales of white goods are seeing a robust double-digit growth. The white goods industry, comprising refrigerators and air-conditioners, was incurring constant losses since 2002. However, in 2004 sales growth was stagnant between 6 percent and 10 percent.
Total production of refrigerators increased 17 percent until April 2005 compared to a 15-percent growth in the April 2004.
Sales of color TVs have also picked up, registering double-digit growth since May 2005. In October 2005, the color TV segment grew 32 percent.
Girish Kakkad, regional manager, Maharashtra, Maharaja Appliances, said, “We have already put in place a strong dealer network in Maharashtra for white goods products. Moreover, we are also planning to launch an aggressive brand promotion in the state in the end of January.” (India Daily News & Analysis)
Back to Breaking News