Haier targets 2nd spot in appliances space in five years

The India market is extremely buoyant. A clear technology evolution is triggering a demand growth. With a global support system, we see a big opportunity here

NS SATISH President, Haier Appliances, India

Household appliances maker Haier aims to become the second-largest player in the country in the coming five years on the back of technology led innovation, it said on Wednesday.

The company, which has completed 20 years of operations in India, is currently the third-largest player in the country, with a market share of 14 per cent in refrigerators and between 7-8 per cent in air conditioners, LED TVS, and washing machines.

“The market in India is extremely buoyant. A clear technology evolution is triggering demand growth. With a global support system, we see a big opportunity here,” said NS Satish, President, Haier Appliances India, to Business Standard.

Growing at a compound annual rate of 25 per cent for the past seven years, the company expects to close the ongoing financial year with a revenue of ~8,500 crore. It expects to record revenues of ~10,000 crore by FY25. “The economy is good right now. The consumer penetration for the categories we play in is low. We are also looking at an evolution of the consumer, where instead of saving, they want to spend money for comfort and convenience. All this will drive demand for our products,” he added. In FY23, the company had reported a revenue of ~7,000 crore, with a 40 per cent contribution from the refrigerator category.

Going forward, the company expects the AC, TV, and washing machine categories to grow ahead of the refrigerator segment.

“This is because they are all technology-led markets, where the upgradation will happen faster and demand will not depend on the rural consumer as opposed to the refrigerator segment,” he said.

In the coming year, the company expects to see 40 per cent growth in the AC category also driven by harsh summers, more than 50 per cent growth in the LED TV category, 40 per cent growth in the washing machine category, and 30 per cent in the refrigerator segment.

Last year the company announced an additional investment of around ~800 crore in the expansion of its manufacturing capabilities. Haier has to date invested around ~3,000 crore in the Indian market. “We now have enough manufacturing capacity to drive growth in the next two years. The focus of the thrust area for the next 24 months will be on localisation and improving the efficiencies of the plants,” Satish said.