Whirlpool

Franchise News India, Franchise Business Opportunities,Consumer durables-maker Whirlpool of India Ltd will invest 15-20 crore over the next two years to set up over 100 exclusive showrooms for its built-in kitchen products segment.

Each showroom will be opened at an investment of 15-20 lakh, through the franchise model.

“High-end consumers are looking at lifestyle-based home products. This has led to an increase in opportunity for in-built kitchen solutions, a segment in which we specialise globally,” Rajiv Kapur, Vice-President, New Business and Consumer Interface, Whirlpool of India, told BusinessLine.

He was in the city for the launch of the company’s first built-in kitchen products showroom in the eastern region. It has two other exclusive showrooms – in Jaipur and Bengaluru.
Turnover

According to Kapur, Whirlpool expects a five-fold jump in its (segment) revenue – from 20 core in 2014 to 100 crore in 2017.

Interestingly, the segment is making operating profits already (in India), he added.

Compared to free standing products (such as refrigerator), these built-in solutions might provide two times more margin for the manufacturer, sources said.

By the end of 2015, Whirlpool plans to have 15 exclusive showrooms in cities such as Delhi, Gurgaon, Ahmedabad, Surat, Guwahati and Bhubaneshwar.

The built-in kitchen options comprise a combination of pre-fitted imported appliances – hobs and hoods (chimney and burner sets), microwaves, water purifiers, ovens and so on – at costs between 1 lakh and 3 lakh.

Developer tie-ups

Whirlpool has also tied up with real estate developers, where it will provide fully decked up (with appliances) modular kitchens.

The company has tied up with real estate developer DLF for its property in Egmore, Chennai. It is also in discussions with the Max India Group for its senior citizens’ apartments in Dehradun.

“There are some other smaller developers we are in talks with, too. At present, we have orders, including those under negotiation, worth of 10 crore,” Kapur said.
New business

According to him, Whirlpool is looking to enter the mid-range water purifier market by July-August this year. The segment is currently dominated by players like Pure It (Hindustan Unilever), Kent and Eureka Forbes.

“If we get the required volumes, we can explore having own manufacturing options,” he added.



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