Whirlpool to break even by Mar 7 with sales target of Rs 1,650 cr

New Delhi, Sep 8 (UNI) Whirlpool India Ltd, a leading Consumer Durables company in India, today said it aims to break even by March, 2007, with a sales target of Rs 1,650 crore, which is an increase of 20 per cent from last year.

The company is looking at earning profits in the next fiscal (2007-08), as it has been registering losses since the year 2003, with the first quarter of that year, being the last time it reported a profit.

''We are aiming to break even by March, 2007, and are currently on track towards that target. Last year we reduced our losses by Rs 60 crore. We are expecting a 20 per cent growth in our sales for the full year, and a 40 per cent growth just during the festive season,'' Whirlpool India MD Arvind Uppal told reporters here.

To drive this growth, Whirlpool will be going back to basics and will focus on core competence and strengths including home appliances and white goods.

The company, whose target group is the modern Indian pragmatic homemaker, plans to ramp up its sales with a slew of new products in its home appliances range, that will be launched in the future.

The company's core areas include refrigerators and washing machine's which contribute a majority to the revenues.

''From the present 24.5 per cent overall market share (volume) in refrigerators and 16.5 per cent market share in washing machines, we are aiming at a jump to 26 per cen and 18 per cent respectively by the end of the financial year,'' Mr Uppal said.

On exports, the MD said the company was aiming at Rs 200 crore revenue from exports by March, 2007 which is up 42.8 per cent from the Rs 140 crore exports generated last year.

The company exports primarily to Asia, Australia, Middle East, Russia, Africa and Central Europe.

''We expect a growth of around 20 per cent in both our domestic as well as export market,'' he added.

The company has two Research and Development centres in Pune and Pondicherry and three manufacturing plants in Faridabad, with a capacity of 1.5 million units, Pune with a capacity of 6-7 lakh units and Pondicherry with 500,000 units, totalling to a 2.7 million total capacity.

''A part of the 15-20 million dollar investment over the next 12-18 months, that we had earlier announced, would go in the launch of new products, while the remaining would be pumped in the expansion of the existing manufacturing and research facilities,'' he said.

While refusing to give out any further details, he ruled out setting up of new plants.

The company will be spending Rs 60 crore on advertising and promotions for the festival season from September to December.

The company is 83.3-per cent-owned by US-based Whirlpool Corp.

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