Whirlpool to pump in Rs 160cr in 18 months

New Delhi, Apr 3 (UNI) Facing stiff competition from South Korean major LG, home appliances company Whirlpool of India (WOI) today said it will pump in Rs 160 crore in the next 18 months to ramp up capacity and market its entire range of refrigerators, washing machines, ACs and dryers.

Of this, Rs 90 crore will be invested in next 12-18 months in production and another Rs 70 crore on advertising and marketing in 2007, WOI Vice President (Marketing) Shantanu Das Gupta told reporters adding that a major share will be invested in the peak summer.

''Whirlpool India, which had incurred losses in the past, expects to turn around and become profitable by 2008. Now we are aiming for the number one position and plan to fill the existing gap with new products and aggressive marketing,'' Mr Gupta said.

The company's operating profit has increased considerably from just Rs 2 crore for the period of April-December 2006 to Rs 44 crore for the same period in this fiscal and net profit will be achieved by 2008, he added.

WOI grew at 19 per cent in the last fiscal and is looking at an overall growth of around 20-25 per cent in the next financial year. Its turnover stood at Rs 1,245 crore during the nine months ending December 2006.

The company will up production capacities in existing facilities at Faridabad, Pune and Puducherry.

''WOI expects to notch up a 27 per cent market share in the refrigerator category, 20 per cent in the washing machine category and 10 per cent in the air conditioner category in India in 2007,'' WOI Managing Director Arvind Uppal said.

Priced between Rs 12,500 and Rs 29,500, Whirlpool 'MagiCool' ACs are available in all capacities from 0.8 ton, 1 ton, 1.5 ton and 2 ton in both window and split AC segment.

Mr Gupta added: ''The AC category is one of the fastest growing consumer durable categories in the country. The market is growing at a CAGR of 25 per cent and it is expected to beat the refrigerator category by 2008 in value terms.'' The company also unveiled its 'Mastermind' range of refrigerators in the frost free segment and ventured into a new category dryers.

It also added new models of washing machines 'Sensation Neo' with the launch.

Whirlpool's fully automatic refrigerator 'Mastermind' is available in seven finishes in the capacities of 220, 250 and 280 litres, and is priced between Rs 11,500 and Rs 20,000.

The washing machine is available in 5 kg capacity and costs Rs 16,990 while the dryer is imported from Europe and is available in 6 kg capacity, priced at Rs 21,499.

This launch will follow above-the-line advertising featuring Whirlpool brand ambassadors Kajol and Ajay Devgan and below-the-line activities such as in-shop displays, promotions, direct marketing, and product demonstrations.

Currently, Whirlpool products are available across 10,000 retail outlets across the country.

UNI