Havells India Ltd has set its eyes on export market as Chinese fans have started getting more expensive, thereby giving an opportunity for Indian makers to pump their products in the international markets.
Pegged at approx Rs 5000 crore, India’s fan industry may get a boost with opportunities emerging in the Middle-East (ME) and neighbouring nations including Sri Lanka, Bangladesh and Nepal.
“The price difference between Chinese and Indian fans used to be around 20-25 per cent, which has now reduced to a mere 10-12 per cent. This has opened opportunity for Indian fan makers to compete China in the international market. We are looking at increasing our exports to these regions,” said Narendra Choudhary, Sr Vice president, Havells India Ltd.
“Currently, negligible fan exports take place from India,” said Choudhary after a media interaction here on Tuesday.
Emerging opportunities in the export market to benefit fan makers, which are faced with stagnant domestic sales due to slackness in the housing market. The year-on-year growth of fan sales in India is estimated at around 10 per cent.
Havells India’s arm, Standard Electricals launched 12 new fan models in a regular and premium category.
Havells currently operates in the regular and premium fan segments, which put together has a market size of around Rs 3200 crore. The economy fan segment, which is less costly has the market size of around Rs 1800 crore. Havells or Standard fans are not present in the economy segment, which is priced less than Rs 1200 a unit.
Havells sells fans in premium segment with a price ranging from Rs 1500 a unit to as high as Rs 25,000 a unit. The newly launched Standard brand of fans will be sold in the price range of Rs 1650 a unit to Rs 2500 a unit.
Fan business contributes around Rs 700 crore to the company’s overall turnover. The company expects its share in the country’s overall fan market to increase from 14 per cent presently to around 25-30 per cent in next three years.
In order to increase its presence in domestic market, the company plans to increase its dealer network across the country.