Comments
Orient Electric is sharply focusing on a direct-to-market distribution strategy in certain states to bolster its fans’ business. It is also ramping up its manufacturing footprint by commissioning a new greenfield plant in Hyderabad, set up with an investment of over ₹210 crore , which is expected to become fully operational by next summer
Ravindra Singh Negi Managing Director & CEO, Orient Electric told businessline, “ Over the past fiscal year, we focused on strengthening the Direct-to-Market (DTM) distribution model in eight states for the fans segment. This strategic pivot has yielded positive results. We have seen high double-digit growth and market share gains in these states.” He added that the company balances its DTM strategy with a master franchise distribution model for the fans’ business.
The company has adopted the DTM model in Uttarakhand, Bihar, Odisha, Uttar Pradesh, Karnataka, Andhra Pradesh, Telangana and Gujarat. It has seen 65 per cent y-o-y sales growth in these states and they now contribute 30 per cent to the overall fans’ sales. “In the current year, we have also initiated the DTM model in Himachal Pradesh and Jammu & Kashmir. We also plan to leverage insights gained from DTM markets to optimise operations in other regions,” he added.
Ramp-up product portfolio
The CK Birla-promoted company has also ramped up the presence of its overall product portfolio in modern retail and large retail format stores and said it has begun witnessing positive results for these efforts. It is also making sharply targeted marketing investments on e-commerce platforms.“ We have begun participating in the quick commerce channel. We are selling products such as LED lights, extension boards and irons on these platforms. The online channel is key from the perspective of the consumer’s discovery, evaluation and purchase journey ,” Negi added.
The consumer electrical products company is also looking to ramp up distribution for its overall portfolio in the Southern region. This comes at a time when it has expanded its manufacturing footprint. Negi said that the company’s new greenfield plant for the fans segment in Hyderabad has been set up with an investment of over ₹210 crore. “ We commissioned it in May. We are gradually ramping it up and we expect this plant to be fully operational by next summer season. It is enhancing our ability to serve the Southern and Western region and also expansion into international markets,” he added.
Meanwhile, the company said its internal cost savings programme has helped it achieve cost savings of 2.7 per cent of revenue in FY24. Orient Electric recorded operation revenue of ₹2,812.1 crore in FY24, up 11 per cent over FY23.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.