Dutch consumer electronics giant Philips, which last year moved its domestic appliances headquarters to China, is set to make India its global hub for manufacturing and innovation for its kitchen appliances division. This could happen in the next couple of years.
The company, which acquired the Chennai-based Maya Appliances — maker of Preethi-branded mixer grinders early last year — is planning to set up an integrated facility in Chennai to manufacture its range of small appliances, including mixer grinders, induction stoves, electric cookers, juicers and food processors.
Saying it will be a little too premature to talk about the investment plans, Mr Vijay Srinivasan, Managing Director of Maya Appliances, hinted that to set up one manufacturing unit in this segment would require anywhere between Rs 30 crore and Rs 50 crore. “And, hence an integrated unit may require surely upwards of Rs 100 crore,” he said.
According to him, following the acquisition last year, the process of integration of the two companies — in terms of technology collaboration and certain back-end operations — is completed. However, as already decided, Preethi will continue to remain a wholly-owned subsidiary of Philips.
Though Philips has not started manufacturing its product range at Preethi's facilities as yet, Mr Srinivasan has not ruled out the possibility of that in the near future.
Last year, Philips moved the headquarters of its domestic appliances business to Shanghai to “spur revenue growth in China and the region”. Newspaper reports, quoting the division's head Mr Pieter Nota, said, “As we see the centre of gravity for growth in domestic appliances will be in China and India, it makes sense to have the leadership in China and have a leader from Asia.”
Preethi today added a range of new products to its bouquet. It launched Lavender Pro and Power One — middle-segment and economy model mixer grinders — priced in the range of Rs 2,000-3,000.
Announcing the launch, Mr T.T. Siddarth, Director – Special Projects, said the company sold 1.5 million units of mixer grinders last years – which translates roughly into 4,000 units a day. “We have been registering 25 per cent growth year-on-year since 2002,” he said. The company, for the year 2010-11, registered a turnover of Rs 430 crore; and for the current financial year, it expects to post Rs 525 crore. “Our target is to hit Rs 600 crore by 2012-13,” he said.
Preethi's current product portfolio includes mixer grinders, auto cooker/warmers, induction cooktops, coffee makers, kettles and irons. It plans to add more products such as hand blenders and juicers. It has seven manufacturing facilities spread across Tamil Nadu and Himachal Pradesh.