Bouyed by robust sales this fiscal, home appliances maker Whirlpool of India today said it will invest up to Rs 125 crore on new product development, marketing and enhancing infrastructure in the next fiscal.
The company, which posted 49.13 per cent increase in its net profit to Rs 24.10 crore in the quarter ended December 31, 2010, said it has registered a satisfactory growth despite challenges of surging commodity prices during the period.
Besides, the firm’s net sales for the third quarter ended December 2010 rose to Rs 600.27 crore from Rs 504.15 crore in the same period last fiscal.
“We will invest Rs 100 crore to Rs 125 crore next fiscal on innovations, bringing new products, marketing and infrastructure. Some of it will also go in expanding our retail presence,” Whirlpool of India Vice President Corporate Affairs & Strategy South Asia, Mr Shantanu Dasgupta, told PTI.
He said the company has lined up new range of products, including refrigerators and washing machines to be launched in the coming months.
Besides, it is also planing to increase its number of exclusive retail outlets to around 150 from 65 by the next fiscal. “Our brandshops are mostly in the northern region. We want to expand to the rest of the country,” he said.
Asked if the company will be going in for further price increases, Mr Dasgupta said high input cost is still a challenge but the company is not considering it at the moment.
“The inflationary trend is still there. We will not rule out any price increase but we will take a decision keeping a watch on the situation,” he said.
The company increased the price of its products three times in September last year. It had hiked prices of some of its products by around 2 per cent last month.
The stock of Whirlpool of India was trading at Rs 230.20 per share at the BSE, up 6.21 per cent from its previous close.