Hyderabad: The leading Indian consumer durable manufacturing company have made a mark with their color televisions for almost two decades. They have entered into the manufacturing of air conditioners, washing machines, and home appliances and have been doing very well.
Mini metros are going to be the biggest contributor to the growth of LEDs and LCDs, Air conditioners, refrigerators and other appliances. As the double income couples are increasing in these mini metros, the demand for appliances is going up substantially. Expected growth in consumer goods sector is pegged at 20-25% for the next five years. There is a huge untapped rural market, so the company is focusing on it. Considering the good monsoon during the current year coupled with low inflation rates should spur the demand in rural markets. Picture tube TVs have become history and people are moving to LEDs and LCDs in these small towns, this will alone drive the company’s revenues in the next three to five years.
Currently, the company has 4,000 dealers spread across India and this number is increasing every day. India is set to become the 5th largest consumer durables market in the world; the market size of the consumer durables would reach $ 20 billion by 2020.
India is one of the largest growing electronics markets in the world by pegging its growth at 32% for the next three years. The company has reported revenues of Rs. 748 crore in FY17 and is targeting to reach Rs. 1000 crore turnover during the current financial year. Onida’s 40 per cent of sales come from tier-I cities and metros, while the rest comes from mid-segment consumers mostly in semi-urban areas.
Commenting on the development Mr. Vijay Mansukani, MD said that, “we are expecting good growth from our Air Conditioners and Television segments. Post GST there is no sales tax advantage based on the place of manufacturing, this gives us level playing ground and we can compete well with international players. Some of the growth is also expected from new products the company is going to launch in Television and Microwave segments. Our efforts for the last three years have finally paid off and we were very successful in expanding our dealer network in the last three years. This is going to give us the growth of 34% during the current year, which will take company’s revenues to Rs. 1000 crore. Our market share in Television segment will also grow from current 8% to 10%.
“Even though the company’s presence in modern retail is 15% currently, the company would take this up to 20 to 25% in the coming years. The company has recently tied up with Flipkart and other modern E-retailers for better reach and visibility for their products” he added.
The unique thing in Onida’s products is user-friendly, with new technology like the internet of things are embedded.