Preethi Kitchen Appliances plans to reduce its dependence on its flagship segment – mixers and grinders – by expanding its offerings and entering new markets thereby doubling sales volume over the next four to five years, .
Currently, mixers and grinders account for 75 per cent of its sales and the balance comes from other products that include health juicers, induction cook tops, stainless steel and glass-top gas stoves, wet grinders, rice cookers and electric pressure cookers. It is looking to reduce its dependency on mixers and grinders with their revenue contribution coming down to 50 per cent.
Preethi, a popular brand in the South Indian market, was acquired by Philips during 2011. Since then, it has had access to Philips’ know-how, its marketing muscle and its global reach satiating Preethi’s export appetite.
Rupendra Yadav, Preethi Kitchen Appliances CEO said: “Our revenues from mixers and grinders will continue to be strong, while we expand the share of the other products from 25 to 50 per cent of our revenues. Currently, we have 14 products in our basket and are exploring opportunities by bringing in variants of existing products. We will enter geographic areas that have a large South Indian population.”
Mr. Yadav said that going forward exports would be the area of focus. Currently, exports account for five to seven per cent of revenue and Preethi’s target is to more than double that revenue share.
Preethi Kitchen Appliances exports its products to the Middle East, the U.S., Sri Lanka, Bangladesh, Canada and Singapore. Plans are on to enter other South East Asian countries.
The market size of kitchen appliances in the South is estimated to be Rs.2,700 crore and Rs.8,200 crore nationally. In Tamil Nadu, Preethi has a 23 per cent market share.
“During January-December 2015, we gained 1.2 per cent market share, 2 per cent in Southern market and 3.2 per cent in Tamil Nadu. Last year, we registered 11.5 per cent top-line growth and expect higher double-digit growth for the current year too,” he said. Preethi has launched its multi-function Zodiac mixer grinder in three variants Zodiac, Taurus and Aries, coming with a five-year motor warranty.