Italy’s Ariston to tap new categories, aims 10% of global revenue from India in 7 years1 min read . Updated: 24 Jan 2017, 01:24 AM IST
Ariston is planning to leverage the online marketplaces to expand reach
New Delhi: Almost two decades after it entered India by acquiring Pune-based Racold brand in 1998, Ariston Thermo Group is set to tap new product categories such as air conditioners, room heaters and de-humidifiers, as it aims to generate at least 10% of its global revenue from India within the next 7 years, said V. Ramnath, managing director, Ariston Thermo India Pvt Ltd, the local entity of the €1.4 billion Italian company.
At present, Indian business accounts for less than 2% of the global revenue of Ariston which leads the heating solutions market worldwide. In India, Racold claims to have one third share of the water heating solutions market. The water heating solutions market in India is estimated to cross $330 million (about Rs2,200 crore in 2015, according to a report by market research agency TechSci Research. Other major players in the segment include AquaMax, Bosch, Bradford White Corporation, Eemax, General Electric, Havells, and Zenith.
“Globally, the company has strong presence in air conditioners, de-humidifiers and room heaters, among others. We are seriously looking at entering some of these markets here within the next one year. India is among the top 5 strategic markets for the group and focus on India has increased in the past couple of years," said Ramnath.
The company has also started increasing its retail footprint in India. By end of 2017, it intends to have presence across all towns with population over one lakh. Currently, it sells products through nearly 11,000 retail outlets which will grow up to 15,000 by end of 2017, added Ramnath. Ariston is also planning to leverage the online marketplaces to expand reach.
The water heater market in India has seen renewed focus from both domestic and multinational player in the past couple of months as they intended to capitalise on the winter season.
Chinese company Haier Appliances, home-grown Usha International, Spain-based Taurus Group and AO Smith India Water Products Pvt Ltd have all beefed up their portfolio in the water heater segment in the past couple of months.
Globally, Ariston Thermo group has increased focus on renewable energy and solar-based products targeting to generate about 80% of its business coming from high efficiency and renewable solutions, the company said in a statement.