Onida Electronics, once a household name with its iconic "Neighbour's envy, owner's pride" tagline, plans to open 100 exclusive stores over the next two to three years as the Indian consumer electronics brand attempts to stage a comeback under a new management team.
The company, formerly known as MIRC Electronics, currently has no exclusive brand stores and sells through 4,000-4,500 retail outlets.
“With a slightly longer term horizon (2-3 years), we would like to have 100 exclusive brand outlets across the country,” Gunjan Srivastava, chief executive officer and managing director of the company, told Mint.
The expansion underscores Onida's attempt to rebuild a brand that lost ground to global rivals after economic liberalisation and the shift to smart televisions. The company is seeking to regain relevance by strengthening distribution, refreshing its brand and moving back into the higher-margin mass-premium segment.
“We are putting a lot of emphasis on distribution and dealers landscape because that's where the majority of the market is, and our endeavour is to expand our reach because our reach has shrunk in the last 5-6 years.”
“We want to identify a minimum of 1,000 outlets where we can really benchmark retail excellence, with extraction levels which are far higher than other outlets,” Srivastava said.
Onida is also looking to move away from the affordable end of the market towards the growing mass-premium segment while reconnecting with older consumers familiar with the brand and introducing it to younger buyers.
“Onida used to be in the premium category and has moved down to that affordable bracket,” Srivastava said. “Our intention or strategic intention in the next 3 or 4 years is to bring that affordable upwards towards mass premium,” he said.
The strategy comes against intense competition from both multinational and domestic appliance makers such as LG Electronics, Samsung, Voltas, and Bluestar amid an improving outlook for India's consumer durables market. According to an EY report, the market is projected to reach ₹3 trillion by FY29, growing at an 11% compound annual growth rate from 2024.
Analysts at Motilal Oswal Financial Services, in a 6 July report, said FY27 has begun on a strong footing for the sector, aided by robust summer demand for cooling products.
Brand revamp
The revival follows sweeping organisational changes. In June, the company officially changed its name from MIRC Electronics to Onida Electronics, completing a rebranding exercise to restore its consumer-facing identity.
Srivastava joins after a 12-year stint at Bosch Home Appliances, heading India, South Asia and the UK. The company also appointed former VIP Industries executive Manish Desai as chief financial officer and Neelam Sanguri as chief people officer.
Promoter Kaval Mirchandani has transitioned from managing director to whole-time director and will remain on the board. The overhaul follows years of promoter disputes over ownership, control and trademark rights. The conflict centred on the company's holding structure, control of the Onida trademark and the division of operating businesses among family members.
To fund the revival, the company raised ₹149 crore from Authum Investment and Infrastructure and received an approval in June to issue convertible warrants of about ₹65 crore. Srivastava said the company remains open to raising additional capital if needed.
The corporate turnaround plan and the company's rebranding exercise were welcomed by the Street. Shares of Onida hit a 52-week high of ₹49.23 in May and are up about 51% since January, sharply outperforming the Nifty 50, which has declined 7.4% over the same period.
The company, however, remains loss-making, reporting a net loss of ₹74 crore on revenue of ₹671 crore in FY26.