Water heating solutions brand Racold India is expecting a double-digit growth in the coming two years primarily led by factors such as rise in disposable income and growing urbanisation, a top company official said.
Besides, Racold, a brand licensed to Ariston Thermo group, expects that recent steps for last mile electrification and affordable housing projects across India will help boost demand for water heaters.
“Our clear stated goal is to increase our growth rate and outstrip the growth rate of the industry (water heater), which is growing at 6- 8 percent and we aim to outgrow the industry with a healthy double digit growth in the next two years,” Ariston Thermo India Managing Director Mohit Narula said.
Around 55 lakh water heaters were sold in 2018 and the industry was estimated to be worth Rs 2,600-2,650 crore.
“Our estimation is that we are having around one-fifth (20 percent) of the market,” he added.
Presently, 50 percent of Racold”s sale comes from eight metro cities and rest comes from the tier-II and -III and below places.
However, the company expects a faster growth rate from non-metro cities led by factors such as rural electrification and growing urbanisation.
Currently, Racold products are available at 15,000 outlets and has plans to expand it to 20,000 outlets by the end of this year.
“We are expanding our distribution and service footprints,” Narula added.
Besides, the company is focusing on the e-commerce segment and is taking steps with its channel partners Amazon and Flipkart for further business expansion.
“Online is an area, where we were not focusing ourself but now we are looking at that area,” he said.
Racold India on Monday introduced two new products – Omnis and Aures. Omnis, ranging between Rs 14,199 to Rs 18,459 will have features such as Wifi, smart bath logic, auto diagnos. While, Aures, which starts from Rs 6,999 is an instant water heater.
Ariston Thermo group, a global company in the water heating segment, had recorded a turnover of Euro 1.61 billion and sold 8 million products in over 150 countries in 2018.―Outlook India