French electronics brand Thomson that operates in India through a license with Super Plastronics (SPPL) has entered the washing machine category in the country. The brand will begin selling semi-automatic washing machines from June 23 through Flipkart.
In an interaction with Moneycontrol, Avneet Singh Marwah, CEO, SPPL (exclusive brand licensee of Thomson in India) said that the brand is entering the appliance market and will be making a Rs 1,000 crore investment in the next five years.
“We have been successful in the smart television segment with over 5 percent market share and hence wanted to enter the affordable category of appliances. We will be starting with a price point of Rs 6,999 for 6.5 kg semi-automatic washing machine,” he added.
Marwah also said that this will a completely made in India. Going forward, he said that the idea is to increase the portfolio by adding a new product category every year.
“Due to the Coronavirus outbreak, customers aren’t still going out to buy appliances. Hence, our distribution partnership with Flipkart will be beneficial,” he said.
The washing machine market size in India is estimated to be Rs 10,000 crore with 7 million units and less than 15 percent penetration in the market. Companies like LG, Samsung, Bosch, IFB, Godrej Appliances and Whirlpool operate in this segment.
For Thomson, the washing machines are being manufactured at a partner plant in Dehradun. Marwah said that a new manufacturing plant is coming up near their existing Uttar Pradesh facility and would be ready for operation in the next two years.
“The pent-up demand for appliances during the lockdown as well as the renewed ‘Make in India’ sentiment would work well for us,” he added.
Consumer electronics brand Thomson had made a re-entry into the Indian market in FY19 through its television business and purely sells online.-Money Control