Date:16/04/2006 URL: http://www.thehindubusinessline.com/2006/04/16/stories/2006041601040200.htm

Back Whirlpool plans $20-m investment

Our Bureau

Hyderabad , April 15

Enthused by the performance during the first nine months of fiscal 2005-06, the home appliances major Whirlpool of India Ltd is chalking out a major growth plan for the coming years with significant investments towards rolling out new products and consolidating its market share.

Addressing newspersons on the eve of launching new range of refrigerators, microwaves and washing machines here on Saturday, the Managing Director, Mr Arvind Uppal, said the company planned to invest $20 million during the next 12-18 months.

Sales, profit

The company has recorded a growth of 25 per cent in sales at Rs 969.3 crore during April-December 2005 over the corresponding nine-month period of the previous fiscal. As against suffering an operating loss of Rs 46 crore in the corresponding period, the company registered an operating profit of Rs 1.52 crore during the period under review.

Market share

Stating that a significant contribution came from refrigerators, Mr Uppal said the company expected to register significant growth in operating profit quarter after quarter. The company has set a target of notching up a 26 per cent market share in the refrigerator category for 2006-07 from the existing 23.3 per cent. It had gained an additional market share of 2.3 per cent in this category during 2005-06 from 21 per cent in the previous fiscal.

Similarly, the company is aiming at a market share of 10 per cent in microwave category as against around five per cent now and 16 per cent in washing machines (less than 15 per cent). "While 2005-06 has been a good year, we expect 2006-07 to be a fantastic year for us. We were the only Indian home appliances company to have gained market share during 2005-06," Mr Uppal said.