Electrolux Kelvinator Limited, the Indian subsidiary of the $18-billion Electrolux Group, is mulling a price hike of up to five per cent across its product range.
Speaking to Business Standard, Jayant Kaushal, general manager (marketing), Electrolux Kelvinator Limited, said: "We are exploring the possibility as the prices of raw materials after the Budget have gone up and the industry can no longer sell goods at the old prices."
The company also plans to open 10 exclusive outlets during the current quarter in Hyderabad.
"The overall plan is to open at least 50 exclusive outlets in Andhra Pradesh. At present, we have a 11 per cent market share in the state which is below the national mark of 13 per cent. The idea is to take this up to reach the national average during the current fiscal," Kaushal said.
The company has also unveiled three uniquely-designed products in the refrigerator category.
"Keeping in mind the changing style of the people, the company has designed these new fridges -- Bijlee, the world's first fridge that runs even without electricity, Tamanna, a fridge with an attached FM radio and message recorder, and Oxymagic, a fridge with changeable freezer and door panels," he said.
According to Kaushal, 'Bijlee' is aimed at tapping the rural and semi-urban markets in the country where power is not regular.
"The fridge is equipped to offer up to 12-hour power backup. Bijlee is designed with a built-in power pack, which facilitates it to operate on a battery connected externally during power cuts," he said. The 170 litre fridge is priced at Rs 10, 990.
Speaking about the 320-litre Oxymagic fridge, Kaushal said that this refrigerator, which is priced at Rs 19,990, has a unique feature of changeable freezer and door panels to suit the exteriors of a room.
Apart from this, the fridge also has other features like health guard deodorizer that absorbs bad odour and inhibits the growth of bacteria.
Kaushal said that the company has applied for a 10-year patent on these products and hopes to get it soon. "With the launch of the new range, we expect our present 13 per cent market share to go up to around 18 per cent in the next two years," he added.
The company is also looking at strengthening its distributor network in the state.
"At present, we have around 1,000 distributors in the state and the plan is to take this up to around 1,500 by the end of this financial year," Kaushal said.
For the financial year ended March 31, 2004, the company recorded a turnover of Rs 400 crore (Rs 4 billion) and expects it to cross Rs 450 crore (Rs 4.5 billion) during the current financial year.
According to him, the refrigerator section contributes around 85 per cent to the total turnover.
Kaushal said that customers can expect at least ten new products during the festival season.
"Though I cannot elaborate on it at the moment, the plan is to launch these products during the Dassera and Diwali months when sales of electronic appliances are high," he said.
