Financial Daily from THE HINDU group of publications
Monday, Jun 24, 2002
Financial Daily from THE HINDU group of publications Monday, Jun 24, 2002 |
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Corporate
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Outlook Electrolux bullish; hopes to be back in black soon
Richa Mishra
NEW DELHI, June 23 WILL Electrolux Kelvinator (EKL) emerge as the "coolest one'' after all? That seems to be target as the company, post its recent restructuring, expects to come out of red by next fiscal. Armed with established brands such as Allwyn, Kelvinator and Electrolux, the company is confident of giving its competitors a run for their money. When asked about targets of the company, Mr Anand Bhardwaj, Executive Vice-President, Marketing & Marketing Services of EKL, said: "We foresee the company in black and buoyant by next year.'' For the quarter ended March 31, 2002, the company had recorded a net loss of Rs 36 crore and a gross sales of Rs 115.5 crore. Confident about meeting any competition, the company has chalked out a strategy to further strengthen its position in the hugely competitive consumer durables market. Commenting on whether the company proposes to phase out the mass market brand Allwyn, he said: "Allwyn at present remains an important tactical brand for us, selling 2.6 million units (direct cool segment) and has improved its market share from 5.1 per cent in 1999 to 6.1 per cent in 2001.'' The direct cool segment of refrigerators enjoys a market share of 80 to 90 per cent, most of which lies in the sub- 200 litre category. "This makes Allwyn an important brand to have for the company,'' he said, adding that "EKL plans to unfold new models under the Allwyn umbrella just before the festival season.'' Accepting that it would not be possible to pay equal attention to all its brands, Mr Bhardwaj said that in the long-run, the strategy is to have a ``few powerful brands''. "It could mean phasing out some of the existing brands including Allwyn,'' he said. After the successful amalgamation of Electrolux India Ltd and Intron Ltd with Electrolux Kelvinator Ltd - the merged entity EKL is now in the process of consolidation, he said. "Before launching any new models, the company has ensured that its pipeline is clear... there are no dead stocks,'' Mr Bhardwaj said. Currently, the focus is on washing machines and refrigerators and it will take a re-look at airconditioners and microwave ovens in the next season, he said. EKL will be soon unveiling new models in refrigerators and washing machines, including high-end frost-free refrigerators and washy-talky, the talking washing machine. He also did not rule out the prospect of making India the outsourcing hub for South-East Asia and South Asia.
AGM for rights issue
EKL plans to hold an annual general meeting (AGM) on Tuesday to seek shareholders' approval for the proposed rights issue. On May 24, the board of directors of EKL had decided to further issue up to 24,97,18,386 equity shares of the face value of Rs 10 each on a rights basis to existing shareholders in the ratio of 10 equity shares for every seven equity shares held, for cash at par.
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