Whirlpool cooks up 'built-in' growth recipe

Home appliances major Whirlpool of India, the Rs 3,500-crore subsidiary of US-based Whirlpool Corporation, has pinned its growth on the built-in appliances space, a rather nascent segment of the growing kitchen appliances business in the country, aiming at Rs 100 crore revenues in the next three years.

The company, which has been in India for over two decades, has seen growth in the built-in appliances business primarily in the metros and large cities, and now expects traction in the smaller cities as well.

“Over 65 per cent of Whirlpool’s sales (in home appliances business) comes from big cities, where there is steady growth, thanks to purchasing power and aspirations. Built-in appliances are high-end luxury products, finding demand based on the spurt in upmarket real estate. We have been in the business of built-in appliances for around two years, and operate in the premium space. We plan to end this year with revenues of Rs 30 crore,” Whirlpool of India Vice President (New Business & Consumer Interface) Rajiv Kapur told Deccan Herald.

The term ‘built-in’ is used to describe those kitchen appliances designed to integrate with the kitchen cabinetry and are ideal for modular kitchens, which are fast becoming the vogue in India. 

The appliances include refrigerators, ovens, microwaves, dishwashers and cooking stoves among others, which are precisely and aesthetically blended with kitchen interiors and chimneys, adding a dash of cooking convenience.

The total built-in business in India is at around Rs 400 crore-Rs 500 crore, of which Rs 350 crore is occupied by ‘hob and hood’ mass players, while the remaining Rs 100 crore-Rs 150 crore is held by premium players. 

While the industry is growing at around 25 per cent, Whirlpool claims to grow at over 50 per cent. In a bid to capture the market, the company is opening experience studios-cum-showrooms called ‘Whirlpool Haute Kitchen’ across the country. Following  newly-opened showrooms in Bengaluru, and those in Jaipur and Kolkata, the company is looking at opening 10-15 more showrooms in India, this year. 

“Each showroom will receive Rs 10 lakh-Rs 15 lakh investment from our side, besides investment from our partners,” Whirlpool of India Vice President (Corporate Affairs & Strategy — Asia South) Shantanu Das Gupta said.

Whirlpool’s built-in appliances come in three categories — Genesis, Ambient and Glamour — priced between Rs 1 lakh and Rs 3 lakh. 

“Over 90 per cent of the appliances are imported from our facilities in Italy and Poland, besides minor contributions from Chinese units,” Das Gupta said, adding that with more housing, especially luxury apartments, and more awareness, the built-in appliances business in India is poised to grow.