As summer sets in with predictions of harsh temperatures, CK Birla firm Orient Electric expects a good growth in revenue in FY24 from its fans and cooler business, MD & CEO Rakesh Khanna said.
With summer approaching, Orient Electric Ltd (OEL) expects a "natural drift" in growth coming from the fan segment, housing segment and the replacement market.
"Lighting will also grow well for us as in B2B, we are growing fast. Coolers, in the last three years, have faced headwinds because of COVID and this is the first year after COVID... Summer is likely to be very good, so cooler is going to do very well," Khanna told PTI.
Asked about early trends from its dealers and channel partners, he said for cooler, growth is taking place. "For fan, January was muted but now it is taking off."
OEL operates in consumer durables, lighting and switchgear products. In 2021-22, its revenue from operations was Rs 2,448 crore.
It has two segments, Electrical Consumer Durables (ECD), which contributed 73 per cent of its business in FY22, while the rest 27 per cent came from Lighting and Switchgear segment (L&S).
Around 80 per cent of Orient Electric's ECD business comes from the fan segment, Khanna added.
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On the lighting business, Khanna said:" It is doing well. We are growing both in consumer lighting and B2B. Currently, B2B is 20 per cent of our business.. that is a super area for us to grow."
Its facade lighting is growing fast and the company has bagged some prestigious projects for lighting in cities.
Over its De'Longhi business, Khanna said it has a niche offering and will take time to scale up in India.
"There is no plan to expand it as of now. What is important is to be present in this market in India. As the market starts growing, we will expand the products," he added.
OEL has a retail partnership with Italy-based small appliances maker De'Longhi Group, which has premium brands De'Longhi, Kenwood and Braun in its fold.
The Indian fan market has faced a degrowth (in terms of volume) over the last two years, but Khanna said it is going to see "phenomenon good times" in the years to come.
Construction of new houses and replacement of new energy efficient star labelled fans from the older units would be growth drivers for the segment.
The organised Indian fan market is estimated to be 7-7.5 crore units, though there are no syndicated data, Khanna added.
Asked about OEL's share in the organised Indian fan market, he said:"Depending on different reports, it is any where between 15.5 to 18.5 per cent".
Orient's around 10 per cent contribution comes from the premium range of fans, which are priced at Rs 5,000 and above.
"I believe that this time Rs 2,500 plus (BLDC segment)...will also substantially grow," he said.
Part of USD 2.4 billion CK Birla group, OEL on Tuesday launched Cloud 3 fan, a cooling fan powered by cloudchill technology.
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