The company has set up a separate production line at its Hyderabad plant to manufacture the yet-to-be-named new range of fans. To start with, the company is looking at producing 50,000 double wall-bearing ceiling fans per month. ``Depending on the response, we might expand the production further,'' says Wadhwa. The company will consider the manufacture of other fans--such as table fans--based on the target response to the ceiling fans.

To be priced at Rs 750--40 per cent lower than Usha's current basic model priced at Rs 1050--Usha's new range will directly hit the SSI (small scale industry) sector which dominates the rural market with its low-priced fans priced at Rs 500 and below. ``The SSI sector can afford that pricing since they don't have to pay 40 per cent excise tax. But the rural market accounts for almost 50 per cent of the total market, and to address that we need to bring out a fan which is comparatively priced,'' says Wadhwa.

Pertinently then, Usha's distribution thrust is going to be in the SSI dominated areas such as Andhra Pradesh, Tamil Nadu, outskirts of Delhi, and other areas, though the launch will be national. The company is targeting dealers in 5,000-plus population towns besides stocking the new product line with its 11,000 distributors in large and small towns such as Meerut or Surat. ``For a rural consumer, it's a considered purchase, he'll not buy through melas and haats. So it's important to have a dealer close to the town,'' reasons Wadhwa.

Usha's decision to start a new line of fans for the rural market is based on the feedback from its 11,000-strong dealer network who had found that consumers were keen to buy the Usha brand but at cheaper prices. The brand has considerable equity in the rural market through its presence in other product categories such as diesel engines and sewing machines.

Nevertheless, to build awareness about its value-for-money fans, it is going to spend Rs 1 crore on publicity which will be largely done through wall paintings, five video-on-wheels vans and local newspapers.

Early this month, UIL launched a Rs 5-crore consumer promotion and a nationwide contest to fan sales during the monsoons--when sales of fans dip considerably.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.