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Tuesday, August 17, 1999

Inalsa revamps board; plans food processor foray in south 

Nitya Varadarajan  
Chennai, Aug 16: The Delhi-based Inalsa Appliances Ltd is looking towards south in its attempt to go national. The Turner Morrison group which had taken over the appliance business recently has inducted a new board of directors. The board will formulate and implement plans for rapid market expansion, particularly in the south, where the company has a negligible presence.

The board is headed by chairman Gurcharan Das former managing director of Procter & Gamble worldwide. The other board members are Prem Chaddha former head of technology for the Unilever group worldwide, Sailesh Haribhakti, chartered accountant and director IDBI Capital Market Services, Ashok Pradhan former managing director Reckitt & Coleman.

Speaking to The Financial Express, managing director Ashim Dutta said that the board would have active participation of all these members who are expected to contribute in their areas of expertise. There will no non-executive directors.

Dutta was touring the south for working out themodalities of test launching Inalsa food processors in the south, starting from Kochi.

Inalsa is actively going to promote its food processors and three months down the line, its toasters. The food processors have been identified as the flagship product around which the Inalsa brand will be built. Later it will bring out for consumers advanced toasters for which there is a huge latent demand, Dutta said.

The company has embarked on a drive to convert mixer-grinder users to using food processors. Nearly 65 per cent of the company's mixer grinder sales are concentrated in the south (the total market is 5 lakh pieces). ``Even if we succeed in persuading 2 per cent of the mixer users to upgrade to food processors, we are talking of a sizeable market for Inalsa," Dutta said.

In line with this strategy, a low priced model of food processor at Rs 3500 will be introduced. Mixers cost between Rs 800 and Rs 2500. There would also be a couple of new models in the high priced range - Rs 7000 plus - which would havefeatures like collapsible base, parts that can be dismantled to save on kitchen space etc.

Inalsa's nearest competitors are Crompton & Greaves and Singer in the domestic market and Moulinex and Braun among the MNCs. According to Dutta, Inalsa is the only one having manufacturing facilities to ensure consistent quality of the product, while the others had to source from vendors. Besides Moulinex and Braun are said to have inherent disadvantages when operating under Indian conditions. Capitalising on these factors, Inalsa will offer several attractive exchange schemes and increase its dealer network throughout the country. The company currently has a turnover of Rs 12 crore.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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