Honda Siel Power Products Floats New Lifestyle Division

New Delhi: | Updated: May 31 2002, 05:30am hrs
The Rs 200 crore Honda Siel Power Products Ltd, a joint venture between the worlds second largest engine manufacturer Honda Motor Company of Japan and Siel Ltd India, has set up a separate Lifestyle Division to market a range of lifestyle products in the market. Lawn mowers will be the first product to be launched nationally after a sucessful year-long test launch in the five metros.

Says Mr Sanjeev Govil, DGM, marketing, Honda Siel Power Products Ltd,Being the only branded lawn mowers in the Indian market, we received a very positive response to the product during the test marketing period, when we did business worth Rs 2 crore. We have set ourselves a modest target of Rs 8 crore for the first year.

The estimated market size of lawn mowers is 30-40,000 units annually, with the segment largely dominated by unorganised players. With its sleek looks and features like auto cleaning, auto drive, fuel efficiency and adjustable cutting height, Honda lawn mowers will be positioned on a lifestyle platform.

As part of its marketing strategy the company would target hotels, clubs, resorts, farm houses, defence forces, big corporate houses and horticultural departments through an aggressive direct marketing drive, awareness camps, exhibitions and limited advertising in niche magazines.

HSPPL has set up a special network of 70 dealers from among its network of dealers. The company will also focus on after sales service which is critical in a product which targets an elite consumer segment. Available in two models in the price range of Rs 38,000 to Rs 50,000, the product will be sourced from the Honda facility in Australia. The next lifestyle product from HSPPLs stable is likely to be outboat motors.

HSPPL, whose portfolio includes portable gensets, general purpose engines, portable water pumps and power sprayers for horticultural purposes, enjoys around 70 per cent market share in gensets and 40 per cent in water pumps.