The Indian unit of German appliances maker BSH proposes to increase its localisation effort to 75% this calendar year from 60% currently, as the firm looks to double its revenue by 2026.
BSH Home Appliances India currently manufactures a range of products from dishwashers to refrigerators and washing machines at its Chennai plant, which was set up in 2018. The company said that ‘Make in India’ was a cornerstone of its growth strategy in the country. Strategic investments were being made in the Chennai plant to enhance local production.
“We are committed to increasing local sourcing and manufacturing to manage costs effectively while accelerating speed-to-market,” Saif Khan, MD & CEO, BSH Home Appliances India, said. He added that the firm was eyeing full market penetration across India by 2030 through expanded brand store presence across emerging cities, rapid online expansion and premium leadership through innovation, design and smart technologies.
Apart from refrigerators, washing machines and dishwashers, BSH Home Appliances also has a presence in categories such as dryers (for clothes) in the laundry segment, ovens and cooktops in the cooking segment and small appliances. The company has three brands in its portfolio, including Bosch (operates in the mass-premium or mid segment), Siemens (premium segment) and Gaggenau (luxury segment).
The firm has 103 branded outlets in the country, divided between Bosch (83 stores) and Siemens (20 stores). It has close to 25 retailer and dealer partnerships for Gaggenau in the country.
Small appliances, meanwhile, is a segment the company is betting on in a big way as domestic consumers seek to elevate their experience in the kitchen as well as home in general. Industry experts say the small domestic appliances market in India is valued at Rs 25,000 crore ($3 billion), growing at about 5% annually, though the premium end of the market is growing in double digits (25-30%).
While mixers, juicers and coffee machines were a part of the portfolio of BSH Home Appliances, vacuum cleaners were added recently and air fryers will be added later this calendar year, the company said.
“At BSH, we are navigating the balance between price-sensitive mass demand and the fast-growing premium segment by leveraging our unique multi-brand portfolio,” Khan said. “Each brand is designed to serve distinct consumer aspirations, giving us depth and breadth to cater to evolving needs across price points,” he added.