The global developments has turned manufacturing locally very important to protect our margins and sooner the better, said Namit Bajoria.
Kitchen Chimney maker Kutchina is planning to expedite their ‘Make in India’ plan to overcome currency blow on its margins due to Britain’s exit from the EU.
“In October, our Chinese manufacturing partner is coming here to evaluate manufacturing prospects and we are hopeful to finalise shortly on a modern Chimney making facility in West Bengal,” Bajoria Appliances Director Namit Bajoria said.
Kutchina is owned by the Rs 200-crore Bajoria Appliances.
“The global developments has turned manufacturing locally very important to protect our margins and sooner the better,” he said.
In the last few quarters, Kutchina has faced squeezing of gross margins by 2-3 per cent and 4-5 per cent at net level.
Bajoria said initially they will begin Chimney making facility in a joint venture with the Chinese OEM partner.
“The manufacturing company will be different entity and Kutichna will have an OEM relationship. This plant will also manufacture for exports from India for volume,” he said.
The fine print of the JV will be finalised later.
“Our JV partner will not invest in land and building and they will bring in manufacturing plant and machinery,” Bajoria said.
Kutchina has also forayed into small appliances to expand its kitchen portfolio and hopes to grab a sizeable market of Rs 10,000-crore industry, he added.
We will focus at the mid premium segment of small appliances market that account for Rs 3000 crore.