Usha International is lining up a new range of premium fans to increase its share in the estimated Rs 5,000 crore branded fans market in India. The company is investing around Rs 4-5 crore in marketing its Chota Bheem and Doraemon series of fans, also expects to increase market share to around 21-22 percent in 2015-16, , says a report in PTI.
Commenting on the matter, Usha International President (Fan Business) Rohit Mathur told PTI, "For the upcoming summer, we are looking at introducing a new range of fans which are premium products.There are about 18-20 new models, which are going to be launched this season under this range."
The price range of these products will be in the range of Rs 10,000 to Rs 14,000, which will help consumers improve entire dcor and feel of air inside the room, he added. Besides, the company is focussing on the kids category with its Chota Bheem and Doraemon series along with Hot Wheels and Barbie range to bring incremental sales.
"These fans are again extension to the kids fan and add aspirational value for any young child in any household. Today, consumers have dispensable income to afford to spend Rs 4,000 to Rs 5,000 on such fans for their children at home," Mathur said.
These steps are part of the company's strategy to enhance its share in the Indian branded fan market, which according to Mathur, is about Rs 5,000 crore in size. Usha accounts for about 20 percent share in the market. "We are looking at 2-3 percent increase in market share and are working on it and by fiscal year 2015-2016, we would want to increase our market share to around 21-22 percent," Mathur said. Currently, Usha International has manufacturing capacity of close to 2.5-3 lakh fans a month. Mathur said with e-commerce taking off in India, the company is also preparing itself to cash in on the opportunity. "e-commerce will prove to be a very important platform in the times to come.
We have already placed our products on Amazon... we have great plan for the next financial year to tie up with more partners," he said. At present, e-commerce platform in terms of electrical industry is not mature and is just taking shape, Mathur said, adding that the industry needs to present the entire product range in a manner that is appealing to the consumer.
He, however, expressed optimism that there will be a phase very soon where electrical industry on the e-commerce platform will take off in a big way. Usha Intl stock price On June 13, -, Usha International closed at Rs 373.00, down Rs 1.85, or 0.49 percent. The 52-week high of the share was Rs and the 52-week low was Rs .
The company's trailing 12-month (TTM) EPS was at Rs 47.28 per share as per the quarter ended March 2015. The stock's price-to-earnings (P/E) ratio was 7.89. The latest book value of the company is Rs 305.05 per share. At current value, the price-to-book value of the company is 1.22.