According to Business Standard, Videocon Electrolux will set up a greenfield facility in Uttaranchal to manufacture air-conditioners at an investment of Rs 150 crore.
Anirudh Dhoot, managing director, Videocon Industries-Electrolux, said the plant was expected to be ready by April 2007 so as to make available the product during the the summer.
He added the capacity would be upgraded later to include refrigerators and washing machines. The plant will come up under the Videocon Industries banner.
The company has launched a new range of washing machines in line with the upcoming festival season with special holeless drums to help save water up to 40 per cent.
At present, we have 3.5 per cent market share, but after rolling out this range we expect it to go up to 8 per cent, said Dhoot.
He added the company expected a sales turnover of Rs 600 crore by December 2006 and was aiming for a turnover of Rs 750 crore by December 2007.
In the past year we have grown at 30 per cent compared with the industry which has seen 18-20 per cent growth, noted Dhoot.
The projected sales for washing machines for 2006 is 1.10 lakh units compared with 64,408 units in 2005, said Madhav Nene, deputy general manager-marketing, Videocon Industries-Electrolux.
In terms of advertising and marketing spend, Dhoot said the company had kept aside Rs 6 crore for next two months.
The company will spend Rs 25 crore on Electrolux, the appliances brand, and Rs 10 crore on Kelvinator, the kitchen appliances brand, this year, said Dhoot.
The company will also be introducing additional units in the microwave range and expect sales to grow from 58,000 units last year to over 1 lakh units.