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EXCLUSIVE


'RURAL DRIVING DEMAND FOR REFURBISHED SMARTPHONES'

The convenience of refurbished electronics has equally permeated and created a
white space for use-cases, across geographies. The rural areas have manifested a
mushrooming demand with a 528% year-on-year growth, whereas the urban areas
clocked a 340% year-on-year growth.

 * John Sarkar
 * TNN
 * April 08, 2022, 07:49 IST

 * 
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NEW DELHI: With recycling and sustainability on everybody’s mind, Xtracover, an
online platform that caters to the whole range of after-sales services for
electronic devices and electrical appliances started operations in 2017.

Its CEO Soumitra Gupta talks about the refurbished market for electronics and
the challenges that it faces. Excerpts:

What growth has Xtracover seen in recent times, how is the market of refurbished
mobiles doing?

Today the refurbished market for mobiles is not as niche as perceived. On the
contrary, it is gradually progressing towards the strata of the mainstream
electronics retail space as the new normal. The growth has been burgeoning as
the demand witnesses a visible uptick.



The commercial refurbished market space today is estimated at $10 billion, and
it is expected to continue broadening its retail spectrum further.

We received an overwhelming demand last year from both the rural and urban
sectors. This indicates a socio-economic agnostic growth in the space, which we
will continue to leverage.

Do you see more interest from metro cities or tier 2 and 3 for refurbished
mobile phones?

The convenience of refurbished electronics has equally permeated and created a
white space for use-cases, across geographies. The rural areas have manifested a
mushrooming demand with a 528% year-on-year growth, whereas the urban areas
clocked a 340% year-on-year growth.

What are the upcoming plans of the company?

In 2019, the refurbished market began to attract consumer attention. Since then,
consumers have an enhanced sense of awareness and consideration for the
products.

The global market is slowly, yet steadily picking up. Meanwhile, India is
expected to be one of the top markets for refurbished smartphones in the coming
years, for a variety of reasons, including a scarcity of precious metals,
cost-conscious consumers, increased access to first-rate refurbished devices,
the availability of quality assurance and warranty, as well as, environmental
concerns.



If a refurbished product can provide the optimum value offer to the client, gain
credibility, and provide proactive after-sales services, it will raise interest
and strengthen the ecosystem.

The refurbished mobile sector has immense potential and as one of the market
leaders, we have devised a growth playbook.

In order to expand our worldwide reach, we want to create Export Oriented Units
(EOU) in India in the long term.

Furthermore, there is a clear roadmap for procuring inventory from major clients
overseas, refurbishing them in depositary warehouses, and then transporting them
back to the consumer.

Given that India prohibits the importing of scrapped items for refurbishment and
resale, one approach for expanding the company's worldwide footprint is to ship
them back and earn revenues via the service fee.

What are the challenges faced by this industry and what are the growth
expectations?

The only roadblock that remains is that India’s refurbished market is still
dominated by unorganized players. Having said that, we envisage that the sector
is poised to transform into an organized industry. Hence, we see this as an
enabler and a blue-ocean opportunity.



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   -- online healthcare services and travel bookings, two of the sources with
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EXCLUSIVE


HIGH RAW MATERIAL PRICES HAVING A "BIG" IMPACT, PANASONIC CEO SAYS

"We are able to pass on costs to some business clients depending on our
contracts. Passing higher prices on to consumers is more difficult," said Yuki
Kusumi, who oversees a company that makes products ranging from Tesla Inc's
electric vehicle batteries to washing machines.

 * Reuters

Click Here to Read This Story
 * 
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Rising prices for raw materials, including nickel and copper, accelerated by
Russia's invasion of Ukraine were having a "big" impact on Panasonic Corp, with
the Japanese industrial giant only able to pass on some of those increases to
its customers, the CEO said.

"We are able to pass on costs to some business clients depending on our
contracts. Passing higher prices on to consumers is more difficult," said Yuki
Kusumi, who oversees a company that makes products ranging from Tesla Inc's
electric vehicle batteries to washing machines.

Panasonic, Kusumi said at a roundtable briefing, was responding by improving
manufacturing machinery to help absorb the extra expense, but those measures
were not enough cover big price increases.



The global price of nickel, much of it supplied by Russia to make batteries, has
soared this year, reaching more than $100,000 a tonne in March.

Panasonic said in February that its third quarter operating profit slid 44%
partly because of rising material costs. The company is expected to release
results for the year that ended March 31 next month.

Kusumi, who became CEO last year, released his first midterm business strategy
this month, including a commitment to invest in auto battery production, supply
chain software services and air purifier and air conditioner business.



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EXCLUSIVE


BLUE STAR TO DOUBLE PRODUCTION CAPACITY OF DEEP FREEZERS, SETS UP NEW UNIT

The facility to produce deep freezers and water coolers, was fully equipped with
the latest advanced manufacturing systems and imbibes global best practices in
its operations, Managing Director B Thiagarajan said.

 * PTI

Click Here to Read This Story
 * 
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Air conditioning and commercial refrigeration major Blue Star Ltd has set up a
new manufacturing facility at Wada in Maharashtra at a cost of Rs 130 crore
doubling the production capacity of deep freezers, a top company official said
on Wednesday.

The facility to produce deep freezers and water coolers, was fully equipped with
the latest advanced manufacturing systems and imbibes global best practices in
its operations, Managing Director B Thiagarajan said.

"Built with a capex of around Rs 130 crore, this facility is constructed on a
built-up area of around 19,300 square metres and has the capacity to produce
around two lakh deep freezers and one lakh storage water coolers per annum.
Trial productions are on. With this new plant, Blue Star will be doubling its
production capacity of deep freezers," he told, after unveiling a new range of
deep freezers here.



"As refrigeration is the key to preserving and arresting wastage of perishables,
the adoption of refrigeration in India is garnering significant thrust and
expected to increase on the back of rising consumption...," he said.

Thiagarajan said Blue Star enjoys a leadership position in most of its
commercial refrigeration product categories including modular cold rooms, deep
freezers and storage water coolers.

According to him, the company was having an expansive footprint on manufacturing
with five state-of-the-art facilities.

The company has one of the best research and development facilities in the
country and the manufacturing facilities at Wada and Ahmedabad were dedicated to
manufacturing wide range of commercial refrigeration products.

Blue Star currently has 1,500 trained channel partners for commercial
refrigeration, spanning across cities in the country with 50 per cent of the
partners located in Tier-3, 4, 5 and 6 markets.

Blue Star has inducted more than 150 service crew pan-India and the company
continuously invests in capability building and upskilling of its channel
partners.

The company's range of commercial refrigeration includes deep freezers, bottle
coolers, storage water coolers, bottled water dispensers, commercial kitchen
refrigeration equipment among others.




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EXCLUSIVE


ED SUMMONS EXECS OF XIAOMI, ONEPLUS OVER 'FOREX VIOLATIONS'

In the case of Xiaomi, the ED is probing alleged foreign remittances of more
than ₹1,000 crore, said people in the know. These remittances include transfers
by the company - in the nature of royalty - to and on behalf of its group
companies based abroad.

 * ET Bureau

Click Here to Read This Story
 * 
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The Enforcement Directorate has summoned officials of Chinese telecom companies
OnePlus and Xiaomi for suspected forex violations, sources in the know told ET.

The ED action follows investigations by the income tax (I-T) department, which
had raided these companies - and also Oppo - last year, people familiar with the
developments told ET. Tax sleuths claimed to have seized data allegedly
corroborating charges of tax evasion during searches.

In the case of Xiaomi, the ED is probing alleged foreign remittances of more
than ₹1,000 crore, said people in the know. These remittances include transfers
by the company - in the nature of royalty - to and on behalf of its group
companies based abroad.




The agency had summoned Manu Kumar Jain, Xiaomi's global vice-president, on
Wednesday. Jain's statement was recorded at the agency's Bengaluru office. He
also furnished some documents sought by the agency.

In the case of OnePlus, an official from its finance department in Bengaluru was
asked to join the probe.

This was the third time Jain, who was the managing director of Xiaomi's India
operations, had been summoned by the ED. He was summoned twice earlier, but had
failed to appear.




ENFORCEMENT DIRECTORATE SUMMONS FORMER XIAOMI HEAD IN INVESTIGATION: SOURCES

The Enforcement Directorate has been probing the company since at least
February, and in recent weeks asked Manu Kumar Jain, Xiaomi's former India
managing director, to appear before its officers, the sources said.

See More Details

Queries sent to OnePlus and Oppo remained unanswered till press time Wednesday.

Xiaomi said in a statement, "Xiaomi is a law-abiding and responsible company. We
give paramount importance to the laws of the land. We are fully compliant with
all the regulations and are confident of the same. We are cooperating with
authorities with their investigation."

The government had banned short-form video apps TikTok and SnackVideo in 2020,
but a similar app - Zili - continues to be operated by Xiaomi.


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EXCLUSIVE


ENFORCEMENT DIRECTORATE SUMMONS FORMER XIAOMI HEAD IN INVESTIGATION: SOURCES

The agency has been probing the company since at least February, and in recent
weeks asked Manu Kumar Jain, Xiaomi's former India managing director, to appear
before its officers, the sources said.

 * Reuters

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The Enforcement Directorate has summoned a former India head of China's Xiaomi
Corp in an investigation of whether the company's business practices conformed
with Indian foreign exchange laws, two sources with direct knowledge told
Reuters.

The agency has been probing the company since at least February, and in recent
weeks asked Manu Kumar Jain, Xiaomi's former India managing director, to appear
before its officers, the sources said.

Jain, now a global vice president at Xiaomi based out of Dubai, was currently in
India, the sources said, though the purpose of his visit was not clear.



Asked about the probe, a Xiaomi spokesperson said the company abides by all
Indian laws and was "fully compliant with all the regulations."

"We are cooperating with authorities with their ongoing investigation to ensure
they have all the requisite information," the statement said.

The actions signal widening scrutiny of the Chinese smartphone maker, whose
India office was raided in December in a separate investigation over alleged
income tax evasion. Some other Chinese smartphone markers were also raided at
the time.

Jain did not respond to a request for comment. India's Enforcement Directorate
also did not respond, though the agency typically does not make details public
while investigations are ongoing.

The agency is looking into existing business structures between Xiaomi India,
its contract manufacturers and its parent entity in China, according to the
first source, who said that fund flows between Xiaomi India and its parent
entity, including royalty payments, were being checked.

The Enforcement Directorate, via a notice in February addressed to Xiaomi's
Jain, asked for various company documents, the second source familiar with the
developments said.

These included details of foreign funding, shareholding and funding patterns,
financial statements and information of key executives running the business, the
source said.



Xiaomi remains India's top smartphone seller in 2021, with a 24% market share,
according to Counterpoint Research. South Korea's Samsung Electronics was the
No. 2 brand with a 19% share.

Xiaomi also deals in other tech gadgets in India, including smart watches and
televisions.


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EXCLUSIVE


GARMIN LOGS DOUBLE-DIGIT REVENUE GROWTH IN INDIA IN 2021

Globally, Garmin recorded consolidated revenue of $4.98 billion in 2021, a 19
per cent increase over the prior year (2020).

 * IANS

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New Delhi: Leading wearable brand Garmin India on Monday said it has registered
double-digit revenue growth, backed by its popular range in the fitness and
wellness segment especially the 'VENU' smartwatch, in 2021.

Globally, Garmin recorded consolidated revenue of $4.98 billion in 2021, a 19
per cent increase over the prior year (2020).

"As people are becoming more health-conscious, especially after the impact of
Covid-19, the Garmin VENU smartwatch series grew by 124 per cent in 2021
compared to 2020," said Ali Rizvi, Director, Garmin India.



India's GPS adult watch category recorded a growth of 131 per cent in units in
2021, as per IDC data.

"Also, since the outdoor cycling trend is growing in India, Garmin's EDGE series
has become popular among cyclists and grew by 86 per cent in 2021 as per Garmin
Connect Data," Rizvi informed.

Garmin smartwatches offer advanced wellness features such as Body Battery Energy
Monitor, Pulse Ox3, Pregnancy, Menstrual Cycle Tracking, Respiration Tracking
and Fitness Age, etc.

Additionally, the smartwatches also come with cutting-edge technology such as
Power Sapphire Solar Lens, longer battery life, AMOLED display, Multiband GPS
and advanced sports mode.

The company recently launched four new models -- Venu2Plus, Fenix 7 Series,
Epix, and Instinct 2 in India.


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EXCLUSIVE


IPHONE 13 IS LATEST APPLE MODEL TO BE MADE IN INDIA

With the iPhone 13, the company now makes all its top selling models locally
through its two contract manufacturing partners, Foxconn and Wistron. Pegatron,
its third partner, is also expected to start production this month, initially
with the iPhone 12.

 * Danish Khan
 * ET Bureau

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Apple has started production of its flagship iPhone 13 in India at contract
manufacturing partner Foxconn's plant near Chennai, a move that will help deepen
the US smartphone major's presence in the world's second largest smartphone
market and is likely to grow its market share to record levels.

"We are excited to begin making iPhone 13... right here in India for our local
customers," an Apple India spokesperson told ET.

With the iPhone 13, the company now makes all its top selling models locally
through its two contract manufacturing partners, Foxconn and Wistron. Pegatron,
its third partner, is also expected to start production this month, initially
with the iPhone 12.
Apple started manufacturing iPhones in India in 2017 with the iPhone SE, and
currently produces the iPhone 11, iPhone 12 and now the iPhone 13 locally. None
of the Pro models are made in India currently.



The Cupertino-based smartphone major has thus reduced the timeframe between
launch -September 24, 2021- and local production of the latest iPhone model to
six to seven months, from eight months previously. This comes after Apple, for
the first time, had made its iPhone 13 available to customers in India
simultaneously with the US, among other markets.

Wider Local Manufacturing
Analysts say the developments underline the growing importance of India as a
market where the company has been increasing its volume as well as value share
steadily in recent quarters.

Experts say widening local manufacturing speeds up the go-to-market for Apple,
with better control on the supply chain. It also offers the option of investing
cost savings into aggressive marketing initiatives through partners, especially
during the crucial festive season, moves which have contributed significantly to
its growing share.

Neil Shah, vice-president at Counterpoint Research, said almost three in four
iPhones sold in India are made in India. But that goes up to almost 90% of total
phones sold in India in the non-launch quarter. "During the launch quarter and
the subsequent quarter, Apple normally imports a third of its phone shipments in
India," he said.



Driven by wider local manufacturing, backed by aggressive marketing to tap into
strong demand, Apple was among the fastest growing brands in India in 2021, with
shipments growing 108% on-year to a record of 5 million units, or a roughly 4%
market share, said market trackers.

With Pegatron starting to make the iPhone 12 locally this month, and launch of
the iPhone SE 2022, analysts expect 2022 to be an even stronger year for the
company.

"The Apple iPhone shipments will potentially touch the 7 million mark in
calendar year 2022. This, in turn, would translate into a historic 5.5% market
share for Apple," said Prabhu Ram, head, industry intelligence group, CyberMedia
Research (CMR).

Counterpoint's Shah estimates Apple will grow more than 40% on-year in 2022,
from 2021 levels, for domestic consumption and more than double its exports.

Premium Share
Apple, which is the country's leading premium brand, still lags behind top
brands overall in the price-sensitive Indian market. Market leader Xiaomi ended
2021 with a 24% share and fifth-ranked Oppo had 10%, according to Counterpoint
Research.



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EXCLUSIVE


V-GUARD INDUSTRIES BETS BIG ON CONSUMER DURABLES, EXPANSION OUTSIDE SOUTH INDIA

The company is increasing the share of in-house manufacturing for market
differentiation

 * Nehal Chaliawala
 * ET Bureau

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Electrical appliances maker V-Guard Industries is betting big on its consumer
durables and kitchen appliances division as well as increasing its operations
outside of southern India at a time when its core market of power stabilisers is
stagnating.

While companies in general are increasingly outsourcing production to be
asset-light and achieve better cost efficiencies, V-Guard has chosen to invest
in new manufacturing plants and make most of its products in-house, according to
V Ramachandran, the chief operating officer of the company.

The company will be opening four new factories over the coming 12 months – two
in Hyderabad and one each in Vapi and Uttarakhand – to increase the share of
in-house manufacturing in its product portfolio. It opened three new factories
in the past four years and acquired two companies to increase its manufacturing
base.



V-Guard’s three business lines are electronics such as stabilisers and
uninterruptible power supply (UPS) devices, electricals like wires and
switchgear, and consumer durables such as fans, water heaters and kitchen
appliances.

“Barring small kitchen appliances and air coolers, we are practically making our
entire product range,” Ramachandran told ET. “Our ability to differentiate the
products through design and better quality will improve if we get deeper into
the value chain. That’s the advantage.”

Once the new factories become operational, the company would earn more than
four-fifths of its revenue from products manufactured in-house. For comparison,
Bajaj Electricals outsources the manufacturing of about 80% of its consumer
products.

Meanwhile, the company is also expanding its distributor footprint outside of
southern India. Presently about 42% of V-Guard’s revenues come from outside of
southern India, which the company is looking to increase to 65%.

It has invested about Rs 200 crore in its manufacturing and distribution
expansion and will be investing Rs 180-200 crore more, as per reports.

However, analysts remain sceptical about the company’s push into consumer
durables and outside of southern India. The consumer durables segment offers
high growth prospects but generates the lowest margins among V-Guard’s three
business lines and the company also makes lower margins outside of southern
India, said a recent ICICI Securities report. However, both strategies help the
company diversify and de-risk its business, it said.



The stabilisers market, where V-Guard is a leader, has stagnated with an
improvement in electricity supply in India, growing at a compounded rate of just
1% between 2014-15 and 2019-20, said the ICICI Securities report.

The report was also sceptical of V-Guard’s brand elasticity in the kitchen
appliances segment, the brand traditionally being associated with electricals
and electronics.

However, Ramachandran exuded confidence over scaling up V-Guard to a leading
consumer brand with good products and marketing. “I will ask you to watch this
space after three years,” he said.

The stock of V-Guard Industries Ltd closed 0.16% higher to Rs 223 on the BSE on
Friday. It has declined almost 15% in the past six months, compared to a 1.25%
decline in the benchmark Sensex during this period.


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EXCLUSIVE


DAIKIN LAYS FOUNDATION STONE OF ITS UPCOMING THIRD MFG FACILITY AT SRI CITY,
ANDHRA PRADESH

This new factory would be ready for commercial production in 2023, and would
elevate Daikin India to become the largest manufacturer of Air-conditioners
(ACs) in India, according to a company statement.

 * PTI

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Daikin India on Thursday said it has laid down the foundation stone of its
upcoming third manufacturing facility at Sri City, Andhra Pradesh, in which the
air-conditioner maker would invest Rs 1,000 crore in the first phase. This new
factory would be ready for commercial production in 2023, and would elevate
Daikin India to become the largest manufacturer of Air-conditioners (ACs) in
India, according to a company statement.

Daikin plans to manufacture Air-conditioners and crucial components such as
compressors at this plant for which Daikin has got approval from the government
under the Production-Linked Incentive (PLI) Scheme.

"This factory of Daikin India will serve the growing domestic & international
demand with its cutting-edge products," Daikin said, adding that this unit would
serve the export markets such as West Africa, Sri Lanka, Bhutan, Nepal,
Bangladesh, Middle East, South America and East Africa.



Daikin India is a 100 per cent subsidiary of Japan-based Daikin Industries,
world's leading air-conditioning company.

"Our long-term strategy is to operate with an agile set-up to swiftly react and
adapt to dynamic market requirements by enhancing capacities and R&D
capabilities. All this makes Sri City factory strategically very important for
us. It is going to be a manufacturing marvel having all Industry 4.0
digitization standards," Daikin India Chairman & MD K J Jawa said.

With AC penetrations still at 7 per cent in India, there is considerable
potential for market expansion and growth, he said.

"With India's status of a reliable manufacturing destination with favourable
policies and ease of doing business affirmed by the government of India's PLI
Scheme, Daikin India is perfectly poised to take advantage of the demand
explosion predicted over the next 5-10 years. The augmented production capacity
and sustained investments will ensure Daikin India continues to dominate the AC
industry," it said.

According to Industry sources, Daikin has so far invested over Rs 2,000 crore in
India to set up its two factories and one Research and development (R&D) centre
at Neemrana, Rajasthan.

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EXCLUSIVE


BLUE STAR HIKES PRICES BY 2-3% BUT EXPECTS 25% GROWTH OVER 2019: MD

“With effect from this week, we have increased the prices by 2-3%. Now our
stated objective is to ensure that the affordability is maintained. In other
words, we are ensuring that the entry level product prices are more or less
remaining the same because we have re-engineered or redesigned our products.”

 * ET Now

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“We have to maintain the demand and sales growth at the same time and margins as
well. I am not revising the growth forecast. The volumes will happen and we have
ensured that the price increases are very minimum – just 2-3%,” says B
Thiagarajan, MD, Blue Star.

What has the trend been for March and what is the expectation for April? Do you
think we will see that pent up demand kick in?
The demand continued to be as good in December, January, February and March as
the temperatures are shooting up across the country. I maintain my outlook that
the industry should grow by at least 20% compared with the summer of 2019.

The summers of 2020 and 2021 were impacted by Covid restrictions but compared
with 2019 summer, at least 20% growth can be expected. We are, in fact, looking
at around 25% growth.



On the other side of the pendulum, one cannot ignore the margin stress. Raw
material price inflation has risen quite substantially. How do you see this
impacting the margins and do you believe that this will be passed on in the form
of price hikes?
The margins that we reported for Q3 FY22 should get maintained. After three
consecutive price increases in March 1, July 1 and October 1 of 2021, the prices
were revised and despite all that, the margin erosion was around 1.5%. We had
mentioned that we will maintain these prices till March and take a call at
reviewing it. At that time, the war was not there but now due to the
geopolitical conflict, one can imagine the metal prices are out of control
completely.

So, with effect from this week, we have increased the prices by 2-3%. Now our
stated objective is to ensure that the affordability is maintained. In other
words, we are ensuring that the entry level product prices are more or less
remaining the same because we have re-engineered or redesigned our products. So
when the prices go up in the marketplace, the demand still is good and people
end up buying a lower energy level or entry level products instead of a five
star a three star, instead of a three star or a two star.



So, we have done two things; we have passed on that additional 2-3% from April,
this week and the second one we have done is focus production, distribution and
supply chain more towards the entry level products.

Consumer goods companies have already taken 18-20% price hikes in the runup to
March. Should consumers brace themselves to pay more for Blue Star goods April
onwards?
Up to March we had maintained the prices, from April it is going to be 2-3% on
quite a few models. Consumers have to pay marginally higher prices – Rs
650-1,000 more for an air conditioners from April. It was not our intention but
we had to do this because you are seeing the prices of aluminium, steel and
everything going through the roof.

We have to maintain the demand and sales growth at the same time and margins as
well. I am not revising the growth forecast. The volumes will happen and we have
ensured that the price increases are very minimum – just 2-3%.

Are you doing that primarily to make sure that demand is not hurt? I am sure you
would need more price hikes given the way the raw material prices are going up,
inflation is going up.
It is not that. We have re-engineered or redesigned the products. Blue Star
traditionally played at the higher end of the market. The value of the market
needs to be addressed and that is also due to the reason that we have to move up
from 13% market share to 15% market share. Once again, we would like to grow
faster than the market this year. So the market share goal for FY23 is 14%; from
13%, we are taking it up to 14%. If the market is going to grow at 20%, we would
like to grow by 25%.

We would have avoided the 2-3% price rise had it not been for the geopolitical
conflict. I would revise the prices down in case this conflict ends and the
metal prices come under control. That has been the philosophy of Blue Star. We
would like to ensure that the products are available at affordable prices in a
market where the penetration is just 7%.

People have to buy and this product has become an essential one for the
household. Apart from this, the distribution footprint is being expanded in the
north and the northern region is a very price sensitive market. On whether we
should increase the prices further in order to improve the margins, I do not
think so because that scale will give us the operating leverage and that is the
direction that we are perceiving.

What about the inventory levels?
Assuming that the market will grow by 20%, we will have a target of 25% growth
during the summer season. We have stocked adequately till June. If there is
unprecedented demand for air conditioners, we may face pressure for certain
models in the month of June or July. If you ask me, such a thing had happened on
several occasions in the past and suddenly certain models run out of stock. Also
the opposite has happened and it started raining and households could not afford
this because of petroleum prices going up. Therefore, the demand will be muted.

I do not think that will happen this particular season with so much pent up
demand this summer after two washout summers. It is just about adequate and so
we are managing the inventory risk versus our growth aspiration if all well set.
We will keep reviewing and tweaking models that are needed to be done or the
warehouse wise some tweaking needs to be done. I do not see any problem with
regard to the supply chain.

There is the new manufacturing facility that is going to be commissioned in
Andhra Pradesh. What is the outlook in terms of the capex that has been made on
that? Also, what is the outlook in terms of new product launches? Is there
something on the anvil?
As far as CCT is concerned, the construction is on. It should get commissioned
in Q3 of this financial year. We are looking at October when the commercial
production should start. It is phase one. The total investment in that factory
is going to be in the order of around Rs 515 crore over three phases.

The first phase is with the investment of around Rs 220 crore, out of which, the
plant and machinery amounting to Rs 153 crore is under PLI. We should be getting
back around Rs 73 crore. We will be commissioning only phase, one of which is
for 4 lakh units. When all the three phases are done, it will be 1.2 million
units of room air conditioners.

Definitely this facility is needed for the next summer season because our
current plants in Himachal Pradesh are running at full capacity. We have to
commission this by October. Coming to the new products, there are around 100
SKUs that are going to be available in the summer season. These have been
launched in the middle of March as around 50 SKUs are new. These are meant for
various categories. Some are meant for entry level, around 20 models are future
ready by which I mean on 1st of July 2022, there is an energy level change; so
people who want to buy that energy level can buy now. If they buy it now, it
holds good for the new energy level post the change also.

There are around two SKUs which are meant for heavy duty application of up to 55
degree centigrade. There are some equipped for youth contemporary applications
like wifi. There are models with inbuilt air purifiers. One can avoid buying a
separate air purifier and so the range is complete. There is something for each
segment top end, geography wise, middle class, tier three-four towns.


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