Mini metros are going to be biggest contributor for the growth of LEDs and LCDs, air conditioners, refrigerators and other appliances for Onida.
The company has reported revenues of Rs 748 crore in FY17 and is targeting to reach Rs 1,000 crore turnover during the current financial year. Onida’s 40 per cent of sales comes from tier-I cities and metros, while the rest comes from mid-segment consumers mostly in semi-urban areas.
Commenting on the development MD, Vijay Mansukani said, “We are expecting good growth from our air conditioners and television segments. Post GST there is no sales tax advantage based on the place of manufacturing, this gives us level playing ground and we can compete well with international players. Some of the growth is also expected from new products the company is going to launch in television and microwave segments. Our efforts for the last three years have finally paid off and we were very successful in expanding our dealer network in the last three years. This is going to give us the growth of 34 per cent during the current year, which will take company’s revenues to Rs 1,000 crore. Our market share in television segment will also grow from current 8 per cent to 10 per cent.
“Even though the company’s presence in modern retail is 15 per cent currently, the company would take this up to 20 -25 per cent in the coming years. The company has recently tied up with Flipkart and other modern e-retailers for better reach and visibility for their products,” he added.
Currently the company has 4,000 dealers spread across India and this number is increasing every day.
Onida’s products are user friendly and are embedded with technology like Internet of things.