Samsung eyes 25% growth from home appliance business in 2012

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Samsung Electronics on Monday said it is eyeing 25 per cent growth from the home appliance business in 2012 on the back of new launches.

"We are targeting a growth of 25 per cent in both refrigerator and washing machines segments in 2012," company's Vice-President (Home Appliances) Mahesh Krishnan told reporters here.

With a growth of 20 per cent, the Korean electronics major sold 1.7 million refrigerators and seven lakh washing machines in 2011, he said.

Home Appliances comprising refrigerator and washing machines constitute 50 per cent of Samsung's total sales in the country.

When asked about any adverse impact of drought hitting several parts of the country this year on the demand of home appliances, Krishnan said the company is still assessing the same but added that it could have an impact.

"It (drought) can have an impact. Indian economy is depended on monsoon... but we are still assessing the impact (on demand)," he said.

However, he said about 10 per cent price increase in electronic items in last one year has had an adverse impact on the country's market of home appliances, with growth in sale of refrigerators and washing machines remaining flat.

"In the last one year, prices (of consumer items) have increased by 10 per cent on account of sharp appreciation of US dollar against rupee, leading to hike in raw material prices," he said.

"Though it has been a tough period, but we have not degrown or seen any slump in sale," he said. The size of home appliance market in the country is pegged as USD 3.6 billion, Krishnan said.

Samsung is now looking at rolling out new products to perk up the sale in home appliances segment to cash in on the festive season ahead and is expecting the emerging towns and rural markets to drive growth.

The company today launched new direct cool refrigerators and semi-automatic washing machines with a price range of Rs 11,300 and Rs 18,900 for refrigerators and Rs 10,950 and Rs 11,950 for washing machines.

"We expect emerging towns and rural market to drive the growth and with the launch of new products, we expect 25 per cent growth in 2012," Krishnan said.