Preethi Kitchen’s new facility goes on stream

Srinivasan Subramanian, MD, Preethi Kitchen Appliances, said an investment of about Rs 50 crore has gone into the facility both directly and indirectly. From its current capacity of 90,000 units, the lean facility will raise its production capacity to 1.2 million units. Like in Chennai, it has also a facility up North in Himachal, which too has a capacity of 1.2 million units.

Subramanian said, the forty-year-old brand is upbeat about retaining its dominance in this category. Keen to expand its presence beyond south, it is exploring Maharashtra, Gujarat and Odisha for growth.

He expects the company to keep pace with the market, which is growing at 9-12 per cent. Exports constitute about 6 per cent and it reaches to 14 countries, leveraging the network of Philips. A portfolio restructuring in 2014-15 enabled Preethi to diversify into gas stoves and other appliances. As of now, 30 per cent of sales comes from products sans mixer grinders.

On the impact of GST, Subramanian said, the single tax regime had worked favourably as it created a level-playing field.

Roy Jakobs, Chief Business Leader, Personal Health, Royal Philips, said innovation and development were key drivers and that Philips spends 10 per cent of its turnover on I&D. The MNC, which has been significantly making inroads in the personal grooming space, may bring air purification and toothbrush, depending on market needs. As regards Preethi’s new facility, Jakobs said, from June when the ground-breaking took place, the rapid pace of growth reflected the scope for further expansion based on surge in demand.