Sunrise microwave sector lures new entrants

This year, LG Electronics and Daewoo have launched their microwave oven models. The market already has players like BPL, Kenstar, IFB and Samsung. BPL is the market leader with at least 80 per cent of the market share.

Market estimates say the demand for microwave ovens shot up 35 per cent last year, which has prompted the entry of the other multinational players. And these companies feel that the microwave boom is yet to happen.

“India is a nascent market for microwave ovens. The concept of microwave ovens is just beginning to catch on,” according to Daewoo Electronics regional sales manager Vinod Giyal.

Daewoo has three models on the shelf at prices ranging between Rs 9,900 and Rs 19,990. Current sales in Tamil Nadu averages around 40 to 50 units a month.

Daewoo Anchor Electronics, the local arm of DaewooElectronics, is setting up a plant in Pune for production of microwave ovens. The plant is expected to go on stream towards the end of this year.With the units rolling out of the new factory, Daewoo plans to take its sales target to at least 175 to 200 per month in each segment.

LG Electronics is yet another entrant into this market with three models priced between Rs 10,000 and Rs 25,000.

LG also has a factory coming up for microwave ovens, which is also expected to go on stream this year.

LG has great plans for the microwave ovens market. “This is the market of the future. By the turn of the century, we expect a boom in microwave ovens,” LG sales and marketing vice-president Rajeev Karwal said.

Samsung has been in the microwave oven market since last year, with four models and prices ranging between Rs 10,800 and Rs 27,900.

Samsung now sells 400 to 500 units a month.With the new plant being commissioned, it plans to raise its target to at least 1000 units a month.IFB, which has added microwavesto its portfolio, has the lowest priced model in the market.

Kenstar, the home appliances major, is yet another significant player in the market.But, by far, BPL is the largest player with an about 80 per cent of the market share to its credit.

The company has aggressive growth plans for this segment. BPL has two models which are priced at Rs 12,950 and Rs 25,990.

The company sells over 2,500 units a month and is looking at higher sales levels, hoping to cash in on the expected boom.

With three players commissioning new facilities this year, the production capacity is expected to grow by one lakh units in 1998-99.

But the market is expected to absorb only about 70 per cent of the growth with the rest is slated for exports.

In fact, all the Korean majors have gone on record saying that the country will be the export base for the south-east Asian markets.

Samsung’s communications manager Ruchika Batra said the company was looking at exporting to all the Saarc countries from within the country bythe second quarter of next year.

The plant, which will have an initial production capacity of 30,000 units annually, will be upgraded to cater to the needs of the local and export markets, she said.