Home appliances major Usha International eyes 40% retail sales growth this fiscal

Home appliances major Usha International eyes 40% retail sales growth this fiscal

• By Staff Writer

Home appliances major Usha International has set a target of 40 percent retail sales growth this fiscal, banking on pent-up demand from consumers who are beginning to take the coronavirus pandemic in stride as vaccinations accelerate, according to a senior company official.

With e-commerce getting a massive push due to the pandemic, the company also expects the share of online sales in its total in double digits this year.

"We are very positive that we are setting a target of 40 percent growth for ourselves...If something goes down in May, you will get a recovery of 78 percent growth in July. So it offsets that and it averages out at around 38 to 45 percent," Usha International President (Retail) Kapil Kohli told PTI.

Last year, the company's overall sales grew in single digit as the offline channel was closed for three months and the lockdown hit sales of appliances like fans, and coolers in the peak season, he added but declined to share the absolute numbers.

Usha International is an unlisted entity.

Explaining the rationale behind the company's bullishness this year, Kohli said, "Consumers have also started accepting this pandemic, not as a pandemic but as a part of their lives. They know that this will be with them for more period."

Moreover, with more people "getting vaccinations", the market sentiment is getting positive, he said adding there is an expectation that consumers "will upgrade their lifestyles and homes by incorporating good looking and innovative products with better aesthetics".

Commenting on the impact of COVID-19 on online sales, Kohli said three to four years back before the pandemic, contribution from the channel was 5 percent in the industry.

"In the last two years, things are going and moving towards the double-digit contribution. I believe this is not just with our organization (only). If you see across the ecosystem of consumer-driven industry, you can see by 2025 it will be in double digits," he said.

As for Usha International, Kohli said, "I foresee that when this year ends it will touch and enter into the double-digit contribution. That is the way it is moving (towards)."

Besides, e-commerce giants like Amazon and Flipkart, the company has also added Tata CLiQ as online channel partner.

Commenting on the global semiconductor shortage issue, he said Usha International also faced the challenge in February and March but there is no issue at the moment.

"We are very positive that we can meet the pent-up demand that comes for our brand. We have got everything planned and we are very positive about the festive season that the demand of the brand will be fulfilled by our products," Kohli said.

Stating that increase in commodity prices and input costs have put pressure on the consumer electronics and home appliances industry, he said the company has already passed on to consumers in the last few months and one more increase is expected in September across the industry.