KOLKATA: The country’s booming microwave oven market is expected to ring in good times in calendar 2007 as well. Consumer electronic majors like LG, Samsung, Whirpool and Haier, among others are targeting growth in sales numbers of anything between 10-65% over last year.
They are, in fact, looking at this segment, and in particular, the convection microwave oven category, as a major growth-driver this year. According to industry estimates, the projected size of the microwave oven market for 2007 is around 7.8 lakh units, up 25% from 6.25 lakh units in 2006.
In 2008, the market size is expected to go up further to 9.5 lakh units. Speaking to ET, Mr Girish V Rao, V-P, LG Electronics, said: “We are expecting a 30% growth from our microwave business this year, from around 2.25 lakh units last year to 3 lakh units this time around. While the numbers are getting driven by the solo range, the value growth will come in from the convection category.”
“Growing awareness on cooking benefits of microwave ovens rather than the mere reheating function coupled with growing affordability, have contributed to the growth of the convection category, specifically as the baking function is being increasingly used by consumers,” said Ravinder Zutshi, deputy MD, Samsung Electronics.
For Samsung, the contribution of convection microwave ovens to total Samsung sales was 27% last year and is likely to grow to 29% this year. Haier India, on its part, is expecting a 50%-plus growth from the convection category as well.
“We are looking at increasing our sales to 50,000 units in 2007, up from 28,000-30,000 in 2006. With the increasing shift towards the higher-end models, we are looking at a turnover of Rs 35 crore from the microwave category in 2007,” said Haier India COO Pranay Dhabai. Whirlpool of India is a new entrant in this burgeoning market.
“We are a small player now. In the last two years, the segment witnessed a lot of price competition. This year, the market has stabilised and we plan to beef up marketing strategies to make our presence felt. We are aiming at a 10% marketshare,” said Tamal Kanti Saha, V-P, sales, Whirlpool.
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