Electrolux inks 2nd licencing pact in India with Morf
Swedish multinational home appliances major Electrolux Group has entered into a licencing agreement with Chennai-based Morf India Limited to offer its range of water and air purifiers under the Kelvinator brand in India and Sri Lanka.
The company currently has a licencing agreement with Videocon Industries to sell the Kelvinator brand of home appliances, including refrigerators and air-conditioners in India.
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“The water purifier business has a huge potential in India. With the growing middle-class population in the country, we expect a growth in this segment," said Matthew Young, head (global brand licencing), AB Electrolux.
Under the agreement, Morf has been licenced to market the Kelvinator range of water purifiers and air purifiers in India and Sri Lanka. The products will be manufactured by companies approved by Electrolux in India and China.
“Almost 65 per cent of our current business is in large projects, so far. With the licencing agreement, we are looking at the customer segment, which has a huge potential and is growing fast," said MV Praveen, managing director, Morf India.
The company on Tuesday launched a nine-litre reverse osmosis (RO) water purifier, Kelvinatory Ayoni. It is planning launch four to five more water purifier models in India by the end of this financial year. It is planing to cover the entire southern market by the end of this year in a phased manner, before completing its pan-India marketing operations by mid 2013.
Morf India, a Rs 10-crore company now, is looking at a turnover of Rs 30 crore this year with an aim to take it to Rs 500 crore by 2015-16. The company is also in talks with some venture capitalists to raise funds to the tune of Rs 10 crore this year. The brand-building activities for the water purifier product will be funded by Morf India and it will pay royalty to Electrolux for the Kelvinator brand, Praveen added.
The water purifier market in India is currently pegged at Rs 1,500 crore and is expected to grow upwards of Rs 6,000 crore by 2015, he said.
AG Electrolux is looking at entering into two to three more brand licencing agreements in India in the next 18 months. Kelvinator is a brand known for kitchen appliances and the company will be looking at entering into licencing agreements for the products that are not kitchen appliances, but products that are used around kitchens.
“So far, we have around 100 licencing agreements for various brands in around 75 countries. The retail revenue that our licencing partners are getting from these products is around $3 billion," Matthew Young said.