US-based electronic water appliances maker A O Smith is venturing into the Indian market with plans to set up a electric water heater manufacturing plant and start distribution of its product range.
The company is aiming for a 30 per cent market share in the estimated Rs 650 crore-electric water heater market in India and plans to emerge as a market leader within next two-three years.S
"We are setting up a 20 acre-plant in Bangalore, which would be operational by 2010-11. In the meantime, we would be sourcing electronic water heaters from our existing plant at Nanjing (China) which has an exclusive assembly line for production to cater to the Indian market," A O Smith Vice President (International) David R Warren told reporters in New Delhi.
He, however, refused to disclose the investment size or the planned production volume of the Bangalore plant.
"I can only say that the investment would run into millions of dollars," Warren added.
"The Indian electric water heater market reported a sale of 16 lakh units last year with a total valuation of Rs 650 crore. The market is growing at double-digit figures annually," A O Smith National Sales and Marketing Manager for India Tamal Chaudhuri said.
He said the company is aiming for a five per cent share in the market by end of 2009. "Once our plant is operational we plan to emerge as the market leader with at least over 30 per cent of the market share in India," he added.
The company has entered into a partnership with water appliances company Jaguar for distribution of its new range in India.