WHIRLPOOL INDIA LIMITED

Background
Whirlpool of India Limited (WIL) is an 82.3 per cent subsidiary of Whirlpool Corporation, US, one of the leading global consumer durable players. Whirlpool is among Indias leading home appliances companies. It manufactures and markets refrigerators, washing machines, airconditioners and microwave ovens. Set up in 1995, Whirlpool India has 2,500 employees, network of 2,500 strong, an extensive sales and distribution network, a robust manufacturing and R&D infrastructure. WIL has made substantial investments in India so far. Whirlpool Corporation is one of the worlds leading manufacturers and marketer of major home appliances, with annual sales of over US$ 12.3 billion, 68,000 employees, 50 manufacturing and technology research centres around the globe. The company manufactures its products in 13 countries and markets them in more than 170 countries under brand names such as Whirlpool, Kitchen Aid, Roper, Estate, Bauknecht, Ignis, Laden, Inglis, Brastemp and Consul.

Major player in the home appliances market

Market share
WIL has a market share of 22.8 per cent in the direct cool segment, 17.5 per cent in the frost-free segment, and 14 per cent in the washer segment.

Factors for success

Aggressive marketing and promotion initiatives
Whirlpool India Ltd. has changed its strategy from being a premium-player to a mass-player. Whirlpool

has been concentrating on becoming a brand for the mass-market and hence has introduced its products in all price categories. Whirlpool recently announced an alliance with the Italian appliances company Faber Heatkraft to introduce its range of cooking appliances in the Indian market. The products consisting of hobs, chimneys and cooking ranges will be distributed and sold by

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Faber through WILs dealer network and exclusive outlets.

WIL runs an Export Oriented Unit (EOU) in Pondicherry to manufacture Kitchen Aid products for overseas markets

Taking quality initiatives

Whirlpool India initiated the Six-Sigma program in 1999 as a quality initiative to transform the organisation to a globally competitive entity. The program has helped the organisation to streamline its operations, improve quality and eliminate defects there by increasing customer satisfaction and enhancing its bottom line. Apart from just sales and marketing, Whirlpool has extended the Six-sigma initiative to customer focus.

Infrastructure
Whirlpool has manufacturing facilities at three locations in India to manufacture refrigerators and washing machines. Whirlpool has set up a Regional Technology Centre (RTC) at Ranjangaon, Pune, India, which mainly focuses on India as a major manufacturing centre for the AsiaPacific Region. Whirlpools Pune research lab develops refrigerators and air-conditioners for Asia (including China), and Australia. 40 per cent of Whirlpools Pune research labs resources are devoted to its core research on global projects2. Whirlpool also has set up design centres at Pondicherry to meet the global business needs of the fabric care and small appliance divisions. Whirlpool is exporting refrigerators and washing machines to South Asia, Asia-Pacific, Latin America and West Asia and is the largest exporter of home appliances from India. The manufacturing unit at Pondicherry exports small kitchen appliances under the Kitchen Aid brand to the US market. Products under the brand include coffee making machines, coffee grinders and portable ovens.

Wide product portfolio

Whirlpool has a wide product portfolio ranging from air-conditioners to microwaves. Whirlpool has just launched Whitemagic semi-automatic washing machines, which will boost its market share. The washing machines market has been growing at around 14-16 per cent per annum. Among the washing machines, the semi-automatic segment enjoys the largest market where Whirlpool has significant presence.

Leveraging the India Advantage

WIL is leveraging India in the following four areas: WIL is incubating both technical and managerial talent in India WIL offers shared services in India that will undertake development work for Whirlpool in Asia WIL runs a technical centre for refrigeration in Pune, and for laundry and kitchen aid appliances at Pondicherry

Future plans
WILs future plans are to grow its existing market, continue with its operational and marketing initiatives, continue to innovate, expand its product portfolio and to start manufacturing everything in India. WIL plans to make India its biggest manufacturing base in Asia.
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SUCCESS STORIES