V-Guard eyes market expansion in eastern region

V-Guard Industries Ltd, a leading consumer electrical and electronics major, is consolidating its position in the domestic markets, and in particular the eastern region markets, with its latest offering of premier water heaters - Pebble. The branded electric water heater market size in India is approximately Rs 800 crore and West Bengal's share in it is around Rs 55 crore. V-Guard is of the view that West Bengal offers tremendous opportunities for growth in the electric water heater market because of a combination of factors.

Available in two variants - Pebble and Pebble Metallica, this ergonomically and aesthetically designed range of water heaters comes with a 5 star rating for power efficiency. It has a 3 mm thick coating and Engineered Polymer Anti Corrosion [EPAC] technology, which separates the tank from water and guarantees 100 % rust-resistance. Along with these, the Pebble range of water heaters come with a special anti-crack protection for the inner tank, thus increasing the life span of the product.

Commenting on the launch and distribution, Deepak Augustine, Vice President (Marketing), V-Guard Industries Ltd, said, "We are extremely delighted to launch this Pebble series of water heaters in West Bengal where the market for electric water heater is expanding. The market share for branded water heaters is around Rs 100 crore, while the market share of the unorganised sector is Rs 45 crore. But the market for the branded water heaters is growing rapidly on account of new residential townships and housing projects across the state. In addition, customers are opting for reliable brands while power supply is uninterrupted - all contributing to enhanced demand for electric water heaters. We are satisfied with our progress in West Bengal so far.”

He added: "We have a total branch operation in Kolkata since 2008 and we also have teams in Guwahati and Bhubaneswar as well to cater this market. We are present in MBOs too. Depending on the surveys and market feedback we plan the in-store communication and initiatives needed for the customers.

Nandagopal Nair, Senior G.M & Head - Corporate Communications, V-Guard Industries, said, "In retail we are planning a major in-store activity and it is going to complement our ATL activity. V-Guard is planning to take up a 360 degree approach where even other media mix will be involved. At retail touch points we keep the display banners, standees, etc., for communication.

"The Pebble water heater can withstand pressure up to 8 kg/cm2 which is appropriate for high rise buildings and is ideal for a market like West Bengal where the preference is for vertical growth. V-Guard has one major supply-chain branch in Kolkata and has 14 distributors along with 112 direct dealers. With our latest offering we will be able to drive more volumes from the premium segment of the West Bengal market”, said Justin Jose R, GM -Marketing (Water Heater), V-Guard Industries Ltd. on the uniqueness of the product.    

On shopper connective initiatives, Nair said: "There will be a very strong retail communication at the retail touch points where our representatives will describe the distinctive features of the product to the customers. The buyers will get a touch and feel of the range offered apart from having interactive standees or other advertising collaterals. Today, with the changing market scenario water heaters are not only a functional product but now with any item aesthetics play a major role. Thus the Pebble series of water heaters come with interchangeable panels in six different colours and are available in metallic and non-metallic finishes, suiting the décor of various bathroom designs. The consumers have evolved a lot and they need something that will add value to their decor as a whole. We will be available shortly in modern trade outlets like Croma as well.”

Sharing his thoughts on the Pebble product launch in Kolkata, Ratan Kumar Bhattarcharjee, General Manager-Marketing, V-Guard Industries Ltd. said, "The electric water heater market in India is growing at a rate of 15-20 per cent every year. The launch of the Pebble series further consolidates V-Guard's position in the eastern India markets; Bihar, West Bengal, Assam, Meghalaya, Sikkim, Manipur, Mizoram, Tripura, Arunachal Pradesh, Nagaland and Bhutan account for 14 per cent of our business. West Bengal is a significant market for our brand. The key focus cities in West Bengal for our product range are: Kolkata, Siliguri, Burdwan and Howrah. We will continue to explore the market to maintain the growth momentum.”

At present, V-Guard electric water heaters are available in 20 districts. The plan is to penetrate West Bengal further over the next few years to emerge as the market leader.