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Centre’s electrification policy, GST roll-out may help Usha sign off FY19 with sales of 1 cr. fans

Significant improvement in availability of electricity, even in interior pockets, coupled with the roll-out of the Goods and Services Tax (GST), has helped Usha Fans to improve its sales, clocking a growth rate better than that of the industry.
The company expects further boost through innovations like the recently-launched Aero switch, a remote-control device for fans. “These [electrification and GST] have been major growth drivers. We are expecting to close 2018-19 with sales of one crore fans for the first time,” Rohit Mathur, president, Electric Fans and Pumps, Usha International Ltd. told The Hindu.

Two lakh a month

The company churns out nearly two lakh fans a month at its two company-owned and three outsourced units. Usha’s own fan units are in Hyderabad and Kolkata. The outsourced units are in Haridwar and Baddi. The company also has a “significant” sourcing facility and a dedicated office in China.
The company has 21% share of the overall organised market for fans. Pointing out that this segment, estimated at 75-80 million units, had expanded after the GST roll-out, Mr. Mathur said earlier while 70% of the market comprised organised players, this had now grown to about 75%.
“The fan industry has witnessed good growth in the last two years, especially since the lowering of the rates from 28% to 18%. We at Usha have passed on the benefits to the end-consumer and prices were lowered in the range of ₹100 to ₹300 per unit.” On how the Centre’s ‘power-for-all’ policy helped boost fan sales, Mr. Mathur said, “It has allowed us deeper penetration in markets in Eastern States like West Bengal, Bihar, Uttar Pradesh and Odisha, where the brand has a strong recall. For Usha, East is the largest market followed by South and North.”
Premiumisation and innovation is another focus area for the seven-decade-old company, which is also launching fans for children associating them with characters like Barbie, Doraemon, Chhota Bheem. These fans would also come with Aero switches.
Ahead of summer, the company has launched a range of five models through an exclusive tie-up with PPG Asian Paints for dust, oil and moisture resistant blades. The fans are priced between ₹1,500 (for the mass market) and ₹40,000 for premium products. These fans are imported as completely built units from the China factory of U.S. company Hunter, under a special tie-up.
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