Calcutta, April 25 :
Calcutta, April 25:
Three domestic fan majors-Usha, Polar and Bajaj-have entered into separate tieups with the world's largest fan maker, Midea of China, to import fans into the Indian market.
These companies, in separate agreements with Midea, have proposed an annual import of 1.5 lakh portable fans each for their respective brands, in exclusive colours and designs.
Midea, based in the Shunde province of China, manufactures 10 million portable fans, against the Indian fan makers' combined production of about 8 million ceiling, portable and exhaust fans.
While Usha, with a production of 1.5 million, is the largest of the three, Bajaj and Polar each account for a production of about a million units each.
Crompton Greaves, till recently a market leader, now accounts for 1.65 million fans annually. It recently introduced Crompton Tropicana portable fans, imported from Thailand. Polar Industries is also negotiating with LYC of Taiwan for introducing a range of exhaust fans in the Indian market, said Hardeep Singh, managing director.
The craze for tieups with Chinese, Thai and Taiwanese fan manufacturers, however, is restricted to portable fans, the market for which is expected to witness unprecedented growth in the short as well as long term, market surveys suggest. While portable fans, which include table, stand and wall fans, account for 20 to 25 per cent of the domestic fan market, light-duty exhaust fans used in bathrooms and kitchens make up for the rest. Singh said market intelligence reports suggest demand for portable and exhaust fans will rise phenomenally in the next three years. The market for portable fans is likely to go up to 30 per cent in the next three years, he said.
However, some fan makers still prefer to go it alone.
Orient Industries, the largest fan maker accounting for 1.8 million units belonging to the GP-CK Birla group and the the city-based Khaitan Fans, which manufacture about one million fans, would like to go it alone and reduce costs as well as margins if necessary, to retain their competitiveness..
Senior Orient executive, C. L. Mohta, said indigenisation of motors for table fans has already led to reduction in costs. The company is also considering importing certain engineering plastic components to reduce costs.
S. K. Khaitan, chairman of Khaitan Fans, noted that despite some constraints in margins, the company has the strength to face the competition.
Singh noted domestic manufacturers faced no threat in case of ceiling fans, which account for 72 to 75 per cent of the total fan market in India.