Hansgrohe to start manufacturing in India
German company Hansgrohe, a bathroom and kitchen fixtures company, will set up a manufacturing facility in India. The company will start operations in the country with an assembly line in Pune by the first quarter of 2024 with lines for basin mixers, bath mixers and overhead showers, Gaurav Malhotra, MD, Hansgrohe India, said. Volumes in India would go up by 10x with a manufacturing base in India, he said.
The local assembly would help the company make their products available at lower price points with an around 20% reduction in costs, Malhotra said. Further localisation of manufacturing and sourcing of components would lead to more savings, he said. The company would start by sourcing metal parts and rubber components.
Hansgrohe India has also entered the ceramic sanitaryware segment in the country to meet the consumer demand for all bathroom solutions under one brand. Increased product offering would help the country penetrate the market and offer a wider range to the distribution and retail network at various price points. With the expanded range of products, the company will also tap the hospitality segment, Malhotra said.
The Hansgrohe Group started in India with premium showers and faucets under the Hansgrohe brand and luxury products under the Axor brand. The shift to the premium range is happening in this segment, Malhotra said.
The Axor brand was ranked 34th in sales in 2018 and has now become the number six player in sales. The company has seen the market for electronic toilets, priced in the Rs 450,000 range, growing from 300 units last year to 500 units this year.
There are seven to eight leading players in the premium segment market and it is not a crowded segment, Malhotra said. The faucet-shower market in the country is worth around Rs 12,000 crore while the sanitaryware segment is worth Rs 9,000 crore. A lion’s share of the domestic market is with Jaguar followed by Cera, Parryware and Hindware. Hansgrohe will compete with global brands such as Kohler and Grohe in the Indian market and is looking at a double-digit market share in the country. Kohler and Grohe have full-fledged manufacturing facilities in India, and Hansgrohe will be looking to catch up with the competition.
For the German company, India is among the few growth markets with a significant potential to grow further. The Hansgrohe Group’s global range includes showers, shower systems, bathroom and kitchen faucets, bathroom accessories, bathroom furniture, sanitary ceramics and kitchen sinks.
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