CK Birla Group firm Orient Electric plans to introduce internet of things (IoT) enabled products in segments like consumer and commercial lighting, a top company official said.
The company presently offers fans, air coolers and water heaters equipped with this smart technology.
Orient Electric, which has formed a retail partnership with Italy-based small appliances maker De’Longhi Group, also looks to expand premium brands De’Longhi, Kenwood and Braun to tier-II cities besides metro markets.
“We will soon introduce smart products in consumer and commercial lighting. We will also increase the range offering in other existing product lines in due course of time,” Orient Electric CEO Rakesh Khanna told PTI.
“For now, we intend to limit our focus to the existing product range as there is enough opportunity and potential to increase penetration of IoT-enabled products within the range,” he added.
Asserting that the company will “continue to challenge the status-quo in all the segments”, Khanna said Orient Electric has created disruption in the fan market with its Aeroslim fans, which has features like smart IoT control and voice control via Alexa and Google Assistant.
The company is working with a few established players and innovative startups to develop consumer-centric smart products, he added.
In FY 2018-19, Orient Electric posted revenues of Rs 1,864 crore. The contribution of its electrical consumer durables (ECD) business, which comprises fans and home appliances, was 71 percent, while the rest 29 percent came from lighting and switchgear.
“In terms of revenue growth, ECD business grew at 9 percent while growth in lighting and switchgear business was at 31 percent during FY 18-19,” Khanna said. “While we expect growth in both segments, the percentage growth in lighting and switchgear business is likely to be higher due to lower base.”
Regarding De’Longhi range of products, he said the market response for all the three brands has been encouraging.
“As far as expansion is concerned, we are currently focusing on the metro cities and will eventually move to other tier I and II cities,” he said.