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The company, which initially started with mixer grinders, is now looking at tapping into the growing demand for these small appliances. The company is now looking to introduce mixer juicers, air fryers, and an extended range of floor care products, Rudolf Klötscher, the Chief Sales & Service Officer of BSH Home Appliances told CNBC-TV18. As part of the plan, it is also looking at strengthening its retail presence.
“When I take a look at our target audience in the Indian markets, you are all busy and don’t have the kind of time to stay in the kitchen for long preparing different foods. And therefore you want to have it convenient, but you also want to ensure that all is healthy, all is clean and safe. And these are the things which are relevant to us in order to bring in the in the Indian market. We believe that we have a good assortments, and we are bringing more for the future. So if you step into a Reliance outlet, you will see our lineup and you can expect more to come,” he added.
According to a 2024 report by GFX NIQ, the small domestic appliances market in India grew 29% in value, and globally too, the small domestic appliances market has seen massive growth on the back of convenience and consumers looking for products to help simplify their lives, while aspirational and need-based purchase also driving the market globally, thanks growing middle class around the globe, as well as increasing purchase weight of the older Gen Z and of Millennials.
The company, which is predominantly present in India in the premium home appliances space, says rising incomes and increasing demand for premium products are driving growth, with segments like front-load washing machines, high-performance cooling appliances, and dishwashers seeing strong traction.
Klötscher said, BSH has been clocking upper double-digit percentage growth year-on-year and aims to maintain that momentum. BSH currently operates 83 Bosch stores and 20 Siemens stores in India, with plans to expand further into 100+ cities. Its brand portfolio includes Gaggenau for luxury consumers and Bosch & Siemens for the mainstream premium market.
Another area that BSH is also targeting includes the dish care segment in India, where dishwasher penetration remains low at 0.3%. “Dryers are expected to gain popularity, especially in luxury apartments with restrictions on outdoor drying. The built-in appliances segment is also growing, driven by premium housing demand,” Klötscher said.
With 1.4 billion people and 300 million households, Klötscher said that India presents a significant growth opportunity for BSH. The company began local production in Chennai in 2014 with laundry care products and expanded into cooling appliances in 2021. India is currently the second-largest market in BSH’s Emerging Markets region and is on track to surpass Turkey as the biggest.
“We are offering a whole bunch for the consumer journey, whether it’s major domestic appliances, small domestic appliances, and we are offering customer service experience, and all together, this makes the difference to competitors,” he added.
BSH said that it is also increasing local sourcing to reduce dependency on global supply chains, with localisation currently at 75%. Key materials like steel and plastics are being procured from Indian suppliers to improve cost efficiency at a time when inflationary pressures are eating into costs of companies.
