BSH Home Appliances India Pvt Ltd, a global manufacturer of high-end appliances, is optimistic about its growth prospects in India, driven by a multi-faceted strategy aimed at sustaining robust double-digit growth rates. The company plans to lead the trend towards premiumization by enhancing retail experiences and focusing on value-driven sales strategies. Key initiatives include the introduction of new product categories with strong localization support and the expansion of its distribution network.
“Q1 of this calendar year was good for us. We are more bullish due to the new category launches and we hope to record higher double-digit growth in 2024 compared with 2023, driven by new categories,” said Saif Khan, MD & CEO of BSH Home Appliances India. The company, a subsidiary of Germany-based Bosch Group’s BSH Hausgeräte GmbH, is capitalizing on the growing premium home appliances market in India, fueled by urbanization, increased disposable income, and exposure to global trends.
BSH is spearheading the premiumization push as a perceived premium brand and plans to continue driving this trend through in-store experiences and other initiatives. In line with this strategy, the company is transforming its existing showrooms into new Bosch brand stores, starting with a launch in Chennai last week. BSH currently operates approximately 115 brand shops across India, supplemented by thousands of additional touchpoints.
Khan highlighted that new product categories, particularly dishwashers and built-in cooking ranges, are showing promising momentum and are expected to drive incremental sales. The company’s products are marketed under three brands in India: Bosch, Siemens, and Gaggenau, catering to the mass premium, premium, and luxury markets, respectively.
“Among the three brands, Siemens has a strong legacy while Gaggenau has started to pick up, with South and East contributing to the sales. People in these regions are buying new luxury homes, hence the luxury brand is gaining traction,” Khan noted. A set of four or five Gaggenau appliances for a kitchen in a luxury home costs about ₹45-50 lakh, with these products currently being imported and sold in India. Siemens products are priced approximately 10% lower than Gaggenau, and Bosch appliances are another 10% lower.
Supporting BSH’s strong growth is its local manufacturing operations. The Sriperumbudur factory near Chennai, which began production in 2014, has recently been expanded with an additional production line. To date, the company has invested about 90 million euros in this unit. “We are doubling the capacity of front-load washing machines with the launch of a 9 and 10-kg lineup. The second line will come into production next month. Our strategy here is a ‘make in India’ strategy as we design and develop products for the Indian market. We also drive a deeper localization strategy and we intend to increase the local content from about 60% to 70-75% next year,” said Rakesh Desai, CTO and Chairman of the Board (India), BSH Household Appliances Manufacturing Pvt Ltd.
BSH’s comprehensive strategy, encompassing premiumization, new product introductions, local manufacturing, and expanded distribution, positions the company to sustain and enhance its growth momentum in India’s dynamic home appliances market.
