BSH Home Appliances, the 50:50 joint venture between Bosch and Siemens home appliances worldwide

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that entered India by buying back rights to distribute the Siemens range of home appliances from Vipul Raval-led RBS Home Appliances, is banking heavily on its upcoming manufacturing facility near Chennai to help it enter the mass premium category in India.

The company whose brands Siemens and Bosch are both positioned in the premium to luxury range in India, is banking heavily on local production at the factory to offer appliances that will straddle lower down the price pyramid. “While we will not be making any entry level products as that is not what we are good at, we are definitely looking for a larger play by targeting the mass market with premium options,” Marc Hantscher managing director & CEO at BSH Home Appliances told Financial Chronicle.

Bosch appliances have just debuted in India whereas the company has been selling the Siemens range of built in appliances etc for premium hotels and developments by firms such as the Shapoorji Pallonji group in India. At the moment the appliances sold here are imported as fully built units from a range of our 41 manufacturing facilities worldwide. Once we manufacture locally, we would be able to avoid payment of import duty thus delivering savings which would allow us to earn a positive profit margin,” said Hantscher.

BSH at present prices the imported appliances keeping in mind the competitions prevailing levels of MRPs of competition. As a result it’s not making money on the sales as the import duty costs are being absorbed in its balance sheet.

Local manufacturing will allow us to offer a wider range of products customised for the Indian market by way of the specific parts, motors and compressors. The JV aims to draw on the long presence of Bosch and Siemens whose representatives sit on its Indian board too, to help it source components from the local market for its proposed factory. “We are investing heavily in India and will have to design products right too, to succeed here,” said Hantscher.

In India, the two German brands are being positioned distinctly. Bosch is being positioned as a very reliable and innovative brand that designs products that make sense, Siemens is being positioned as a forward looking brand and innovates things that are far out in the future. “Together we will offer premium options in mid segment too,” said Hantscher.