BSH Home Appliances, a subsidiary of BSH Hausgeräte GmbH, is planning to significantly increase its localization efforts in India. The company, which houses three brands – Bosch, Siemens, and Gaggenau, aims to raise its localization rate from the current 60% to 75% by 2025. This move is part of BSH’s strategy to cater to the evolving consumer needs and expand its presence in tier II and III cities.
BSH Home Appliances is introducing new categories across segments like cooling, laundry, and cleaning. The company plans to launch entry-level appliances with Bosch in the laundry and cooling category, including semi-automatic washing machines and single-door refrigerators that are Made in India. This expansion will allow BSH to reach a wider consumer base in tier II and III cities. To meet the growing demand for Bosch washing machines, BSH has successfully expanded the capacity of its Chennai factory by building a second assembly line. The company aims to double the currently offered capacity of 300K front-load washing machines with the launch of a localised 9 and 10-kg lineup.
The company currently boasts 92 brand stores of Bosch and 18 brand stores of Siemens. By 2025, BSH aims to expand its presence to 10,000 retailers across India. Currently, 75% of BSH Home Appliances’ revenue is contributed by Bosch, while the remaining 25% comes from Siemens. Gaggenau, the luxury segment brand, is still a niche player but is expected to grow in the coming years. BSH Home Appliances is eyeing a 3x growth by 2026, backed by its localization efforts and expansion into new product categories.
RTM Watch’s Take
BSH Home Appliances’ plan to increase its localization efforts to 75% by 2025 reflects the company’s commitment to the Indian market and its understanding of the evolving consumer needs. By expanding its product categories, manufacturing capacity, and retail presence, BSH aims to cater to a wider consumer base and achieve significant growth in the coming years. This move aligns with the increasing demand for affordable yet aspirational home appliances in India. BSH’s localization efforts will not only contribute to the company’s growth but also support the government’s Make in India initiative. It will be interesting to see how BSH Home Appliances navigates the competitive landscape and establishes itself as a leading player in the Indian home appliances market.
