India has completely changed in the last six-seven years when it comes to the electronics manufacturing ecosystem. With Prime Minister Narendra Modi’s promotion of ‘Make in India’ and policies like PLI and EMC 2.0, the electronics manufacturing industry in the country is booming. These policies and the drive in the country have not only inspired domestic manufacturers to step up their game, but have also encouraged foreign companies to set up their roots in India and produce components and products not only for the Indian market but for the world. invited to build. , The ‘Make in India’ campaign is still gaining momentum. But one company which is making its products in India for more than 30 years is SPPL or Super Plastronics Private Limited.
SPPL is an Indian manufacturing company that was established in 1990. The company started as a plastic injection molding manufacturing unit and then moved on to manufacturing cathode ray tube (CRT) televisions. Today, it is manufacturing smart TVs for five leading global brands including Thomson, Kodak, Blaupunkt, Westinghouse and White-Westinghouse and other home appliances including ACs, coolers and washing machines.
The company’s journey from a plastic injection molding manufacturer to a home appliance manufacturer was not an easy one. So, we sat down with SPPL CEO Avneet Singh Marwah to understand the company’s journey so far and where it is headed next.
The journey so far and key learnings
When SPPL decided to transform itself, it became a brand licensee for companies such as Blaupunkt, Westinghouse and White-Westinghouse. Though they are quite a popular name in the global markets, they are still gaining popularity in India. When asked why SPPL decided to go for comparatively lesser-known names, the CEO of the company said that the company has chosen to partner with a brand that has huge recall value globally .
“…we thought that because of this technology [smart TV tech] You need brands which are multinational, which have huge recall globally and then as Indians we are always in favor of all these multinational big recall brands. So, we started working…in 2015 we had Kodak, in 2018 Thompson and then we launched Blaupunkt from Germany and then Westinghouse for television and I think after 2015 there is no looking back. ‘
“We have been doing Make in India for the last 30 years. We were manufacturing when many people started importing screens from different countries. And we’ve seen tough days. And then, the network of service that you have after-sales service, I think that was really important from day one. And that is the mantra and success behind our brand.”
Talking about his key learnings, Marwah said that India is a huge market, but making a profit is not easy. “I think the important learning is that people say India is a huge market, but I still say the penetration versus population in the country is very low. Making a profit from a brand is very difficult…but not impossible. No,” he told us.
about future plans
At present, SPPL manufactures products under four categories – TV, Washing Machine, Cooler and AC. The company is planning to expand its manufacturing facility beyond these home appliances. The CEO of SPPL also told us that his company is also planning to foray into new technologies.
“… there are many things, not even other home appliances, we are also looking for other technology products. I think for the next five years, every year you, or every six months you’ll see a new category that we introduce. Apart from Home Appliances, there are other categories which we feel are going to be disrupted in that category and within two to three months a big news is coming. From television to home appliances, we are now moving towards technology.
shopping trends in india
The Indian market has seen a lot of changes, especially in the light of the pandemic. Per capita income has increased, due to which the spending power of the people has also increased. “I think the biggest trend I saw this year was that India is no longer about opening price points. I think the kind of growth we are seeing in the mid-segment is phenomenal. Per Capita Income is increasing from $2.5 thousand, and I think it will reach about three point five to four thousand dollars. The ideal situation is about twelve thousand dollars per person,” Marwah said.
“As per capita income increases, disposable income increases, and this is where the market shifts. Having said that, the rural market is not growing and this is a word that needs to be very concerned. Despite back to back good seasons for agriculture… there is a need to improve the buying sentiment in the rural sector.’
Marwah says that the reason for the slow growth is the global economic situation. “One of the main reasons is inflation. I would say there are global reasons for this. After the pandemic we saw a war and then it disrupted the entire market – fuel pricing, component pricing, commodity pricing and then agriculture disruption,” said Marwah.
Government of India and its policies
Talking about policies, Marwah said that domestic players have benefited a lot from the policies of the Government of India.
“Make India is not new to those who were already manufacturing. It just needed some policy changes and how from Make in India we became business in India and then again focus on manufacturing was really important… So this is a big initiative that the PM is doing,” Marwah.
“It is high time that we should have our own core component manufacturing. We need more raw material factories in India. Banning the CPU of televisions or air conditioners has led to many attractive policies so that they can be made more in India. Encourage manufacturing. From assembly to manufacturing now in India, which is very important. And PLI, which is a game changer step… So, I think it’s a start. It’s a start. Long way to go Have to. If it continues for about five to six years, it will definitely be a plus one.”
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