Racold to tie up with Flipkart, expand to tier II and III towns to offset disruptions in construction sector

Kolkata: Racold Thermo, part of the Italian firm Ariston Thermo Group, is expanding its footprint to mini-metros, tier II and III towns to offset disruptions in construction sector which accounts for bulk of its sales. The company is also planning to tie up with Flipkart to tap the e-commerce channel. “We are expanding into new markets. We are present at 3,500 towns and adding our reach to 500 more soon. To push e-commerce sales, we are also tying up with Flipkart,” Ariston Thermo GM (Marketing) Anil Bhamre told PTI.  The housing sector has dealt a body blow – first, by a real estate slowdown followed by the Real Estate Regulation and Development Act (RERA). In order to overcome these disruptions in the existing market, foray into new towns will help the company to boost sales and retain its leadership in water heating solutions market with about 25 percent domestic marketshare, the official said. On its tie-up with Flipkart, he said details are being worked out and shortly, Racold products will be available on the e-commerce site in a more organised fashion. However, online sales will continue to remain minuscule, he said. He said new construction accounts for 60 percent of sales for the water heating solution industry followed by rennovation at 30 percent while replacement is just 10 percent. Bhamre also added that the company is working on new generation water heaters. Without disclosing the details of it, he said, it will be more user-friendly in terms of usage, operations and sustainability. Bhamre said solar, gas and heat pump water heaters are new focus products for the industry. “Gas heaters and solar heating are receiving better traction than electric water heaters. Heat pump water heaters offer 70 percent saving in power consumption,” he said. There are an estimated eight crore people in the country who use immersion rods in whom the company sees a huge potential. Ariston Thermo Group is now a 1.5 billion Euro group. The India operations aims to contribute 10 percent to its global turnover in the next 4-5 years.