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Mr.A.K.Rathi
Mr.A.K.Rathi, Managing Director, Merloni Termo Sanitari
( India) shares the plans his company has for the
Indian consumer
A.K. Rathi is the Managing Director of Merloni
Termo Sanitari (India). An electrical engineer
from IIT Kanpur, he has served in various MNCs in
a  career
spanning twenty-seven years. He has been with MTS
(India) Ltd. since 1997.
Merloni Termo Sanitari Spa, Italy, is an acknowledged
world leader in the manufacturing and marketing
of sanitary products including water heaters, hydro-massage
baths, bathtubs, shower trays and cubicles, kitchen
sinks and other components.
Merloni TermoSanitari (India) Ltd. is a wholly owned
subsidiary of Merloni TermoSanitari Spa, Italy.
The Indian operation includes India’s largest
and singular fully integrated water heater plant.
The plant located in Chakan, near Pune,
has been operational since March 1999. With its
state-of-the-art technology, the impressive range
of water heaters produced here offer the Indian
consumer the latest in aesthetics, efficiency in
performance, and a high level of safety and reliability.
On a visit to the plant at Chakan, Poonabest
got an opportunity to speak to Mr. Rathi and got
him to share the plans MTS had for the Indian customer.
Q. We notice a dramatic change in the appearance
of water heaters. One gets the impression the appliances
are designed in Italy. Is it not ironical that products
meant for the Indian consumer are being designed
elsewhere?
A. Let me explain. Until a few years ago,
the water heater was a contraption hanging on the
wall and the plumber or electrician influenced the
buying decision of the consumer. We conducted a
survey about 3 years ago among consumers and found
that 50% were not even aware of the brand name of
their heaters.
In 1977, we participated in a Trade fair in Delhi
and received valuable feedback from consumers just
before we planned to introduce 'Racold Eterno'.
Until then, a heater with a glossy finish did not
exist in MTS Italy’s range of products.
Coming to the Italian influence, you must remember
that MTS, Italy has been in the business of Water
Heaters for the last 40 years. Using our decades
long experience, we have brought new innovations
into the Water Heater market, like having PUF installed
and Plastic Body Heaters, which are totally new
concepts.
Earlier the heaters used to have metal bodies, which
will shortly be a thing of the past.
Q. Is it not dangerous to have electrical
appliances with plastic coating? What is the market
reaction to this?
A. When we were contemplating launching
the product in India, we called all our distributors
to brief them about the product.
Some of them where apprehensive, however, the Eterno
Heater that was launched in a plastic body was a
runaway success.
Q. With so many players in the heater market
being from the unorganized sector, how are you tackling
competition?
A. We have a number of striking features
that easily make us brand leaders in the country.
Our product aesthetics, quality performance and
excellent after sales service have placed us in
an enviable position of strength.
Q. The unorganized sector still has the price
advantage over you - how do you plan to beat that?
A. We are not present in the lower end of
the market, which is dominated by the players from
the unorganized sector. You can take the example
of the Electric Iron sector, where until a few years
ago, the organized sector had a 20 % market share.
Today it has an 80% market share. There is no reason
why the same cannot be repeated in the heater segment.
Q. You have recently entered the AC market
in India. Is it not a bit late in the day to enter
this segment when there are a number of international
players already around?
A. The moot point is not about entering
the market that already has many players; it is
about being able to establish a place in the AC
market segment. Besides, Ariston, the brand
name under which we sell our AC’s is famous
the world over.
Q. Can you tell us something about your tapping
the White Goods market?
A. We have a sister company called Merloni
Electro Demechi, which is from the MTS stable.
The company has already launched its operations
in Chennai, with the launch of Dishwashers, Washing
Machines and other White Goods.
The company is planning to expand its operations
to other metros in the country. The White Goods
of our company are very popular in the Middle East
and Far East countries. The White Goods that will
come from the MTS stable will be absolutely top
of the line.
Q. You have also entered the Bath Tub and
Shower Chamber Market. The prices that you are quoting
for both make them seem out of range for the Indian
customer? Are you planning to sell these products
in the Domestic Market?
A Ultimately we are planning to sell both
these products in the domestic market. All the Bath
Tubs that are present in the market barring Parrys
are from the unorganized sector. At the present
moment, we are selling both these products through
the project route. Currently, we have 15 hotels
that are using these products in India.
Q. Coming to Sinks, yet another of your products,
do you plan to retail it through the Modular Kitchen
Manufacturers?
A. The market for sinks is growing and getting
increasingly popular. As far as Modular Kitchens
go, all the International Modular Kitchen Manufacturers
use the Ariston brands, so where sinks are
concerned, we have no problem.
Q. How did MTS India fare last year with respect
to sales?
A. We achieved the targets as per the projections
we had made at the start of our operations.
Q. As far as exports go, how is your company
performing?
A. Exports is an encouraging market, for
the next five years we are hoping to double our
exports every year as far as Water Heaters are concerned.
Q. What was the initial investment made by
MTS Italy in India?
A. The company has invested Rs 30 crores
and it is by far the largest investment made in
India by a Geyser manufacturing facility.
By Rahul Surkund
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