By Dhwani Pandya MUMBAI (Reuters) -German bath fittings maker Hansgrohe will quadruple its India production as it aims to target rich and affluent Indians, just when it is facing a slowdown in its
Hansgrohe to Increase Production in India Amidst Slowing China Sales
By Dhwani Pandya
MUMBAI (Reuters) -German bath fittings maker Hansgrohe will quadruple its India production as it aims to target rich and affluent Indians, just when it is facing a slowdown in its other key market of China, top company executives said.
India has emerged as a hotspot for the likes of Hansgrohe, American giant Kohler and Japan's Toto as the newly rich in the world's most populous country splurge on jacuzzi bathtubs, high-tech showers and even $18,500 Alexa-powered toilet.
Hansgrohe executives told Reuters they estimate India would contribute 10% of its global sales by 2030, doubling current levels.
It aims to produce 200,000 bathroom fitting pieces annually by 2028 at its only Mumbai factory, from just 50,000 now, Thomas Stopper, the company's Asia vice president for sales, said in an interview.
"There is huge urbanisation -- more people moving to cities, higher disposable income, and people want better bathrooms. So that’s clearly a driver for us," he said.
The push comes as sales in China, the biggest market for bathroom fixtures, have slowed due to a decline in the construction sector and domestic consumption, Christophe Gourlan, Hansgrohe's chief sales officer, said.
UBS says that by 2028 India will have around 1 million millionaires, more than in Singapore, Hong Kong or Brazil. India's bathroom fittings market is set to grow by about 7.7% to $16.7 billion over the next five years, Mordor Intelligence says.
Hansgrohe India Pvt Ltd revenues stood at $38.7 million last year, having grown at more than 25% each year since 2020.
The Mumbai factory currently assembles bathroom fittings, including showers, largely for institutional sales, but its most premium offerings are still imported from Germany.
Hansgrohe is also evaluating local suppliers of components for its shower ranges and other products, said Stopper.
The company plans to increase its distributors in India from 300 to 400 by 2026, and will soon open its first so-called experience centre in New Delhi, where people will be able to experience its shower fittings through a live demo.
(Reporting by Dhwani Pandya; Editing by Aditya Kalra and Saad Sayeed)
