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We are One Generation Ahead in Quality and Design: Sanjeev Dayal, KAFF India

Delhi based KAFF Appliances (India) Pvt Ltd is a major player in the kitchen appliances and electric chimneys market in India. The company is on an expansion spree and plans to have a turnover of Rs 200 crore by next fiscal. It is also planning to grow its product range with the launch of built in ovens, refrigerators and wine chillers. In an interview with Vimarsh Bajpai, KAFF India General Manager – Sales and Markeing, Sanjeev Dayal, shares the company's growth strategy.

What is the kind of growth that KAFF has seen in 2010-11, and what are your expectations in the current year?

Last year, we posted a growth of 181 per cent. We were able to post this stupendous growth because the market was empty, we had not done our homework properly in previous years, networking had not been complete. So it was not a very big achievement. Our brand is very popular. We can grow tremendously in the next few years. This year we are projecting a growth of 150 per cent. We are working on a small base. At this stage, we can aim at 100 per cent or 150 per cent growth, and it sounds rosy. But, as the base would grow, and suppose once we become, say a Rs 1000 crore compay, then registering such a growth would be a hard task. Then we would probably be talking of 20 per cent growth. As of now, since the base is small, we have been able to register a big growth. 

KAFF Appliances has set an ambitious target to reach a turnover of Rs 500 crore by 2014. How optimistic are you about achieving it? What made you set this target?

That's both optimistic and achievable. We are working together as a team, and I am the commander of my aircraft. No specific signals for setting this target. I have a figure in mind and I know how to achieve it. If I have planned for Rs 500 crore, it would be Rs 550 crore. 

Would you focus more on the domestic market or international market? 

Majority of the business would come from the domestic market, which we are aggressively targeting. We have plans to enter other countries in Asia such as Sri Lanka, Bangladesh and Myanmar. We recently entered Nepal. So we have plans for international market, from where we could see 10-15 per cent share in turnover. But India will continue to be the focus market as it is one of the world's fastest growing economies.   

How has been the initial response in Nepal? 

The response to KAFF brand in Nepal has been quite good. Most Napalese have studied in India and many of them have visited India and have seen KAFF in India. So for them, KAFF is not a foreign brand. They perceive KAFF as their home brand.
Design is a key element in your products. Constant innovation is critical for any company today, and especially in the sector in which KAFF operates.

To what extent is KAFF focusing on innovation and R&D? 

I take care of the business process in the company and our MD takes care of entire R&D and manufacturing and sourcing. So we work on two different strength areas. The products that we are sourcing today are all top-end and we spend a lot of time trying to infuse contemporary design into our products that are required by the market. We are one generation ahead in terms of our design and quality. What we are thinking now, a few companies would be thinking one year hence. This is our strength. We have a separate budget for R&D and our Design team is working day in and day out to give a new dimension to every product we create. 

Where do you see the big competition coming from? 

I don't see any competition. I haven't seen any competition since I have come. I don't discuss any brand because I don't see them in that kind of league. I don't see them giving me any competition at all. If the competition comes at all from the Whirlpool and LG, the big league people, it will increase the market size. It will benefit us more than anyone else. We are the drivers in this industry. So if the market size increases, they will advertise and we will gain. 

We have a market share of 25-27 per cent, which I think is not enough. If the competition intensifies, I am sure our market share will increase. 

What's your expansion strategy? 

Expansion is an ongoing process. You have to keep networking with your market properly. On a qualitative term, I would say that KAFF is famous for its product line and niche products that we introduce. To take it to the larger market, we need more Galleries, where we can showcase our entire range. Galleries are places meant for someone looking to see our entire range and all our products under one roof. We are actively working on KAFF Galleries. We have already opened 170 galleries across the country. We are planning to have 200 Galleries by 2014. We may achieve it by 2012. 

We have dealer network strength of 3,000 across the country. The supply chain is like this: the company, the distributor, the retailers and then the customer. Our dealer strength is great.

Is there any region where you are focusing more on?

Out of the four regions, we are very strong in north. Besides north, we are very strong in south. In west, we are recognized as a major player. There is a major opportunity to correct the anomaly in the western region. East, which normally does not catch attention of many brands, I am quite buoyant about the growth potential in that market. East could be an important territory for us in the coming years. East has started giving us good results and has beaten the west.