A.O. Smith consolidates its presence in the Indian water heater market by opening a new manufacturing plant The largest manufacturer of water heaters in the US, A.O. Smith Corporation, added a milestone by setting up its first manufacturing plant in India. It aims to develop the water heater market in India by providing quality products at affordable prices. The 76,000-square-foot stateof-the-art manufacturing facility is located at Harohali, Karnataka, on the outskirts of Bangalore. While A.O. Smith is also in the business of manufacturing electric motors, the Harohali plant will be dedicated to its commercial and residential water heaters. The plant inauguration, held on June 30, 2010, was attended by senior A.O. Smith officials from India and abroad, as well as dealers, customers and members of the press. The inauguration was followed by speeches by company officials on topics as diverse as the demand for quality water heating equipment in the Indian market, the presence of the unorganised sector and small entrepreneurs, the capacity expansion capability that exists at the Harohali plant, etc.  Outlining the reasons behind its Indian venture, Paul Jones, Chairman and CEO, A.O. Smith Corporation, commented that the company’s entry into China during the 1990s proved quite profitable and the company is excited about the potential growth that India has to offer. With the opening of a plant in India, the company is embarking on the next phase of its global expansion. Earlier, A.O. Smith forayed into the Indian water heaters markets in 2008, when the company manufactured co-branded products under an agreement with Jaguar PLC. A.O. Smith’s products enjoy significant presence in cities like Bangalore, Goa, Chennai and Delhi. With the growing market share in India, A.O. Smith decided to invest in physical infrastructure in the country for the first time. The company could face stiff competition in the local market from small heater manufacturers. However, Tamal Chaudhuri, National Sales and Marketing Director, A.O. Smith India Water, said that the energy-saving ratings of A.O. Smith’s heaters compared favourably against the existing competitors. He was confident that the product quality and the product assurance provided by the company would set its products apart. With robust sales, distribution and warehousing network spread across all strategic locations in the country, A.O. Smith looks all set to take the country by storm. A holder of several patents in water heating technology, A.O. Smith is the name behind many path-breaking innovations such as Blue Diamond glass lining, a glass-coated heating element, and energy-efficient insulation, among others. |
