Orient Electric has kept a strong focus on a direct-to-market (DTM) distribution strategy in eight states to bolster its fans business segment. It is also enhancing its manufacturing footprint by commissioning a Rs 210-crore greenfield plant in Hyderabad, which is expected to become fully operational by next summer.
The company has adopted the DTM model in Uttarakhand, Bihar, Odisha, Uttar Pradesh, Karnataka, Andhra Pradesh, Telangana and Gujarat. Owing to this, it has seen 65 percent y-o-y sales growth in these states, which contributed 30 percent to the overall fans’ sales. This year, it has initiated the DTM model in Himachal Pradesh and Jammu & Kashmir. The company balances its DTM strategy with a master franchise distribution model for the fans’ business.
The CK Birla-promoted company has also ramped up presence of its overall product portfolio in modern retail and large retail format stores, and has begun to reap positive results for these efforts.