Hansgrohe to start manufacturing in India

Hansgrohe, a renowned German company specializing in bathroom and kitchen fixtures, is planning to establish a manufacturing facility in India. Their operations in the country are set to commence in the first quarter of 2024, beginning with an assembly line located in Pune. This assembly line will focus on producing basin mixers, bath mixers, and overhead showers, as confirmed by Gaurav Malhotra, the Managing Director of Hansgrohe India.

The move to introduce local manufacturing capabilities is expected to significantly increase production volumes in India, potentially by a factor of ten. Moreover, this localization strategy will enable the company to offer their products at more competitive price points, with an anticipated reduction in costs of around 20%, according to Malhotra. As they further expand their local manufacturing and component sourcing, additional cost savings are anticipated. The initial focus will be on sourcing metal parts and rubber components.

Hansgrohe’s product range spans from INR 50,000, and extends up to INR 19,00,000 for their comprehensive selection of bath fittings and fixtures.

Hansgrohe India has ventured into the ceramic sanitaryware market within the country in response to growing consumer demand for comprehensive bathroom solutions from a single brand. Expanding its product offerings, the company aims to increase its market presence and cater to a broader spectrum of consumers through its distribution and retail networks, spanning various price points. This extended product range will also enable the company to tap into the hospitality sector, according to Malhotra.

Initially, Hansgrohe Group established its presence in India by offering premium showers and faucets under the Hansgrohe brand, alongside luxury products from the Axor brand. Malhotra notes that a transition toward a premium product range is currently taking place in this segment.

In a significant transformation, the Axor brand, which ranked 34th in terms of sales in 2018, has now ascended to become the sixth-largest player in sales. Moreover, the company has observed a notable expansion in the market for electronic toilets, with prices averaging around INR 450,000. The number of units sold has grown from 300 in the previous year to 500 units in the current year.

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