India Volume 12

114 SUPERBRANDS 2020 Market There is a vast potential for the water heater industry to expand in India. Currently, with around 58 lakh water heaters sold in 2019, the industry is valued at H 2,700-2,800 crore and is growing at a CAGR of 6-7%. The growth rate can easily be accelerated by widening its penetration which presently stands at only 10% of the population. Today, some of the factors driving the industry include increasing disposable incomes and spreading urbanisation, amongst others. Another key trend of the industry is the wave of digitisation, namely the traction in the smart products category. As the Internet of Things (IoT) has evolved, everything including phones, watches, cars and cities are turning smart and increasingly becoming a part of the connectivity web. From connected lighting systems to voice-activated intelligent speakers and programmable thermostats that learn the customer’s preferences, IoT integrated with smart home appliances are redefining our daily routines to make life easier. The water heater segment is no different. With increasingly busy lifestyles, instant heating along has been challenging existing norms in the industry through its path breaking innovations which resonate with the consumer needs. Racold is the only water heater brand to be recognised by the Bureau of Energy Efficiency (BEE) for the last nine years consecutively; it has also won multiple Ministry of New & Renewable Energy Awards (MNRE). These and many other such recognitions have cemented Racold’s status as the country’s largest water heating solutions provider. Racold has added another feather to its cap by bagging the prestigious Emvies Grand and Emvies Gold Awards in the consumer durables category. Racold won these awards for its innovative search campaign on Amazon – Mind your Language – that resulted in an elevated ROI on the platform. The brand competed with other top consumer brands from the country and was felicitated by the Advertising Club Mumbai. Racold Water Heater also was voted a Superbrand for 2019-20 by consumers in a selection poll. History Racold is one of India’s largest water heating solutions providers with over 60 years of trust. It is a fully-owned subsidiary of the €1.61 billion Ariston Thermo Group-Italy, the world leaders in the manufacturing and marketing of water and space heating products and their components. Ariston Thermo is a leading global company in the water heating and heating industry. The group develops and provides solutions based on renewable energy sources, such as solar thermal systems and heat pumps through a continuous investment in innovation for the development of increasingly advanced connectivity systems. In 2018, the group recorded a turnover of €1.61 billion and sold eight million products in with other smart features are becoming must-haves apart from the other functional aspects of water heaters. The growth in the real estate and construction sector has increased the demand for water heaters over the last few years. Although the water heater segment can be divided into industrial, commercial and residential, it is, in fact, the residential sector that is the largest revenue contributor to this market. This is on account of the increase in the housing projects in the country and the government’s push towards affordable housing and rural electrification. While electric storage water heaters are currently dominating the market, a surge can be seen in other technologies like heat pumps and online instantaneous water heaters. Solar water heaters, though growing at a slightly lower pace are still prominent in the overall water heating industry construct as consumers are becoming more conscious about the environment and renewable energy. Achievements Racold has been setting standards in the Indian Water Heating Industry by bringing in new technology, enhancing the aesthetics, quality, durability and performance of the products. Racold is amongst the most respected, trusted and the oldest brands of water heaters in India. It Ever since its inception approximately 60 years ago, Racold, a pioneer in the water heater market, has been setting unprecedented benchmarks for the industry by bringing in new technology, enhancing the aesthetics, quality, durability and performance of its products. Backed by a deep understanding of evolving consumer needs and its strong global expertise, Racold has been the frontrunner of technology in water heating. Its new launches of Omnis and Aures with advanced features are proving to be game changers.