Exclusive: Burly’s Parent Company Acquires Khaitan’s Brand License

  • Burly had forayed into consumer electronics domain in 2018
  • Khaitan, as per Burly, had seven per cent share in the plastic air coolers market in 2016-17
CEO, Burly, Mr Chandra Prakash Shrivastav

MPPL, parent company of Burly Consumer Electronics has acquired brand license for selling Khaitan air coolers in India. The company told EFY Group that they have acquired the license for five years. This move as per Mr Chandra Prakash Shrivastav, CEO, Burly, will help the company to enter air coolers segment where Burly is currently not present.

He said, “Two years back Khaitan used to enjoy seven per cent market share. With Burly and Khaitan together we will try to gain 10 per cent market share in 2020 air coolers season.”

Interestingly Burly is already retailing eco-friendly range of coolers and washing machines in India. It is to be noted here that Mr Chandra Prakash Shrivastav has played a big role in making Kenstar a famous consumer electronics brand in India. he was associated with Kenstar as its India business head.

Covering mass market of air coolers

Burly is now planning to enter the mass market of plastic air coolers in India. Though the season for air coolers is ending in the country, Burly’s CEO told EFY that the company will start retailing Khaitan branded air coolers as soon as the next season starts. He also pointed out towards a possibility of retailing Khaitan branded air coolers before the end of this season as well.

He added, “Khaitan is a big addition to Burly portfolio as this help us to horizontally integrate the segment where Burly was not operating. The brand equity of Khaitan will also help Burly Team to drive sales volume in the market. The brand royalty from Khaitan Plastic Cooler is for five years on Pan India Basis. Khaitan Plastic Cooler will have a comprehensive range of desert, window, tower and personal coolers with a competitive price tag.”

Air coolers market in India

The India air cooler market, as per a report by Imarc, has been experiencing healthy growth in recent years. In India, there are around 250-260 million households out of which a significant percentage of the population uses fans and air coolers during summers. Air cooling systems are widely accepted since they are cost effective and consume less power to function. This represents a key driver for a country like India which has limited power supply.

The primary factor driving the air cooler market in India is its climate. The climate in most parts in India is characterized by long hot summers which begin in April and can continue till the beginning of October with temperatures often reaching up to 45° C. Moreover, the price, running cost and maintenance cost of air coolers is significantly lower than that of air conditioners. This provides an inexpensive and environment-friendly cooling alternative to the conventional air conditioning systems. Other factors driving the air cooler market in India include increasing penetration of electricity, technological advancements, rising incomes, improving distribution network, etc.

On being asked how Burly plans to project Khaitaan air coolers in the country, Mr Prakash simply said, “Khaitan’s name is enough to project it in the market (Sirf naam hi kaafi hai).”