- Goldmedal Electricals achieved an annual turnover of Rs 1,400 crore in FY 18-19
- The company feels its sales channels and hunger to innovate has helped it beat the saturation blues
- It is aiming to touch annual turnover of Rs 2,000 crore in the next financial
- Goldmedal Electricals is a Make in India company
Kishan Jain (KJ), in an exclusive conversation with EFY Group shed light on the importance of innovation and sales channel partners for a consumer electronics brand. The brand achieved an annual turnover of Rs 1,400 crore in FY 18-19.
“We aim to achieve Rs 2,000 crore in revenue in the next financial year by introducing technologically advanced products at affordable prices which create a strong value proposition for our customers. I am of the view that our channel partners have a big part to play in the same,” noted KJ.
He added, “We intend to expand our reach in both the offline as well as online channels. We plan to go beyond our existing network of over 20,000 direct & indirect dealers across the country.”
Here are some more excerpts from this conversation
ACE – How are Goldmedal products different from other brands? Please elaborate some USPs?
KJ – We at Goldmedal Electricals are focused on creating innovative products that change the way an Indian consumer lives, both at home and in the office. With our solid focus on design and R&D, we have been able to diversify into various categories and create products that are considered path-breaking in the Indian market.
We currently manufacture almost every wiring product that is used in a modern home or office – right from wires and cables to MCBs, DBs, LED lights, modular and non-modular switches and systems, home automation products, PVC pipes, doorbells, and accessories such as spike guards, night lamps, extension cords etc. Our goal is to provide complete electrical solutions to our customers across India.
ACE – Goldmedal grew phenomenally in the last financial! What’s the secret behind this success?
KJ – We achieved an annual turnover of Rs 1,400 crore in FY 18-19. Initially, the company’s product range catered to the middle class segment and the construction industry. Since 2007, the company has dramatically increased its product portfolio to include products that appeal to a wider spectrum of customers.
Today, in the switches and systems category, Goldmedal has products for every customer: from the price-conscious buyer to the aspirational middle class and the upper-class end user. Moreover, our channel partners have taken the Goldmedal Electricals product range, to the consumer in a fascinating way.
Apart from homeowners, many of Goldmedal products are ideal for offices, commercial establishments, factories and outdoor settings. So over the years, the company’s target audience has increased with certain segments catering to multiple target audiences. We firmly believe that in a saturated and globalised market, innovation is the key for the growth of any business.
ACE – What are your expectations from this and the next financial? How are you planning to accomplish these?
KJ – We aim to achieve Rs 2,000 crore in revenue in the next financial year by introducing technologically advanced products at affordable prices which create a strong value proposition for our customers. I am of the view that our channel partners have a big part to play in the same.
From a growth perspective, Goldmedal grew at an annual CAGR of 40 per cent and we are striving to achieve 30 to 40 per cent growth in the next fiscal. We will be launching new products in the switches and electrical accessories categories in the next financial year.
Additionally, we intend to expand our reach in both the offline as well as online channels. We plan to go beyond our existing network of over 20,000 direct & indirect dealers across the country.
ACE – How important is the distribution channel for Goldmedal? What is the brand’s overall channel strategy?
KJ – The company engages directly with its network of dealers and wholesalers. Goldmedal has a nationwide presence with over 20,000 direct & indirect dealers across the country. Along with retailing through stores and directly to large institutional buyers, our products are also available at many of India’s leading consumer malls.
We have also invested in exclusive showrooms in many cities to showcase our range of premium products directly to our clientele including interior designers, architects, and builders, along with upper and middle class customers. We have Goldmedal company branches in all states across India, which directly interacts with our channel partner.
ACE – Is Goldmedal open to adding more channel partners in India? What are the criteria that interested parties must fulfil for reaching out to Goldmedal?
KJ – Yes, we welcome all potential channel partners provided they fulfil certain criteria. We believe in quality, honesty and transparency and expect the same from our channel partners. We expect our potential partners to have a good industry reputation, proven experience and the ability to add value to our brand.
ACE – What kind of support does the brand offer to its channel partners in India?
KJ – We have an online ERP system through which our channel partners communicate and stay updated about everything. These include step-by-step instructions for order fulfilments to the payments stage.
We also provide marketing and advertising support to all our channel partners. A lot of our consumer education campaigns are driven by the channel partners.
ACE – Which channel are you currently focusing on – omni, offline or online? Why?
KJ – The idea is to make our products easily available to our customers. Therefore, we have an omni channel presence with a strong presence across retailers, wholesalers, distributors and dealers across the country.
The aim is to provide customers with a seamless shopping experience, whether they’re shopping online from a desktop or mobile device, by telephone, or in a brick-and-mortar store. We are where the consumer wants us to be!
ACE – How do you approach the market in terms of consumer education and marketing? Does the company also help its channel partners in reaching out to consumers via marketing and consumer education?
KJ – Our marketing budgets are used to achieve objectives across segments, and we operate at five per cent. To help our channel partner reach out to our consumers, we hold training programs and meets for electricians at regular intervals across cities.
ACE – What are the locations that you are strongest in India? Which regions are you focusing on next?
KJ – We have more than 30 experience stores across India with most of the metro cities having more than one store. Goldmedal has a strong presence in the southern, western, northern, western and the eastern Indian states.
We want to improve our reach in Orissa and some of the central Indian states like MP and Bihar. We are also targeting to expand into foreign markets such as United Arab Emirates, Nepal, Bhutan and Bangladesh in the next couple of years.
ACE – Any message for the distributors, retailers, and dealers looking to tie up with Goldmedal India?
KJ – We are focussed on working with dealers and retailers that are as hungry to innovate as us. We are continuously looking to add the right kind of dealers / retailers who match our standards.
We have a well-defined selection criterion and a strong digital backbone that helps us interact seamlessly with our huge network of dealers.