Kent RO is expecting 20% growth in turnover at Rs 1,200 cr this fiscal: Dr Mahesh Gupta

It was in the late 90s when Kent started its voyage and there was no established industry for water purifiers. A handful of brands were trying their fate in this sector by selling very conventional purifiers through door-to-door marketing. Who would have thought that the Indian water purifier market would have grown to be valued at $391.4 million in 2019, with a projected growth of 13.3% CAGR to reach $818 million by 2024, as per industry reports.

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A brainchild of IITian Dr Mahesh Gupta, over the years, Kent has been able to bag a sizeable share of the water purifier market. Gupta took a major gamble when he left his well-paid job to start making water purifiers in India. He designed RO water purifiers with a combination of three technologies to make it suitable for treating every type of water irrespective of the source.

Innovation has always been the hallmark of Kent in the consumer durables space. The company has recently forayed into the small kitchen appliance segment with a whole new innovative range of products. These include Noodle & Pasta Makers, Dosa Maker, Pizza & Omelette Maker, Turbo Blenders, Rice Cookers, Atta & Bread Maker and many more. Even on the exports front, the company has excelled and is planning to double it exports in the next two years.

In an exclusive interview with Adgully, Dr Mahesh Gupta, Founder & Chairman, Kent RO Systems Ltd, shares his journey and future roadmap for the company, which has today become synonymous with water purification and is continuously introducing new products through strong R&D and innovation.

How have the COVID-19 first and second waves impacted the consumer durable business and how did Kent RO as a brand navigate during these tough times?

The last nine months have been a roller-coaster for our entire country. Our world has been turned upside down and things will likely never be quite the same. Although doing business during a pandemic has been challenging, some of the changes taking place may ultimately force businesses to be more adaptable, which is not a bad thing.

Now with the pandemic, we as an industry remain unaffected since we are in a kind of segment that continues to thrive, as health was and will always remain a priority.

However, we do understand that the consumer sentiments are varied. While yes, most vertical brands and companies have been impacted with the pandemic, but now there is a paradigm change as they have found alternative ways to reach their consumers.

The Digital space has picked up immensely. Online sales as a channel is fast growing and will continue to witness more growth; as most brands have innovated and transformed the changing demands of the consumers. Also, those who have transformed and innovated are the ones who have survived.

So, we have given the digital front a push to be up to date with the current demand and for a strong consumer connect. We will come with more ad campaigns and videos as they have always been a great connecting point with our consumers.

Kent RO Systems is also aiming for 20% growth this fiscal. What’s your growth strategy and where is the growth expected from?

We are expecting a 20 per cent growth in turnover at Rs 1,200 crore this fiscal, despite coronavirus-related disruptions in the market. The company, primarily getting revenue from the water purifier business, has diversified its product portfolio by launching technology products like artificial intelligence-based touchless face attendance system, Kent cam eye and many others in the loop.

The company would grow by 20 per cent from products like Kent Cam Attendance. The growth would not come from the existing products, but from the new products which we are introducing.

The tech industry is growing and we have created a department into that. We are going to come with some more exciting solutions for our camera-based products tech area for offices and home. Some exciting products are on the cards now.

What are some of the new products that you are planning to introduce? I believe you have recently entered the automotive security space. Could you elaborate on this further and what’s the strategy behind entering this domain which is not a part of your core business?

Our products are a result of a thorough R&D and in-depth understanding of the needs of consumers and we have a firm roadmap to launch a couple of new exciting products in the coming year.

Recently, we have forayed into artificial intelligence and sanitisation products. Products like Kent Cam Attendance, Kent Fruit and Vegetable Cleaner, Kent Touchless Sanitizer & dispensers and some new products are in the loop related to safety, hygiene, and the security domain.

We are a consumer-centric brand which focuses on adding value to its offering. We will be adding new products with added features and innovative technology and that is how we will be moving along.

With the ever increasing incidents of crime against women and children, we felt this to be the need of the hour to enter into this segment. We felt the time was right and that there was the need to step up to ensure safety at all levels.

Hema Malini has been the brand ambassador for your water purification and some other brands for a long time. What was the thought behind roping in Shah Rukh Khan for your new venture on security business?

We are a very consumer-centric brand and our brand ambassador to our marketing strategy is to develop a strong consumer connect. We chose Shah Rukh Khan owing to his mature and responsible image.

How does H2 2021 look like? How are you gearing up for the festival season this year to bounce back and generate sales?

Although the last few months were not very encouraging for the industry, manufacturers are bullish about the ensuing festive season sales. We expect to have double-digit growth during the festive season sales despite concerns of an economic slowdown. Growth will be led by factors like good monsoon and steps taken by the government such as reduction in corporate tax. The company is increasing its retail investment and marketing budgets to increase sales. Every crisis is an opportunity for unexpected growth and learning, and the pandemic has encouraged more companies to reinvent and evolve.

How are planning to boost your export market?

The company is planning to double its exports. We export products to Bangladesh, Sri Lanka, Kuwait, Nepal and have also entered the GCC market. There is immense demand for our product both within the country and outside. And with an effective supply chain, we are able to meet this demand. We are targeting all the products.

(Edited and additional inputs by Shanta Saikia.)