Eureka Forbes
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Volume growth & Strong sales growth for their Product business – High teens growth
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Water purifiers has picked up for Eureka. Well placed wrt Price points for various variants.
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Innovations via new management. Has doubled R&D – 2x life is gaining traction – market share gains too. Very innovative. Steel tanks vs legacy plastic storage tanks in water filter.
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A&P spends grew FY24. Operating leverage as a key source.
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AMCs ownership vs legacy service technicians taking ownerships.
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Business operates with a -ve working capital. (Cash and carry model largely)
(Eureka has lost market share in the past. Management has turned around some of the lost grounds. Otherwise eureka has been slow to act in the past)
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health conscious Consumption as a theme.
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Many utility enablers will help the water purifier category.
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Penetration can double in next 5Y
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Clean Water as a theme given the ambition to have clean water at home and ppl picking up new variants for newer homes.
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Newer homes will like the new innovations by eureka (Slim tech, Insta Blaze for Green tea lovers, under the counter offering with wheels)
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Competition was very active during the last 2 decades Kent LG Dyson
caused havoc to eureka’s market share. -
Do Note Aquaguard has a top-of-mind awareness.
Other categories
- Robotics : can chart same trajectory as Washing machines. Eureka is market leader in robotics. 2x’ed revenues. BIS implementation is about 6 months.
- Air purifiers : Won’t say much coz i just saw the air quality first hand entering delhi this morning.
- Vacuum cleaners : need for VCs is slowly but surely changing. Augers well with new office spaces opening up too as they also use VCs.
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