BSH Home Appliances bets big on India’s premium market, eyes tier-2 and tier-3 expansion

Rudolf Klötscher, Chief Sales & Service Office, BSH Home Appliances

German consumer products major BSH Home Appliances is betting big on the premiumisation story playing out in the Indian market. The company said its India business witnessed double-digit growth in 2024 year on year and expects this growth momentum to continue in the coming years. It will focus on ramping up distribution especially in tier-2 and tier-3 markets and expand its product portfolio to support this growth momentum.

Rudolf Klötscher, Chief Sales & Service Office, BSH Home Appliances, told businessline, “India is one of the most important markets for us and is one of the fast-growing markets globally. It offers huge potential because of the sheer size of its population as well as the low- penetration levels across categories of appliances. Our India business has been growing in double-digits and we expect this growth momentum to continue.”

The company’s India portfolio consists of premium brands, Bosch and Siemens, besides luxury brand Gaggenau. It offers products across categories including refrigerators, washing machines, washer dryers, dishwashers, cooktops and ovens.

Responding to a query on the urban slowdown, he said, “Right now, there is a bit of slowdown in the consumption momentum that we are seeing in the market. But if we take a mid-term perspective until 2030, we expect the Indian market will continue to develop in terms of value and volume growth year on year. We are outperforming the market growth rate and have a clear strategy to grow the business.”

The company is strongly focusing on expanding its presence in tier-2 and tier-3 markets in terms of its go-to-market approach. It will also continue to make further investments in its Chennai factory and plans to introduce new products across categories.

“We are seeing premiumisation trends not just in tier-1 markets but also tier-2 and tier-3 markets. Indian consumers are upgrading to products that offer higher value and larger capacities. With our product portfolio we are strongly placed to support the growing aspirations of Indian consumers, he added.

Responding to a query on the impact of the ongoing tariff war, Klötscher said, “ I do believe personally that due to these tariffs, India is becoming an even more attractive market. There are not a lot of markets witnessing this kind of growth.”

The company currently has 103 brand shops across brands Bosch and Siemens in the country. “ As part of our plans to grow our distribution, we are looking to double the number of these brand shops in the coming times,” he added.

The company’s India business is also witnessing significant growth in the ecommerce channel anf now contributes 15 per cent to overall sales. Dishwashers, for instance, experienced an over 55 per cent increase in sales, while 8, 9, and 10 kg front load washing machines saw an impressive over 70 per cent growth.

Published on April 30, 2025