Onida Electronics Ltd, formerly known as MIRC Electronics Ltd, is stepping up its brand transformation and distribution expansion under its Onida Rewired strategy, with its air conditioner business growing 239% year-on-year and LED television sales rising 52% in Q2FY27.
The company is repositioning its product portfolio towards premium offerings while expanding its reach beyond urban markets through new distribution partnerships and exclusive brand outlets.
Onida Electronics Ltd Managing Director and CEO Gunjan Srivastava said during the company’s earnings call that the transformation initiative was aimed at making the four-decade-old brand more relevant to contemporary consumers while building a sustainable and profitable growth model.
Onida Rewired focuses on four strategic pillars
Launched earlier this year, Onida Rewired is built around four priorities: affordable premiumisation, innovation-led product development, superior customer experience and sustainable, profitable growth.
As part of the distribution expansion, the company has conducted dealer meets across regions to engage existing and prospective channel partners. It has also entered into an exclusive arrangement with a rural distribution partner to strengthen its presence beyond major urban centres.
Onida has additionally launched its Smarthub exclusive brand outlets, with four stores currently operational. The company plans to expand this network, particularly in Tier-2 and Tier-3 markets, to strengthen its direct retail presence and improve market penetration.
Air conditioners and televisions drive growth
The company’s transformation initiatives are beginning to reflect in business performance. Its air conditioner business recorded 239% year-on-year growth in Q2FY27, while the LED television business expanded 52%.
Onida also gained market share in the e-commerce air conditioner channel in September 2026, based on sell-out data cited by the management.
Across distribution channels, the company’s e-commerce business grew 169% year-on-year during the quarter, driven primarily by air conditioners and washing machines.
On the product development front, Onida is shifting towards larger, smarter and feature-rich appliances while shortening development cycles to accelerate new product launches.
In televisions, it has introduced a flagship 100-inch QD Mini LED model to strengthen its premium large-screen portfolio. The company has also finalised its air conditioner range for the upcoming season and is revamping its washing machine portfolio to address changing consumer preferences.
Input cost pressures weigh on margins
Despite the improvement in business volumes, rising input costs remain a challenge for appliance manufacturers.
Prices of copper, aluminium, steel, plastics and memory chips increased sharply during the first half of the financial year, prompting brands across the industry to undertake multiple rounds of price increases.
However, intense competition has restricted the extent to which manufacturers could pass on higher costs to consumers, keeping margins under pressure.
The television segment has faced additional pressure from higher panel and component costs, resulting in steep price increases in the entry-level category and affecting offtake. In contrast, demand for premium and large-screen televisions has remained relatively resilient.
Premiumisation offers long-term growth opportunity
Onida sees premiumisation as a structural growth driver for the consumer durables industry, with customers increasingly opting for higher-capacity washing machines, larger televisions and energy-efficient air conditioners.
Consumer financing is also supporting the shift towards higher-value products.
The transition to the revised Bureau of Energy Efficiency (BEE) energy-efficiency norms for air conditioners is largely complete, while channel partners have built inventory ahead of the festive season, reflecting confidence in the demand outlook, according to the management.
The company believes India’s relatively low penetration of air conditioners and washing machines provides a substantial long-term growth opportunity.
For Onida, the immediate priority is to translate its brand repositioning, expanded distribution and premium product strategy into sustained market-share gains while managing input cost volatility and protecting margins.