IFB Industries is sharpening its focus on distribution productivity, portfolio optimisation and operational efficiency in its home appliances business, while simultaneously targeting strong growth in its engineering division through capacity expansion and new revenue streams.
Speaking during the company’s earnings call, management outlined a strategy centred on extracting higher productivity from its existing retail network, simplifying product portfolios and expanding engineering capabilities.
Focus shifts from expansion to productivity
The company said it has largely completed the exercise of identifying its priority retail footprint and is now concentrating on improving productivity across these outlets.
IFB Industries Managing Director and Chief Executive Officer, Home Appliances Division, Sandeep Joseph Abraham, said the company has identified around 10,000-10,500 outlets that contribute meaningfully to its business and is focusing on maximising sales and product placement within these stores.
According to Abraham, the next phase of growth will be driven by improving execution at the store level rather than significantly expanding distribution reach.
In-store promoters become key growth lever
The company highlighted the critical role played by in-store promoters in influencing consumer purchase decisions, particularly in the home appliances segment.
To strengthen sales conversion, IFB is expanding promoter coverage across more dealer outlets while simultaneously introducing tighter productivity measurement systems.
Management believes improved monitoring and performance controls will help generate higher returns from the existing retail network and strengthen brand visibility at the point of sale.
Product portfolio undergoes rationalisation
Another major focus area for IFB is improving profitability at the stock-keeping unit (SKU) level.
The company said its ongoing review of product-level profitability has led to significant portfolio rationalisation across categories.
As part of this exercise, the number of front-load washing machine models has been reduced from 58 to 25, with similar optimisation initiatives undertaken in top-load washing machines and other product categories.
Management said simplifying the product portfolio is helping improve operational efficiency while making inventory management easier across the value chain.
Strong brand, experienced team seen as advantages
Despite the operational changes, the company remains confident about its market position, citing the strength of the IFB brand and its experienced leadership team.
Management noted that tighter execution controls combined with established industry relationships could help unlock greater value from the company’s existing product portfolio and distribution network.
Engineering division targets up to 25% growth
IFB’s engineering division is also gearing up for accelerated growth. IFB Industries Chief Financial Officer Engineering Business, Jayanta Chanda, said the division has delivered a revenue CAGR of 13% over the past five years and is targeting 20-25% growth over the next two to three years.
The growth will be supported by expansion in existing operations as well as entry into new segments such as EV battery components, motorcycle chains and brake discs, where regulatory changes are creating fresh demand opportunities.
Capacity expansion to support growth
The engineering business is leveraging investments made under a nearly ₹100-crore capital expenditure programme.
While around ₹63 crore was deployed by March, the remaining investment is being carried forward into the current fiscal due to project implementation timelines.
The company has added three presses to its stamping division, creating additional revenue-generating capacity of ₹40-50 crore. Fine blanking presses installed at its Kolkata and Bengaluru facilities are expected to contribute another ₹30-40 crore in annual revenue capacity per plant.
Additional investments in auxiliary equipment and furnaces have also been undertaken to improve manufacturing efficiency and support future order growth.
New growth phase ahead
With stronger execution in home appliances and expanded capabilities in engineering, IFB Industries is positioning itself for a new phase of growth. The company expects operational efficiencies, product rationalisation and capacity additions to strengthen profitability while supporting sustained revenue expansion across both businesses.