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RECOMMENDATIONS FOR GROWTH OF PRESSURE

COOKER SECTOR:
 The pressure cookers manufacturers must launch awareness campaigns to exploit the
huge potential of the pressure cooker market in India. Currently the penetration of
pressure cookers is low in India. The penetration of pressure cookers on the national level
is 270 for every 1,000 households. In northern India, penetration is 750 while in western
India it is 602 per 1,000 households.
 Companies should launch awareness campaigns about pressure cooking and fuel saving.
The saving of fuel by using pressure cooker amounts to Rs30 billion.
 The Government of India should remove the excise duty on pressure cookers and
rationalize sales tax structure. Currently the excise duty on pressure cookers is around
10%. This will reduce the prices of pressure cookers and increase demand.
 Manufacturers must launch advertising campaigns in rural areas on the advantages of
cooking with a pressure cooker. In the rural areas, the penetration is 146 for every 1,000
households. Rural market is a highly untapped with people not educated about the
benefits of pressure cooker. With the average income per household increasing in rural
areas people will be able to buy branded pressure cookers.
 Most of the manufacturers face the problem of distribution channel where they are not
able to reach untapped market. This has led to a big gap. Tie ups with Cooking Gas
companies will help them cover more grounds and pressure cooker can be sold along
with gas connections.
 Government has set up “Aanganwari” in every village. The help of these social workers
can be taken to educate rural population about the benefits of pressure cooker.
 In the consumer goods market the 4 P’s of marketing has a great significance. There
should be a balance between these 4 P’s. At the moment Promotions and Place looks like
a concern so the manufacturers should invest in proper promotional activities and make
the product available at comfortable distance to all.
 The urban market is highly evolving and innovation in product range always drives
attention and buying. The manufacturers should always look to innovate and come out
with better technology and safety functions.
RECOMMENDATIONS FOR HINDALCO:

a) Increase capacity expansion: With the help of the study conducted we see that there is
huge prospects in the consumer markets for pressure cooker as well as the clients are
having major capacity expansions. So evolving along with the industry is the call of time.
b) Look for new client base: Though Hindalco is in deficit of providing required amount of
raw materials now and even though future shows an average growth of 30% still a double
capacity expansion might be too much for the market to absorb with the existing client
base. So Hindalco must look out for future buyers of aluminium circles from now itself.
c) Reconsider Pricing: All the clients interviewed showed dissatisfaction with the amount
of premium charged by Hindalco. It’s understood as Hindalco is the only manufacturer
for circles in India so it can set prices on will. But pressure cooker being a price sensitive
market, even a difference of Rs 20 is a big difference. It can be seen by the latest step
taken by Stovecraft and Leo Metals to reduce their operating cost which would mean less
orders from these clients in the future.
d) Caution: The major buyers of Hindalco circles are Hawkins and TTK which buy more
than 80% of circles produced by Hindalco collectively. So much dependence on these
two clients might backfire in the future with either or both of them backing out. As for
now proper relationship should be managed with these clients and look out for more
options in the B2B markets.
e) Co-Branding: Hindalco is a huge brand and can aid small and medium enterprises to
come out with better promotional activities which would aid their sales and in turn
increase orders from them. This would also develop a good relationship with the clients.
Hindalco can convince new clients to buy circles from it at desirable prices as most small
companies don’t prefer aluminium circles due to higher cost. An option of Co-branding
will convince them to pay a goodwill amount as well.
f) Improve relations with clients: Most of the clients felt they are unheard and Hindalco
pays no attention to their problems. There is a perception in the minds of smaller clients
that the company does not bother about them under the influence of larger clients. This
would hamper setting up of newer client base in future with capacity expansion plans.

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