Kohler Sees India as a Key Market for Growth

Bathware giant Kohler Co. is investing at least $100 million over the next decade in India, where it expects bathrooms to evolve with smart technology. The company's CEO, David Kohler, sees India as a key market for growth, driven by the country's rapid urbanisation, real-estate development, and growing affluent population. ## A Different Aesthetic Kohler believes that Indian consumers are more willing to experiment with shape, colour, and finish, making the country an attractive market for the company's products. In contrast to some European markets, where consumers prefer minimalist designs, Indian consumers are more likely to opt for maximalist designs. This is reflected in the company's sales, with about 70% of its India sales coming from products designed specifically for local consumers. Kohler points out that the Indian bathroom behaves differently from those in other markets. For example, hygiene sprays are deeply embedded in Indian bathrooms, where the wet area is more pronounced than in markets such as the US. The company expects this to evolve as bidets, bidet seats, and smart toilets gain ground. However, the starting point for Indian consumers is different from that of consumers in Japan, China, or the US, where bidets and smart toilets have a much lower barrier to adoption. ## A Production Base for the World Kohler is not only investing in India's domestic market but also sees the country as a production base for the world. About 10% of the company's output is currently exported, and it would like to increase that over time. The priority, however, remains the domestic market, with about 80% of production expected to remain focused on India. The company's facilities in India were built to take advantage of the 'Make in India' initiative and supply products to other markets. Kohler's confidence in India is reflected in the company's manufacturing plans. It has invested hundreds of millions of dollars in India over the past 20 years and plans to invest at least another $100 million over the next decade. Its plant near Bharuch in Gujarat is being expanded with new technology and capabilities. ## A Bright Future Ahead Kohler believes that India's broad-based economic growth and lack of demographic challenges make it an attractive market for investment. He points out that the country is "all flashing green right now," indicating a bright future ahead for the company's investments in India. With its local manufacturing capabilities and focus on delivering higher value to consumers, Kohler is well-positioned to capitalise on India's growing demand for premium bathroom and kitchen products.