Eureka Forbes , a leading player in the consumer durables and water purification sector, has announced a strategic move to strengthen its presence in the Middle East market. The company has appointed a new partner to manage trading operations for its Forbes brand in the Gulf Cooperation Council (GCC) region.

Expanding Footprint in the Middle East

The newly established partnership marks a significant step for Eureka Forbes in its efforts to expand its market reach within the GCC countries. This region, known for its dynamic economies and growing consumer base, presents a promising opportunity for the company's growth strategy.

Strategic Trading Arrangement

Under this new arrangement, the appointed partner will be responsible for handling the trading operations of the Forbes brand across the GCC region. This collaboration is expected to leverage the partner's local expertise and network, potentially leading to enhanced distribution and market penetration for Eureka Forbes' products.

Implications for Eureka Forbes

This strategic partnership underscores Eureka Forbes' commitment to international expansion and its recognition of the GCC region's potential. By entrusting the trading operations to a local partner, the company aims to navigate the unique market dynamics of the Middle East more effectively.

The move could potentially result in:

• Improved market access in GCC countries
• Enhanced brand visibility for Forbes products
• Streamlined distribution channels
• Better adaptation to local consumer preferences and regulations

As Eureka Forbes continues to expand its global footprint, this new trading partnership in the GCC region represents a significant step towards strengthening its position in the international market. Stakeholders will be keen to observe how this strategic move translates into business growth and market share in the coming months.

Eureka Forbes Limited , a leading player in the water purifier and vacuum cleaner market, reported a 9.9% year-on-year revenue growth to Rs. 607.70 crores for Q1. The company achieved double-digit volume growth in both water purifiers and vacuum cleaners, with the robotics segment growing by an impressive 52%.

Strong Performance Amid Challenging Conditions

Managing Director Pratik Pota highlighted that the company delivered these results despite challenging market conditions, including soft consumer demand and a slowdown in cooling products during April and May. The company's profit after tax grew by 24.1% to Rs. 38.50 crores, while adjusted EBITDA margins stood at 11% after accounting for higher service charges and growth investments.

Service Business Turnaround

One of the most encouraging developments in Q1 was the turnaround in the service business. Eureka Forbes reported a healthy double-digit growth in fresh service bookings, driven by growth in Annual Maintenance Contract (AMC) count and an increase in Average Selling Price (ASP). The company also saw an increase in multi-year bookings.

Product Innovation and Market Expansion

Eureka Forbes continued to focus on innovation and market expansion:

Water Purifiers

The company scaled up its range of water purifiers with two-year filter life, which significantly lowers the lifetime cost of ownership. It now has more than 40 products offering two-year filter life.

Vacuum Cleaners

The company's early bet on robotics is paying off, with the segment growing 52%. New product launches in this category included Forbes SmartClean Home Mapping Turbo, Forbes SmartClean Auto Bin Turbo, and Forbes SmartClean Fully Automatic Cleaning Station.

IoT-enabled Products

The company scaled up its range of smart IoT-enabled water purifiers during the quarter.

Market Outlook and Strategy

Eureka Forbes remains optimistic about the future, citing low category penetration and immense growth potential. The company has an installed base of 14 million water purifier customers and sees significant opportunities for expansion in both product and service segments.

CFO Gaurav Khandelwal indicated that the service booking growth momentum is expected to sustain, with revenue impact becoming visible from Q4 onwards. The company aims for margin improvement on a full-year basis, leveraging operating efficiencies and cost management strategies.

Competitive Landscape

Despite increased competitive activity in the water purifier category, Eureka Forbes maintained its market share. The company views the entry of new players as positive for category growth and awareness, which it believes will benefit Eureka Forbes as the largest brand in the water purifier segment.

As Eureka Forbes continues to focus on innovation, service excellence, and market expansion, it remains well-positioned to capitalize on the growing demand for water purifiers and cleaning solutions in India.