Onida Targets Market Comeback with Massive Retail Expansion

Consumer electronics veteran Onida Electronics is launching a strategic overhaul to reclaim its position in Indian homes through expanded distribution and a refreshed premium product focus.

MUMBAI — Onida Electronics, the heritage brand once synonymous with the "Neighbour's Envy, Owner's Pride" tagline, is initiating a comprehensive turnaround strategy to regain its relevance in the hyper-competitive Indian consumer durables market. Under new professional management, the company is pivoting toward a retail-first model, targeting significant growth in its footprint and brand salience across the country.

The brand, formerly known as MIRC Electronics, has entered a critical phase of restructuring following a ₹149-crore equity infusion from Authum Investment and Infrastructure. This capital injection is designed to modernize operations, clear liabilities, and fuel a push into the mass-premium segment, as the company seeks to compete with entrenched domestic and global rivals.

A New Playbook for the "Onida Devil"

The company’s revival is currently being steered by Gunjan Srivastava, who assumed the role of CEO and Additional Managing Director in July 2026. Srivastava, a veteran of the home appliances industry, has emphasized that Onida’s primary challenge is connecting with a younger demographic of decision-makers while retaining its legacy appeal among older consumers.

The strategic roadmap, as detailed by leadership, focuses on three pillars:

• Retail Aggression: Currently operating through approximately 4,500 retail outlets, Onida plans to scale its presence to 10,000 stores. A key part of this strategy involves the rollout of 100 exclusive brand outlets over the next two to three years to elevate the brand's visibility.

• Gold-Standard Activation: Recognizing that mere presence is insufficient, the company is investing in "gold-standard" activations in at least 1,000 stores. This includes enhanced merchandising, improved in-store communication, and intensive training for retail promoters to drive conversion rates.

• Operational Pivot: Onida is shifting its internal focus away from third-party contract manufacturing—where it previously produced goods for other brands—to concentrate capital and R&D on its own product lineup, specifically air conditioners, televisions, and washing machines.

Addressing Market Realities

The brand faces a crowded market where penetration for major durables remains low, leaving a substantial opportunity for first-time buyers. Srivastava noted that air-conditioner penetration in India remains at approximately 11–12%, a segment where Onida plans to leverage its history of innovation—such as its early entry into smart, SMS-operated cooling solutions—to capture the mid-market segment.

Despite the optimism, the company’s financial path remains challenging. Onida reported a loss of ₹74 crore for FY26 on revenues of ₹671 crore, underscoring the necessity of this strategic reset. The management transition, including the appointment of Manish Desai as Chief Financial Officer, marks a deliberate move toward professionalizing the company’s governance to support its expansion goals.

Strategic Focus on Core Categories

The company is prioritizing its core portfolio before pursuing further category diversification. According to official company disclosures, the immediate focus remains on:

• Air Conditioners: Targeting the mid-market and institutional cooling sectors.

• Televisions: Reclaiming the brand’s reputation for cinematic audio-visual experiences.

• Washing Machines: Strengthening product cadence and after-sales service reliability.

Why It Matters

For Indian consumers, this move signifies the potential return of a familiar market player that could provide more variety in the mid-premium segment. For investors, the turnaround attempt represents a high-stakes effort to leverage a legacy brand equity to bridge the gap between historic household name status and modern market competitiveness.

Key Facts at a Glance

• Retail Target: Expansion from 4,500 to 10,000 retail touchpoints.

• Capital Boost: Successfully raised ₹149 crore from Authum Investment and Infrastructure.

• Leadership: Industry veteran Gunjan Srivastava appointed as CEO to drive the turnaround.

• Primary Focus: Prioritizing air conditioners, smart TVs, and washing machines to penetrate Tier-II and Tier-III markets.

FAQ

What is the core strategy for Onida’s comeback?

Onida is focusing on strengthening its retail distribution, increasing its footprint to 10,000 stores, and prioritizing its own brand over contract manufacturing.

Who is leading the turnaround?

Gunjan Srivastava, a former BSH Home Appliances executive, took over as CEO and Additional Managing Director in July 2026.

Why is Onida raising funds?

The ₹149-crore infusion from Authum Investment is being used to clear liabilities, fund R&D for product modernization, and support retail expansion efforts.

What categories are being prioritized?

The company is concentrating on air conditioners, televisions, and washing machines to establish a top-10 market share in each category.

Source: Mint, Exchange4media, Fortune India, PitchBook, Economic Times Retail.