Kärcher India Eyes Expansion With ARMA Acquisition, To Focus On Local Production
The company aims for double-digit growth with emphasis on R&D, workforce training and sustainable practices
The Karcher facility in Noida hosted BW Businessworld for a facility tour and briefing session about the company’s expansion in the country and its future plans for growth. The experiential tour began with a small presentation by Kärcher’s top management. Alfred Kärcher SE & Co. Chief Operating Officer, Markus Limberger accompanied India MD Jatinder Kaul.
Alfred Kärcher SE & Co. is a German cleaning equipment manufacturing company that was founded in 1935 in Stuttgart, Germany by its namesake founder and inventor. In 1950, the company was attributed with the invention of the world’s first modern pressure washer, the DS 350. The company has a long history of manufacturing sweepers, scrubber-driers, wet and dry vacuum cleaners, battery-powered brooms, steam cleaners, dry ice blasting equipment and water treatment systems.
Kärcher is now a global leader in the cleaning equipment manufacturing industry with an equal focus on both B2B and B2C. In India, however, these numbers differ at the moment. With almost 80 per cent of the revenue coming from the sale of professional units, Kärcher India’s Managing Director, Kaul stated that they will increase focus on the consumer side now. There is a catch, though. “We need the market to mature first to be able to capitalize on Kärcher's consumer products,” he added while stating the current condition of the market with regard to cleaning equipment.
The company collaborated with the local administration in Ayodhya in January to clean up the city and offer mechanised solutions for cleanliness. Similarly, the company recently collaborated with Maharashtra municipalities to clean up roads. Such collaborations will play a vital role in the company’s growth and visibility efforts in India, mentioned COO Markus Limberger.
The company clocked a USD 3.2 billion revenue in FY 2023, has subsidiaries in eighty-two countries, offers over three thousand cleaning products and employs around sixteen thousand people worldwide. Upon hearing that Kärcher has ten factories spread across the globe, it only made me wonder when it’ll have one in India. Markus Limberger was kind enough to answer my question.
The Germany-based cleaning technology company has strengthened its presence in India by acquiring a 100 per cent stake in ARMA, a Coimbatore-based manufacturing firm. The acquisition of ARMA, located in a 4,600 square metre facility in Coimbatore, is part of Kärcher’s broader strategy to accelerate its production in India to meet growing demand. The facility, which currently employs 49 workers will manufacture an expanded range of Kärcher’s professional cleaning machines. The company projects that annual production will exceed five thousand units by 2025, with an increase to nineteen thousand units expected by 2030.
Integrating ARMA into Kärcher’s operations allows the company to have greater control over local manufacturing, aligning with its ‘Make in India’ initiative. The Coimbatore plant is equipped with advanced automation and features such as in-house fabrication of sheet metal, an R&D testing lab, a sound testing room and an endurance/lifetime test track for scrubbers. The plant also employs sustainable practices, including wastewater recycling in product testing processes.
Limberger described the acquisition as a critical step for Kärcher India, stating that local manufacturing aligns Kärcher’s offerings more closely with the needs of the Indian market. “This acquisition enhances our manufacturing capabilities and strengthens our commitment to the region,” he stated, referring to Kärcher’s expanded ability to deliver high-quality, India-specific cleaning solutions.
Jatinder Kaul stated the acquisition’s significance for local development. According to Kaul, this move not only expands Kärcher’s market presence but also supports job creation, skill development and supply chain efficiency, contributing to German-Indian trade relations. 'By manufacturing locally, Kärcher aims to support India's economic growth goals,' added Kaul.
According to Limberger, “[…] the 40-60 joint venture between Kärcher and ARMA will now be fully owned by Kärcher.” The company’s decision to acquire ARMA comes as India continues to grow as one of Germany’s largest trade partners, reflecting Kärcher’s strategic interest in the region. ‘Localisation is the goal. Leveraging Make in India to develop products in India,’ Limberger elaborated.
The current revenue split between professional and consumer products in India is 80-20. As per Kaul, the goal is to bring it to a 50-50 ratio. I asked the company representatives about the importance of R&D and how much the company invests in research. I did not get an exact number but I did get a percentage. “Five per cent of the total revenue is spent on development,” stated Limberger.
With innovation and technological advancements at the core of its growth strategy, Kärcher India plans to continue its investments in the country in order to tap this vast market. This expansion is part of the company's plan to achieve a double-digit growth rate, with a focus on training and development.
