The STIHL Group is a leading entity engaged in the development and distribution of power tools tailored for professional applications. Their outdoor power products address the needs of forestry, agriculture, landscape maintenance, and private garden owners. Additionally, their extensive power product range provides digital solutions and services.
STIHL retails their products primarily through specialized servicing dealers. The company operates through 42 of its own sales and marketing companies and collaborates with approximately 120 importers. They have a presence in over 160 countries through a network of more than 55,000 dealers. Additionally, STIHL is expanding its international reach through the establishment of its online shops.
Talking to The Interview World, Davinder Singh, State Head for Delhi-NCR and Haryana at STIHL, sheds light on their outdoor power product lines, catering to farming and non-farming sectors. The following are key excerpts from his interview.
Q: Tell us about your products.
A: In Germany and other European countries, there’s a common belief that engines function effectively for 15 years. However, the scenario is different in India, where people often use engines without adhering strictly to recommended parameters and applications. Despite this, we provide a warranty of one to two years, depending on the product. For water pumps, we offer a two-year warranty, while all petrol products come with a one-year warranty.
Our product range extends beyond agricultural equipment, as we cater to both farmers and corporate clients. Among our offerings are vacuum cleaners in various capacities—12, 20, and 30 liters—suitable for wet and dry cleaning. Additionally, we provide pressure washers designed to clean a range of items. These include AC units, cars, tractors, motorcycles, and any other surfaces requiring water pressure for effective cleaning.
In response to the global shift towards battery-operated tools, we have introduced battery-powered options. This includes battery chainsaws and battery hair trimmers. Furthermore, our collaborative efforts with the German team help us build even better products within the battery-operated range. You can expect more innovations in outdoor power equipment range from our back-end team soon.
Q: Do you have a production unit in India?
A: We have our corporate office in Pune, where we operate a compact assembly line. Specifically, we focus on assembling our 6 HP and 7 HP power weeders. It’s important to note that our assembly process is distinct from manufacturing – we do not produce the components internally. Instead, we source machine parts from various subsidiaries, including those in China, Germany, Austria, and Brazil.
Q: What’s the market response of your products in India?
A: As I mentioned earlier, we proudly assert our leadership in the global and Indian markets when it comes to branded chainsaws. Evaluating the Chinese market is a complex task, and we remain unrivaled in our product range, securing the top position.
Q: What’s the market size of these products and what’s the projection for the next 5 years?
A: When it comes to outdoor power equipment, excluding Chinese products, the market size for branded products is around Rs. 3000 crores. Notably, the government’s primary focus is on agriculture, evident through substantial subsidies being provided. Both state and central governments are actively increasing these subsidies, contributing to a growing number of events discussing these matters.
In the past 11 months alone, I’ve participated in 15 exhibitions, overseeing activities in Delhi-NCR and Haryana. Nationally, there are over 100 exhibitions, ranging from small to large, occurring regularly. State-level Kishan Melas and Kishan exhibitions are held every month, indicating a rapidly expanding landscape. If my calculations are correct, within the next five years, the market size is poised to surpass Rs. 20,000 crores.
