Iconic consumer electronics brand Onida aims for a five-fold revenue increase over five years by shifting from contract manufacturing to a brand-focused model. The company reported a ₹74 crore net loss in fiscal 2026 on revenues of ₹670 crore and is currently executing a management overhaul to regain market share.
Onida Electronics, a brand that defined the Indian television market in the 1980s and 1990s, has announced a major strategic shift to reclaim its position in the competitive consumer electronics landscape. The company plans to grow its business five-fold over the next five years, moving away from its previous reliance on contract manufacturing to focus primarily on its own branded products.
Strategic Shift and Retail Expansion
To support this growth, Onida is aggressively building its physical retail presence. The company has committed to opening 100 exclusive brand outlets across India within the next three years. This initiative is designed to improve consumer interaction and increase brand visibility against established global and domestic rivals. Beyond its traditional strongholds of air conditioners, televisions, and washing machines, Onida is also planning to enter new categories, including refrigerators and smart home appliances.
Financial Performance and Funding
For the fiscal year ending in 2026, the company reported a net loss of ₹74 crore on revenues of approximately ₹670 crore. The financial pressure reflects the challenges of competing in a market dominated by large international players. To fund its transformation and expansion efforts, the company has secured capital from Authum Investment and Infrastructure. Management has indicated that additional funding may be sought if the planned entry into new product segments requires further capital spending.
Management Changes and Brand Refresh
Onida has recently overhauled its leadership team, with Gunjan Srivastava, who joined as CEO in February, taking on the role of Managing Director. The company has also appointed a new Chief Financial Officer and a Chief People Officer to lead the restructuring. As part of its marketing strategy, Onida intends to modernize its brand image for younger consumers while retaining its classic 'devil' mascot. The upcoming festive season will serve as a key period for this new marketing approach, which will rely heavily on digital media and social influencers.
Industry Challenges and Execution Risks
The consumer electronics sector in India is currently facing significant pressure due to rising input costs, particularly for semiconductor components and memory chips. These supply chain issues have forced many manufacturers to increase prices, which has cooled overall consumer demand. For investors, the primary monitorables include the company's ability to successfully scale its retail footprint, manage the financial impact of its expansion, and protect profit margins against volatile raw material prices. The success of this turnaround will depend on whether the company can effectively balance its marketing investment with the need to return to profitability.