Spanish firm INALSA is setting up a new manufacturing unit in Sonipat with a ₹50 crore investment. The facility aims to boost local production of premium appliances, targeting a revenue increase from ₹230 crore to ₹500 crore by FY29. This move marks the company’s return to in-house manufacturing to better navigate incoming quality control regulations.
INALSA Home Appliances, the Indian subsidiary of the Spain-based Taurus Group, has announced a ₹50 crore capital investment to establish a new manufacturing plant in Sonipat, Haryana. This development marks a significant shift for the company, as it moves back to in-house production after more than two decades of relying primarily on outsourced manufacturing.
Scaling Production and Revenue Goals
The new five-storey facility is designed with a phased production roadmap. It will begin with an initial capacity of 100,000 appliances per month, with plans to eventually scale up to 400,000 units monthly, or approximately five million units annually. The company intends to transition from simple assembly to more complex processes, such as in-house motor manufacturing and injection moulding, over the next three years. This capacity expansion is central to the firm's goal of reaching ₹500 crore in annual revenue by the 2029 fiscal year, compared to its current revenue of approximately ₹230 crore.
Strategic Focus on Premium Appliances
The investment strategy prioritizes high-value products to move away from the intense price competition often seen in basic kitchen appliances. Currently, air fryers are the company’s primary revenue driver, accounting for 30% of sales. The product portfolio also includes stand mixers, hand blenders, food processors, and vacuum cleaners. To further its premium positioning, the company is planning the local introduction of 'MyCook,' an app-connected cooking robot, which is expected to launch within the next six months.
Navigating Regulatory and Market Shifts
This expansion follows a trend of increasing localization in the Indian consumer durables sector. The move coincides with the implementation of stricter Bureau of Indian Standards quality-control norms for imported components, which are scheduled to take effect in October 2026. By increasing domestic manufacturing, INALSA aims to gain better control over its supply chain, product quality, and technical know-how, reducing the risks associated with importing components under tightening regulatory conditions.
Currently, 60% of the company's revenue is generated through online channels. To support its growth targets, INALSA plans to strengthen its physical retail presence, particularly in South India, while continuing to leverage its e-commerce network. Investors may track the company’s ability to successfully scale manufacturing volumes, manage the execution of its multi-channel distribution strategy, and maintain profit margins while navigating the competitive landscape of the premium kitchen appliance market.