### **Overview** Eureka Forbes Ltd is India’s leading homegrown health and hygiene technology company, with a legacy of over 40 years. It is widely recognized as the pioneer of the water purifier and direct-to-consumer (D2C) models in India. The company operates across three core product categories: **Water Purification, Cleaning Solutions (Including Robotics), and Air Purification**, serving both B2C and B2B customers. With flagship brands like **Aquaguard**, **Forbes**, and **Euroclean**, it has built strong consumer trust and brand leadership in underpenetrated markets. Eureka Forbes is currently in a high-growth transformational phase, transitioning into a **digital-first D2C health tech leader**, leveraging innovation, omnichannel distribution, and one of India’s most extensive service networks to drive long-term value creation. --- ### **Strategic Transformation (Project Udaan & Beyond)** Eureka Forbes initiated **"Project Udaan"** in FY2022–23 to address past challenges of low innovation, market share erosion, and operational inefficiencies. This strategic overhaul laid the foundation for sustainable, profitable growth through: - Reinvention of the D2C model via digital transformation. - Investment in R&D, innovation, and digital infrastructure. - Strengthening of sales, service, and distribution capabilities. - Focus on customer centricity, agility, collaboration, and accountability. By November 2025, the company has moved beyond the foundational phase and is now in an **accelerated growth phase**, executing a multi-year plan centered on **penetration, premiumization, digitalization, and service excellence**. --- ### **Growth Strategy & Strategic Pillars** The company’s transformation strategy focuses on four key pillars: 1. **Grow the Water Business**: Accelerate penetration through affordability and innovation. 2. **Expand into Convenient Cleaning & Air Purification**: Capitalize on high-growth adjacent categories. 3. **Excel in Service Excellence**: Monetize the massive installed base through recurring service revenue. 4. **Build Digital Capabilities**: Transform into a technology-driven, data-led D2C organization. The long-term vision is to become **India’s preeminent D2C health tech platform**, offering safe water, clean homes, and pure air to every household. --- ### **Innovation & Product Leadership** Innovation is a cornerstone of Eureka Forbes’ strategy. Key recent developments include: #### **Water Purification** - **2-Year Filter Life (Nanopore 2X)**: Breakthrough filter technology that reduces cost of ownership by eliminating annual replacements. **70% of buyers are first-time users**, supporting penetration strategy. - **Aquaguard Ritz Pro X**: India’s first **IoT-enabled smart water purifier** with real-time water quality monitoring, alerts, and remote control. - **Premium Launches**: Models like **Aquaguard SLIMTech**, **Blaze Insta Hot (instant hot water)**, and **Marvel NXT (alkaline mineral)** target replacement and premiumization. - **Affordable Access**: Launch of economy models like **Aquaguard Sure** and **Delight (₹6,499)** to attract entry-level customers. #### **Cleaning Products** - **Robotics as Growth Engine**: **Forbes robotic vacuum cleaners** (e.g., Forbes Smart Clean Auto Bin) have become a major growth driver, especially in pet-owning households. - **Cordless Innovations**: Launch of **ZeroBend Z Series** and **Forbes Buddy Pet Grooming Kit** to address evolving consumer needs. - **Partnership with Dixon Technologies**: Strategic manufacturing alliance to scale up **robotic vacuum cleaner** production under the ‘Make in India’ initiative. #### **Air Purification** - **Surround 360° Range**: Features True HEPA 13 filters and 360° air intake, targeting the **affordable premium segment**. - Category incubation through consumer education and strategic marketing. --- ### **Omnichannel Distribution & Go-to-Market Strategy** Eureka Forbes is the **only omnichannel player** in its categories, with a balanced and diversified channel mix: - **Direct Sales**: Legacy D2C model with personalized home demos (~4,500+ frontline sales force); key for premium and new category launches. - **Retail**: Presence in **21,000+ outlets** across **2,700+ towns**, including modern trade (70+ national & regional partners). - **E-commerce**: Strong presence on major platforms; holds **record-high market share on e-commerce channels**. - **B2B & Institutional**: Serves banks, hospitals, IT parks, government (via GEM), and armed forces. - **Digital-First D2C**: New e-commerce website and mobile app to enhance digital commerce. The company leverages its **direct home access** (14M+ customer database) as a strategic moat, enabling category creation and after-sales engagement. --- ### **Service & Recurring Revenue Model** Service is a key growth and profitability lever: - Contributes **~36% of total revenue** (recurring annuity stream). - Revenue streams: **Annual Maintenance Contracts (AMCs), filter replacements, spare parts**. - **8,000+ certified technicians**, covering **>19,500 pin codes**. - **One of India’s largest service networks**, fostering long-term customer relationships. #### Key Initiatives: - **Tiered AMC Models**: Platinum (premium) to ₹599 (base) to improve affordability. - **Digital Monetization**: 64% of AMCs booked **digitally in FY25** (up from 28% in 2023) via the **Eureka Forbes Service App**. - **Re-engagement Campaigns**: Successfully targeted lapsed customers; **buyback programs** and financial incentives driving upgrades. The company does not expect **2-year filters to cannibalize service revenue**, as innovation drives **category expansion** and higher lifetime value. --- ### **Digital Transformation & Customer Engagement** Digital is central to Eureka Forbes’ transformation: - **Eureka Forbes Service App**: 1M+ active installations; handles 76% of complaints digitally. - **Data & AI-Driven Personalization**: Uses first-party data (14M+ customers) for **behavior-based AMC recommendations**. - **Tech Partnerships**: Collaboration with **Microsoft Dynamics 365** for CRM and operational digitization. - **Customer Experience**: Achieved **highest NPS in FY24**, with 75% digital interactions and resolution of 70%+ complaints within 1 hour. The company is developing smart, connected devices that offer **health and hydration insights**, akin to wearable tech. --- ### **Financial & Operational Highlights (as of Aug–Nov 2025)** - **Revenue Growth**: **High-teens growth** in Products segment; sustained across all categories. - **Margins**: High gross margins due to diversified portfolio and **services (higher margin than products)**. - **ROCE**: **Over 350%**, indicating strong capital efficiency. - **Capex**: ₹50–60 crore annually (up from ₹17–18 crore); focused on **digital, R&D, and manufacturing**. - **R&D Investment**: **Doubled** in recent years; launched **30+ new products and 6 new technologies in FY25**. --- ### **Manufacturing & Supply Chain** - **Two State-of-the-Art Plants**: Dehradun and Bengaluru (ISO certified), with automated assembly lines. - **Backward Integration**: In-house production of **RO membranes** and service parts. - **Partnerships**: Collaboration with **Dixon Technologies** for robotic vacuum cleaner manufacturing. --- ### **Competitive Advantages** 1. **Brand Leadership**: Market leader in water purifiers and vacuum cleaners. 2. **First-Mover Advantage**: Pioneered direct marketing and category creation (since 1982). 3. **Omnichannel & Distribution**: Only company with nationwide presence across all trade formats. 4. **Service Network**: Largest in India—critical for customer retention and revenue. 5. **Innovation Pipeline**: Industry-first launches driven by open innovation (universities, tech partners). 6. **Customer Data**: 14M+ first-party data points—deep insights into behavior and lifecycle. --- ### **Challenges & Mitigation** - **Grey Market Competition**: Addressed through **QR-coded genuine filters**, “Genuine Service” campaign, and wider availability. - **Long Replacement Cycles (6–7 years)**: Accelerated via **premium innovation, value-added features, and buyback programs**. - **Affordability Barriers**: Solved through **multi-tier pricing (₹6,500 to ₹30,000)** and accessible AMCs. --- ### **Leadership & Governance** - **Pratik Rashmikant Pota** – MD & CEO (since Nov 2022), driving transformation with FMCG/Tech/Quick-service restaurant pedigree. - Strengthened leadership team with appointment of **CFO (Gaurav Khandelwal)** and **Chief Product & Technology Officer (Shubham Srivastava)**. - Robust governance, risk management, and lean operating model support scalability. --- ### **ESG & Sustainability** - **Water Saver Technology** in RO purifiers ensures **≥40% water recovery**, exceeding BIS standards. - **Intellimix Technology** in water softeners reduces salt and water waste. - Energy-efficient appliances and sustainable packaging are part of ongoing initiatives. ---