The famous Preethi brand of small appliances is going to get a new high profile owner. The Dutch consumer durable giant Philips has agreed to acquire the assets of this homegrown brand.This move came as a huge surprise and I never thought that Preethi could be a candidate for acquisition. Preethi brand was founded in 1978 and the owners - M/s Maya Appliances has carefully nurtured this brand.
The brand developed its mixer range quite beautifully and through careful product development and meaningful advertisement campaigns. The brand had constantly adopted the positioning based on durability and reliability which was communicated through the tagline " I Guarantee ".
Now once the acquisition is over, it will be interesting to see how the brand will fit into Philips' overall branding strategy.There are chances that Philips will use Preethi as a sub-brand with endorsement from Philips.
It is also interesting to see how the brand image of Preethi will change with the endorsement from Philips. Suddenly the homegrown image of Preethi will vanish.
Through this acquisition, Philips will gain huge market in the mixer grinder segment. Philips will also get instant sales and service network of Preethi ( even though Philips has its own robust distribution network).More than that, Philips will get that vital market knowledge that Preethi had acquired over these years.According to news reports, after the acquisition, the company will be run by existing promoters. It will be interesting to see how this acquisition will turn up for this nice brand.