THE CANDY GROUP: AN OVERVIEW
Brugherio (Milan, Italy), February 6, 2007 – Candy Group is a privately-owned (the Fumagalli family) multi-brand group of companies, among the world leaders in the household appliance industry: washing machines, dishwashers, dryers, refrigerators, freezers, cookers and oven, both built-in and free-standing. It has two international brands, Candy and Hoover, and the national ones: Rosières, Iberna, Jinling, Otsein, Süsler, Vyatka, Zerowatt.
In 2006, Group’s manufacturing output reached 6.7 million units (+9.6%) from factories in Italy, France, Spain, Great Britain, Russia, Czech Republic, and China (consolidated for three months only).
Total sales were € 1,054 million (+3.5%) in the sixth year of growth. R&D investment in technologies and products amounted to € 37 million (+16%): they were focused on the new ranges of washing products, and on the upgrading of the whole range of refrigerators to Class A+ of energy-efficiency. The net profit is forecast to be aligned to last years’.
Following the acquisition in Turkey and the opening of the new commercial facility in Argentina, the Group has 38 subsidiaries worldwide, of which two are dedicated to after-sales service, handled through 2,000 centres and over-6,000 specialists.
Accounting also for Jinling in China and Doruk (Süsler) in Turkey, the personnel count reaches today 7,059, of whom 5,255 (74%) outside Italy.
Candy is an international brand positioned in the median band segment of the large appliances market, the most important one, where constant innovation is a must. Innovative products are the hallmark of the Group to meet the demands of a constantly changing market and to comply with energy-efficiency requirements.
Hoover is positioned in the medium-high market segment, thanks to advanced and trend-setting design, technology, and features. It is the European (and Italian) leader in floor-care.
CANDY
HIGHLIGHTS OF A COMPANY AND FAMILY HISTORY
Brugherio (Milan, Italy), February 6, 2007 - Back in 1945, the Eden Fumagalli Mechanical Workshop in Monza (a town north of Milan), manufacturers of precision machine instruments, designed the Model 50, the first all-Italian washing machine, which was launched officially at the Milan Trade Fair in 1946. In that same year, the Candy company was established out of the initial family business. The monthly output was 30 washing machines.
The adventure into household appliances began when Enzo, one of the three Fumagalli brothers, returned home from the United States, where he was a POW, with the idea of a washing machine. His brother Niso, who had started the company with their father Eden, proposed to switch the focus on household appliances. Peppino, the younger brother, set up the administrative and managerial structure of a company that was destined to grow.
Right from the start, Candy washing machines were conceived for the needs of the average Italian family. They later became the protagonist of the development of Italian appliances expanding soon to the markets of the whole of Europe.
In 1950, Candy moved into a new factory in Monza and launched the Bi-Matic, the first Italian semi-automatic washing machine. It was a great success, which opened the international markets: Candy was the first Italian appliance company to go abroad.
In the Sixties, the Automatic washing machine was launched: the first fully automatic one, designed and made in Italy. It had dampers, a thermostat, 550 rpm spin speed, and 10 programs.
In 1960, Candy moved to Brugherio, midway between Monza and Milano, where the new HQs and a large industrial site were completed, including the R&D labs. The company was upsizing: from the original 100 employees, it topped 1,200. The output reached the order of magnitude of hundreds of thousands.
In 1966, Stipomatic was launched: an automatic dishwasher with two compartments; at the same time, the Superautomatic washing machine was launched. These two innovative products paved the way to the expansion of appliances into Italian families.
This was the time when design began to play a strategic role in the development of the Group. Candy appliances were designed by key names such as Piero Geranzani, Joe Colombo, Marco Zanuso, Mario Bellini, and Giorgetto Giugiaro.
The Genoa University, in 1968, awarded Niso Fumagalli the h.c. degree in engineering, acknowledging his pivotal innovations in the washing machine and the many patents he held. The year before, Enzo Fumagalli passed away: Candy, despite the loss of one of its driving forces, continued to grow under the guidance of his brothers Peppino and Niso. The latter suddenly passed away in 1990.
Peppino Fumagalli was awarded the title of Cavaliere del Lavoro by the President of the Italian Republic in 1973, and CBE (Commander of the British Empire) in 1998. He has been Honorary Chairman, Candy Group, since 1966.
The growth strategy to face international competition and enter new markets has been built on innovation and diversification of the product range. Acquisitions of brands and manufacturing facilities added up to this effort: La Sovrana, cookers (1970); Kelvinator Italia (1971) and Kelvinator UK (1980), refrigerators; Zerowatt, washing machines and dryers (1985); Gasfire, built-in cooking appliances (1985); Rosières, a leading French brand in cooking and built-in (1987); Mayc-Otsein, Spain, top loader specialist (1992); Iberna, an Italian leading brand in fridges and freezers (1993).
1995, the year of the 50-th anniversary since the presentation of the first Candy washing machine, saw the acquisition of Hoover European Appliances company, today the European (and Italian) leader in floor-care. The offer widens to large appliances, whose competitive positioning is at the top of the median band segment of the market.
Sixty years after the first washing machine, Candy Group acquired (2005) an established Russian brand in washing machine, Vyatka, and its manufacturing site Vesta in Kirov. In mid-2006, the Jinling brand was acquired in China, together with its industrial facilities, sales network, international operations. Early 2007 saw the acquisition of Doruk in Turkey, a well-known national manufacturer of cookers, ovens, and hobs with the Süsler brand, based in Eskişehir (about midway between Istanbul and Ankara) in a 46,000 sq m site. The company was founded 1947. Today, it employs about 650 people; the 2006 manufacturing output amounted to 535,000 units, of which 335,000 cookers, hobs, and ovens.
The brand strategy is now based on two international brands, Hoover and Candy, and seven national ones: Iberna, Jinling, Otsein, Rosières, Süsler, Vyatka, Zerowatt.
Industrial sites are located in China, Czech Republic, France, Italy, Russia, Spain, Turkey, and the United Kingdom. In 2006, Candy Group recorded +3.5% in total sales to € 1,054 million, and a 9.6% growth in manufacturing output to 6.7 million appliances.
CANDY GROUP: THE ACQUISITIONS
Brugherio (Milano, Italy), February 6 , 2007 - In 1970, Candy Group reached a major milestone by completing its range of white goods through the acquisition of La Sovrana, based in Parma: cookers and refrigerators were added to the washing machine and dishwasher ranges.
In 1971, Candy acquired Kelvinator Italia and its two factories for refrigerators. Candy also closed an agreement with Kelvinator America to produce and market household appliances worldwide with this brand name.
In 1980, Candy acquired Kelvinator UK, marking the beginning of its international production structure. In 1985, the Group acquired Zerowatt, producer of top-loading washing machines and dryers. This was followed by Gasfire, an Italian prestige name in built-in cooking appliances. In 1987, came Rosières, a prestigious French brand, well known for its top-of-the-range built-in cookers.
In 1992, Candy acquired another well-respected brand, Mayc-Otsein of Spain, an European leader in top-loading washing machines. The following year saw the addition of Iberna in Italy, a specialist in the cooling segment.
Hoover European Appliances Group was acquired by Candy Group in 1995: Hoover is today the European (and Italian) market leader in floor-care products, i.e., vacuum cleaners, carpet cleaners and electric sweepers. The Hoover range of large household appliances is constantly improved to the highest standards of ergonomics, technology, design, and performances.
In 2005, the Group acquired the Vesta manufacturing facility in Kirov (Russia) and its Vyatka brand. The plant has been updated to ramp up to a yearly output of 250,000 washing machinesl based on state-of-the-art Candy platforms. The whole range of Candy and Hoover appliances is now on sale in Russia, alongside Vyatka.
Mid-2006 and the acquisition of Jinling Electrics came in Jiangmen, Guandong Region, People’s Republic of China. The company is a specialist of washing machines on typical Asian-type platforms (i.e., vertical axle). It ranks third in the Chinese market of washing machines and it exports 44% of its 930,000 units (2006 output) to other Far East countries, Australia, Centre and South America, Middle East and North Africa.
Early 2007, the acquisition of Doruk Ltd.-ŞTI with the brand Süsler in Turkey was announced. The company, established 1947, is based in Eskişehir, about midway between Istanbul and Ankara. It manufactures cookers, hobs, ovens, and also electric water-heaters, natural gas wall boilers, and “traditional-look” products like iron stoves: it is the world leader in the latter market segment. 2006 output was 535,000 units, of which 335,000 cookers, ovens, and hobs.
CANDY GROUP: INDUSTRIAL FACILITIES
Brugherio (Milano, Italy), February 6, 2007 - The manufacturing structure of Candy Group is based on a network of plants in different countries: Italy, France, Russia, China, Spain, Czech Republic, United Kingdom, and Turkey. The basic strategy is to achieve a balanced presence between market shares and local production.
Washing machines and washer-dryers are produced in Brugherio (Milan, Italy): today, three different sizes (33, 40 and 60 cm) of front-loading washing machines are the output of the plant, including the Candy GrandÓ and Hoover Vision HD hi-loading capacity ranges.
The plant in Santa Maria Hoè (Lecco, Italy) produces dishwashers and the supercompact Aquamatic washing machine. Ovens and hobs are manufactured at the Erba (Como, Italy) facility.
In Bourges, France, Rosières manufactures built-in appliances and free-standing cookers. Established 1837, it is one of the oldest European companies in the industry, firmly positioned at the top of the elite market.
The factory in Bergara, Northern Spain, specialises in top-loading washing machines. In Merthyr, Wales (UK), dryers and washer-dryers are made. The complete range of Group’s refrigerators and freezers is manufactured in Podbořany, Czech Republic, while the Kirov plant’s output are the Candy, Hoover, Vyatka front-loading washing machines for the Russian market. Jinling washing machines are manufactured in Jiangmen, Guandong Region, People’s Republic of China, to which Candy washing machines have been added for the Chinese market.
Süsler, based in Eskişehir (Turkey) has been acquired early 2007. It manufactures ands sells in Turkey and abroad, cookers, hovens, hobs, and “traditional” products like cast-iron stoves, water-heaters, natural gas wall boilers.
HOOVER: AN HISTORY DATING BACK TO A CENTURY AGO
Brugherio (Milano, Italy), February 6, 2007 - Hoover was established 1908 in the Ohio state, USA. In 1919, the company expanded its operations into Europe with the registration of Hoover Ltd. in London.
In 1932, the first European factory was opened in Perivale, Middlesex, where carpet cleaners were produced. This marked the start of an enduring success story, in which Hoover became the leader in floorcare. By 1937, Hoover Ltd was listed on the London Stock Exchange, while the US parent company held the controlling stake.
In 1946, a new factory in Cambuslang, Scotland, began the production of vacuum cleaners. In 1948, a factory for washing machines was opened in Merthyr Tydfil, Wales.
The Hoover Group continued its expansion through the 1980s, a decade in which it restructured both its industrial and corporate structure. The Perivale factory was sold and the production of carpet cleaners transferred to Cambuslang. In 1983, Hoover USA bought the remaining minority shares of Hoover UK and became the sole owner of the European subsidiary.
1985 marked the beginning of a sequence of changes in ownership: Chicago Pacific Corp. bought international activities, then (1989) Maytag Corp. purchased Chicago Pacific and became the owner of Hoover. In 1993, the Hoover Trading Company and Hoover U.K. merged to become the Hoover European Appliances Group.
1995 brought another change of ownership: Candy bought the Hoover European Appliances Group in its entirety with the exclusive rights on the brand for the whole of Europe (including all territories of the former-Soviet Union), North Africa and part of the Middle East.
Today, Hoover is the market leader in floor-care in Europe and Italy. It also became one of two Group’s international brands, together with Candy, in the large appliance market. The product range is clearly positioned in the medium-high market segment, offering hi-performance, top quality, and innovative appliances.