Unfazed by tariff threats, Kohler bets big on India’s luxury boom

/ 3 min read
Summary

The company is doubling the size of a part of its manufacturing operations at Jhagadia, a site that already houses multiple factories.

Chris Ball, president of Kohler’s kitchen and bath division
Chris Ball, president of Kohler’s kitchen and bath division

When Kohler India bought a sprawling plot of land in Jhagadia, Gujarat, in 2006, it wasn’t thinking in five-year cycles. The factory that now operates there occupies less than a quarter of the site. The rest, says Chris Ball, president of Kohler’s kitchen and bath division, was left deliberately empty.

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“If there’s any one data point I would share, it’s that 20 years ago, we were building not just for the next 20 years, but the next 40, 60, 100 years,” Ball told Fortune India. “That’s one of the things about Kohler that we really appreciate. When we decide to enter a market, we do it for the long term.”

India, today, is one of Kohler’s top three markets globally. And the company believes it is only getting started.

Ball describes India as one of Kohler’s fastest-growing geographies, supported by a strong macroeconomic backdrop, rising home ownership, and increased investments in hospitality and real estate. “The growth rates we see here are stronger than a lot of other markets,” he said, adding that Kohler’s local team has been growing at roughly twice the market rate.

While growth is strong, global uncertainty looms. Rising geopolitical tensions and the possibility of steep US tariffs—figures as high as 500%—have unsettled global supply chains.

While Ball acknowledges there is impact without getting into specifics, Kohler remains unfazed.

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“We treat it the same way we treat commodity inflation, raw material inflation or supply disruptions,” he said. “If there’s an increase in the cost of doing business, we look at the best way to respond - either invest or drive changes as a result.”

Being privately held helps, he added. “We don’t have to worry about squeezing out the last penny of earnings per share. Our objective is to show up as a great partner and invest for the long term.”

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Manufacturing for India and the world

The company is doubling the size of a part of its manufacturing operations at Jhagadia, a site that already houses multiple factories. Around 70% of Kohler’s India volumes are locally manufactured, while the rest are imported. At the same time, India is also becoming an export hub, with nearly 20% of its production shipped to international markets.

“This site supports India-for-India innovation,” Ball said. “But it’s not just for here. We export as well.”

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India also plays a role beyond physical manufacturing. Kohler has set up a technical centre with engineering teams that develop products for global markets, along with global business services that handle finance and IT processes. “All of those things position India as very important and strategic, not just locally, but on a global basis,” he said.

Headroom for luxury

What makes India particularly interesting for Kohler, Ball argues, is not just growth but taste.

“Consumers here respond more strongly to expressive designs, to colour, to finishes and materiality,” he said. Rose gold finishes, artist-edition style designs, and bold palettes have been outperforming. This preference for expressiveness has shaped Kohler’s India-specific product strategy.

That design-forward appetite is also one reason the company has now brought its ultra-luxury brand, Kallista, more prominently into India. While Kohler has had a presence in the country for two decades, the luxury push is relatively new.

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“When you first launch into a market, it’s really about getting a foothold,” Ball said. “This has been a multi-year journey; building the brand, understanding the consumer, creating the right partnerships. A couple of years ago, the team assessed that the time was right for us to play the role of a leading premium brand and bring in luxury through Kallista.”

Kallista showrooms have opened in Pune and Chennai, with additional experience centres showcasing the range. Unlike mass-market products, Ball insists that luxury cannot be “dropped into” a retail space.

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“This isn’t a product that you just put one or two pieces of in a showroom,” he said. “It has to be part of the experience. It has to be elevated.”

Early reactions, he said, have been marked by “a lot of excitement and a lot of surprise.” 

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India’s luxury consumers, Ball added, are no less sophisticated than their global counterparts. “The level of discernment here is world-class,” he said. “These are well-travelled, globally aware consumers. They understand design. They understand storytelling.”

That is why, he believes, they are not late to the party.

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From leaving land unused for decades to slowly building a luxury presence, the company is betting that patience will pay off.

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