Heat Waves, Elections To Boost Sales Of Summer Appliances By 15% To 30% Over the years, with the temperature reaching extreme levels, firms have been prioritizing innovation. Companies such as Usha International, Godrej, Elista, Haier India, anticipate double digit growth this season
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On Sunday, Delhi recorded its highest temperature at 43 degrees Celsius. In the past few days, some cities have been witnessing a scorching summer ranging from 43 to 45 degrees. As the temperature rises, what comes to the rescue are summer appliances such as fans, coolers, air conditioners and refrigerators. The India Meteorological Department (IMD) predicted above-average maximum temperatures from April to June, with heat waves hitting certain regions during this phase. Besides, 2024's election coincides with the summer season – this will positively impact the sales of summer-centric products with increased local activity, public gatherings and people mobilization – which in turn raises the demand for cooling solutions, especially in regions that experience intense summer heat. The need for clean drinking water also escalates during these times, making water purifiers more essential.
"For the peak summer season with elections around the corner, Elista is forecasting a robust increase in sales volume, anticipating a 15-20 per cent rise compared to last year. This growth expectation is grounded in our strong market presence and recent trends indicating heightened consumer interest in our products. As people continue to invest in comfort and convenience for their homes, especially in light of fluctuating temperatures, we remain confident in achieving this projected growth in sales across our key product categories,' said Saket Gaurav, Chairman & Managing Director, Elista.
"While elections across the country may result in additional holidays, such as election breaks, and have some economic impact, we still anticipate high sales this year. Even with the deduction for the election impact, we expect demand for summer-focused products to remain strong and sufficient," said Takeshi Yasuda, director of Indoor Air Quality Business, PEWIN, Panasonic Life Solutions India.
With the growing concerns around global warming, temperatures have been rising each year, leading to longer and more intense summer seasons. Elista has recently forayed into the air conditioner segment with a wide range of options. "We have set a sales target of INR 50 crore in the first year and aim to double this to INR 100 crore in the following year within the AC category. Our extensive lineup of refrigerators is poised to capitalize on the rapid growth in the domestic market. We are optimistic that these product categories will be instrumental in reaching our domestic revenue goal of INR 500 crore by the end of 2025," the MD said.
Over the years, there has been a consistent demand for efficient, smart, convenient, and high-quality appliances. Recognizing the evolving needs of consumers, companies have been prioritizing innovation to make everyday life convenient and comfortable. "At Haier India, we prioritize all markets equally and are witnessing consistent demand across the country, encompassing various product categories including air conditioners, refrigerators, washing machines, and so on. This year, we project a 35 per cent - 40 per cent growth in ACs and 30 per cent in refrigerators," said NS Satish, President, Haier Appliances India. In FY23, Haier India's revenue reached INR 7,000 crore, with cooling products contributing approximately 40 per cent.
"With 90 per cent of our products locally manufactured in Greater Noida and Pune, we're well equipped to meet rising demand. We anticipate double-digit growth in the cooling appliances category this year, reaffirming our commitment to elevating customer experiences," Satish added.
Usha International too is anticipating robust growth this summer, "We are looking for an overall good double digit growth in sales of coolers and fans indicating a busy market environment," said Pradyumna Poddar, President – Fans, Usha International.
This year, premium range will be the focus area for the industry players, "At Godrej we aim to boost our premium segment contribution from 45 per cent to 55 per cent and grow overall by 25-30 per cent on the back of a robust summer product portfolio," said, Kamal Nandi, Business Head and Executive Vice President, Godrej Appliances.
According to a report by Invest India, the White Goods market is estimated to cross $21 billion by 2025 expanding at a CAGR of 11 per cent. Domestic manufacturing contributes nearly $4.6 billion on an average to this industry. Key Government Incentives in the sector include: PLI for White Goods for ACs and LEDs to boost domestic manufacturing. Air Conditioner market in India to increase to $9.8 billion by FY26 from $3.8 billion in FY21 at a CAGR of 20.8 per cent. Similarly, the refrigerator market in India will increase to $6.7 billion by FY26 from $3.8 billion in FY21 at a CAGR of 9.5 per cent.
