Sri City in Andhra Pradesh is dubbed the "Cooling City" of India, accounting for nearly 40 per cent of the air conditioners (ACs) manufactured in the country. On Tuesday, this industrial hub added one more feather to its cooling credentials. Carrier Air Conditioning and Refrigeration Ltd, the Indian arm of the oldest AC company in the world, Carrier Global, signed a deal to invest around ~1,000 crore for a new manufacturing unit at Sri City.
Consumer durables makers are hopeful that the government's proposal to reduce goods and services tax (GST) on air conditioners and television panels above 32 inches to 18 per cent would help revive the sector.
The company, which claims to be the world's number one air-conditioning firm in terms of revenue, with earnings of 940 billion yen in FY2010-11, said it has identified India as one of its most important strategic markets for the next five years to sustain the growth momentum.
Sales of apparel were a mixed bag this festive season while those of consumer durables saw an uptick with mobiles, laptops, and air conditioners being in demand. In apparel, Tier-2 and -3 markets did better for some brands, because these have been witnessing an uptick for the past 18-20 months compared to metros. "The past two weeks have been good, and we saw a 13 per cent increase in value sales, and volume sales have also been similar," Manish Kapoor, managing director (MD) and chief executive officer (CEO), Pepe Jeans
Capitals Chairman Parth Jindal said the BCCI should look at compensating the franchises.
International brands such as Daikin, Hitachi and Samsung, which were largely present in the premium products range, are getting aggressive on expanding their mid-range portfolios to penetrate into smaller cities and towns. While competition isn't hurting Voltas just yet, which has managed to retain its market share at 24.4 per cent as of September 30 (Q2), the main question is whether the company can defend its market share without compromising on profitability.
As many as 15 companies, including Adani Copper Tubes, LG Electronics and Wipro Enterprises, with committed investment of Rs 1,368 crore, have been selected as beneficiaries under the PLI scheme for the white goods sector, the government said on Tuesday. In March, the commerce and industry ministry had reopened the application window for its Rs 6,238-crore PLI scheme for white goods -- air-conditioners (ACs) and LED lights-- with an aim to accommodate more players as several firms had expressed interest in the initiative. Last year, as many as 46 firms, including Daikin, Panasonic, Syska and Havells, with committed investment of Rs 5,264 crore were selected in the first round the scheme.
While Hindware is expecting sale of its air purifiers to double this year, brands like Xiaomi, Blue Star and Daikin, too, are expecting significant rise in sales.
Durable goods companies and retailers say online sales won't compensate for the fall in offline sales.
Any vegetable, when stuffed in a wheat covering and fried crisp with ghee and served with a dab of white butter, becomes fit for a king's banquet.
Consumer durable firms, including Haier, Whirlpool, Panasonic, Godrej Appliances and Daikin, are increasing prices of their products by up to 5 per cent following the withdrawal of excise duty sops, coupled with high input costs.
Maharashtra, which contributes between 12 and 15 per cent of appliances sales, announced lockdown-like curbs, meaning there will be no business for the second half of the month as well from the state.
In 2020 a round of hikes in customs duty on components like compressors, motors and printed circuit boards aggravated the situation, coronavirus crisis is now leaving manufacturers with no option but to hike prices despite fall in sales.
Some companies argue that the culture of staying, working and learning at home will persist for a while, altering lifestyle habits of consumers.
The industry is expecting double-digit growth on a year-on-year basis, helped by a possible price correction after softening of raw material inputs and factors such as positive sentiments, pent up demand and improving economic conditions. Besides, a shift in consumer behaviour from price consciousness towards technologically advanced premium products with quality, value proposition and safety aspects leading to a rise in demand for home automation products is making the industry upbeat. With the government's production linked incentive (PLI) scheme for white goods, which has witnessed a committed investment of Rs 4,614 crore, in place, many manufacturers are gearing up to make the most out of the opportunity as well as take steps towards reducing their dependency on imports and make products more affordable.
GST will create a single, unified Indian market
An alumnus of St Stephen's College, Delhi, his professional career began in the early 1990s. He completed a Master's degree in international affairs from Columbia University during 1996-98. And an MBA from Northeastern University, Boston.
It is not without reason that Japanese consumer electronics companies such as Sony, Panasonic, Hitachi, Daikin and Sharp are investing significant sums in India.
People flock to electronics shops to buy air conditioners.
Rajasthan has taken the lead on structural reforms which could help India attract business and employ a fast-growing workforce.
Out of favour because of poor form and injury, Zaheer Khan and Yuvraj Singh are hoping for a good showing with Delhi Daredevils this IPL season to return to the Indian team.
We have brought about a slew of reforms that would help improve governance and also facilitate industrial growth, Rajasthan Chief Minister Vasundhara Raje tells Sahil Makkar.
The state is trying hard to improve ease of doing business by several notches.
Have committed themselves to investing Rs 1,85,000 crore since last year.
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