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.
Some of the key names include: Maruti, M&M, Ashok Leyland, Britannia, Ultratech, JK Cement, Havells, Voltas, Amber, Metro, Trent, LemonTree, Indian Hotels, Niva Bupa, HDFC Life, IGL, Acme Solar, Suzlon, Swiggy, Delhivery, ICICI Bank, HDFC Bank, Bajaj Finance, Shriram Finance," according to a report by Motilal Oswal Financial Services.
The pharmaceutical and the consumer durables sectors, which depend on China for imports, have not been impacted yet due to unrest in China with people protesting against lockdowns. But the lockdown could have an impact on the supply of components used in consumer durables if it continues for the next fortnight. In the pharmaceutical industry, Indian players import 66-70 per cent of their bulk drug requirements from China.
Consumer durable companies in India have begun early-stage talks with US importers at a time when the tariffs levied on Indian products are lower than those on competitors such as China. While the discussions started some time ago, many believe that the Donald Trump administration's tariff measures will help Indian companies expand their presence in the US market.
Container prices have shot up by up to 300 per cent in the past one month owing to geopolitical tensions between Israel and Iran following the former's attack on Hamas, causing shortages and pushing consumer durables companies to increase prices. Companies have planned increases but some are yet to decide on the extent of the increase.
Analysts expect firms to shift focus to online platforms to boost sales in these Covid-19-impacted times.
Pantaloon Retail is eyeing the Rs 30,000 crore (Rs 300 billion) consumer durables retail market, excluding mobile phones and IT products.
While demand for consumer durables has been growing fast, investors need to be selective as stock valuations have risen even faster.
Consumer durable companies are stepping up investments in production and distribution to cash in on the demand the industry is witnessing. According to a recent report by research agency Crisil, the Rs 25,000-crore consumer durable industry is slated to grow at a rate of 17-18 per cent over the next five years, to touch Rs 60,000 crore.
Investors' wealth eroded by Rs 5.98 lakh crore on Thursday, tracking weak trends in equities where the BSE Sensex tumbled 1 per cent. Benchmark indices Sensex and Nifty declined 1 per cent in tandem with weak global market trends amid growing tensions in the Middle East.
From the Sensex pack, Bharti Airtel, Asian Paints, Infosys, Bharat Electronics, Tech Mahindra and Eternal were major laggards. However, Maruti, Tata Steel, Bajaj Finance, Bajaj Finserv, Trent and Tata Consultancy Services were among the gainers.
According to a report by AdEx, a division of television viewership monitoring agency TAM Media, air-conditioners accounted for a cool 14 per cent share of the advertising on TV by consumer durables companies.
From the Sensex firms, Kotak Mahindra Bank, Eternal, Asian Paints, NTPC, Bharat Electronics Ltd, Adani Ports, Infosys and State Bank of India were among the major gainers. However, Titan tumbled over 6 per cent. Trent, Axis Bank, Maruti and Hindustan Unilever were also among the laggards.
India's industrial production growth slowed to a nine-month low of 1.2 per cent in May 2025 due to poor performance of manufacturing, mining and power sectors caused by the early onset of monsoon, according to official data released on mMonday. The factory output, measured in terms of the Index of Industrial Production (IIP), had expanded by 6.3 per cent in May 2024.
An eight to nine per cent depreciation of the rupee against the dollar in the last one month means companies have to pay more for components or products they import.
GST will create a single, unified Indian market
India's industrial production growth slowed to 2.7 per cent in April 2025 due to poor performance of manufacturing, mining and power sectors, according to official data released on Wednesday.
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.
IMD expects day temperatures to remain above-normal in select regions across the country between March and May 2021.
Firms also said the excise duty hike by two per cent will be passed on to consumers and it may hurt sales further.
Maruti, IndusInd Bank, Bajaj Finserv, Eternal, Mahindra & Mahindra, Tata Steel, Kotak Mahindra Bank, Titan, HDFC Bank, and NTPC were among the other major gainers. Bharti Airtel and Sun Pharma were the laggards.
The rupee's slide to a two-year low will impact consumer durables and electronics companies, as the import content in their products tends to be high
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.
A delayed monsoon and soaring temperatures across the country are added near-term positives.
The company's managing director R Subramanian told PTI in Chennai that the stores would hold products like laptops, printers, computers apart from mobile phones.
Consumer durable companies are witnessing a slowdown in sales of finance-linked products after banks and finance companies reduced their lending, fearing a sharp rise in defaults.
Consumer durables firms on Monday hailed Finance Ministry's proposal to reduce customs duty on flat panels to five per cent from 10 per cent, saying that the move will reduce LCD TV prices and boost demand.
While e-commerce operations for these firms are small at the moment, it is slated to grow in the next 3 to 4 years.
Anticipation of weak sales this festive season due to deficient monsoon, especially outside big cities.
Top carmakers, including Maruti Suzuki India, Hyundai and Honda, are expecting a spike in their sales following the implementation of 7th Pay Commission recommendations.
India's industrial production growth remains almost flat at 3 per cent in March sequentially, though, on a year-on-year basis, it slipped from 5.5 per cent, mainly due to poor performance of the manufacturing, mining and power sectors.
From the Sensex pack, Infosys, Tech Mahindra, Nestle India, Tata Consultancy Services, HCL Technologies, Asian Paints, Axis Bank, Zomato, Hindustan Unilever, and Bharti Airtel were among the laggards. On the other hand, IndusInd Bank, Tata Motors, Kotak Mahindra Bank, Bajaj Finance, HDFC Bank, ITC, Sun Pharma, Bajaj Finserv and UltraTech Cement were the gainers.
India's industrial production growth decelerated to a six-month low of 2.9 per cent in February 2025, mainly due to poor performance of the manufacturing, mining and power sectors, according to official data released on Friday. The government also revised upward the industrial growth figure to 5.2 per cent for January 2025 from the provisional estimate of 5 per cent released in March.
November IIP data show a fall of over 20%, led by automobiles, gems & jewellery and home appliances; turnaround seen as unlikely.
Videocon, Philips and Godrej are reworking strategy to grow their small appliance business. Last year, their focus was on high-end products. This shift to the low-end segment, they believe, will help them maintain their sales growth from Tier-II & Tier-III cities, while simultaneously helping them penetrate into rural areas. Home appliances account for over Rs 50 billion of the Rs 320 billion consumer durable business and is growing at a rate of 10-12 per cent.
The index of industrial production data released by the government revealed on Friday that the growth in the Rs 32,000 crore (Rs 320 billion) consumer durables was in the negative -- down 3 per cent as against 9 per cent in October 2007. On the other hand, the durables sector had contributed to the industrial output rebound in the months of July (12.3 per cent ) and September (13.1 per cent).
Even as India is mulling legislation to make energy-efficient air conditioners and refrigerators, consumer durable manufacturers are already thinking beyond that.
India's industrial production growth accelerated to 5 per cent in January 2025, driven by a rebound in manufacturing activity, according to official data released on Wednesday.
All Sensex firms, except Power Grid, ended in the positive territory. Titan, Bajaj Finance, State Bank of India, Larsen & Toubro, Axis Bank, Bajaj Finserv, Asian Paints and Zomato were the biggest gainers.
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