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Indian Industry News: Consumer Durables

Durables majors confident of 30% growth in 2010

Source: The Hindu Business Line, October 07, 2010

The consumer electronics and durables industry is expected to post at least 20-25 per cent growth this calendar year. Industry majors, LG and Samsung, are confident of outperforming the industry with at least 30 per cent growth in 2010 over 2009.

According to Mr Pradeep Kumar, spokesperson of the Consumer electronics and Appliances Manufacturers Association (CEAMA), aided by increasing household income and expanding distribution networks, newer technology and price erosion in certain categories, the durables industry has seen better growth in 2010.

For example, in Q2 (April-June) 2010, 1.32 million air-conditioners were sold against 1.2 million in the comparable previous year period. Refrigerators registered a 30 per cent growth with total sales of 1.7 million units in Q2, 2010 (1.3 million).

In the audio-video segment too, the same kind of growth has been witnessed. LCD TVs, backed by sporting events and festive season demand, gained major sales during the period.

The major players such as Samsung and LG are focusing on structural revamping, launching new technologically superior products and increasing after-sales service network. They are replacing and upgrading their products – particularly air-conditioners, washing machines and refrigerators to drive the market demand in metros and tier II cities, say industry watchers and major retailers.

Says Mr Ajai Bajaj, Business Head (Air-conditioners), LG India, so far this year, LG has introduced 36 new models across split and window air-conditioners in the market.

“We have seen a growth of a little over 30 per cent in the first nine months of this year over that of last year,” he said. LG, which posted a turnover of Rs 13,000 crore in 2009, expects to register 30 per cent growth “comfortably” this year. LG commands 28 per cent share of the country’s air-conditioner market.

According to Mr Rajiv Jain, Business Head (Washing machine and Refrigerator) LG India, the company has completely revamped its entire range of top-end front-loading washing machines with 13 new models during the year.

“Besides, we introduced a range of direct drive models too.”

In the refrigerator segment, LG launched over seven side-by-side models (which are part of the top-end collection).

“We expect these product categories to post at least 35 per cent growth in 2010. In fact, our fully automatic washing machine category has so far registered a growth of 50 per cent,” says Mr Jain.

Samsung too introduced a lot of new models in these categories. It has launched nine new models in its top loading washing machines category with 6.2kg-7.5kg capacity.

“The new product range is differentiated on account of its superior performance and water saving features,” said Mr Ravinder Zutshi, Deputy Managing Director, Samsung India.

The company has also signed up Bollywood actor Priyanka Chopra as its new Brand Ambassador for its Home Appliance products. The company’s turnover crossed $2 billion in 2009. “We hope to post over 35 per cent growth during 2010,” says Mr Zutshi.

Categories: Indian Industry News
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