With temperatures beginning to rise across the country, consumer durable players are gearing up for a strong summer demand for cooling product categories of air-conditioners and refrigerators. Ice-cream companies too are anticipating strong double-digit growth both out-of-home as well as in-store.
Taking learnings from an unprecedented demand last summer season, AC makers began cranking up production of these products right after Diwali and have been stocking up on critical components and anticipate consumers to begin purchasing earlier than usal from March onwards.
Despite a high base last year due to unprecedented demand, players expect AC segment to grow at 20- 30 per cent while refrigerator demand to be up by 15 per cent.
Seasonal sales
Kamal Nandi, Business Head and EVP, Godrej Appliances said, “We expect summer demand for cooling categories to be high this year too as we can see temperatures rising across the country. To avoid challenges related to timely installations and deliveries during peak summer season, we expect consumers to prepone their purchases and expect to see a spike in demand in March and April in a big way.” Nandi said that Godrej Appliances is targeting 50-70 per cent growth in terms of value and 25-30 per cent growth in refrigerators.
NS Satish, President, Haier Appliances India, said the durables industry expects that the recent income tax benefits announced in the recent budget will drive consumption for cooling products categories during summer season. “Early trends look good and demand in Southern and Eastern markets have begun seeing an uptick already. Our product innovations, new launches, strong distribution, production planning and marketing investments on sporting events such as Champions Trophy and IPL will help us drive growth this summer season. We are looking at 35-40 per cent growth of our compressor based products. We are already seeing good growth trends in February,” he added.
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Players said they have been stocking up on critical components in advance to keep up with the spike in summer demand at a time when the BIS is in the process of recertifying factories of component makers such as compressors in international locations
B Thiagarajan, Managing Director, Blue Star Ltd said, “Last year, the AC category witnessed unprecedented demand and hence the industry is sitting on a high base. If the summers go as predicted, then the industry is expected to garner 20 per cent growth over the previous summer season. Most players have been stocking up on key components so no production challenges are expected for the upcoming summer season.”
Summer treats
The early onset of summer is also expected to lead demand for ice-creams, curd and beverages to go up sharply. Players said they have been ramping up capacities and distribution including on quick commerce and geared up with new product launches. Manish Bandlish, MD, Mother Dairy, said, ”Summer is the most anticipated season that we look forward to for many of our categories. With the advantage of an early onset and rising day temperatures, this season looks promising. We expect the demand for categories like ice creams, curd, dairy beverages etc. to go up by over 30 per cent. With enhanced capacities, cold chain infrastructure and early asset mobilisation, we are well poised to handle such an upsurge. To keep up the excitement this season, our consumers will experience an innovative line-up of offerings in the fermented, indulgence and convenience spaces, comprising more than 25 new products.”
Mohit Khattar, CEO, Graviss Foods Pvt Ltd, which runs Baskin Robbins outlets, said that the brand expects to garner double-digit growth. “With summer arriving earlier than usual, we anticipate strong demand growth for indulgent treats, both in-store and in channels such as quick commerce,” he added.