• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Richa Mishra

New Delhi , Dec. 30

THE unexpected has happened in the consumer durables sector this year - the microwave oven segment that was written off by industry pundits has gone up the growth graph, while the upbeat air-conditioner segment has fallen short of the expected target.

The microwaves segment has clocked a growth of 25 per cent in the current calendar year. "This time round the microwaves segment, that earlier had low penetration, and the washing machine category that was otherwise depressed, have shown unexpected growth," a Consumer Electronics & TV Manufacturers Association (CETMA) official told Business Line.

"In fact, companies too are gung-ho about this," industry insiders pointed out. Agreeing with the industry mood, Mr Benoy Roychowdhury, Vice-President (Sales), Whirlpool of India Ltd, said, "One of the reasons could be that the category has seen fair amount of activity with new models being introduced by almost all the players. Besides, it also saw entry of lower-end players. Many local manufacturers are sourcing products from China and selling it in the Indian market at cheaper rates."

Commenting on whether the growth is related to the fact that companies have succeeded in changing consumer mindset about the product, Mr Roychowdhury felt that it was largely socio-economic, due to the disintegration of the joint family system. The major growth driver for the category is of course the wedding season, industry analysts say.

If MWO has experienced growth, air-conditioners that were set to hit an all-time high, experienced a slump during the year falling short of the expected target of 20 per cent plus growth. "The reason for air-conditioners not clocking the expected growth is mainly due to early rains which dampened the demand, coupled with the truckers' strike at the height of summer," industry officials said.

Overall, the year has been good for the home appliances and consumer electronics industry, despite the players experiencing a value erosion of almost 10 per cent across all categories due to severe competition, a CETMA official said.

"The reasons for the positive trend have been due to positive movement in the general economy and a good monsoon. The colour television (CTV) segment, the major contributor in the consumer electronics category, saw a boost during the first quarter of 2003 due to World Cup cricket. In fact, the CTV category is expected to close the year with a growth of 20 per cent plus."

Says Mr R. Zutshi, Director, Samsung India Electronics Ltd (SIEL), "On the pyramid of priorities, we see that CTV is really jumping up, it is becoming much more stronger, thanks to software and exposure that we have had to satellite channels."

Article E-Mail :: Comment :: Syndication

Stories in this Section
MNCs push open doors in alcobev sector

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line