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Time of India
3 days ago
- Business
- Time of India
Govt sets a cool exports target for AC makers
Kolkata: The government has asked air-conditioner manufacturers to push exports on a much larger scale because the boost to the industry via the production linked incentive (PLI) scheme for white goods such as AC and LED lights has not reflected in shipments to foreign shores. Minister of commerce and industry Piyush Goyal discussed this in a meeting with senior industry executives earlier this month, people aware of the development said. The government is of the view that the category has huge potential to grow India's electronics export value after smartphones. It wants India to export 15-16 million units in the next four years and compete with China and Thailand which have emerged as big export hubs, industry executives said. At present, India exports around 2 million units. In contrast, China exported 85 million units of ACs in 2024, worth $26 billion, while Thailand exported 19 million units and generated over $7 billion in revenue, as per Chinese AC industry body and media reports. As per commerce ministry data, India exported ACs worth ₹3,683 crore ($435 million) in 2024-25, which grew 32% year-on-year (yoy). In contrast, India's smartphone exports in 2024-25 rose 55% yoy to $24.1 billion. Companies who have applied for AC PLI include LG Electronics , Voltas , Daikin, Blue Star , Amber, Johnson Hitachi, Panasonic , Haier, Midea and Havells . The industry has been asked to prepare a list of support initiatives it might require to start exports other than the existing PLI scheme. "The government wants manufacturers, especially PLI beneficiaries, to export ACs which has not started in a big way as it was difficult to compete with the Chinese in pricing and scale," said Pradeep Bakshi, managing director at Voltas, the Tata-owned AC manufacturer. "But there is a renewed push from the government who wants to know from the manufacturers the disabilities in exports," he said. The government has also asked the industry to prepare a report on the disabilities in AC exports to be submitted in June. "We have been discussing the project with the government," said Jasbir Singh, chief executive officer of Amber Enterprises , India's largest AC contract manufacturer. "After China, Thailand too has become a big exporter of ACs in the last five years," said Singh. When the government announced the PLI scheme for white goods in 2021, it had estimated AC and LED light exports worth ₹64,400 crore by 2026. While some companies are exporting LED lights, exports of ACs are still relatively small with companies like Blue Star, Daikin, Havells and Voltas exporting in small quantities, some to the US. India Cellular and Electronics Association (ICEA) chairman Pankaj Mohindroo said after mobile phones, AC is a category with huge exports potential. "And like mobile phones, PLI has a significant impact on the evolution of the local manufacturing ecosystem," he said. ICEA is setting up an AC export task force with the Refrigeration and Air-conditioning Manufacturers Association to draw a roadmap and monitor its execution.
Time of India
3 days ago
- Business
- Time of India
Govt sets a cool exports target for AC makers
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Kolkata: The government has asked air-conditioner manufacturers to push exports on a much larger scale because the boost to the industry via the production linked incentive (PLI) scheme for white goods such as AC and LED lights has not reflected in shipments to foreign of commerce and industry Piyush Goyal discussed this in a meeting with senior industry executives earlier this month, people aware of the development government is of the view that the category has huge potential to grow India's electronics export value after wants India to export 15-16 million units in the next four years and compete with China and Thailand which have emerged as big export hubs, industry executives said. At present, India exports around 2 million units. In contrast, China exported 85 million units of ACs in 2024, worth $26 billion, while Thailand exported 19 million units and generated over $7 billion in revenue, as per Chinese AC industry body and media per commerce ministry data, India exported ACs worth ₹3,683 crore ($435 million) in 2024-25, which grew 32% year-on-year (yoy). In contrast, India's smartphone exports in 2024-25 rose 55% yoy to $24.1 who have applied for AC PLI include LG Electronics Voltas , Daikin, Blue Star , Amber, Johnson Hitachi, Panasonic , Haier, Midea and Havells The industry has been asked to prepare a list of support initiatives it might require to start exports other than the existing PLI scheme."The government wants manufacturers, especially PLI beneficiaries, to export ACs which has not started in a big way as it was difficult to compete with the Chinese in pricing and scale," said Pradeep Bakshi, managing director at Voltas, the Tata-owned AC manufacturer. "But there is a renewed push from the government who wants to know from the manufacturers the disabilities in exports," he government has also asked the industry to prepare a report on the disabilities in AC exports to be submitted in June."We have been discussing the project with the government," said Jasbir Singh, chief executive officer of Amber Enterprises , India's largest AC contract manufacturer."After China, Thailand too has become a big exporter of ACs in the last five years," said the government announced the PLI scheme for white goods in 2021, it had estimated AC and LED light exports worth ₹64,400 crore by 2026. While some companies are exporting LED lights, exports of ACs are still relatively small with companies like Blue Star, Daikin, Havells and Voltas exporting in small quantities, some to the Cellular and Electronics Association (ICEA) chairman Pankaj Mohindroo said after mobile phones, AC is a category with huge exports potential. "And like mobile phones, PLI has a significant impact on the evolution of the local manufacturing ecosystem," he is setting up an AC export task force with the Refrigeration and Air-conditioning Manufacturers Association to draw a roadmap and monitor its execution.
Economic Times
10-05-2025
- Business
- Economic Times
Border tension eases: Consumer companies see demand recovery and revival in sentiment
Easing tensions between India and Pakistan bring hope for a revival in consumer sentiment and demand after a recent dip. The war-like situation impacted normal life and sales across multiple states, but the ceasefire is expected to improve the situation. Companies anticipate a recovery in the coming weeks, with consumers returning and sales picking up, especially in border states. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads ( Originally published on May 10, 2025 ) With the easing of tension between India and Pakistan, consumer goods companies are hopeful of a revival in consumer sentiments and demand after a sudden dip in recent days, not just in border states but across the country, chief executives said."While demand was adversely impacted in the affected towns, sentiments were down elsewhere too," said Pradeep Bakshi, managing director of Tata-owned appliance maker Voltas . "Now that the war is over, we expect people will come out."The war-like situation in the past 4-5 days impacted normal life in multiple towns in Punjab, Jammu and Kashmir, Rajasthan and Gujarat, including Chandigarh, Mohali, Jalandhar, Amritsar, Srinagar, Jammu, Bhuj, Jodhpur and Rajkot, which were under blackouts and high alert amid missile and drone attacks from across the executives said the border tension was threatening to derail demand, which was showing green shoots of recovery after over ten quarters when high inflation in daily lives and low wage growth impacted consumption, particularly in mass market wage growth remained muted this year, too, inflation has moderated significantly. Buoyed by income-tax relief and predictions of good monsoon rains, companies had forecasted a recovery in the second half of the fiscal. This was getting clouded due rising tensions between India and Pakistan after last month's Pahalgam terror attack."The ceasefire is a big relief for our entire team in the North," said Devaranjan Iyer, chief executive officer of departmental store chain Lifestyle said the business was adversely impacted in the border states as footfalls had crashed and stores, too, were getting shut by 6:30 pm due to blackouts."Sentiments were impacted everywhere as we saw drastic fall in sales and footfalls, even in our Delhi-NCR stores where there was no blackout," Iyer said. "This will now improve, while we expect consumers in the border states will return back in the next 2-3 days after their fear psychosis comes down."Car and two-wheeler manufacturers and dealers, too, welcomed the ceasefire between India and Pakistan. A large automotive dealer in Rajasthan said there were zero walk-ins in Bikaner, Jodhpur, Ganganagar in the last few days even when they were not on the fringes. "We expect business to return from Monday and gradually pick up," he automotive retailer said the business impact was severe in the border districts for the past 7-10 days. "There was an indirect impact in other parts of the country too as customers became cautious. But now with the ceasefire, things should improve and we expect to make up for the lost sales in the next 2-3 weeks with some promotions," he to Voltas' Bakshi, while AC sales had declined 25% year-on-year in April due to less intense summer this year, the drop worsened to 40% YoY so far in May due to the sentiment issues and several North Indian markets almost closed. States like Punjab, Rajasthan and Gujarat are big markets for cooling appliances in other large markets like Delhi-NCR, Mumbai and Kolkata, companies said sales of discretionary products like apparel, cars and electronics had declined 20-50% sequentially this week over the last as multiple cities were on high alert and mock-drills were ceasefire has come as a relief for companies selling essentials like staples, edible oil and packaged food like biscuits who were fearing major disruption in supply chains as the border firings had escalated to civilian areas in major towns on Friday firms were rushing to increase stock levels at distributors and retailers to 9-14 days compared with the usual 4-8 days and offering higher credit support to the trade for that, industry executives said.
Time of India
10-05-2025
- Business
- Time of India
Border tension eases: Consumer companies see demand recovery and revival in sentiment
With the easing of tension between India and Pakistan, consumer goods companies are hopeful of a revival in consumer sentiments and demand after a sudden dip in recent days, not just in border states but across the country, chief executives said. #Operation Sindoor India-Pakistan Clash Live Updates| Pak moving troops to border areas? All that's happening Why India chose to abstain instead of 'No Vote' against IMF billion-dollar funding to Pakistan How Pak's jihadi general Munir became trapped in his own vice "While demand was adversely impacted in the affected towns, sentiments were down elsewhere too," said Pradeep Bakshi, managing director of Tata-owned appliance maker Voltas . "Now that the war is over, we expect people will come out." The war-like situation in the past 4-5 days impacted normal life in multiple towns in Punjab, Jammu and Kashmir, Rajasthan and Gujarat, including Chandigarh, Mohali, Jalandhar, Amritsar, Srinagar, Jammu, Bhuj, Jodhpur and Rajkot, which were under blackouts and high alert amid missile and drone attacks from across the border. Industry executives said the border tension was threatening to derail demand, which was showing green shoots of recovery after over ten quarters when high inflation in daily lives and low wage growth impacted consumption, particularly in mass market segments. While wage growth remained muted this year, too, inflation has moderated significantly. Buoyed by income-tax relief and predictions of good monsoon rains, companies had forecasted a recovery in the second half of the fiscal. This was getting clouded due rising tensions between India and Pakistan after last month's Pahalgam terror attack. "The ceasefire is a big relief for our entire team in the North," said Devaranjan Iyer, chief executive officer of departmental store chain Lifestyle International. He said the business was adversely impacted in the border states as footfalls had crashed and stores, too, were getting shut by 6:30 pm due to blackouts. "Sentiments were impacted everywhere as we saw drastic fall in sales and footfalls, even in our Delhi-NCR stores where there was no blackout," Iyer said. "This will now improve, while we expect consumers in the border states will return back in the next 2-3 days after their fear psychosis comes down." Car and two-wheeler manufacturers and dealers, too, welcomed the ceasefire between India and Pakistan. A large automotive dealer in Rajasthan said there were zero walk-ins in Bikaner, Jodhpur, Ganganagar in the last few days even when they were not on the fringes. "We expect business to return from Monday and gradually pick up," he said. Another automotive retailer said the business impact was severe in the border districts for the past 7-10 days. "There was an indirect impact in other parts of the country too as customers became cautious. But now with the ceasefire, things should improve and we expect to make up for the lost sales in the next 2-3 weeks with some promotions," he said. According to Voltas' Bakshi, while AC sales had declined 25% year-on-year in April due to less intense summer this year, the drop worsened to 40% YoY so far in May due to the sentiment issues and several North Indian markets almost closed. States like Punjab, Rajasthan and Gujarat are big markets for cooling appliances in summer. In other large markets like Delhi-NCR, Mumbai and Kolkata, companies said sales of discretionary products like apparel, cars and electronics had declined 20-50% sequentially this week over the last as multiple cities were on high alert and mock-drills were undertaken. The ceasefire has come as a relief for companies selling essentials like staples, edible oil and packaged food like biscuits who were fearing major disruption in supply chains as the border firings had escalated to civilian areas in major towns on Friday night. These firms were rushing to increase stock levels at distributors and retailers to 9-14 days compared with the usual 4-8 days and offering higher credit support to the trade for that, industry executives said. Economic Times WhatsApp channel )
Time of India
30-04-2025
- Business
- Time of India
Not cool: AC and refrigerator sales witness sharp decline
After a buoyant start in March, fear has gripped summer product companies with sales of air-conditioners and refrigerators slipping sharply in April in some geographies like the South and East pushing down overall growth rates. Beverages makers said sales have been marginally impacted in select markets where April has seen lower temperatures, but added that at a national level, demand is growing in double digits. Sales of air-conditioners fell by over 20 per cent year-on-year nationally in April, while refrigerator demand was down by 10 per cent , as per industry estimates. For beverages, sales were down by 10-15 per cent y-o-y in the East, Northeast and some Southern markets like Karnataka, the executives said. Industry executives said lower number of heatwave days in the peak summer period of April compared to last year, moderate temperatures in South, East and Northeast, and intermittent rains slowed offtake in these markets. "AC sales have been down in most geographies in April including parts of North India which were cooler till about 8-10 days," said Pradeep Bakshi, managing director at Tata-owned Voltas. "Retailers are fully prepared with stock, waiting for peak summer demand to pick up," he said. However, Bakshi, declined to share sales numbers of Voltas due to the silent period before announcement of last quarter results. As a result, most companies are now postponing the planned 3-4 per cent price hike of ACs from May to ensure the sales buoyancy is not impacted. Kamal Nandi, head of appliance business at Godrej Enterprises, said even refrigerator sales were down by about 8-10 per cent in April y-o-y due to poor demand in the South. "For AC, only North is firing right now, which is 40 per cent of the national market. Rest are down, pulling down overall growth rates," he said. While the North is the largest market for most summer products, the contribution of other regions has gone up in the last two years due to prolonged heat waves. Last year, most AC brands were facing a stock out situation by now due to intense demand across the country with sales jumping by a huge 50-55 per cent . This high base effect is also pulling down growth rates this year. Even beverage companies are impacted, despite the price war in the segment driven by Reliance's Campa cola. A senior executive at one of India's largest beverage bottling companies said April has been a disappointment in markets like Karnataka, East and North East because of lower temperatures. This is despite sales being ahead of expectations in February and March, he said. "However, sales in the North have held through this month. With forecasts of a heatwave nationally in May and June, we expect the overall quarter to be much better than last year. We are prepared to meet the expected surge in demand," he said. April-June is the most crucial period for companies selling summer products as this quarter accounts for 40-70 per cent of their annual sales. Sales of AC and refrigerators in the South declined by 40-50 per cent in April over last year, while East and West were down by about 5 per cent . Havells India managing director Anil Rai Gupta told analysts last week that there was slower growth in the summer products like AC and fans due to a delay in the onset of peak summer in North and South. "Hopefully, it should pan out well in the next 75 days of the quarter, but it's still to pan out," he said.
