Latest news with #QCO
Economic Times
10 hours ago
- Business
- Economic Times
Commercial freezers are the hottest thing in town this summer
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The demand for commercial refrigeration products such as deep freezer and bottle coolers or visi coolers in India has touched unprecedented levels, far outstripping supplies amid the quick commerce boom and cola war, said industry refrigeration manufacturers such as Blue Star Voltas and Haier said sales have been surging 25-50% year-on-year since January, after initial hiccups in the April-September 2024 period, when India adopted the quality control order (QCO) for products like water coolers which impacted the supply QCO issued by the Bureau of Indian Standards (BIS) mandates companies to source and manufacture products from BIS-certified companies, encouraging local production over exports from countries like China."The cola war by Reliance's Campa, Coca-Cola and PepsiCo has boosted demand for visi coolers, with all our capacities sold out for the next five months and demand much more than we can supply," said Haier India president Satish said overall commercial refrigeration is growing 35% year-on-year, while visi coolers are seeing more than 50% Star, too, has seen a sharp increase in demand for commercial refrigeration products from quick commerce, ice cream and frozen food companies with a strong order book. "The growth potential is very high as India is underpenetrated," said managing director B. Thiagarajan. He said the business has potential to grow at 30%.Reliance Consumer Products started the cola war in the second half of 2024-25 with aggressive pricing of '10 per 200 ml bottle and expanding distribution to kirana stores. The company said on its latest earnings call that Campa had already gained double-digit market share in some markets and had expanded distribution to more than a million retail Quincey, global CEO of The Coca-Cola Co, told analysts in May that about 350,000 outlets were added in India in the March quarter and the company increased cooler placements. The chairman of PepsiCo's top bottler in India, Varun Beverages , Ravi Jaipuria, too, said the increased competition was making the industry put in place more chilling told analysts there were around 12 million fast-moving consumer goods outlets in India, while the company reached only four million. "So there is still so much room for everyone to add new outlets through increased go-to-market and by putting in more chilling equipment," he size of the commercial refrigeration market in India is estimated at around '4,500 crore and the growth rate is faster than for any electronics products such as televisions, smartphones, air-conditioners, refrigerators and country's largest home-grown contract manufacturer, Dixon Tech , recently announced that it would start production of deep freezers and visi Voltas' chief financial officer KV Sridhar told analysts that the order book in the pipeline for commercial refrigeration products reflected huge growth potential with a ramp-up of factories.
Time of India
12 hours ago
- Business
- Time of India
Commercial freezers are the hottest thing in town this summer
The demand for commercial refrigeration products such as deep freezer and bottle coolers or visi coolers in India has touched unprecedented levels, far outstripping supplies amid the quick commerce boom and cola war, said industry executives. Commercial refrigeration manufacturers such as Blue Star , Voltas and Haier said sales have been surging 25-50% year-on-year since January, after initial hiccups in the April-September 2024 period, when India adopted the quality control order (QCO) for products like water coolers which impacted the supply chain. The QCO issued by the Bureau of Indian Standards (BIS) mandates companies to source and manufacture products from BIS-certified companies, encouraging local production over exports from countries like China. "The cola war by Reliance's Campa, Coca-Cola and PepsiCo has boosted demand for visi coolers, with all our capacities sold out for the next five months and demand much more than we can supply," said Haier India president Satish NS. He said overall commercial refrigeration is growing 35% year-on-year, while visi coolers are seeing more than 50% expansion. Blue Star, too, has seen a sharp increase in demand for commercial refrigeration products from quick commerce, ice cream and frozen food companies with a strong order book. "The growth potential is very high as India is underpenetrated," said managing director B. Thiagarajan. He said the business has potential to grow at 30%. Reliance Consumer Products started the cola war in the second half of 2024-25 with aggressive pricing of '10 per 200 ml bottle and expanding distribution to kirana stores. The company said on its latest earnings call that Campa had already gained double-digit market share in some markets and had expanded distribution to more than a million retail stores. James Quincey, global CEO of The Coca-Cola Co, told analysts in May that about 350,000 outlets were added in India in the March quarter and the company increased cooler placements. The chairman of PepsiCo's top bottler in India, Varun Beverages , Ravi Jaipuria, too, said the increased competition was making the industry put in place more chilling equipment. Jaipuria told analysts there were around 12 million fast-moving consumer goods outlets in India, while the company reached only four million. "So there is still so much room for everyone to add new outlets through increased go-to-market and by putting in more chilling equipment," he said. The size of the commercial refrigeration market in India is estimated at around '4,500 crore and the growth rate is faster than for any electronics products such as televisions, smartphones, air-conditioners, refrigerators and laptops. The country's largest home-grown contract manufacturer, Dixon Tech , recently announced that it would start production of deep freezers and visi coolers. Tata-owned Voltas' chief financial officer KV Sridhar told analysts that the order book in the pipeline for commercial refrigeration products reflected huge growth potential with a ramp-up of factories.
Indian Express
a day ago
- Business
- Indian Express
With stiffer tariffs on a neighbouring country, India now more competitive; could boost furniture exports: Swapneel Nagarkar, Business Head and Executive VP at Godrej Interio
In a conversation with The Indian Express, SWAPNEEL NAGARKAR, business head and executive vice president at Godrej Interio, discussed global trade dynamics, India's quality control order (QCO) on furniture products, and trends in domestic demand. Nagarkar, who also chairs the Confederation of Indian Industry (CII) Task Force on Furniture, said India's furniture standards have been framed keeping consumer interest in mind. Edited excerpts: The US is India's largest furniture export market. Given recent tariff-related developments, where do you see things headed in the near future? We're confident the Indian government will resolve tariff issues with the US amicably, so business continuity shouldn't be affected. In fact, with stiffer tariffs on a neighbouring country and some others, India is now more competitive — creating an opportunity to increase exports. Most Indian exports are wooden furniture, especially carved pieces from Rajasthan, which see strong demand abroad. Meanwhile, India's domestic furniture market is vast — estimated at around Rs 2 lakh crore, including both organised and unorganised players. It's also highly fragmented, so as an industry, our current focus is on streamlining and better addressing domestic demand alongside growing exports. As India negotiates trade agreements with Europe and the US, there has been some pushback on certain quality control orders (QCOs), including the one on furniture products. How should we navigate this? When FTAs are discussed, it's important that both countries uphold quality standards. India hadn't effectively modernised furniture-related standards. But, in the last few years, the government has taken a positive step — this process has either been completed or is nearing completion in several categories. Once the QCO is in effect, BIS standards will become applicable. Then, furniture exported to India as well as domestically manufactured furniture will need to comply with these standards. Exporters from other countries can get BIS certification to ensure compliance. As per our information, inspecting authorities have been visiting major foreign suppliers to assess and certify them under BIS norms. When Indian suppliers are exporting to other countries, they have to adhere to foreign standards, because standards are governed by the way furniture is used in those countries. Similarly, today, India has created standards based on our country's requirements and it is for everybody to comply with them. Concerns have been raised in global forums that India's furniture standards may pose limitations on design… Godrej has played an active role in formulating these standards, along with 6-7 other domestic furniture players, including some MSMEs, and international players. I can say with confidence that the standards are not limiting in any way, except one — they require furniture to last at least 4-5 years — a fair and reasonable expectation for protecting the interest of customers. Based on that, tests for durability, load-bearing, and usage cycles have been defined, but there are no constraints on design or other creative aspects for any country. Do you think India's largely informal furniture sector, especially MSMEs, will struggle to become QCO-compliant? What kind of support can industry bodies or the government provide to help them comply? MSMEs shouldn't face major challenges in meeting the new standards. A key focus of the government and CII is ensuring easy, affordable access to testing facilities for all players. The industry, including MSMEs, is working collaboratively with authorities to address issues like lab availability and logistics. Recognising their scale and exposure, MSMEs have also been given a compliance timeline of additional six months. These steps aim to address their concerns so that they properly come onboard. Did the furniture industry witness a consumption slowdown last year? Let me break this into B2B (business-to-business) and B2C (business-to-consumer), as they behaved quite differently. Last year, B2B furniture saw strong tailwinds, driven by healthy space absorption — 7-8 million sq ft more than the previous year. In contrast, B2C faced a slowdown, particularly in the second half, which is the more critical half for business for everybody. This was largely due to challenges with disposable incomes among the middle class. As a result, the overall industry did not experience much growth in the second half. That said, the shift toward organised players continued, and Godrej managed to grow 12-14 per cent last year. Looking ahead, there's positive anticipation. With inflation under control, a stable macro environment, and a good monsoon forecast, demand in the B2C segment is expected to improve. The industry could see 4-5 per cent growth on a large base. What kind of furniture are Indians buying furniture these days? How are they doing it? The Indian furniture market is divided into premium and non-premium segments. The premium segment is fairly insulated from the variability of the economy. Premium buyers are increasingly seeking tech-integrated, lifestyle-supporting furniture — like beds with remote-controlled storage or sofas with charging ports. They also value personalisation, often working with professionals for home interiors. Godrej addresses this through component-based, modular solutions that can be reconfigured later, like its Upmods range. In the economy segment, customers typically buy single functional pieces. To serve them better, especially younger online shoppers, Godrej has strengthened its digital presence. From a historically offline model, it now delivers to 18,000 pin codes through online channels, ensuring wider access across India. Online now accounts for 10 per cent of our B2C sales — it's growing, but 90 per cent remains offline. Given India's diversity, offline will continue to matter, and the path ahead is clearly omnichannel. As a division, we're around Rs 3,800 crore in revenue. Of this, B2B products contribute roughly Rs 1,400 crore, B2C products about Rs 1,200 crore, and the balance comes from B2B projects, including interiors and audiovisual solutions. How are furniture manufacturers responding to growing calls for sustainability, especially around timber sourcing? Sustainability is only going to grow in importance, and we're seeing strong national-level efforts, with active support from CII. Godrej has long championed this cause — 60-65 per cent of our product portfolio is now green certified, and 45 per cent of our division's revenue last year came from such products. That said, awareness is stronger in the B2B segment, where buyers demand sustainability certifications for furniture and interiors. In B2C, awareness is still evolving. While some evolved consumers do look for green credentials, it's not yet widespread. We believe it's our responsibility to raise awareness and ensure that sustainability becomes central to the buying decision, especially as we remain accountable to future generations. Aggam Walia is a Correspondent at The Indian Express, reporting on power, renewables, and mining. His work unpacks intricate ties between corporations, government, and policy, often relying on documents sourced via the RTI Act. Off the beat, he enjoys running through Delhi's parks and forests, walking to places, and cooking pasta. ... Read More
Time of India
3 days ago
- Business
- Time of India
Inter-ministerial group setup to assess Quality Control Orders
New Delhi: The government has setup an Inter Ministerial Group (IMG) to assess the Quality Control Orders (QCO) proposed by various ministries and examine the possibility of graded standards or exempting Indian manufacturers who meet a de minimis standard from the requirement of obtaining BIS licenses or third party certification. Ministries and departments need to obtain the recommendations of the IMG before notifying any QCO. The group comprises senior officials of the ministries of finance, commerce and industry, consumer affairs, and Bureau of Indian Standards (BIS), among others. The group has been formed amid differences of views on the content and need for QCOs and aims to promote a Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dukung Orang Terkasih Menghadapi Limfoma: Mulai Di Sini Limfoma Baca Undo 'Whole of Government' approach, the Cabinet Secretariat said in an office memorandum. In cases of unfair trade practices, the IMG may assess whether the problem is generic and cross-cutting or country specific. Live Events 'Implementation of such QCOs often has consequences for sectors handled by other ministries. There are also instances of differences of views on the content of/need for QCOs,' the Cabinet Secretariat said. As per the memorandum, any proposal for a QCO would have to be referred to the IMG of to assess and evaluate the proposal, apart from the consultation with BIS. The Terms of Reference of the IMG include evaluation of QCOs and making recommendations, examining requests from ministries and departments for reconsideration, review or modification of existing QCOs. 'In cases of unfair trade practices, it may assess whether the problem is generic and cross-cutting or country specific,' it said., adding that the IMG may use quantitative criteria such as a scoring methodology of restrictiveness, and qualitative criteria based on relative merits/demerits. Besides having special regard for the interests of Indian MSMEs , the IMG may explore or examine the possibility of graded standards, specifying different quality levels for the same product, alternate ways of implementing QCOs such as exempting Indian manufacturers who meet a 'de minimis' standard from the requirement of obtaining BIS licenses, self certification and third party certification etc. Further, in case the QCO imposes standards that are not aligned with international standards, there should be a strong justification which should be recorded, keeping in mind the costs which may arise to exporters and others from such differential.
Time of India
3 days ago
- Business
- Time of India
MSMEs demand supportive compliance frameworks as QCO burden mounts
New Delhi: As concerns mount regarding the enforcement of mandatory quality control orders (QCOs), small businesses in the country have asserted that compliance frameworks should be designed to support MSMEs rather than stifle their growth while recognising the importance of standardisation for global competitiveness. The India SME Forum organised a high-level dialogue this week under the theme 'Bharat Quality Mission: Enabling MSME s for Global Competitiveness'. The event brought together MSME stakeholders, industry associations, and policymakers to collectively advocate for reforms in the QCO implementation process. Vinod Kumar , President of the India SME Forum, stressed the need for a more balanced and inclusive regulatory approach. He emphasised that nearly 97 per cent of India's enterprises are micro and small businesses, which are disproportionately affected by the current QCO regime. 'We have reached a point where domestic manufacturers, especially MSMEs, are under intense regulatory scrutiny for components and inputs, while finished goods continue to enter India with minimal checks at ports,' he said, noting that this asymmetry creates a serious disadvantage for local producers. Kumar pointed out that the abrupt QCO imposition on raw materials and components has disrupted supply chains, increased production costs, and reduced access to essential inputs across sectors like electronics, food processing, and textiles. 'Our entrepreneurs want to comply and produce high-quality goods. But without adequate testing infrastructure or access to global-standard labs, compliance becomes both expensive and time-consuming,' he said. In some cases, an MSME in Pune is required to send samples to Bhopal just to test electrical components—such a gap hinders business and growth, he explained. Notably, the Indian government is implementing quality control orders (QCOs) across various industries to enhance product quality and safety. Currently, the government of India does not have a single, unified timeline for enforcing QCOs across all industries. Instead, each QCO is issued by the relevant ministry or regulator for specific products or sectors, and the enforcement date is explicitly stated in each order. For example, the QCO for certain electrical appliances has been extended to March 19, 2026, with further extensions for small and micro enterprises. In the chemicals sector, deadlines have also been adjusted through amendments, sometimes providing up to a six-month extension. Other products, like hinges, have specific implementation dates listed in their respective QCO. ISF President, in his address, also flagged disparities between online and offline sellers, noting that e-commerce sellers often face stricter compliance requirements, while offline sellers can bypass scrutiny. Additionally, widespread lack of awareness and the proliferation of fraudulent certification agents further complicate compliance for honest businesses. 'There are cases where MSMEs have been duped by consultants issuing fake certifications that hold no legal value. A robust mechanism is needed to verify certifications and prevent misuse,' Kumar said. He called for a phased roll-out of QCOs, especially for micro-enterprises and existing inventories, as well as exemptions and financial support for the smallest firms. Aligning Indian standards with globally accepted certifications, he said, would streamline exports and reduce redundant testing. 'Compliance should not be a barrier to growth. If an MSME holds a CE mark or equivalent global certification, that should be sufficient. We shouldn't need duplicative and costly processes to meet India-specific requirements,' he added. Citing the Prime Minister's vision of 'Zero Defect, Zero Effect', Kumar emphasised the need for inclusive and pragmatic policymaking that empowers MSMEs rather than constraining them. 'We need a national quality ecosystem that's collaborative, bringing together policymakers, certification bodies, marketplaces, and MSMEs. Our goal is to build a framework that enables, not penalises,' he said. To that end, the India SME Forum plans to run nationwide outreach programmes and certification camps to help 1.2 to 1.5 million MSMEs obtain quality certifications by the end of the year. Government's perspective Keynote speaker Nidhi Khare, Secretary, Department of Consumer Affairs, emphasised the need for a proper understanding of the intent behind QCOs and urged MSMEs to view them constructively. 'There is a need to correctly interpret the purpose of QCOs. Whatever fears MSMEs have must be addressed. Businesses must adapt logically and progressively, and where the government's support is needed to change processes, that will be provided,' she said. Khare also underlined that India's strict stance against substandard imports is attracting capital, technology, and jobs, making it essential for MSMEs to align with quality norms. To support this transition, she said the government is investing Rs 78 crore through BIS to expand testing infrastructure nationwide. 'QCOs are not just regulatory tools; they are enablers of export growth and manufacturing excellence,' she added. Khare highlighted the importance of roadmaps for each sector covered under QCOs and urged industry players to keep the relevant authorities informed of their implementation challenges. Industry wide concerns Saurabh Arora, President of the state branch of the Indian Pharmaceutical Association, flagged regulatory overlaps affecting the pharmaceutical and cosmetics industries. He noted that while the Drugs and Cosmetics Act already mandates robust standards, particularly through the Indian Pharmacopoeia, recent QCOs have created confusion and imposed dual compliance requirements. 'Ingredients regulated under stricter pharmacopoeial standards are now also subject to BIS QCOs with more lenient norms, creating unnecessary complications,' Arora said. A pharmacopoeia is an official, legally binding book that sets standards for the quality, identity, purity, and strength of medicines, including active pharmaceutical ingredients, excipients, and finished pharmaceutical products. Suggesting a solution, Arora called for clearer exemptions for pharma-grade inputs and the creation of category-specific standards for cosmetics. 'Testing a face serum under lotion standards leads to inaccurate results. The government must develop vertical product standards or ensure appropriate horizontal benchmarks,' he said. He further urged recognition of existing pharma-grade standards under the Drugs and Cosmetics Act to avoid dual compliance and called for greater coordination between BIS and sector regulators. 'Compliance must be meaningful. It should support industry growth while maintaining quality and safety,' he stressed. Jaideep N Malaviya, Founder-Secretary General of the Solar Thermal Federation of India, lauded the QCOs introduced for solar water heating systems on April 14, but flagged major implementation issues. He said regional BIS offices remain unaware of updated product structures and testing guidelines. 'There's a disconnect between policy-level updates and on-ground implementation. Portals reflect outdated information, leading to confusion during testing,' he highlighted. Malaviya urged BIS to adopt a supportive approach during the transition period and avoid penalising companies trying to comply. 'Despite QCOs being in effect, most consumers are unaware of the new standards. This information vacuum is exploited by fly-by-night operators selling substandard products,' he said. One of the key sessions featured Ramaswami Lakshman, Director of Emerging Markets, FBA at Amazon. He said digitisation has the power to level the playing field for MSMEs. We are committed to helping Indian sellers, especially from tier II and III cities—navigate compliance, improve quality, and reach customers domestically and globally. Over 12 million MSMEs have already been digitised through our initiatives,' he said, adding programmes, such as the Bharat Quality Mission, are essential for shaping policy frameworks that unlock the potential of small businesses. The event concluded with the submission of a detailed policy recommendation dossier to the Ministry of Consumer Affairs , Ministry of MSME , Bureau of Indian Standards (BIS), and the Department for Promotion of Industry and Internal Trade (DPIIT). The key proposals included a phased implementation of QCOs, improved access to testing infrastructure, harmonisation with global certification norms and financial and capacity-building support for small businesses.
