White goods manufacturers posted record sales of cooling equipment such as air conditioners and refrigerators between March and May as they benefited from a severe heat wave in many parts of the country and slumped demand for the past two seasons, when sales There was a huge drop in for restrictions related to the pandemic.
Companies such as Panasonic, Whirlpool, Voltas and LG reported strong double-digit growth in air conditioner sales in 2019 compared to levels seen before the pandemic, officials said.
This year, the air conditioner industry experienced one of the biggest ups and downs it has seen in years, driven by higher temperatures, a drop in demand from the past two washed-out summers, and consumers seeking products with more features and latest technologies. Was looking to upgrade. Vishal Bhola, Managing Director, Whirlpool of India Limited said.
Bhola said Whirlpool’s air conditioner sales grew in high double digits between March and May as compared to the same period of 2019.
He said the company’s refrigerator sales also grew in double digits during this period. “In refrigerators, we have gained market share as compared to pre-Covid summers and are gaining share sequentially over the last few quarters,” he said.
Company officials said the slowdown in demand after two summers following intense Covid waves and tighter restrictions also contributed to the increase in sales. During the pandemic, sluggish demand as well as disruption in manufacturing had hit companies. However, companies have been bullish this summer despite higher raw material prices, prompting them to raise prices.
The local unit of Japanese consumer electronics maker Panasonic India posted “record demand” for air conditioners. “At Panasonic, our air conditioners have registered a growth of 68% for March to May as compared to the same period in 2019. Also, the demand for inverter and connected ACs continues and here, Panasonic has a market share of 6% in 2021 close,” said Fumiyasu Fujimori, Managing Director, Panasonic Marketing India.
Fujimori said the company had planned in advance for a strong summer season. “However, the demand for premium air conditioners has been high, and we have increased our production in April. With the onset of monsoon in some states, the demand seems to be stabilizing now.”
LG’s local branch in South Korea said it saw “strong growth” in sales of its air conditioners and refrigerators this summer. “We have seen decent growth in the pre-pandemic period, and have surpassed the pre-pandemic levels. We are looking forward to close the season this year,” said Deepak Bansal, Vice President, Home Appliances, LG Electronics India. double-digit growth in the second half of the year.”
Sales of cooling products from Tata Group’s Voltas grew three times in April with room ACs registering the highest growth. “Summer helped us achieve unprecedented growth compared to the previous three years. Our room AC business has grown by 170 per cent in volume terms. Pradeep Bakshi, Managing Director and Chief Executive, Voltas Limited said, Cooling products business has grown by over 160% and Home Appliances has grown by 75%.
However, companies are cautious about inflation. In a March report, analysts at ICICI Securities said most electronics companies have hiked product prices by around 15% in the last 12-15 months.