A1 India Industrial Company, Palwal

Manjeet Singh Bhadana

Brands Retailed: LG, Haier, Samsung, and Panasonic

2016-17 has witnessed a huge transformation in air conditioners. Earlier, energy-efficient models were seeing sluggish growth, but now there is a spike in the sales of inverter air conditioners. Air conditioners with built-in air purifiers are gaining popularity among consumers owing to increasing temperature and air pollution. Moreover, the cost of purchasing an air-purifier-based air conditioner is comparatively lower than the average price of purchasing the air conditioner and the air purifier separately.

Business House Electronics Pvt. Ltd., Jaipur

Bhagwan Gupta 

Brands Retailed: Haier, Blue Star, and Panasonic

Consumers now prefer inverter ACs over 5-star-rated ACs owing to various advanced features, such as power-saving, effective cooling, and air purification, among others. The market for inverter ACs will continue to grow. There is a rapid shift from window ACs to split ACs in households. Affordability is no more a major constraint as most of the retailers are offering EMI schemes to consumers. However, window ACs will not vanish from the market completely as they are still preferred by low-income households.

Kallarackal Electronics, Kerala

Ramesh Joseph

Brands Retailed: Videocon, LG, Samsung, and Onida

Buzzword for 2017 in the market is smart. Smart TVs with large screen sizes have witnessed the highest growth in overall sales. 3-D TVs were popular till last financial year; however the demand is diminishing eventually. 4K technology is expected to grow tremendously, but only if prices are brought down further. 2017 is proving to be a good year in terms of technology as manufacturers are leaving no stone unturned in introducing new models in the Indian market, and bringing the country at par with the global markets.

Darshan Electronics, Pune

Vivek Marathe

Brands Retailed: Videocon, LG, Hitachi, Samsung, Whirlpool, and Godrej

The frost-free refrigerator is gaining massive popularity over traditional refrigerator models in the Indian market. There is a trend for double-door refrigerator, which starts from 200 liter capacity to maximum 500 liter. The demand for refrigerator in India is mainly from urban areas. Energy star rating, warranty, quality, space, price, cleaning ease functionality, and styling are currently major influential factors while purchasing a refrigerator. Improving living standards, rapid urbanization, increasing number of nuclear families, and large untapped market are major growth drivers for the refrigerator industry. The major players are cutting their prices and launching new models with advanced features and new designs. However, GST rollout may lead to a hike in prices which may affect the market to some extent.

Electronics World, Patna

Sanjeev Khurana

Brands Retailed: LG and Godrej

Changing purchasing behavior and lifestyle of consumers is leading to growing market of fully automatic washing machines. High price of premium models is no more affecting sales considerably in Tier-I market; however, semi-automatic washing machines still dominate Tier-II and Tier-III markets. Since consumers have started laying more emphasis on high-quality products, we believe that premium segment will gain momentum in Tier-II and Tier-III markets as well.

National Electronics, Jaipur

Vijay Mohan Rathi

Brands Retailed: Racold, Ferroli, Warmex, and Vitek

The scenario in the Indian market is changing. Now consumers are moving toward technology advancements from affordability owing to easy finance options offered by retailers. Features that were considered luxury have become necessity, and influence the purchase of consumers. Smart water heater is one such example, as features like Wi-Fi connectivity, energy-efficiency, touch-screen, and safety lock, among others are now prerequisites. Water heater market will continue to grow as they are rapidly penetrating the untapped market.

 

Shiddas, Mangalore

Santosh Kamath

Brands Retailed: Videocon, Samsung, and Panasonic

Annual Turnover: Rs.18 crore

Refrigerators experienced substantial growth in 2016-17. Major contribution came from the replacement market as many consumers are upgrading their existing models to premium ones. Frost-free is the most popular segment. Market of energy-efficient models is on the rise owing to surge in the number of consumers getting aware about energy consumption in basic models. Manufacturers are leaving no stone unturned to innovate and provide value-for-money technologically advanced models, such as bottom-mounted and French-door with value-added features. We are expecting an even better 2017-18.

Navrang Electronics, Saharanpur

Suresh Kalra

Brands Retailed: Videocon and LG

Annual Turnover: Rs.5 crore

Refrigerator Sales (2016-17): 800 units

We achieved satisfactory growth in the last financial year. It could have been better had demonetization not impacted sales in the fourth quarter. Since the market is still in recovery mode, it will take a little longer to regain growth. We are optimistic for the second half of the current year. Frost-free segment contributed the most owing to upgradation by consumers from direct-cool. Premium models are still lagging behind in our region because of their higher price. Energy-efficient models may gain popularity if consumers are made aware of their advantages, and affordability is increased. Direct-cool category still holds considerable share in our sales. E-retail and modern retail do not pose any challenge for us. We are expecting 15 percent growth in 2017-18.

Shikha Electronics, Jaipur

Mukesh Agarwal

Brands Retailed: LG, Samsung, and Godrej

Annual Turnover: Rs.22 crore

Refrigerator Sales (2016-17): 1100 units

Early and extended summers proved profitable for refrigerator sales in the last fiscal year, having received impetus from an increasing working population, especially in urban households. Rural market, with government’s rapid electrification plans, holds great potential for increasing penetration of refrigerators. The replacement market is seeing a surge as many consumers seek to upgrade to high-end models. Demand for inverter refrigerators is also gradually emerging. Thus there is expected to be considerable market share of this segment in coming years. In refrigerator category, there is no impact of e-commerce. However, modern retail is affecting our profit margins.

Rishabh Electronics, Hyderabad

Deepak Jain

Brands Retailed: LG, Hitachi, Lloyd, Mitsubishi, and IFB

Annual Turnover: Rs.20 crore

Early onset of summer, rising disposable income, and changing lifestyle are leading to a lucrative refrigerator market. We experienced 20 percent growth in 2016-17 despite demonetization, owing to easy finance options which are further generating an increased number of enquiries on the counter for inverter models. Side-by-side and frost-free held the share of 30 and 70 percent in the sales, respectively. By the end of 2017-18, there should be a growth of 30–35 percent.

Srinivasa Electronics, Ongole

Partha Saridhi

Brands Retailed: Videocon, Kelvinator, LG, Samsung, Whirlpool, and Bosch

We witnessed growth of 15 percent in 2016-17 and expect at least 20 percent in 2017-18. Contribution of high-end refrigerators has been very low in the region, whereas direct-cool and frost-free held the share of 40 percent and approximately 55 percent, respectively. Rising concern for electricity consumption will result into greater demand for energy-efficient refrigerators. Overall, under-penetrated refrigerator market will play a major role in elevating demand in coming years.

Rajat Electronics, Noida

Rajat Midha

Brands Retailed: Haier, Hitachi, LG, Samsung, and Panasonic

Refrigerator sales in FY16 were unsatisfactory, primarily in the aftermath of demonetization. It markedly impacted our business. Frost-free, direct-cool, and side-by-side segments contributed 40, 50, and 10 percent respectively to total sales. High pricing of premium models has also emerged as a challenge, which affects revenue-based growth. Moreover, we are losing our consumer-base to modern retail, which provides ample options under one roof to consumers. We are trying to regain our foothold in the market by offering better discounts and a wider range than other retailers. We are hoping for at least 15 percent growth in the next financial year.

Ace Technomark and Electronics, Noida

Sanjay Jetly

Brands Retailed: Videocon, LG, Hitachi, Mitsubishi Electric, Daikin, Haier, Whirlpool, Voltas, Blue Star, O’ General, Godrej, and Panasonic

AC Sales (2015-16): 11,000 units

Annual Turnover: Rs.56 crore

Projected Growth (2017-18): 15 percent

Demand for air conditioners is on the increase in Noida given the rapid growth in infrastructure and real estate sector. The hight pollution levels, shortened the life of an AC, thereby pushing replacement demand. The market has been on a growth trajectory in 2016. Split 1.5 ton ACs have contributed the most to sales. 3-star ACs are traditionally preferred by consumers. However, in 2016 there was a shift toward 5-star rating and inverter ACs. Consumer receptivity toward inverter ACs has improved, but in order to make it a volume-driven market, manufacturers will need to drop the prices. Long power cuts in the region are dampening our sales; the government must take firm steps for providing electricity 24×7. 

Khosla Electronics Pvt. Ltd., Kolkata

Manish Khosla

Brands Retailed: Videocon, LG, Hitachi, Mitsubishi Electric, Daikin, Haier, Whirlpool, Voltas, Blue Star, O’ General, Godrej, and Panasonic

AC Sales (2015-16): 40,000 units

Annual Turnover: Rs.500 crore

Projected Growth (2017-18): 20 percent

The air conditioner market has been going good for us. We have been successful in achieving our targets, and have not felt any negative impact from demonetization. Now that ACs have transitioned to being a necessity item, we have seen a growing market for the last few years. Inverter ACs with 1.5 ton capacity have been gaining popularity in our region as compared to other segments. Availability of easy finance options has pushed the market growth considerably. Make in India has not yet largely impacted the industry, and we are expecting the prices to come down further.

Kundan Agencies Private Limited, Chennai

SeemaMC Dhoka

BrandsBrands Retailed: Videocon, Daikin, LG, and Samsung

The sales of air conditioners recorded an overall growth of 20 percent in 2016. Inverter ACs are gaining momentum in our region. More and more enquiries for the segment are coming forth. Window ACs are gradually disappearing, the market has recorded an almost 90 percent share of split ACs. AC is not a luxury item anymore as most of the households own at least one AC.

Shreeram Agencies, Panipat

Sandeep Gupta

Brands Retailed: Voltas

AC Sales (2015-16): 1800 units

Annual Turnover: Rs.4.5 crore

Projected Growth (2017-18): 20 percent

We experienced stagnant growth in 2016. 1.5 ton-capacity ACs contribute to 60 percent of our  sales. In previous years, the ratio of window to split ACs was 60:40, which now has changed to 50:50. Consumers are enquiring about inverter ACs, but there have been minimal sales yet, owing to low affordability. We expect to see a hike in overall sales in April, May, and June, in anticipation of the  GST rollout in July. We are anticipating a 2–3 percent price increase after the implementation of GST. Demonetization negatively impacted sales in November and December; however, companies compensated us by providing us the same price purchase in January and February.

Bhardwaj Gallery, Ghaziabad

Manish Bhardwaj

Brands Retailed: LG

AC Sales (2015-16): 425 units

Annual Turnover: Rs.36 crore

Projected Growth (2017-18): 33 percent

Air conditioner sales have been satisfactory in 2016. 1.5 ton-capacity has been the preference of consumers. We are expecting an increase in inverter AC sales from March onwards as there have been ample enquiries from consumers. Currently, split ACs have been contributing the most. Window ACs are now fading away from consumer’s choice as well as companies’ product offerings, mainly because of unavailability of inverter technology in the segment. Now that manufacturers are revising prices, we are aiming to shift the consumers asking for window ACs toward split ACs.

Navrang Electronics, Saharanpur

Suresh Kalra

Brands Retailed: LG, Panasonic, and O’ General

We met the targets we had set for ourselves in 2016 and expect to see a 10–15 percent growth in 2017. Inverter ACs are not doing very good in our region as the pricing and annual maintenance are on the  higher side. Split ACs are preferred over window ACs. Currently, traditional retailing and online business and modern retailing outlets are at neck-to-neck competition.

 

Sri Mallik Arjuna Electronics, Siddipet

Ravinder Konda

Brands Retailed: LG, Hitachi, Whirlpool, and Voltas

Annual Turnover: Rs.1.5 crore

Projected Growth (2017-18): 15 percent

The market for CE, HA, and AC is expected to be on a growth trajectory. Key drivers are rising disposable income and various initiatives taken by the government. We expect at least 15 percent growth in 2017-18 fiscal year. Almost 85 percent consumers in our region are willing to pay more for technologically advanced products. With the onslaught of an early summer, we are expecting tremendous demand for air conditioners this year.  An early summer E-commerce and modern retailers will continue to have a stronghold in the business. Our startegy through various discount offers and easy finance options will be to dilute their presence in our region. 

Maharana Sales, Ahmedabad

Anil Shah

Brands Retailed: LG

Annual Turnover: Rs.1.15 crore

Projected Turnover (2017-18): Rs.1.5 crore

Our sales in terms of revenue in 2016-17 for CE, HA, and AC was the same as in 2015-16; thus the market was not profitable for us. However, the ongoing fiscal year is indicating better trends. Demonetization had affected the business, but eventually the demand increased significantly in our region. Televisions with screen size 32-inch and above, 1.5-ton inverter ACs, 190-liter direct cool, and 260–285-liter double-door refrigerators are witnessing higher demand. Average buying capacity of consumers has increased to a unit price of Rs.25,000 from Rs.10,000. Competition from modern retail is affecting the business, but we are managing to meet our targets every year. Online retail is not a threat for us as our customer-base prefers touch-and-feel demonstration for all products.

Bhuvan Marketing, Ambala City

Bimal Kumar

Brands Retailed: Videocon, Intex, Voltas, and IFB

With rising temperatures, ACs and refrigerators are expected to do well this season. High-end products are gaining popularity. Enquiries for premium products are increasing, especially for inverter ACs. We hope to do better in terms of volume and are looking forward to a 30–40 percent growth. We are facing fierce competition from online retail. Stable pricing across the country, which shall perhaps come with GST,  is much needed in the industry. Huge investments and various schemes by the government should  propel growth.

Wheels and Wares, Shillong

Subodh Saraogi

Brands Retailed: LG and Samsung

Annual Turnover: Rs.6 crore

Projected Growth (2017-18): 15 percent

2016 has been a great year for the TV industry. It has witnessed  significant growth owing to the improved purchasing power of consumers. Awareness has increased as consumers are now well informed and research intensively before purchasing. High-end products like 4K and OLED TVs will take time to influence a larger ratio of sales. But they do have a bright future. Smart TVs have contributed the most to our overall sales. We expect better growth prospects this financial year. In our region, we face no competition from e-commerce.

Bajaj Electronics, Hyderabad

Ravinder Singh

Brands Retailed: LG, Samsung, Sony, Videocon, Hitachi, V-Guard, O’General, IFB, Whirlpool, Godrej, and Bosch

The AC industry in southern India is thriving. There has been a general rise in temperature levels and summers are now longer than a few years back. Inverter ACs are experiencing robust growth from our retail counter. LED TVs of 40-inch and above have contributed considerably to overall sales. Surprisingly, 4K TVs are gaining popularity among consumers, while OLED TVs are still struggling in the market. Consumers are shifting  to  high-end products in the region. Competition from other retail stores and e-retail is tough; however, it is not affecting our profit margins. We are hoping for at least 20 percent growth this year. 

Ibrahim Brothers, Indore

Kasim Ali

Brands Retailed: Videocon, LG, and Panasonic

Annual Turnover: Rs.13.5 crore

Projected Growth (2017-18): 15 percent

The HA market has seen a growth of 20 percent last year and replacement is one of the key drivers. Penetration of refrigerators and washing machines in Tier-II and Tier-III markets has gradually increased. The fully automatic washing machine is making a place for itself in our region. Growth may slow down for LED TVs as there is a drastic shift from television to mobile phones for entertainment. Weather conditions are likely to propel demand for ACs. We hope to do better in terms of volumes and are looking forward to 15–20 percent growth this year. HA and CE are facing fierce competition from online retail; however, the overall industry is expected to record a growth of 25–30 percent.

Perfection, Bhopal

Seema Maheshwari

Brands Retailed: Videocon, LG, and Samsung

Annual Turnover: Rs.12 crore

Projected Turnover (2016-17): Rs.15 crore

We witnessed tremendous growth in TV sales, especially at the time of festive season. Most of our consumers had moved to online stores for attractive and affordable deals. However, delivery of defective products and poor after-sales service led to recovery of the consumer base. Demonetization did not affect the business remarkably owing to availability of easy finance options. At present, replacement market has major contribution in our sales of FPD TVs. Smart and FHD TVs are replacing basic models with small screen size.

Jain Enterprises, Bolangir

Lalit Kumar Jain

Brands Retailed: Samsung

Our TV sales have been mostly stagnant this year; in fact, festive season sales did not go as per our expectations. Modern retail stores are hampering our business notably, mainly because of the availability of finance options for almost every product. Premium models like 4K and OLED TV are lagging behind in sales. However, smart TV has gained traction among consumers.

Sreenath Electronics, Indore

Kanhaiya Lal

Brands Retailed: Videocon and Sansui

Annual Turnover: Rs.1.5 crore

Projected Turnover (2016-17): 5 percent growth

We experienced a downfall in TV sales this year, owing to a rise in shift of consumers toward online stores like Flipkart and Amazon. Various discount offers on e-commerce are hampering our sales significantly. High-end FPD TV technologies like 4K are gaining popularity owing to fall in price and increasing disposable income of consumers. Bigger-screen-size FPD TVs have become the trend in every household. No consumer wants to purchase a TV below 32-inch, which has become the norm. We are looking forward to GST, which may save our business from the unhealthy competition from e-commerce.

Srinivasa Electronics, Bagalkot

Krishnmurti Illur

Brands Retailed: Haier, Samsung, and Sony

Annual Turnover: Rs.3.5 crore

Projected Turnover (2016-17): Rs.4 crore

The Budget will provide significant impetus to the consumer electronics industry with allocation of Rs.745 crore toward M-SIPS and EDF. We are hopeful that India will definitely emerge as a manufacturing hub in the world. With the reduction of income tax rate, we expect that the coming financial year will be better in terms of sales as disposable income of consumers will increase. Consequently, demand of premium models is also expected to rise as consumers will be willing to pay more for advanced features, further supported by easy finance options.

Cherupushpam Agency, Kottayam

Tom K Jose

Brands Retailed: Intex, LG, Samsung, Lloyd Electric, Micromax, and Sony

Annual Turnover: Rs.8 crore

Projected Turnover (2016-17): Rs.10 crore

It is overall a satisfactory budget. Incentives for electronics manufacturing will give a boost to the consumer electronics industry. However, home appliances will remain unaffected. Since the business is dependent on financial capabilities of consumers, curtailed rate of income tax for individuals between Rs.2.5 lakh and Rs.5 lakh annual income will directly impact our business. Thus, we are anticipating higher sales. The scenario will change considerably once GST is rolled out in July, 2017.

Arora Electricals, Ahmedabad

Ravindra Arora

Brands Retailed: Bajaj Electricals, Crompton, and Usha

Annual Turnover (2015-16): Rs.1.5 crore

There was nothing in the Union Budget 2017 for home appliances industry. Hence, our business will remain unaffected. The only hope this year is that purchasing power of consumers will increase owing to income tax relaxation; thus we are expecting an increase in footfall in our store. Flat panel television industry will have the most impact from this Budget. The Budget failed to meet our expectations.