Augmenting Consumer Durables in India

The growth rate across verticals in the Consumer durable space has been strong on the back of rising middle class population and increased spending. The impact of Goods and Services Tax on the consumer durable sector is expected to remain neutral or negative, especially for companies which are tax exempted or fall under concessional tax brackets.

Product New rates


Old rates Growth Rate from FY12- FY17
Stabilizers 18% 18% -4.50%
UPS 18% 18% -6%
Pumps 12% 12% 10.30%
Cables and wires 28% 19% 13.90%
Fans 28% 20/26% 9.80%
Cooktops 28% 19%  
Domestic appliances 28% 26%  
LED lights 12% 15%  
Air coolers 28% 24% 15.60%
Air conditioners 28% 26% 15.90%
washing machines 28% 26% 9.10%
Refrigerators 28% 26% 11.30%
water heaters 28% 26% 9.70%
Solar water heater 5% 0%  

Source: Ministry of Finance

Over FY12-17, ACs, air coolers, lighting, etc., have seen a 15-25% growth; however, lower commodity prices impacted value growth (6-8%) of cables & wires, pumps etc., over the past 2-3 years.

The consumer durable segment organized players are strengthening their hold on the market through mergers and acquisitions, thereby making the unorganized players even weaker in the coming years. The table below reflects the aggressive expansion seen in the organized segment of Consumer Durables.

Company Acquisition/ JV   Year Advantage
Havells Lloyd INR 15 bn acquisition 2017  
V Guard Guts Electro-mech 74% stake 2017 Switchgears
Voltas Arcelik 50:50 JV with 100 mn each 2017  
Symphony IMPCO Mexico   2011  
Bajaj Electricals Morphy Richards Trademark extended till 2022 2017  
Havells Promptec 51% stake 2015 Expertise in solar
Finolex cables J-Power systems corp INR 1 bn   High voltage cables
Finolex cables Corning   2013 Optical fibres
Phillips Maya appliances   2011 South indian market
KEI Brugg Kabel   2016 Technical tie up
Bajaj Electricals Starlight Electricals 47% holding 2017  



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