Consumer Durables in India – II


India’s CSD is vast—Lighting, ACs, Air Coolers, Electricals, Cables and a range of household appliances & conveniences. The market is already fast growing at 11% CAGR over FY12-17.

India CSD stocks have done well—19% CAGR over 5 years versus 13% CAGR for BSE Sensex (49% outperformance)—and they are expensive in conventional valuation terms (30x average PE).


In 2015-16, estimated total market size of ACs in India was INR170bn. Of this, the market for central ACs, including central plants, packaged/ducted systems, VRF systems and other ancillary equipment was INR60bn, while that for room ACs was pegged at INR110bn. India’s room AC market has grown from 2mn units in FY09 to 4mn units in FY16, 10% CAGR.

Japanese players like Hitachi and Daikin are posting CAGR of 20% due to preference for premium and energy efficient inverter ACs.

Havells Lloyd is the most dominant player in the low-cost segment (5-10% cheaper than Voltas). Blue Star has become aggressive with launch of new models, which has enhanced its market share to 11%.


Market share of key players
Voltas 21%
LG 19%
Daikin 12%
Havells Lloyd 11%
Hitachi 11%
Blue Star 11%
others 15%


Invertor ACs:

Inverter ACs gaining traction with growing acceptance of inverter ACs (10-15% more expensive than 5-star fixed speed ACs).

% of sales from Inverter
Hitachi 40%
Daikin 30%
BlueStar 15%
Voltas 6%




Coolers have been the highest growth segment at 20% (past 3 years) in the organised category with a total market of INR 35 bn. In FY17, the air cooler industry was pegged at INR35bn, of which unorganised segment accounted for 70% of sales by volume and 65% by value.

Market share of key players
Symphony 50%
Kenstar 16%
Voltas 7%
Orient Electric 5%
Bajaj electric 15%
Others 7%


There has been a sharp shift over FY12 to FY14 from 10 to 20% in market share of organised players, which jumped further to 30% by FY16-17


Refrigerators have the highest penetration levels in the consumer durable segment/white goods at 27%

The domestic refrigerator industry is estimated to have clocked 9% CAGR during 2006-16 to ~10.7mn units. Direct cool (DC) and frost free (FF) segments grew 5-7% during the period.

Market share of key players
LG 26%
Samsung 19%
Videocon 18%
Godrej 15%
Whirlpool 13%
Others 9%


Refrigerator sales through online retailers are low at 1% of total sales. Sales through large organised retailers account for 40-45% of total sales, while mom-and-pop (typically familyowned, not franchised and open for business from a single location) stores account for 55- 58% sales.


While the lighting industry has posted strong 16% CAGR over past 5 years, in FY17 it grew at 15% led by shift to LEDs. The LED segment is expected to gain further traction following the government’s decision to switch to LEDs for all street lamps and public space lighting and impetus due to EESL programme.

Market share of key players
Phillips India 23%
Syska 10%
Havells 8%
Bajaj electricals 8%
Surya roshni 6%
HPL electric 5%
Crompton Consumer 7%
Others 33%



The cables & wires industry has posted 14% CAGR over the past 5 years to INR390bn.

Market share of key players
Polycab 17%
Anchor 11%
Finolex 7%
Havells 7%
KEI Industries 6%
V guard 2%
Others 50%




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