Normal winter raises trade hope

A normal winter, backed by early snowfall in the Himalayan belt, is bringing cheer to winter product manufacturers and traders in the country. Companies dealing in water and room heaters and woollen garments are witnessing double-digit growth in sales this season, after two years of lull.

The estimate is that the ~1,400-crore organised water heaters market will grow at least 15 per cent this season. Growth was flat last year, as the temperature remained above normal and demonetisation of high value currency notes in early November crippled trade channels. The year before, 2015, the market had grown by a low single digit, thanks to a mild winter.

According to Harminder Singh, president, appliances at Usha International, the company has so far registered growth in sales in excess of 20 per cent over last year. “The season for water heaters begins in August and it is over by the third week of December. The industry is growing at a higher rate than last year.” The five million units a year market is equally divided between the organised and unorganised sectors.

Saurabh Goel, executive vice-president at Havells India, says it looks like their water heaters would grow by 20-25 per cent in 2017. “To stay ahead of the competition, we began in-house production a few years ago and are now offering pre-installation and branded fittings.”

Saurabh Baishakhia, senior vice-president at Orient Electronics, said appliances were seeing almost 50 per cent growth. “The room heater category has been suffering for two years but is expected to witness some growth this season,” he said.