Sweltering heatwave spurs air-conditioner, fridge sales
Makers of cooling appliances such as air-conditioners, refrigerators and fans are reporting significant demand, as summer heat grips large parts of the country earlier than normal. Firms said demand for ACs this year could be 20-30% higher than in the summer of 2019, unless another wave of Covid unfolds.
Demand for ACs and refrigerators is led by first-time buyers, shoppers replacing cooling devices, as well as increased construction of homes and offices.
B. Thiagarajan, managing director at AC manufacturer Blue Star Ltd, said early demand trends for the summer are promising. “Going by what is happening in March, we should be able to match our targets, that is, report at least 20-25% growth over 2019,” he said. The company, which draws 60% of sales from the business-to-business segment, said demand from factories, infrastructure projects and data centres was driving growth, followed by offices as well as smaller businesses in tier-II and -III towns.
Gaurav Sah, business head, air conditioners group, Panasonic India, said the company is expecting a 30% jump in AC sales over the summer of 2019. “This year, we are expecting robust sales from all regions, primarily due to the pent-up demand from last year. We are seeing a rise in demand for smart, inverter ACs that offer healthier indoor air quality. We are hoping to see a 30% growth this summer,” Sah said. To be sure, the last two years were dull for makers of ACs as well as some other large appliances on account of store closures and supply constraints. Construction activity was also suspended due to intermittent lockdowns.
Companies are now pinning hopes on what they said could turn out to be one of the strongest seasons for cooling appliances in recent years. India’s official weather department has predicted a heatwave in northwest central and western parts of India. Besides, a waning Covid-19 wave and improved mobility could help shore up demand.
LG India said both its ACs and refrigerators reported strong demand in the first quarter of the current calendar year.