Industry Profile: Indian appliance and consumer electronics (ACE) market reached Rs 2.05 trillion (US$ 31.48 billion) in 2017. It is expected to increase at a 9 percent CAGR to get Rs 3.15 trillion (US$ 48.37 billion) in 2022. Electronics hardware production in the country reached Rs 3.88 trillion (US$ 60.13 billion) in FY18, growing at a CAGR of 26.7 percent between FY14-18. Demand for electronics hardware in India will reach US$ 400 billion by FY24.
There is a lot of scope for growth from rural markets, with consumption expected to grow in these areas as penetration of brands increases. Overall consumer durable exports reached US$ 0.78 billion in 2017. Consumer electronics exports from India reached US$ 362.12 million in FY18 and US$ 267.15 million between Apr-Nov 2018. Also, demand for durables like refrigerators as well as consumer electronic goods is likely to witness growing demand in the coming years in the rural markets as the government plans to invest significantly in rural electrification. The S&P BSE Consumer Durables Index rose at a 16 percent CAGR between 2010 and 18. The consumer durables sector in India is expected to grow 8.5 percent in 2018-19. The consumer durables index under the Index of Industrial Production (IIP) has risen 8.1 percent between April and September 2018.
The white goods industry in India is highly concentrated. For example, the top five players in washing machines and refrigerators have more than 75 percent market share, while in air conditioners and fans, it is around 55-60 percent. On the other hand, the kitchen appliances segment is fragmented, with the top five players having 30-35 percent market share. Under Budget 2018-19, the government retained its focus on the rural economy by continuing the pro-poor and pro-farmer schemes.
Growing awareness, more accessible access, and changing lifestyles have been the key growth drivers for the consumer market. In addition, the Government of India’s policies and regulatory frameworks, such as relaxation of license rules and approval of 51 percent foreign direct investment (FDI) in multi-brand and 100 percent in single-brand retail, are some of the significant growth drivers for the consumer market.
Company Profile
Shareholding Pattern: BSE Filing
Financials and Ratio: [table id=215 /]
Future Prospects: The company WAS one big player. But now LG and Samsung are two big competitors. Moreover, the consumer electronics segment is growing, and many new products are coming. So yes, there will be space for one company after Videocon shuts down.
