Consumer appliances makers gear up for festival season with increased production

Consumer appliance makers are gearing up for the festival season with ramped up production, expanded product portfolios and a strong focus on the premium segment. Players said they are expecting to witness strong consumption momentum in the second half of the year while retailers have begun early channel stocking.

The key demand season kickstarts from Onam in Kerala and lasts till Diwali, which is in November this year. This period contributes significantly to annual sales of the consumer durables and electronics sector.

Earlier this year, issues arising out of the West Asia conflict led to production and supply chain-related challenges for the industry. This included commercial LPG shortage and labour shortages, which have normalised now. Players have also had to take price hikes to mitigate the impact of higher raw material costs and rupee depreciation especially in air-conditioners.

Sanjay Chitkara, Director and Co-Chief Sales and Marketing Officer, LG Electronics India said, “We operate on a three-month production planning cycle and we have already done festival preparation and ordering. We are also encouraging our retail partners for pre-festival buying and are seeing early channel stocking. During the festival season, washing machines, refrigerators, large-sized TVs, among others dominate the sales. We are well-positioned to capture festive season demand with an expanded large-screen and premium portfolio which includes new launches across QNED and OLED line-ups and French-Door refrigerators.”

Retailers too are betting big on growing demand for premium products. Premchand Devarakonda, CFO, Electronics Mart India Ltd said, “Categories such as televisions, air-conditioners, refrigerators, smartphones and washing machines are likely to see steady demand, with AI-enabled features, smart connectivity and energy-efficient solutions emerging as important purchase considerations. We expect the upcoming festive season to bring healthy momentum to the consumer durables market, with EMIL expecting double-digit growth during the festive period.”

Kamal Nandi, Business Head and EVP at Appliances Business of Godrej Enterprises Group said, “From July onwards some of the supply chain and production-related issues arising out of the West Asia crisis, have eased out and we have increased our production across our plants. Full preparations are underway as we expect the festival season to perform well. The festival demand is generally driven by the premium segment, which is expected to be strong.” Players said while inflationary pressures remain a key monitorable, it is not expected to have an impact on the premium segment.

Pankaj Rana, CEO, Hisense India said, “With our Sri City facility now operational and our portfolio expanding beyond televisions into categories such as air conditioners and washing machines, we are entering the festive season with a broader portfolio, stronger retail presence and greater supply readiness. We are optimistic about the season and expect strong double-digit growth.”

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