Consumer Durable Firms Stare At Uncertain Future

If 2019 had been the year of hope for makers of consumer electronics and appliances in the country, the current year has so far turned the tide. From rising taxation to disruption in supply and demand, several factors have affected fortunes.

- Arnab Dutta

With the coronavirus (COVID-19) pandemic now spreading its tentacles across the country, manufacturers are staring at an uncertain future.

As people stay away from public places, demand for large appliances like air conditioners (ACs) and refrigerators are set to take a hit in the next few weeks.

Traditionally, sale of ACs and refrigerators begin by February, with the onset of summer in Kerala, followed by Tamil Nadu.

But a lockdown in the badly-hit southern state has severely impacted sales this year.

While over half the AC sales take place between mid-February and July, the late summer has further muted off-take.

Moreover, with all major metros reeling from fear of an outbreak, sales is yet to pick up in top markets like Delhi, Mumbai and Kolkata.

Kanwaljeet Jawa, managing director (MD) of Daikin India, said, while the firm is somewhat immune to supply disruption from China, as it has its manufacturing base in Indonesia. The impact of COVID-19 there could be felt in the near term.