Posted by CEAMA
Consumer Electronics and Appliances Manufacturers Association (CEAMA), the apex industry body for the Appliances and Consumer Electronics (ACE) industry concluded its 40th annual function themed “Champions of Change: Impact of Increased Domestic Manufacturing”.
Anurag Thakur, Hon’ble Minister of State for Finance and Corporate Affairs graced the occasion as the Chief Guest while Ajay Prakash Sawhney, Secretary, MEITY, was the Guest of Honour. Over 300+ decision makers and influencers participated in the annual event. Kamal Nandi, President, CEAMA and Business Head & EVP-Godrej Appliances presided over the function.
CEAMA also unveiled a report in association with Frost & Sullivan titled ‘Impact Analysis of Increased Manufacturing in Select Segments of Appliances and Consumer Electronics Industry’ covering ACs, Audio, Refrigerators, TVs, and Washing Machines. The report highlighted that the temporary sluggishness witnessed because of the introduction of GST and demonetisation has settled. Many factors are driving the demand in the country. India is in the midst of a massive wave of urbanisation. Around 38 percent of the total Indian population will live in urban India by 2025, and cities will account for 70% of India’s GDP in 2030. These urban centres will account for large spending due to their preference and affordability of spending on high-priced products. Low penetration levels of most ACE categories leaves large headroom for the ACE industry to grow. This opportunity is further pronounced in large semi-urban and rural markets in India. The report said that the ACE market is India has witnessed decent growth in the past 5 years. Looking ahead, the market is expected to see acceleration in growth ignited by surging rural consumption, reducing replacement cycles, increasing penetration of retail, a wide choice of brands and products at various price points. The overall market size of the 5 categories covered in the report for the year FY19 is INR 76,400 cr and the market is estimated to grow at CAGR of 11.7 percent till FY25. With the rise in purchase of ACE products and favourable government initiatives like ‘Make in India’ and the National Policy on Electronics, India can transform itself into a global consumer electronics manufacturing hub. The domestic value addition for the ACE products under scope stands at 34 percent in FY19 and is likely to grow to 54 percent by FY25.
Anurag Thakur, Hon’ble Minister of State for Finance and Corporate Affairs, said, “India generates 1.85 million tonnes of e-waste annually; the role of companies does not end when a product is sold. Corporates have a responsibility towards tackling the issue of e-waste which is a global challenge. We heard the demands of the corporate sector and took a historic decision by reducing corporate tax. The media asked if this would increase investments; I want to say that the government has done its part, now its the turn of the corporate sector to respond appropriately. Real estate to automobile to manufacturing; we’ve taken landmark decisions and will continue to support sectors across the spectrum to achieve the target of a USD 5 Trillion economy. Business leaders are free to write to me, meet me at my residence or at my office in North Block. My doors remain open to feedback and ideas on how we can support the Industry and corporate India.”
While expressing his views, Ajay Prakash Sawhney, Secretary, MEITY said, “Indian consumers are becoming more aware and aspirational. They now want to own best quality appliances and electronics. This has given a boost and offers immense growth opportunities to the ACE sector. It can become one of the leading employment generators in the country. The industry has capabilities to become one of the biggest exporters as well. It is imperative that there is an enhanced public-private collaboration to further grow the sector.”
Kamal Nandi – President of CEAMA and Business Head & EVP, Godrej Appliances, said, “As CEAMA completes 40 years, these are exciting as well cautious times for the sector. We as an industry need to work together to achieve growth rate. The size of ACE industry comprising of large and small appliances and consumer electronics is estimated to Rs 130,000 Cr. It contributes significantly to the exchequers of the Union and State Governments. The sector offers immense growth opportunities as household ownership of all ACE categories are well below global averages. The ACE industry remains fairly import-dependent for a number high value, sophisticated products but also for spare parts and components across the board. Scale is a fundamental prerequisite for the ACE manufacturing eco-system to become self-reliant and globally competitive. India has a captive domestic population to leverage scale, provided the right policies are in place.”
“High growth rates can be achieved and sustained only when the private sector’s dynamism and innovative spirit is unleashed. ACE Dialogues was the perfect platform to explore how growth of the appliance and electronics sector can be accelerated and the benefits that can accrue to the sector, and indeed the nation, from sustained growth,” he added.
A CEO panel discussion titled ‘Increase Impact of Manufacturing’ was held to discuss the significance of giving the domestic manufacturing a boost. Ki Wan Kim, MD, LG Electroincs India, Pradeep Bakshi, MD & CEO, Voltas Ltd, Krishan Sachdev, MD, Carrier Media, and Jasbir Singh, Chairman & CEO, Amber Enterprises were part of the panel.
The congregation saw a fireside chat titled ‘Changing the Manufacturing Landscape’ comprising of Ajay Sawhney and Kamal Nandi. It was an engaging session on how ACE sector be a significant contributor to India’s GDP.
Commemorating 40 years of the ACE industry, CEAMA also felicitated its industry members for their contribution to the durable industry in India. It bestowed the ‘Man of Electronics Award’ upon Manish Sharma, President & CEO, Panasonic India & South Asia and the ‘Man of Appliances Award’ to Krishnan Sachdev, MD, Carrier Midea. CEAMA also presented the ‘Lifetime achievement award to Gulu Mirchandanai, Chairman & MD, MIRC Electronics for his significant contributions to the sector.
Concluding the congregation, Rohit Kumar Singh, Secretary General, CEAMA, said, “The ACE sector is on the verge of exponential growth. Platform such as ACE Dialogues play a pivotal role in getting the industry together and highlight upon pressing issues. It is crucial to have an enabling collaboration between government and the private sector. The penetration levels across categories are still very low in India. It is imperative that the sector develops a self-reliant manufacturing eco-system to achieve the scale and become competitive.” TVJ Bureau