Financial Special

Financial Special

The Top TV, HA and AC makers in India analysed by financials including Income Statements, Balance Sheets and Financial Ratios for 2017-18.

The electronics industry is the world’s largest and fastest growing industry and is increasingly finding applications in all sectors of the economy. World over, electronics is recognized as a meta-resource.

The government attaches high priority to electronics hardware manufacturing and it is one of the important pillars of both Make in India and Digital India programes of Government of lndia.

The global electronics production is estimated to be USD 1,740 billion in 2017, growing at a CAGR of 5 percent. Indian electronics hardware production has increased from Rs 1,90,366 crore in 2014-15 to an estimated Rs 3,87,525 crore (~USD 59 billion) in 2017-18, registering a Compound Annual Growth Rate (CAGR) of 26.7 percent, as against a growth rate of 5.5 percent in 2014-15. India’s share in the global hardware electronics production is a mere 3.4 percent. The share of domestic electronics production in India’s GDP is 2.3 percent. The import of electronic goods was of the order of USD 53 billion in 2017-18, with the demand for electronics hardware expected to rise rapidly to about USD 400 billion by 2023-24,

The National Policy on Electronics 2012 provided the roadmap for the development of Electronics System Design and Manufacturing (ESDM) sector in the country. The government now seeks to build on that foundation to propel the growth of ESDM industry in the country. Ministry of Electronics and Information Technology (MeitY) formulated a draft National Policy on Electronics 2018 (NPE 2018) promoting domestic electronics hardware manufacturing, with high value addition is of critical importance. It is expected to receive Cabinet approval shortly.

The TV, HA, and AC Industry

In 2017-18, the combined turnover of the Top 15 companies is estimated at Rs 133,297.19 crores. It would not be inaccurate to assume that this constitutes 95 percent of the revenue of the industry.

Detailed analysis is presented of each company. The financial performance has been complied from either their respective annual reports or balance sheets submitted to the government.

Exchange conversions have been calculated on the exchange rate prevalent on the last day of the accounting year, for instance for conversion of the balance sheet in Korean won to INR, for the year January – December 2017,  the exchange rate on Dec 31, 2017 has been considered.

Performance has been rated on income statement, profit and loss statement, and balance sheet from the company’s annual report.

In case of multi-product companies, for instance air conditioners, to avoid error, revenue from room and split units has not been isolated from that of central air conditioning systems. The company’s total revenue has been taken into consideration for that is the essence of the company.


Samsung India Electronics Private Limited. SIEL saw sales of Rs 62,248.93 crore (KRW 10,393,877 million) in 2017, as against Rs 49,766.78 crore (KRW 8,827,028 million) in 2016, a 27.73 percent increase. Net income saw a decline of 5.74 percent, from Rs 4246.34 crore (KRW 753,164 million) in 2016 to Rs 3919.25 crore (KRW 654,408 million) in 2017.

Samsung India promoted two of its India executives – Asim Warsi and Dipesh Shah – to global roles. Warsi, head of Samsung India’s mobile division, was promoted to Global Vice President, while Dipesh Shah (Samsung R&D Institute Managing Director) was named Global Senior Vice President.

The company commenced the expansion of its factory in Noida. Samsung India announced an investment of Rs 4915 crore to expand the plant which manufactures smartphones, refrigerators, and TVs. The company means to double its production after expanding its factory in Noida by 35 acres as part of the Make in India, Make for India initiative. Additionally, Samsung India also launched service vans to provide timely customer support across rural India, expanding its network to over 3000 service points.

In 2017, Samsung Electronics unveiled QLED televisions. The company positioned its new QLED televisions as lifestyle products. The company also included internet-enabled sensors across its products. The sensors are an integral part of every device — from TVs to washing machines. FlexWash washing machine comes with a combination of washer-dryer machine and with internet-enabled capabilities that can be controlled through smartphones. This is a part of Samsung’s larger vision of moving beyond products but to have a technology backbone that can give them data-powered insights into all their products. Samsung India has taken this approach to its other products — starting off with high-end television sets. The company is looking at taking the IoT through initiatives such as its TV remote, which supports a range of devices and offers voice control capabilities across more smart TV features.

In the refrigerators segment, the company introduced a range of solar powered smart convertible frost-free and direct cool refrigerators, targeting the semi-urban and rural customers. Refrigerators in both the categories can run on solar power as well as on home inverter. Besides, Samsung also strengthened its AC portfolio by adding S-Inverter, a range of air conditioners with digital inverter technology.

Samsung Electronics Co., Ltd. The company reported full-year revenue of Rs 152,6000 crore (KRW 239.58 trillion) and full-year operating profit of Rs 342,000 crore (KRW 53.65 trillion). The display panel business, which manufactures OLED and LCD screens, saw increased shipments of OLED panels for premium smartphones, but profitability for LCD panels decreased due to weak seasonality, which dampened sales and ASP. The consumer electronics division, comprising the TV and home appliances businesses, posted gains. TV earnings increased quarter-on-quarter on increased sales of premium products including ultra large-size and QLED models. For home appliances, demand for high-end washing machines and ovens in North America and Europe was responsible for stronger revenue on a year-on-year basis.


LG Electronics India Limited. LGEIL saw sales of Rs 15,832.87 crore (KRW 2,643,659 million) in 2017, as against Rs 13,693.24 crore (KRW 2,428,741 million) in 2016, an 18.12 percent increase. The profit for the year saw a remarkable growth of 13.37 percent from Rs 1257.12 crore (KRW 222,972 million) in 2016 to Rs 1395.08 crore (KRW 232,941 million) in 2017.

LGEIL launched an OLED TV range with nine models. The company also launched 52 new models to enhance its position in the overall flat panel TV segment. The company also forayed into air purifiers with a range of products developed on its global concept for India. In 2017, LGEIL shifted the entire line of split air conditioners to inverter air conditioners. The company stopped manufacturing regular split ACs. The company started manufacturing its dual inverter air conditioner series at its manufacturing plants at Greater Noida and Pune, and launched 45 models under the Dual Inverter AC series. Additionally, the company launched a range of premium products under Signature brand in the segments, such as refrigerators, washing machines, and air purifiers. The company also partnered with Paytm Mall to bring its 650-odd brand stores online marking the company’s entry into online sales in India.

For the 2017 festive period, LGEIL launched an exclusive OEM co-branded card in partnership with Bajaj Finserv. The co-branded card enabled customers to buy all LG products at no-cost EMI option across all LG formats. Airtel Digital TV also tied up with LGEIL to offer its online and satellite TV content to the customers. Under the partnership, customers buying LG UHD or OLED panel TV of 43-inch or above got Airtel internet TV STB.

The company reached out to consumers by making a strong connection with them through differentiated experiential marketing campaigns. In January 2017, LG began the #KarSalaam initiative, as part of their Republic Day celebrations, dedicated to the soldiers of India. The company also completed its 20 years in India. On the occasion in 2017, the company rolled out a unique video that showcased how dreams come true with LG. The digital video told the tale of every Indian home and LG’s products being an integral part of the consumers’ journey.

LGEIL rejigged its senior management team and tweaked its sales structure. The company appointed Sanjeev Agarwal, who was earlier heading sales for south and west, as its national sales head. Rajeev Jain, who was heading LG’s sales for north and east, now heads modern retail, brand shops and sell out, drawing up strategies to ensure last mile sale to consumers. LG has also appointed Ravinder Zutshi as senior director of its enterprise products business, including commercial air conditioners, B2B products, and IT products. Rahul Tayal, who was heading brand stores, modern trade and online sales, is now overall head of marketing and online sales. Amit Gujral, head of corporate marketing, reports to Tayal.

LGEIL also created a task force for business improvement. The team, comprising of senior managers such as Niladri Dutta, Ranjit Kumar, and Ashutosh Pant now monitor performance of the 50 branch offices and 14 regions of the company.

LG Electronics Inc. LG has recorded full-year revenues for 2017 of Rs 391,000 crore (KRW 61.4 trillion), an increase of 10.9 percent from the previous year, the highest in the company’s history. Full-year 2017 profits of Rs 16,000 crore (KRW 2.47 trillion) – the highest profit since 2009 – increased 85 percent from 2016 due in large part to strong performance by premium home appliances and TVs.

The LG Home Appliance & Air Solution Company reported full-year 2017 revenues of Rs 122,000 crore (KRW 19.23 trillion), a 11 percent increase from the previous year, reflecting strong demand for premium products such as TWINWash washing machines, InstaView refrigerators, and energy-efficient home appliances.

The LG Home Entertainment Company reported full-year revenues of Rs 119,000 crore (KRW 18.67 trillion), a 7 percent increase from the previous year. Strong full-year operating profit of Rs 10,000 crore (KRW 1.57 trillion) reflected the continued growth in demand of premium LG OLED and UHD TV products. Fourth-quarter 2017 sales were strong, up 14 percent year-over-year to Rs 36,000 crore (KRW 5.48 trillion), thanks to increasing demand for LG premium TVs.


Sony India’s financial standing has improved significantly and cash flow situation remained positive and stronger throughout the year. During FY18, the company has earned a profit of Rs 106.97 crore against a profit of Rs 78.16 crore in the previous year from its business activities.

The company continued to focus on offering the latest technology. The product line was increased in the larger screen size of 4K HDR and Android TV together with key differentiated technology, which has been well accepted in the market. The audio business increased with the introduction of one-box music system, headphones, sound bars, successfully cultivating the market. The company continued to lend focus and attention to the after-sales service operations for ever increasing customer base – the motivation, listen and act on the voice of the customer has been the guiding principle to align service operations to meet the legitimate expectations of the end users. The company’s mission is to provide quick and reliable solution to customers with reasonable price and offer value add to efforts of the sales and marketing division.

Sony India further expanded the channel finance program by introducing new financiers in order to expand distributors and sub-dealers base. During the festive period the company could achieve record high peak limit and utilization, which has further helped your company’s receivable risk mitigation. The company’s effort was to increase customer reach through the consumer finance schemes in conjunction with the credit card partner banks for the EMI offers. Special finance offers and cash back were also extended during festival for customer convenience. For the first time cash back offers were offered through multiple banks to cater to larger customer base. Network expansion in north and east market helped to meet the aspirations of the customers.

Sony India carried out multiple projects to enhance the readiness of the company for the smooth implementation of the GST. As a precursor for GST rollout, the company had implemented/updated 18 systems, out of these SAP, Sony center POS, Disticonnect, AP Newsis, RMS Systems required major transformation. Most of transition was completed in time as per the evolving GST guidelines. The company also upgraded CRM system Talisma which is used in call center operations to the latest level. The company had also carried out the implementation of ASP and GSP solution for meeting the GST related reporting and compliance requirement.

The company booked forward contracts to mitigate foreign exchange risk exposure in line with Sony India’s adherence to the Sony Global Finance Policy. The company’s credit rating has been reaffirmed by CRISIL enabling the company to access long-term bank limits against Basel II norms for Rs 1070 crore at AA Stable. The rating affirmation has facilitated in sourcing competitive interest rates when compared with prevalent market rates.

The company earned an equivalent of Rs 20.7 crore as foreign exchange and spent an amount equivalent to Rs 76.6 crore in foreign currency.

The company remains committed to providing food, shelter, sanitation, healthcare, education and enhancing the livelihood of the underprivileged and disadvantaged sections of the society; and continue to lend its efforts through various initiatives in the area of rural development, protection of fauna and natural heritage.


FY18 was a disruptive year for Voltas. During the financial year 2017-18, Voltas achieved a total income of Rs 6602 crore, and profit after tax (PAT) of Rs 578 crore. Voltas Unitary Products Business Group (UPBG) closed the year with turnover of Rs 3225 crore.

The strategy of continued focus on inverters, fixed-speed split ACs, as well as window ACs has enabled UPBG to address customer needs for different products. Inverter ACs were a significant portion of the total sales in Q3 and Q4 FY18. With the market shifting toward inverter ACs, the company has geared its R&D, to develop super-efficient Inverter ACs. Voltas is also the first in the industry to launch window inverter AC in India.

In its third year of operations, Voltas Fresh air coolers further enhanced its product portfolio, across personal, window, desert and towers series, with a range of 24 models. The company sold over 2 lakh fresh air coolers, a growth of around 38 percent. Commercial refrigeration business also grew with an enhanced portfolio of new products such as combo-coolers (chest freezer cum cooler) and varying capacities for existing categories in response to evolving customer needs.

In 2018 Voltas was recognized as India’s most trusted AC brand by the Brand Trust Report, 2018. The calendar year 2018 also marks the 150th year of the Tata Group. To mark the milestone, the group has released a special logo which represents the group’s vision of a brilliant tomorrow. Keeping with the tradition, Voltas too has incorporated this logo in its communication material for the year. The company has a series of programs to celebrate the 150th year of the group.

The company is also continuously investing in avenues for strengthening the service network such as developing a separate network of in-house direct service centers and improving last mile service delivery. The service network was considerably expanded in terms of newer outlets and reach. A number of customer-friendly initiatives such as extended warranty on product and compressor, auto alerts to customers for service, were introduced during the year.

Voltbek Home Appliances Private Limited. In 2017, Voltas Limited and Ardutch B.V., agreed to establish a joint venture company (JVC) in India to enter the consumer durables market. Accordingly, Voltbek Home Appliances Private Limited was established to engage in the business of white goods. The JVC will launch refrigerators, washing machines, microwaves, and other white goods /domestic appliances. Voltbek will leverage Arçelik’s global expertise in setting up a large, modern, state-of-the-art manufacturing unit, quality, and R&D labs. Voltas will provide support through its country wide sales and distribution network. Voltbek has taken various actions including identification of land for its manufacturing activities.

International Operations Business Group (IOBG). Focus of IOBG has been on effective execution of ongoing projects together with settlement and financial closure of older projects. These initiatives have helped to improve the profit margins. Broad based pick-up in economic growth is expected across the Gulf Cooperation Council (GCC) countries in 2018. The company will continue its existing approach of booking new orders in a risk mitigated manner. IOBG is conscious of the continued embargo in Qatar and is selective in booking orders in the region.

Challenges. Before the industry could recover from demonetization blues, the uncertainty over GST implementation clouded the sales performance. The Bureau of Energy Efficiency (BEE) implemented energy norm changes, toward the end of 2018. Overcoming these challenges, the unitary cooling products business was able to achieve good growth, selling around 1.15 million room air conditioners, during the year.

Outlook. Voltas is well poised to lead the industry in this direction. Government initiatives such as GST implementation and migration to ISEER, among others, will improve the product performance and increase efficiencies in supply chain, for the entire industry. In the air cooler business, the company expects a positive impact of GST implementation on demand shift to organized sector products.


Panasonic India’s sales of products for FY18 slightly dipped vis-à-vis FY17 and stood at Rs 5075.66 crore. The proceeds from sales of services has increased compared to last year by 45 percent approximately and stood at Rs 20.40 crore. Due to internal and external risk exposures, the operations of the company has been affected, resulting in losses after tax, amounting to Rs 131.88 crore.

Operational review. As one of the strategic region, Panasonic India has been designated with the market responsibility of India, South Asia, Middle East, and Africa; Daizo Ito, executive officer of Panasonic Corporation and chairman of Panasonic India, is the regional head for ISAMEA region. Since India is positioned as one of the strategic countries for Panasonic and key to future growth, the company established the locally autonomous management style in India that enables the region to have decision-making powers on their own, as the first initiative in the entire Panasonic Group. The company is expanding the lineup of products that meet regional requirements and are suited to Indian lifestyle, by leveraging the brand strength and smart quality/technology products, as well as the engineering and procurement capability of its business partners.

The management of the company decided to make investments in the manufacturing facilities of the company and has infused capital by way of two Rights Issue to its existing shareholders amounting to 15 million and 205.88 million. The board approved the allotment of equity shares in its meeting held on May 19, 2017 and May 14, 2018, respectively, for the above stated two capital infusions by way of Rights Issue of equity shares. Among wide range of other products imported from overseas Panasonic factories and certain OEM/ODMs, including home appliances, system sales devices, surveillance cameras, mobile phones, the company is exporting washing machines and air conditioners manufactured at the manufacturing facility located at Jajjhar Technopark in Haryana. The operations at Technopark have increased and investments have been made in Panasonic Automotive sector division (PASI) and the refrigerators factory. Also, manufacturing of air purifiers have started at the facility. Panasonic plans to continue to increase its future exports of wide variety of products produced in India to SAARC, the Middle East, and Africa.

The company is presently in its 100th year, Panasonic India anticipates the coming year to be promising and would hold many new announcements for its stakeholders and customers in terms of new projects in consumer durables among other areas. On the market and channel front, in order to support and ensure smooth trading and procurement operations, the company has tied up with various renowned banks and institutions to bring in new improved finance facilities and schemes to benefit its distribution channels, support vendors.

From the launch of Sanyo branded products, new range of air conditioners, to operations and expansions at refrigerator and PASI factory, the company has diversified plans and has started its operations in the given directions. Another major initiative by the company in the past financial year has been the announcement of setting up the R&D center in Bengaluru in association with Tata Elxsi to further strengthen its appliances business in India together with exploring internet of things (IoT) in manufacturing and drive next generation home appliances from India to global markets. This would be Panasonic’s initiative toward Make in India. The new division India Innovation Center has completed its first year and it has been able to contribute to the growth of the brand value and business of the company with new projects including development of beacon device, artificial intelligence based home control system, and developing the new application for health care segment.


“This has been another good year for Whirlpool of India where we created significant shareholder value. High sales growth backed by strong all round execution across key levers. Industry growth should continue despite the emergence of strong cost headwinds. We remain optimistic about the future of our business and industry.”

Arvind Uppal
Whirlpool of India Limited

Whirlpool of India is one of the leading manufacturers of home appliances. It is primarily engaged in manufacturing and trading of refrigerators, washing machines, air conditioners, microwave ovens, and small appliances, and caters to both domestic and international markets. The company also provides services in the area of product development and procurement services to Whirlpool Corporation, USA and other group companies.

The year 2017-18 was another year of improved operating performance and financial growth. Revenue from operations during the financial year 2017-18 increased by 14.3 percent, over the previous year. Profit after tax showed an improvement of 12.9 percent over previous year. The company’s performance has been encouraging with 14.4 percent increase in net operating income and 15.4 percent increase in profit before tax versus previous year. The company operates in only one segment of White Goods. Gross domestic sales in value terms grew by 15.9 percent and overall sales grew by 15.4 percent.

The company had a strong revenue growth driven by both internal and external factors. Strong macro economic indicators drove the overall durables industry growth. The company smoothly migrated to the new GST taxation regime by upgrading the systems and processes. Working capital continued to be managed efficiently. The company significantly scaled up its investment in property, plant, and equipment versus previous year. Cost management continued to be high focus area for the company.

During the year, the company started to reap benefits of the new global product development team as it began a new era of product development by leveraging worldwide R&D capabilities. A few of the product launches were VitaMagic direct cool refrigerators range; Intellifresh frost-free refrigerators range; Protton World Series 3-door refrigerators; Fresh Care front load washing machines range; ACE XL semi-automatic washing machines series; Jet C range of convection microwave ovens; and 3D Cool Purafresh inverter air conditioners.

International business. The company’s export volumes grew by approximately 16 percent over previous year. The revenue growth was lower as compared to last year and margins faced some headwinds due to the appreciating Rupee for most part of the year. Nevertheless the company undertook several initiatives during the year to increase its export. The company registered healthy business growth across product category in several other markets like Philippines, Sri Lanka, Bangladesh, and Nepal. With a focus on Indian sub-continent, the company set up a liaison office in Nepal. Overall company’s international business, aided by structural changes in its business model, is poised to enter a steeper growth trajectory.

Consumer services. The company continued to make significant progress on executing its well laid down service strategy. The company focused on the key deliverables, such as branded service, and creating accessibility and visibility of Whirlpool genuine spare parts in the after-sales market. To position service as a differentiator as a competitive advantage we introduced differential service model which helped the company in improving customer satisfaction and also resulted in visible reduction in escalation and improved service KPIs. The company recently launched and introduced real-time digital training studio, which connects its service network and service technicians from anywhere in the country through a video call and imparts real time product training. This facility also helps drive high level of trainings and engagement.

“Despite a challenging operating environment in 2017-18, Whirlpool of India executed to the tee a well planned strategy and delivered top notch results. Expansion of our portfolio and geographic foortprint, coupled with driving utilization and efficiencies across our supply chain were key to driving the results. India is one of the most important markets for Whirlpool globally and all macros currently point toward continued growth momentum in the economy. Whirlpool of India is well positioned to take advantage of growing demand and we continue to be bullish on our future prospects.”

Sunil D’Souza
Managing Director,
Whirlpool of India Limited


“FY 2017-18 was a very good year for Blue Star financially, and we hope to do better in this new year, despite the global socio-political and economic uncertainties, a looming trade war and a weakening Rupee.

In in our Platinum Jubilee year, Blue Star is in a very good place. Blue Star has certainly had to jump through hoops of fire many times: partition in the 40s; classification of air conditioners as a luxury and its accompanying excise duty of 125 percent in the 50s; the India-Pakistan and India-China wars in the 60s; the license/Permit Raj; the Emergency in the 70s; liberalization and the consequent on slaught of MNCs in the 90s; the global economic meltdown in 2008; and the recent demonetization. It is with great pride that I tell you that today Blue Star is one of only 40 companies out of a total of around 6000 listed on the stock exchanges, which have completed 75 years in business, and have crossed Rs 4000 crore in revenue.

And what of the future? Driven by our success over the last 75 years, inspired by the entrepreneurial spirit of the founder and motivated by the trust reposed in us by our stakeholders, we have created our next rolling, challenging 3-year strategic plan, Blue Star@77, which starts from this year and ends in FY21, when the company turns 77. It defines a clear set of objectives that we intend to accomplish by FY21, with a strong emphasis on revenue growth, profitability improvement, and productivity enhancement.

We realize that, as India continues its rapid growth, more multinationals with deep pockets will enter the country and provide ever-greater competition. We welcome them, for they will help us grow our industry even faster. But we shall not fear them, for I am confident that the resilience and the fierce passion to succeed, that we have developed over long years of tumultuous change shall see us through. We shall continue to invest in R&D, digital, our people, and our brand to stay ahead of the curve.”

Suneel M Advani
Blue Star Limited

Blue Star is India’s one of the leading air conditioning and commercial refrigeration company. It celebrates its Platinum Jubilee this year which marks 75 years of consistent growth and systematic diversification. The company has also forayed into water and air purification, engineering facility management, kitchen and healthcare refrigeration and related business segments.

On a consolidated basis, the revenue from operations of the company was Rs 4643.26 crore as compared to Rs 4130.77 crore in the previous year, registering a growth of over 12.41 percent. The company registered net profit after tax of Rs 149.25 crore as compared to Rs 123.05 crore for the financial year ended March 31, 2017. The company continued to perform better in the high energy-efficient products such as 5-star and inverter ACs. The unitary products comparable revenue in the year grew by 17.21 percent to Rs 2105.36 crore as against previous year’s revenue of Rs 1796.25 crore. Segment results have risen by 15.04 percent from Rs 167.88 crore in the previous year to Rs 193.13 crore.

Manufactured capital. The company has decided to set up an additional facility at its existing manufacturing plant in Wada and in the medium term, set up a new factory in Sri City, Andhra Pradesh. Six Sigma, a tool to drive process improvement in cost and quality, is being effectively used across all the plants and a majority of the manpower is also trained in Six Sigma practices. The Dadra Plant completed 20 years of its existence in September 2017. The plant has started updating its operations by adopting Artificial Intelligence in some areas of its shop floor. In the Wada Plant a 3D printer has been installed at the plant for rapid prototypes and fixtures for Pokayoke. The two plants in Himachal Pradesh had an impressive performance in FY 2017-18. The Ahmedabad Plant, achieved optimum capacity utilization this year too, and recorded the highest dispatch of chest freezers and chest coolers.

Intellectual capital. Blue Star received its first ever patent for a unique vacuum breaker assembly for deep freezers. The company has applied for over 30 patents for innovation in various product categories. Other achievements include the introduction of Blue Star’s own designed wall-mounted indoor units and a platinum series of water coolers with enhanced purification options. The introduction of environment-friendly deep freezers using hydrocarbon refrigerant R-290 is another outcome of the company’s R&D efforts.

Dealer focus. The Channel Management Center added around 400 channel partners and service associates in 2017-18. The company also expanded the retail distribution reach of room air conditioners to about 850 retailers and distributors and strengthened its presence in Tier-II and Tier-III markets by 10 percent over last year. Internationally, too, prospective channel partners from the Middle East, SAARC region, Africa, ASEAN, and Europe have applied via the online route. Another channel management platform called Star Connect was launched for the dealers to facilitate the ease of doing business.

Global presence. Blue Star International FZCO, headquartered in Dubai, UAE, now manages the global products sales division and global projects division including the joint ventures for the company. The three JVs in Qatar, Malaysia, and Oman also fall under the ambit of Blue Star International FZCO. These JVs continue to undertake MEP projects for residential, commercial and infrastructure segments in their respective markets. Blue Star actively participated in international exhibitions across countries and obtained several approval certifications for its products from various government and private authorities. In order to further make inroads into different global markets, new dealers have been appointed, to enhance the distribution outreach.

Brand equity. The company enhanced its advertising spends, given its continued thrust on the residential segment. A 360-degree mass media campaign was launched for the summer which included television, print, outdoor, and digital. The company has augmented its digital marketing efforts in social media as well as the internet.

Significant developments. In 2016, the company had acquired land from J&K State Industrial Development Corporation, for setting up a manufacturing facility at Samba in Jammu. Due to non-availability of certain fiscal incentives envisaged earlier as a consequence of the introduction of GST, the company decided not to go ahead with this project. The board approved the proposal to incorporate a step down subsidiary in mainland UAE, under Blue Star International FZCO, with an initial investment of AED 300,000. In January 2018, BSE shifted Blue Star shares to Group A from Group B comprising top 200 companies.


In the financial year 2017-18, Godrej Appliances registered a turnover of Rs 3900 crore.

The company was awarded the Energy Efficiency Services Limited (EESL) contract to supply, install, and commission 52,000 green inverter ACs for government and railway establishments. The contract is worth Rs 207 crore. The company invested Rs 200 crore to expand the production capacity at its Shirwal manufacturing plant in Maharashtra. To be operational by the end of 2019, the new factory unit will increase production capacity of premium products by 700,000 units, including 300,000 high-end refrigerators and 300,000 fully automatic washing machines. It had also invested Rs 200 crore in its Mohali plant last year. With this expansion, the total production capacity of the company will increase by 700,000 units to 4.6 million units annually, and generate additional employment for 400 people.

Godrej has an extensive range of advanced home appliances with relevant technology. The company entered the top-load segment in the washing machines category with the launch of Godrej Eon range of fully automatic front-load washing machines with advanced features like allergy protect and eco balance technology. The company unveiled its Godrej Edge Pro range of inverter compressor direct cool refrigerators. The range consumes 122 units of power annually, which helps customers save more than a 3-star refrigerator over a period of 10 years. It can run on extremely low voltage, allowing it to operate on power generated by home inverters. It also incorporates Godrej’s unique Staycool technology. Taking a cue from the 2017 Union Budget, Godrej is targeting Tier-I to Tier-IV towns in states, including Punjab, Maharashtra, and Tamil Nadu and extending its exclusive brand outlets (EBOs). Agriculture-based smaller towns in Punjab, Maharashtra, and Tamil Nadu are being considered by the company for its premium brands such as NXW in categories as air conditioners and refrigerators. Unleashing power-saving air conditioners with the highest ISEER rating at 6.15, the company expects to push up its market share in the segment.

Godrej Appliances takes the premium product experience one notch up with a robust Godrej SmartCare service promise. Godrej SmartCare offers a wide service network with 625 service centers and more than 4500 Smartbuddy technicians, 24×7 call centers in 12 regional languages, and Smartmobile vans for enhanced reach and faster service, ensuring problem-free usage after purchase. Moving further into the era of digitization and taking cognizance of the popularity of smartphones, the app also serves as an additional channel for the consumer in case he/she wants to reach out to the company. Through this app customers can get complete visibility of all their appliance related details, including appliances of brands other than Godrej, owned by them. Customers can log a service request and check the status of their complaint without having to call up the call center.

With consumers becoming aspirational and the affordability increasing, Godrej Appliances is now focusing on premiumization across all segments and is expecting a surge in the high-end across categories. Backed by innovative and relevant products, the company plans to capitalize on this.


Daikin Airconditioning India Pvt. Ltd.  Total revenue for the year ended March 31, 2018 stood at Rs 3233.9 Crore as compared to Rs 2889.1 crore for the year ended March 31, 2017, representing an increase of 11.93 percent from the previous year. The company recorded a net profit of Rs 150.29 crore during the financial year ending March 31, 2018.

In India, sales increased dramatically through aggressive investments in areas such as increased production capacity, dealer network development, and the introduction of new products. The room airconditioners segment grew by 26 percent and VRV segment by 21 percent. Service turnover grew by 29.75 percent by value, and the service network grew by 11.8 percent in number.

One of the main engines of growth has been the factory at Neemrana in Rajasthan, which has enabled Daikin to consolidate its presence with a second factory. The Neemrana factory entailed a total investment of Rs 2000 crore and has capacity to manufacture 1,500,000 room ACs, 50,000 VRV units, 100,000 cassette units, 20,000 ductable units, and 100 chillers.

The company launched ACs with air purifiers which run on Streamer technology – these air purifiers help eliminate bacteria, airborne particles, and unpleasant odors. The company had taken to R-32 refrigerant and inverter technology. In 2016, Daikin had launched its marketing campaign under the tag, Fill the air with goodness. The campaign reiterates the company’s commitment to provide state-of-the-art technology, which offers comfort, savings, and is environment friendly. The company continued with this campaign in CY17 as well.

Daikin India MD and CEO, Kanwal Jeet Jawa, was elected to the group board of Daikin Industries. It is unusual for a non-Japanese to serve on the main board of Daikin, and Jawa becomes the first Indian national to do so. Daikin has delegated the next phase of its global expansion to him. The company is planning to set up a Greenfield manufacturing plant in either south India or the western region. The Indian arm of the company is looking at making the proposed unit a hub for regional exports, including Africa, and also to serve the growing market in India. A cross-functional team is engaged in the task of finalizing the plant location, which is likely to see an investment of up to Rs 500 crore to Rs 600 crore.

The company focused on strengthening its existing distribution and after-sales network during FY 2017-18. Growth of 11.18 percent was witnessed in service network. Exclusive Daikin stores (Daikin Solution Plazas) increased from 330 to 382. The company is planning to further expand its dealer network from existing 6050 dealers to 7500 dealers (including sub dealers), solution plazas from 382 to 425 numbers and service network from existing 557 service providers to 600 by the end of FY18.

To improve finished products and spare parts delivery mechanism, the company made investments in new warehouses across India. Moving forward, it plans to make similar investments for maintaining high standards of warehousing. Warehouse space available at the end of March 2018 was 1,090,907sq. ft. with 33 warehouses pan India as against 940,820sq. ft. with 31 warehouses across India. The space was increased to support the increasing sales, and for effective logistics management, by moving to modern warehouses with specialization in material handling equipment.

Moving toward self sufficiency, 10 percent of the total revenue was generated by distribution segment. The revenue generated from manufacturing segment raised from 72 percent during FY 2016-17 to 84 percent during FY 2017-18. Balance 6 percent of the total revenue was generated by service segment as against 5 percent in FY 2016-17.

Exports. Daikin India continued to operate through a liaison office in Sri Lanka which is helping the company in its goal of expanding its footprint in overseas market as well as to utilize the capacity of existing manufacturing facilities. For increasing the business in Sri Lanka, it was proposed to convert the liaison office to a full-fledged branch during the previous year 2016-17; however, the same could not be done and the company is hopeful of doing the same in the current fiscal year. Additionally, the company had also spread its wings of operation in Bangladesh by appointing a master distributor (with right to appoint local distributors) for consumer durable products during the current fiscal year; the company has done well in this territory. Exports for the company grew from Rs 25.2 crore during 2016-17 to Rs 35.9 crore during 2017-18.

The company is planning to introduce window ACs in selected markets, especially in Tier-III and Tier-IV cities. Daikin is looking to sustain this momentum in the current fiscal year as well, as the market points toward a robust year with a growth of 15-18 percent.

Daikin Industries Limited. During the fiscal year which ended on March 31, 2018, the global economy continued to show robust expansion, despite some turmoil in financial and currency markets at the end of the fiscal year. Daikin Group’s consolidated net sales rose to Rs 1,41,972 crore (¥2290.6 billion) (a Y-o-Y rise of 12.1 percent). As for profits, consolidated operating income rose to Rs 15,729 crore (¥253.74 billion), a gain of 10 percent from the previous fiscal year. In part because of corporate income tax law revisions in the United States that led to a decline in income taxes paid in that country, net income attributable to the owners of the parent company increased to Rs 11,724 crore (¥189.1 billion) (a Y-o-Y rise of 22.8 percent). Total sales of the air conditioning and refrigeration equipment segment increased 11.9 percent from the previous year, to Rs 1,27,274 crore (¥2,052.9 billion). Operating income rose 7 percent, to Rs 13,856 crore (¥223.5 billion).

Sales in Asia/Oceania increased 114 percent year-on-year. In residential-use air conditioners, Daikin increased sales mainly in India, Vietnam, and Indonesia and through strengthened dealer networks in regional cities, and its strengthened service structure, captured the demand of the growing middle-income groups.


Intex Technologies (India) Limited is primarily engaged in trading and manufacturing of technology and IT products such as mobile phones, computer peripherals, and consumer electronics. The company has made revenue from operations of Rs 2861.91 crore with profit for the year of Rs 13.86 crore.

Intex has five manufacturing facilities – one at Jammu and Baddi in Himachal Pradesh and three at Noida. It also set up one centralized manufacturing unit at Greater Noida. In 2017, the company doubled on its consumer durables business by launching new low-cost products across various categories and strengthening its presence in Tier-III and Tier-IV markets. The company has a dealer base of around 10,000 stores for consumer durables space. Besides, the company has also 130 stores of Intex Smart World, which are its exclusive stores.

The company launched five new models of LED TVs – 55-inch UHD, 43-inch UHD, 50-inch FHD, 43-inch FHD, and 32-inch HD. The company also unveiled a free-to-air television with an inbuilt set-top box and a dish antenna, targeted at Tier-III and Tier-IV markets with poor set-top box penetration. The free-to-air television is currently available in four states including Uttar Pradesh, Bihar, Uttarakhand, and Jharkhand in the first phase with plans to take it to Gujarat and Maharashtra in the future.

Intex air conditioners range comes in 18 models across three categories – Super Saver inverter series, fixed speed ACs with variants of Golden I.c.e, Silver I.c.e and Carbon I.c.e, and window ACs. The company launched its maiden ad campaign. Conceptualized by Publicis India, the campaign depicted the situation of a typical middle-class Indian household using air conditioners guzzling electricity and in turn grappling with the after-effects of high electricity bills. The TV commercial aired across 65 channels. The 32-second video stated that with Intex ACs, a family saves 30 percent electricity, gets 15 percent faster cooling, and thereby prevents itself from having a Bill Ka Daura in a humorous tone.

During the previous year’s festive season, the company launched 16 new models of single-door direct cooling refrigerators with the latest cooling technology and energy efficiency. The direct cool refrigerator models provide wide capacity ranging from 50 liter to 215 liter. All the models have certified BEE ratings.

In the washing machines category, the company launched its first 6 kg front-loading washing machine with the model number WMFF60BD, which comes with 16 unique wash programs. Intex also introduced a range of semi-automatic washing machine – ActivDry. The washing machine features load capacity of 7.5 kg, 8 kg, and 8.5 kg.

In the previous financial year, Jayesh Parekh joined Intex as business head for its consumer durables business. The company also appointed Rumpa Roy as Head of Business Excellence.

Intex Technologies tied-up with Kissht-EMI payment solutions, a collateral-free loans provider app, to provide its consumers quick online finance service offering convenient EMI option for purchases. The company largely sells its consumer durable products through offline stores, however, the company has also started focusing on online sales from early this year. The company introduced its 135th Smart World store in Udaipur which is the 7th in Rajasthan.

The company in support of environmental conservation threatened by the increasing electronics items lying idle launched a pan-India e-waste collection campaign named GO GREEN. Supporting this drive, PHD Chamber of Commerce, Rajasthan Pollution Control Board and Rotary Club – Jaipur associated with campaign for a healthier environment and society.


“During the year, a petition was filed on January 1, 2018, by State Bank of India under Section 7 of the Insolvency & Bankruptcy Code, 2016. The said petition is pending before the Hon’ble National Company Law Tribunal (NCCT), Mumbal Branch, Mumbai.

Future plan of action. In near future, the company shall focus on environment friendly products with latest technologies, which could offer better products in the domestic as well as international market. The company has the following plans through R&D:

To focus on the picture quality with rich, vibrant colors, remarkable brightness, and a higher range of colors endowed with deeper blacks and brighter whites that can be enjoyed by our customers within value for money.

Continue to engage in Internet of Things (IoT) technology, which will delight the customers by creating a web of seamless connectivity between TV and other home appliances.

Cost reduction projects through new innovative design ideas across both frost free and direct cool refrigerators.

  • To bring in washing machines with excellent was performance alongside energy and water efficient designs catering to environment benefits and value for money for our customers.
  • Introduction of Inverter compressor to the existing frost free refrigerator series.
  • Product development with new refrigerant and reduction in global warming potential.
  • Energy efficient AC development as per the new ISEER rating norms.
  • Improved Satellite controlled model with support by IOS and Android technology.

In 2017-18, the company has incurred Rs 3.75 million representing 0.01 percent of the turnover towards recurring R&D expenses.

We would like to thank the customers, vendors, investors, financial institutions, bankers, business partners, and government authorities for their continued support. We also appreciate the contribution made by the employees at all levels for their hard work, dedication, co-operation, and support for the growth of the company.

The board of directors would also like to thank all stakeholders for the continued confidence and trust placed by them upon the company”.

V. N. Dhoot
Chairman, Managing Director and CEO
Videocon Industries Limited

Videocon Industries Limited is undergoing Corporate Insolvency Resolution Process under the provisions of The Insolvency Bankruptcy Code, 2016 in term of order dated June 6, 2018 passed by Hon’ble NClT, Mumbai Bench, pursuant to an application filed by the State Bank of India under Section 7 of IBC.

By virtue of the same order, Hon’ble NCLT appointed “Anuj Jain as the Interim Resolution Professional. Subsequently, the Committee of Creditors, which was formed pursuant to the provisions of the Code at its first meeting, held on July 6, 2018, appointed Anuj Jain as the Resolution professional. In accordance with the provisions of IBC, on commencement of CIRP, the powers of the Board of Directors of the company stand suspended and is being exercised by the Resolutions Professional.”

The Resolution Professional, pursuant to the provisions of the IBC and the Insolvency and Bankruptcy Board of India (Insolvency Resolutions Process for Corporate Persons) Regulations (CIRP Regulations), invited prospective resolution applicants to submit resolution plan for the company. The basic eligibility criteria for the prospective resolution applicants was published in the notice, copy where of was circulated to the Stock Exchange(s) on September 26, 2018. However, Hon’ble NCLT vide Order dated October 05, 2018 pursuant to an application, directed the Resolutions Professional to temporarily defer further action on the above, until the outcome of a separate petition moved with NCLT Principal Bench seeking consolidation of CIRP of the company with other group entities.

Subsequently, NCLT Principal Bench on October 24, 2018 directed to transfer all insolvency petitions related to certain Videocon group entities to one bench at NCLT, Mumbai and left open the matter of substantive consolidation to be decided by NCLT, Mumbai bench. Further, State Bank of India has filed a petition at NCLT, Mumbai bench for substantive consolidation of CIRP of group entities, which is yet to be heard.

An application was moved by Resolution Professional under section 98 of Companies Act, 2013 with the Registrar of Companies for extension of time for holding Annual General Meeting by a period of 3 months on the grounds that CIRP is undergoing and he has to achieve a number of milestones in a time-bound manner. Pursuant to such application, the Registrar of Companies, Mumbai, Maharashtra, vide its order dated September 11, 2018 granted extension of time for hold Annual General Meeting by a period of 3 months. Accordingly, Resolution Professional has instructed the company secretary to convene the 28th Annual General Meeting on December 17, 2018.

Signed Anuj Jain, Resolution Professional, for Videocon Industroes Limited,(A Company under Corporate Insolvency Resolution Process by NCLT order dated June 6, 2018).

Performance review

The performance of the company on a standalone basis indicates revenue as Rs 28,39.86 crore in 2017-18, and a net loss of Rs 52,64.04 crore. The previous financial year was for 15 months commencing from January 1, 2016 to March 31, 2017 and current financial period is of 12 months commencing from April 1, 2017 to March 31, 2018, hence, the figures are not comparable. Further, the figures for the financial period ended March 31, 2017 are restated pursuant to implementation of the Indian Accounting Standards (IND-AS).

During the period 2017-18, the company achieved gross revenue from operations of Rs 2839.86 crore as against Rs 122,52.49 crore for 15 months period ended March 31, 2017.

Other income for the year ended March 31, 2018 amounted to Rs 584.05 crore as against Rs 526.36 crore for 15 months period ended March 31, 2017.


Cost of Goods Consumed/Sold. During the year ended March 31, 2018 Cost of Goods Consumed/ Sold stood at Rs 35,29.21 crore as against Rs 87,55.17 crore for the 15 months period ended March 31, 2017.

Net loss for the year ended March 31, 2018 is Rs 5264.04 crore as against Rs 2080.02 crore for the 15 months period ended March 31, 2017.

Consumer electronics and home appliances

2017-18 was marked by various challenges in both external and internal environment. There were persistent severe strains on the working capital and accordingly there was considerable decline in the level of operations of the company. The performance of the company was also impacted on various grounds inter-alia including decline in sales due to GST introduction, stiff competition. The manufacturing activity of glass shell division, which manufactured panels and funnels used in color picture tubes of color television had been suspended from July 2017 due to poor demand.

The referral of the company to NCLT under the Insolvency and Bankruptcy Code, 2016, as amended, had a severe impact on the perceptions of the dealers/customers on account of uncertainty of the after sales services etc., forcing the company to offer additional discounts and incentives resulting in losses.

Activities of Videocon. The company is engaged in the manufacture and wholesale and retail trade of consumer electronics and home appliances items and is a part of a large conglomerate with diversified business interests. Its segments include consumer electronics and home appliances; crude oil and natural gas; telecommunications; power and others.


The company has adopted the best and the most sophisticated technology to suit Indian needs. The company has been planning international forays in the same industry and has successfully forayed into international market either directly or indirectly.

The company focuses on ingenious strategy, improved technology, innovative products, inspired thinking, and insightful marketing. Company focuses on customer and his needs and is committed to delight and deliver beyond what is expected.

The aim of the company is to serve consumers domestically as well as internationally by creating technologically path breaking products through constant innovation. The company as a part of reducing manufacturing cost of products has explored the possibility of manufacturing components at the in-house facility by setting by standalone facilities.


“We stand today at the cusp of an exciting moment in our exceptional journey. It is a moment that will define the next phase of our growth story on which we have embarked with a transformational agenda underlined by the rejuvenation of our brand identity. The new look of V-Guard marks a change in perception and a transformation in our business philosophy to make it more relevant to the new-age consumers in resonance with their aspirations.

From being completely dependent on south Indian markets, the company has built a substantial and profitable non-south business. The company has demonstrated the ability to expand its product portfolio, and set up supply chain and product design capabilities. It has continuously improved its competitiveness by judiciously balancing outsourcing and in-house manufacture. We transformed our conventional delivery model which has given us a lead in customer service in the industry. Sales force automation redefined the way we conduct business with our trade partners by enabling real time order capture, improving order fulfillment and enhancing field force productivity.

V-Guard, we see today, is smarter and more focused in its growth strategy than ever before. These, in my opinion, are imperatives for the smart living culture that the consumers of today are imbibing which is guiding their lifestyle and choice of products. And by aligning ourselves to their evolving aspirations, we are augmenting the core of trust that has been at the center of our business philosophy since inception.

Hence, it is extremely vital for us to stay relevant in the transforming business landscape, evolving with consumer needs in the markets in which we are present as well as in new markets where we are keen to harness opportunities for growth. Smarter and better ways of doing business will result in products and solutions that will help us achieve our aim of enlivening homes and enriching lives. The roadmap we have charted in line with our new brand philosophy will propel our inclusive growth strategy, to which we remain committed in the present and for the future.

Kochouseph Chittilapilly
V-Guard Industries Limited

The company has reported a strong performance in 2017-18. The company has delivered a top-line growth of 9.8 percent year-over-year to Rs 2321 crore in 2017-18. Adjusted for GST-related price impact and exit of LT cable business, revenue growth is even stronger at 16 percent year-over-year. Non-south markets recorded a strong growth of 16 percent year-over-year to Rs 858.5 crore and contributed 37 percent of the revenues in 2017-18 from 34.5 percent in 2016-17. South markets recorded a growth of 5.6 percent during the year, despite a higher base. Adjusted for GST-related price impact, non-south and south markets grew by 22.4 percent and 10.7 percent, respectively. Compared to the previous year, gross margin improved by 50 bps on a like-to-like basis, when adjusted for GST related pricing impact. On a reported basis, gross margins expanded by 130 bps year-over-year to 30.8 percent.

Advertising expenditure increased to 4.3 percent of the turnover as against 2.4 percent in the previous year. This resulted in a temporary impact on EBITDA margins.

Cash flow from operations was to the tune of Rs 54 crore in FY18 as compared to Rs 129.8 crore last year. However, the  working capital position of the trade has seen stress, due to which the company had to sustain higher receivable days, which was partly offset by improved credit terms from suppliers. Further, there has been Rs 42 crore of GST-related increase in working capital – including Rs 26 crore due to input tax credit, which is expected to normalize in the coming financial year. The balance sheet continues to be robust with net cash of Rs 78 crore as on March 31, 2018.

Electronics. The segment comprises voltage stabilizers and UPS systems (both digital and standalone). This segment grew by 9.7 percent (GST adjusted 12 percent) and contributed 31.4 percent to the total revenues. The Sikkim stabilizer unit set up last year has ramped up production in line with expectations and is delivering significant tax advantage. In digital UPS the company is undertaking several initiatives and expects to drive growth in the premium variants. During the year, the company launched the Smart and Next Gen series.

Consumer durables. The consumer durables segment includes fans, water heaters, kitchen appliances, and air coolers. Revenue from this segment grew by 13.1 percent (GST adjusted 18.1 percent) during FY18. The segment accounted for 24.8 percent of total revenue in FY18. The company’s second water heater unit at Sikkim is now getting fully operational and will provide significant cost advantages. The company is undertaking various initiatives to enhance safety and efficiency, developing testing equipment and procedure to improve tank quality, and launching new models of electric water heaters with BEE star rating. The solar water heaters business is performing well. V-Guard is focused on the market for rooftop residential solar water heaters. The fans segment has performed very well over the last few years. The category has delivered strong growth in 2017-18, especially in the non-south markets. Toward the end of the year, the company launched air coolers in Hyderabad and Delhi markets. The company expects to rollout to more markets in the coming year.

Key initiatives.  V-Guard announced its new vision for the brand and unveiled its brand new identity. This was not a cosmetic change of identity but built on a philosophy and vision to envelop into a more agile, contemporary, and technology-driven, smart organization. As part of the brand evolution, the company unveiled a new logo in sleek black and royal gold colors cueing modernity and premium values. The brand also unveiled the new tag line, Bring Home A Better Tomorrow aligning to the promise of delivering thoughtful products and experiences to its consumers, for a better tomorrow. A beginning in this direction is already made through launches in AC stabilizer (design leadership), Verano (IoT-enabled water heaters) and range of smart inverters, and smart LED fans. FY 2017-18 saw the rollout of a sales automation tool, salesforce.com, pan India to enhance field force productivity. Sales force automation has enabled V-Guard to unite front line sales executives across the country with applications that transform how they conduct their business and share data across various stakeholders in the organization. V-Guard currently serves 30000+ retailers out of the total universe of about 200,000 retailers. In Phase-I of Udaan (Udaan 1.0), the company successfully implemented new methods of value creation through establishment of sales and operations planning (S&OP) and re-structuring of the warehouse network. Through S&OP implementation, inventory has been right-sized. With twin objective of differentiation and efficiency, the company also initiated formalization of new product development (NPD) and strengthening of quality management during Phase-I of Udaan. In Phase-II of Udaan (Udaan 2.0), focus is to institutionalize the changes implemented in Udaan 1.0.

Outlook. The company is confident of achieving a growth of 15 percent over the next few years, driven by expansion into non-south markets and introduction of new product categories. The company envisages adding 3000–5000 retailers across the country every year over the next 5 years with higher addition in the non-south markets. The new categories – kitchen appliances, switches and switchgear, and air coolers will provide significant growth opportunities.


Total revenue on consolidated basis has achieved a figure of Rs 2277.53 crore. Profit after tax on consolidated basis amounted to Rs 79.28 crore. Since GAAL and its subsidiary were acquired only on July 13, 2017, figures for 2016-17 are not comparable. The appliance division ended the year on a stronger note in revenue terms and also in EBITDA margins.

Front-loaders. New models of front loaders introduced over the last 2 years have done well. The range of models covers a full spectrum of features wash program for delicate clothes, intuitive user interface, smart mobile-based technologies and much more. Ongoing product development continues to focus loT capabilities, water and energy efficiency, user convenience, and interface designs. The company has achieved a sale of 406,284 numbers during 2017-18 and volume sale is up by 20 percent as compared to 2016-17. For exports, the company has commenced small volume supplies to a Japanese major under an OEM arrangement.

Top-loaders. The company has achieved a sale of 208,684 numbers during 2017-18 registering a growth of 19 percent as compared to 2016-17. During 2017-18, the installed top-load capacity was stretched and the company was unable to supply to the market in full. The capacity has now been upgraded.

Clothes dryers and dishwashers. The company has begun to focus on e-commerce to drive penetration in these two categories, as well as via exchange program through IFB points.

In the kitchen appliances category, the range includes products like chimneys, hobs and built-in-ovens. The IFB Points are a key vertical for driving growth in this segment and 45–50 percent of the company’s sale in this category is generated from IFB Points.

Microwave ovens. New models featuring unique Oil Free Cooking technology have been already introduced into the market and helped to drive growth.

Modular kitchens. The company is strengthening the organizational structure for this category in areas such as product and retail design to expand this business going forward. The intention is to present to customers a range of modular kitchens with appliances (standalone and built-in) in line with global trends.

Built-in ovens, chimneys, and hobs. IFB continues to increase its presence in all markets with the products displayed in 750 stores across the country. There is a special focus on promotions and sales from the IFB Point channel. The channel continues to be a key driver for growth in this category and currently 50 percent of sales of this set of product is from this exclusive store network.

Air conditioners. The IFB range is uniquely placed in the market, with features such as 52 degree compliant compressors across all models with green gas and copper piping features designed for high-end performance. The key action is in the area of distribution expansion. The appliance division operates via five key channel segments through which it reaches its customers base multi-brand stores (contributing 60 percent by volume of sales), IFB exclusive stores (IFB Points, the IFB website, and e-commerce – contributing 25 percent of sales by volume), CSD/defence canteens, and institutions (contributing 1 percent of sales by volume), sales and service dealers (contributing 1 percent of sales), and channel of distributors (accounts for 12 percent of sales).

The company’s own call center at Goa, service center, continues to be effective in issue resolution and customer feedback/cross-selling initiatives with a total manning of 110 people as on date. IFB has also outsourced call centers at Munnar and Hyderabad. In the company’s customer contact program, IFB continues to contact customers directly and then visit them.  IFB continues to be focused on differentiating itself through a value-led product range planning. Local challenges are addressed as applicable and needed. The company is confident of its ability to remain a dominant market share player across categories it is present in and will keep investing in building market networks and product development capability.


“Financial year 2017-18 was an extraordinary year for JCH-IN in terms of an all-round performance, despite major economic reforms like demonetization and GST, coupled with poor investments in the manufacturing and construction sectors. We witnessed more than 24 percent year-on-year growth in room air conditioners segment.

Our commercial business also witnessed remarkable growth. Our PAC business registered a significant growth of around 18 percent. The chiller business segment suffered significantly due to canceled orders and reduced influx of new orders.

We invested in machine automation by implementing robotics into our operating system. We also launched JCMS (Johnson Control Manufacturing System) program with a motto to become the most operationally capable company. The company also invested significantly in marketing and promotion of the air conditioning products. With an aim to enhance its reach in the Tier-II, Tier-III cities, and South India markets, the marketing team undertook various innovative marketing activities which helped the brand reach its target audience.

We are optimistic that the pro-industry reforms undertaken by the government and Phased Manufacturing Program (PMP) policy launched in 2018 will boost indigenous manufacturing.

With this, I would like to thank all the stakeholders of JCH-IN, the employees for their dedication and sincere efforts, our various suppliers and vendors for their timely support, the customers for their trust in our products, and our respected shareholders for showing their continuous faith in our business. With all your support and trust, I am confident that we will be able to achieve even greater heights, one that will be a continuous source of pride for us.”

Gurmeet Singh
Chairman and Managing Director,
Johnson Controls-Hitachi Air Conditioning India Ltd.

Financial year 2017-18 had a mix basket of offering for Johnson Controls – Hitachi Air Conditioning India Limited. For the year under review, the company reported a total operating income of Rs 2258.27 crore, representing growth of 8 percent over the financial year 2016-17 on a like-to-like basis. The operating profit for the year grew 18 percent to Rs 206.26 crore. Both revenue and profit grew hand-in-hand indicating robust growth. Successful execution of the strategies resulted in a strong growth of the order book by nearly 6 percent.

Innovative and multiple communication routes coupled with the right kind of media mix like TV, print, OOH, and digital media helped the company in increasing brand awareness and mindshare. In the marketing campaigns, the company is imparting more awareness about the benefits of a 5-star tropical inverter technology enabled AC to the customers. The company launched a campaign called Every Home Deserves Hitachi Inverter AC to promote Hitachi inverter AC and make Hitachi brand more accessible and approachable in mid segment level.

Room ACs. During the year, air conditioning market witnessed a steady growth. In its current lineup of products, Hitachi offers approximately 36 new models of room ACs with 108 SKUs. The company’s current product range consists of 2, 3, 4, and 5-star rated fixed speed and inverter ACs. In order to keep up with the rising demand of split ACs in Tier-II and Tier-III markets, Merai is the new range launched during this period. The company’s range of split air conditioners consists of Kashikoi, Neo, I Connect, Zunoh, Toushi, Star Sumo, ACE Reidan, Waza, and Ridaa. Despite the shrinking window AC market, it gained considerable traction in the northern and western India markets leading to a rise in demand. In window AC segment, the company continued to have more than 10 models in 2, 3, 4, and 5-star rating category. The company also focused on channel enhancement as a strategic move, enabling it to expand its outreach in Tier-II and Tier-III towns.

Commercial ACs. The company’s commercial air conditioning segment witnessed a remarkable growth during this period. Hitachi’s packaged ACs category also registered a significant growth of around 18 percent. The company also saw a positive growth in the VRF systems. The company also maintained its focus on Set-free VRF systems. The VRF segment registered a growth of 10 percent in the previous financial year while, during this period, the growth rate was 8 percent (HP basis). The chiller trading business declined by 54.4 percent while the chiller manufacturing business declined by 2.1 percent.

Home appliances. The company has a strong business in the trading of premium range of refrigerators and air purifiers. Presently, the refrigerator range consists of 2-door, 3-door, 4-door, and 6-door refrigerators. The refrigerator business grew by 24 percent in FY17-18. Though the air purifiers’ category is expanding at a much faster rate in India, Hitachi’s air purifier business declined by 19 percent primarily because of the availability of multiple low-cost air purifier brands in the market.

Exports. In the last couple of years, Hitachi has started exporting to Sri Lanka, Indonesia, Bangladesh, UAE, Middle-East, and Nepal. The business suffered due to change in government policies owing to which exports declined by 24 percent mainly due to fall in the exports of split ACs as compared to last year.

Service. Hitachi has undertaken multiple service-oriented initiatives during the year like free service camp, customer delight program, free product check-up in off season, discounted service in pre-summer, and multiple customer care touch points with query escalation matrix. During the year, to improve the level of technical skills of its technicians, the company also started an initiative which was in line with the Skill India project. The company inaugurated Engineering Excellence Centers (EECs) in Delhi and Chennai to provide skilled manpower and professionally trained technical resources to employees of JCH-IN and its dealers. The company also launched Hitachi I-Care Service App during the year, matching the need of the hour to communicate faster.

Opportunities and outlook. The Smart City project will provide a lucrative opportunity for smart air conditioners and home appliances manufacturers. This project will also boost the growth of energy efficient and environment friendly products. Increasing standards of Bureau of Energy Efficiency (BEE) for energy efficiency in products and focus on promoting Inverter ACs is a huge opportunity for companies who have large lineup of energy efficient products. Increasing acceptability of e-retail market in India is likely to enhance sales through online portals. Growth of organized retail formats in Tier-II and Tier-III towns is a good opportunity for RAC category to deepen its market penetration.


Haier Appliances India Private Limited is a private limited company domiciled in India. The company home appliances range includes freezers, refrigerators, color televisions (including LCDs and LEDs), washing machines, air conditioners, and water heaters. The company also has a manufacturing unit located at Pune where the company primarily manufactures refrigerators.

Haier Appliances India, which follows January-December financial year, clocked a net revenue from operations of Rs 2108.37 crore in 2017. The company has stepped up its focus on appliances business. While LED TV segment contributes about 20 percent to the company’s turnover, the brand is now putting a bigger thrust behind appliances business.

In November 2017, Haier expanded its industrial park in Pune. Initially, only refrigerators were manufactured at the facility, using one-third of the land. Then the company invested Rs 600 crore and built up a huge complex which has an inbuilt capacity to manufacture 1.8 million refrigerators annually and can manufacture half a million each of washing machines, air conditioners, TVs, and water heaters. It is the first water heaters manufacturing facility outside of China. Currently Haier is using nearly 75–80 percent of the manufacturing capacity in Pune and by next year it anticipates to fully utilize this capacity.

In 2017, Haier Appliances India introduced many innovative and technologically advanced products in all product categories. The brand launched Dawn air conditioners along with a series of other air conditioners. The lineup comes with inverter technology resulting in electricity saving capabilities and providing cooling comfort quickly during extreme Indian summers. The launch included 12 latest models available in the capacity of 0.75 ton to 2 ton. Haier unveiled three new models in the category of refrigerators. The range consisted of two direct cool single door refrigerators – HRD-2204CKG-R/HRD-1954CKG-R (220L/195L) and HRD-2204CRG-R/HRD-1954CRG-R (220L/195L); and the star model HRB 738 SS which is a French 4-door refrigerator. The 4-door refrigerator comes with features having capabilities such as the bottom-mounted feature where the refrigerator serves both the purpose of a side-by-side as well as a bottom-mounted refrigerator. The two direct cool models come with bigger cool pads than usual to retain cooling up to 10 hours even after power cut and also have 1 hour icing technology. New bottom-mounted refrigerators were also introduced, which come with a capacity ranging from 256 liter to 276 liter and are designed keeping in mind the specific usage patterns, where freezer can be converted into a fridge or back to a freezer with eight convertible options within a time span of 50 minutes. The company also launched golden color double drum washing machine – DUO-Gemini. It supports two independently functional drums. This new washing machine was launched as a sequel to the first double drum machine introduced by Haier in 2016. The two drums are placed one above the other. The company also launched a TVC for the Haier Duo washing machines last year. The TVC drew a parallel between the nature of Indian families and the features of the product.

The company has a dealership network of 7000 in which 1500 are direct dealers and balance 5500 are indirect mixed ones. The company also has 80 exclusive brand stores.

Haier India has grown by over 50 percent in the first half of 2018 and expects to close the year with net sales of about Rs 3600 crore. The company has already done business close to Rs 1850 crore in H1 2018. The company has seen a double digit growth, especially for its premium products. Haier India has grown 91 percent in the refrigerators business in the mid and high segment. In washing machines, the company has grown 71 percent and in AC there has been a growth of 48 percent. While in TV segment, Haier has reported 51 percent growth during January-June period of 2018. The company has registered 136 percent growth in the water heaters segment, 41 percent in microwave ovens and 33 percent in deep freezers. The company presently sources around 70 percent locally for production and expects it go higher as it is increasing the number of models manufactured in India. The company aims to touch the USD 1 billion mark (Rs 6900 crore) by 2020 in revenues and expects to be among the top three consumer appliances brands in the country.

Qingdao Haier Co., Ltd. achieved global revenue of Rs 1,62,469 crore (RMB 159.254 billion), representing an increase of 33.68 percent. Excluding the effect of consolidating the financial results of GEA, the original businesses of the company, i.e. refrigerators, washing machines, air conditioners, and kitchen products recorded increases of 18 percent, 20 percent, 48 percent, and 25 percent, respectively, each representing their highest growth in recent years. Net profit attributable to the company for the year was Rs 7066 crore (RMB 6.926 billion), up by 37.37 percent. Net profit after deduction of non-recurring profit or loss attributable to the shareholders of company was Rs 5738 crore (RMB 5.624 billion), with an increase of 29.81 percent.


“We have had a positive year at Mirc Electronics, where we achieved a clear turnaround in business. The markets have responded well, with a healthy growth in our share price in the last 12 months. This is the right time for us to build strongly on our base with investing in the brand Onida.

In line with the Make in India policy, Onida has the same vision of making India proud with Made in India labels. Our own plant assembles modules, which are critical parts of our LED TVs. On one hand, while this generates more employment, at the other end, this also means a whole lot of improvement in the infrastructure of our Wada facility. Local manufacturing means doing away with our custom cost, thereby bringing in cost reduction. With the introduction of GST, the cost differential has been done away with.

We have tied up with Google for our smart TVs and are working toward becoming their most preferred partner in India, for this category. With a young demographic segment emerging as one of the largest consumer segments in India, a range of new customer needs are set to emerge. With this perspective, we plan to use Artificial Intelligence in to our manufacturing of smart TVs.

On the communication front, we are back with the much loved Onida Devil. Recently re-launched during this summer, our campaign has generated a lot of buzz in the market. In the category, currently there is a lot of attention on the peripheral areas and our communication has steered away from all this clutter, to bring back the focus on the key task on air conditioner, which is cooling.

This year has been fantastic for Onida washing machines where we witnessed a significant growth in comparison to the industry witnessing marginal growth of 5 percent. As we march ahead, we plan to make failure proof products, adding to customer delight in every step.”

Gulu. L. Mirchandani
Mirc Electronics Limited

The financial year 2017-18 was a year of challenges. On one hand, pre-GST sales gave the company an all time high second quarter of 2017-18 and on the other hand, post GST the market witnessed a steep fall. The government has increased the custom duty rates for LCD/LED/OLED panels and other parts to 15 percent. Also, from nil duty on 12 specified parts for manufacture of LCD/LED TV panels, a 10 percent duty has been imposed. In an already challenging scenario, while the industry was grappling with 28 percent GST and a decline in demand over last 4 months, the Union Budget has created quite a stir for the consumer durables industry.

The company too was not insulated from these challenges, due to continual evaluated market movements and strategy to navigate the volatile environment. The company in the current financial year could able to realize better margins which are reflected in the performance. During the financial year 2017-18, the turnover of the company stood at Rs 735.20 crore with operating profit of Rs 211.61 crore and profit of Rs 23.49 crore. The company improved the performance in key product categories like air conditioners, LED TVs, and washing machines. Better product mix helped improve the margins in these categories and helped turnaround the company.

Flat panel TVs. The company introduced more than 45 new models ranging from 24-inch to 55-inch, resolution HD, FHD, and UHD, both basic and smart models with basic audio to KY audio. During the year, the company introduced 55-inch UHD with the latest TV version of Android (5.0) with TV Android look and feel. The company also migrated to energy efficient platform; more than 85 percent of its TVs are 4/5-star. Onida also introduced three series of audio range: Rock, Premium Rock, and Super KY.

Washing machines. New models in semi-automatic and fully automatic top-loading category were introduced. Designer glass top models with aesthetic appeal helped boost the semi-automatic segment. In the fully automatic segment, Crystal series models with 6.2 kg capacity were launched, exclusively for the online sales.

Air conditioners. Onida introduced zero ODP, very low GWP, and energy efficient environmental friendly R-32 refrigerant gas in more than 50 percent models. The company has shifted focus to energy efficient inverter air conditioners. Keeping in view the growing market for inverters, Onida launched 43 models in the category.

Microwave ovens. The brand designed Black Beauty Neo microwave ovens that offer auto menu features like air fryer, milk boiling, egg boiling, and roti and naan. Air fry is designed for the health conscious menu which cooks food by circulating hot air inside the microwave cavity.

The company experienced intense competition and saw a rapidly changing market place with new competitors rising in the industry. Unpredictability and volatility are a tari of this business and the team is constantly making efforts to equip themselves with agility and flexibility. The core philosophy is to make a better and brighter living and to come up with ideas that make life enhanced and luminous for the consumers. The company plans to introduce many more innovative products, increase the offerings across categories for all the valuable consumers, and continue to create value for all the stakeholders.


The business of Vu Technologies includes sale and service contracts of LCD/LED TVs for consumers and LED displays for commercial applications. In 2017-18, the sales revenue at Rs 751.96 crore was higher than the previous year’s revenue of Rs 484.66 crore. During the year the profit after tax was Rs 50.12 crore as against the previous year’s profit of Rs 20.35 crore.

The company manufactures its televisions in China. During FY18, the company launched a new range of smart televisions – the Pop Smart, Office Smart, and Premium Smart. Aimed at today’s internet generation, the smart TVs range in size and price from 32-inch to 75-inch, and Rs 22,000 to Rs 250,000. The Pop Smart range has integrated apps, such as Hungama, Eros Now, YuppTV, and Hotstar. The television enables viewers to share pictures, video, and music from their Android or iOS mobile phones, and has a remote with pop buttons for favorite apps. The Office Smart collection supports Windows applications, allowing users to insert a pen drive into their televisions to access their files. It is a plug-and-play solution for offices. Its remote control also doubles up as a keyboard. The Premium Smart range has an inbuilt quad-core processor and is licensed by YouTube and Netflix to support their content. The company also introduced Vu Official Android TV. The 4K smart TV operates on the Android 7.0 Nougat. The TV unlocks official access to the complete Google ecosystem. In addition, the company also partnered with video on demand service providers like Netflix, Hotstar, and ALTBalaji, to provide certified VoD apps. A distinct feature of the TV is ActiVoice, which helps users to search, browse, and select in 88 languages. The ActiVoice search intelligence is also enabled to search within apps and recommend results according to a user’s preference.

Vu depends on China and Korea to source its panels and assembles its televisions in India. The company is in line with the  mission for software development and has an R&D lab. Along with its focus on design and product innovation, Vu has also strategically used the online platform to establish itself in the competitive Indian market. It has been associated with Flipkart for 3 years now and the exclusive tie-up has yielded big dividends that translate into much more than the number of units sold. With almost 60 percent of its sales coming from online channels like Flipkart, Vu has also got its offline strategy in place. It reaches out to 1600 multi-brand outlets, with retailers like Reliance Digital and its 25 company owned flagship Vu stores. The company also recently unveiled the Vu Quantum Pixelight LED TV. Boasting a pure metal industrial design, it offers 1500 nits brightness. This is a smart television with 4K resolution that comes with a simplified user interface and a dedicated Netflix button for launching the platform. Focusing on offering surround sound, the television comes with Dolby audio effect through 55,000 sound holes.

Going forward, Vu is also eyeing exports to European markets. There will be local apps and channels developed to suit the European markets. The company continues to endeavor in maintaining customers to their utmost satisfaction levels by registering an impeccable track record of quality and delivery efficiency, thereby ensuring their continued patronage for your company’s products and services.

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