The true potential of a company is only unleashed in the toughest of times. Globally, the pandemic could easily be considered as one such time witnessed by people, businesses and industries across all sectors. Everything was flipped on its head and there was a big dark cloud of uncertainty for the future looming over everyone. For some industries, the white goods industry for example, it in fact increased sales with everyone being indoors and looking to make investments that made staying indoors easier. White goods are major household appliances and may include air conditioner, dishwasher, clothes dryer, drying cabinet, freezer, refrigerator, kitchen stove, water heater, washing machine, microwave ovens and induction cookers. During the course of this pandemic, it is estimated that the white goods industry in India reached USD 13.66 Bn in the financial year 2021 alone. Out of this, the largest market share belonged to Air Conditioners, Refrigerators and LED products.
According to InvestIndia.Gov.in
- India’s Exports for Refrigerators, Air Conditioners, LEDs and Washing Machines amounted to $ 571 Mn in FY21
- India’s biggest Export destinations in White Goods are United Arab Emirates, Sri Lanka, and the United States.
- India’s Imports for Refrigerators, Air Conditioners, LEDs and Washing Machines amounted to $ 1.74 Bn in FY21
- India Imports White Goods primarily from China, Thailand, and Vietnam in the sector.
It is predicted that these figures will cross USD 21 billion by 2025 expanding at a CAGR of 11 per cent. A double-digit growth on a yearly basis is the minimum expectation at this time, aided by an increase in demand and fulfilled supply through easy availability of raw materials, which will drop the cost of the product.
According to India Brand Equity Foundation (IBEF), a government export promotion agency for the distribution and sale of Indian products internationally, the white goods industry in India is highly concentrated, with a select few segments like that of AC’s, refrigerators and washing machines capturing over 75 percent of the market share. This trend is a positive sign in the future for those looking to invest in companies from this segment.
Ease of entry and other government policies that make running a business in this segment easy are also aided by the digital era, constantly providing a platform for established brands like LG and Havells or even upcoming brands like Virtuoso and PG Electro to reach out to their clients. Besides positive government policies, 42 companies, including Virtuoso Optoelectronics Limited, Blue Star, Daikin, Havells, and Orient Electric, were selected under the PLI scheme which further boosted the growing white goods manufacturing companies in India. The potential of a bright future in this field owing to a number of factors like lifestyle patterns, better standard of living and much more, is what give’s brands like Virtuoso and PG Electro, opportunities to reach their truest potential.
As the bigger brands like LG, Voltas, Philips, Daikin and Havells keep their position in the market steady, up and coming companies, who actually work on the grassroot level and focus on customer satisfaction and success, along with developing a vibrant community are soon rising to the top. Tapping into their potential one client at a time, these companies are the future.
Today there are number of brands of white goods available in the market and they differ in price, quality, capacity, type etc. In today’s high tech world, it can be said that all middle class people are using the white goods to replace the human resources required. It’s evident that the quality, pricing, marketing, brand name, dealers network and after sale service put together decide the purchase. To sum it up white goods are no longer considered a luxury, it has become more of a necessity in India and Indian white goods manufacturing companies are helping to bring quality white goods for every home keeping customers need and comfort in mind. The Hindu BusinessLine