The consumer durables industry is gearing up for the upcoming festival season amid the challenges of rising raw material costs and other inflationary pressures. Eric Braganza, president of Haier India, who succeeded as the new president of the Consumer Electronics and Appliances Manufacturers Association (CEAMA), believes the industry is expected to experience double-digit growth during this festival season compared to the previous season, despite the challenges.
CEAMA is the umbrella industry body representing the consumer electronics and home appliance industry and has played a key role in raising relevant industry issues. The industry veteran has been appointed president of the industry body for the period 2021-2023.
Develop the ecosystem
Speaking about the future goals of the industrial body, Braganza said: “Our main objective is to work closely with the government to develop the domestic market, create economies of scale, increase the competitiveness of exports and make India a key manufacturing center. We will need to take a close look at all product categories and see how we can develop a more robust component ecosystem to reduce reliance on imports and save valuable foreign exchange.
“Much like the PLI program for AC components, I believe more production-related incentive programs are needed in other product categories to strengthen the Make-in-India initiative and the components ecosystem.” , did he declare.
The industry body also urged the government to streamline the GST on air conditioners and large televisions above 32 inches to 18 percent from the current 28 percent to fuel industry growth. .
“I think the industry will see a growth of 15-20% during this festival season compared to the previous year,” he added.
Price hike inevitable
Responding to a question about the challenges, Braganza said: “The industry is under pressure from high raw material costs and an increase in other inflationary pressures such as freight costs; a further rise in prices is inevitable. But it is difficult to withstand price hikes during festival season as it is a key selling period for the industry.
Braganza noted that the durable consumer goods industry is on the verge of almost doubling over the next 5-6 years and as a result, the sector has the potential to become the engine of economic growth and create opportunities. substantial employment.
Despite the pandemic, factors such as pent-up demand have helped the industry overcome some of the challenges over the past year and a half. “Consumers had limited spending options during this time, so they focused on upgrading their home appliances for a better lifestyle. But as other activities resume their normal course, these expenses are likely to be diverted to sectors such as aviation, tourism and hospitality. The industry could therefore experience a slight slowdown in 2022. But we hope to see a strong summer season for air conditioners and other cooling products next year, ”he added.