New Delhi, Oct 3 (PTI) India’s home appliance and consumer electronics market is expected to more than double over the next five to six years and reach up to Rs 2 lakh crore, helped by the growth of economy and the internal market, said the president of the industry body CEAMA, Eric Braganza.
In addition, to keep pace with growing demand, the industry also needs to build a much stronger component base in India, aided by programs such as the Production Linked Incentive Program (PLI), to eliminate dependence on imports, said Braganza, who took over as the new president of the Consumer Electronics and Appliances Manufacturers Association (CEAMA).
The industry must become more and more integrated in its manufacturing, strengthen its component base and achieve price competitiveness, which will be the key to spur growth and make India a major manufacturing and export base. for the sector, he added.
While speaking about growth, Braganza said he was “optimistic” despite the fact that the industry was facing a slowdown in some segments before the pandemic and the two successive lockdowns had disrupted the market for cooling products. compressor base in their peak seasons in 2020 and 2021.
According to Braganza, a recovery in the economy is expected and factors such as declining penetration levels of home appliances and consumer electronics, increasing replacement opportunities, growing middle class adding new customers , etc. would be an engine of growth.
“I am very optimistic because if you look at the market we find ourselves in today in 2021, five to six years later, we should double that market. Everything indicates that our industry will double five to six years later,” he said. Braganza told PTI.
The industry is currently estimated at around Rs 75,000 crore after facing turbulence during two pandemic waves, which disrupted the market along with a shortage of components and inflationary pressure on raw material inputs.
“If you take the price increase over the next six years, I think we’ll be close to the Rs 2,000,000 crore market. So it’s going to be a huge industry,” he added.
Braganza also said the industry has opted for price increases due to inflationary pressure on raw material inputs and the continued northward trend in freight costs, which are sure to affect the power of customer’s purchase.
“Also, I think Exercise 22 will not be easy, because when the pandemic market opens up and people start to slowly return to their normal lives, we will see massive splurge in people spending on whatever. they didn’t do during the pandemic, ”he said.
There could be “revenge spending” on the part of people traveling abroad on vacation, buying clothes, jewelry, etc.
“And what will happen as a result in 2022 is how I feel, the same amount of money that would normally have been spent on home appliances and consumer electronics will now be reduced because people splurge, I guess it will take about a year for people to get back to normal, ”he added.
While outlining his priorities as President of CEAMA for the next two years, Braganza said his agenda would be to develop the domestic market, develop the component manufacturing base, make the products competitive in India, so that the industry’s dependence on imports be reduced and save on foreign exchange.
“So I think the crucial thing will be, along with the growth of the domestic market, to develop our manufacturing base, to reduce our expenses and to save on foreign exchange and to make our products competitive in terms of price so that we can export, ”said Braganza, who heads Haier Appliances. India.
Founded in 1978, CEAMA represents the consumer electronics and home appliance industry and aims to enhance the development of the industry and the manufacturing of its components. PTI KRH MKJ
Disclaimer: – This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI