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In Chennai, sales of refrigerators and A/C increases as the summer approaches faster
Posted on: 23/Mar/2019 10:00:10 AM
Last year the summer was not up to the mark and as a result of that many cooling appliances were not sold out and there was a dip in the sales. Now in this month of March itself there are signs that this summer season would be totally different and it would be highly beneficial for the air-conditioners and refrigerators manufacturing and selling companies. It is worth mentioning that the summer sales of these cooling appliances have already picked up in the southern India.
The amazing point to note that the sales of A/C and refrigerators have begun registering double digit growth as the temperature keeps on rising every day. This double digit growth is especially found in southern states like Karnataka, Kerala, Andhra Pradesh and Tamil Nadu.
It has been predicted that summer would be extreme this time and going by the prediction the sales would increase in other parts of India also. The point is in the summer of 2018 the air-conditioners de-grew by 5 to 7 % and refrigerator witnessed a flat growth of around 2%.
Mr. Kamal Nandi, business head and EVP, Godrej Appliances and president of industry lobby CEMA, explained about how in 2018 the summer had set in late and how there was intermittent rains in the 3 months of the summer season. He assured that in this summer season there would not be such disruptions and this was as per the forecasts.
The growth of refrigerator sales would be between 10 to 12 percent and that of air-conditioners would be 12 to 15 %. He was delighted about the fact that the sales in the southern markets had already clocked 10 to 15 percent growth.
According to Mr. B. Thiagarajan who is the joint managing director of Blue Star, there would be 20 to 25 percent growth in the summer season in 2019. By this double digit annual growth would be there. He was unsure about the entire summer season but was hopeful that his company would have better time now.
He then spoke about how the summer season would make the overall yearly sales to grow by 10 to 15 %. Mr. Thiagarajan pointed out that summer season sales was responsible for 40% of yearly sales of consumer appliances.
The important information gathered is air-conditioners are taxed at GST of 28% and it wont create issue for the sales as the excise and state sales tax were closer to this level under the earlier government.
