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    Potential For Induction Cooker in Indian Market

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    Emy Ann Oommen
    The document discusses the potential market for induction cookers in India. It notes that the Indian government has capped the number of subsidized LPG cylinders per household due to shortages, increasing their costs. This has created a market opportunity for induction cookers, which are more energy efficient and cheaper to use than LPG cylinders. Major companies like Prestige and Bajaj have aggressively promoted induction cookers as an alternative. The induction cooker market is growing and represents potential for both domestic and global players given India's large population and government policies supporting renewable energy alternatives.

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    Potential For Induction Cooker in Indian Market

    Uploaded by

    Emy Ann Oommen
    69 views3 pages
    The document discusses the potential market for induction cookers in India. It notes that the Indian government has capped the number of subsidized LPG cylinders per household due to shortages, increasing their costs. This has created a market opportunity for induction cookers, which are more energy efficient and cheaper to use than LPG cylinders. Major companies like Prestige and Bajaj have aggressively promoted induction cookers as an alternative. The induction cooker market is growing and represents potential for both domestic and global players given India's large population and government policies supporting renewable energy alternatives.

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    Potential for Induction Cooker in Indian Market

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    The document discusses the potential market for induction cookers in India. It notes that the Indian government has capped the number of subsidized LPG cylinders per household due to shortages, increasing their costs. This has created a market opportunity for induction cookers, which are more energy efficient and cheaper to use than LPG cylinders. Major companies like Prestige and Bajaj have aggressively promoted induction cookers as an alternative. The induction cooker market is growing and represents potential for both domestic and global players given India's large population and government policies supporting renewable energy alternatives.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    69 views3 pages

    Potential For Induction Cooker in Indian Market

    Uploaded by

    Emy Ann Oommen
    The document discusses the potential market for induction cookers in India. It notes that the Indian government has capped the number of subsidized LPG cylinders per household due to shortages, increasing their costs. This has created a market opportunity for induction cookers, which are more energy efficient and cheaper to use than LPG cylinders. Major companies like Prestige and Bajaj have aggressively promoted induction cookers as an alternative. The induction cooker market is growing and represents potential for both domestic and global players given India's large population and government policies supporting renewable energy alternatives.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    LOYOLA INSTITUTE OF BUSINESS ADMINISTRATION

    Potential for Induction cooker in Indian market

    Managerial Economics
    8/17/2013

    NAME

    EMY ANN OOMMEN

    ROLL NO

    F13027

    SECTION

    Potential for Induction cooker in Indian market


    Changes in the macroeconomic environment and governmental policies can have a
    substantial impact on the revenue and profits of an organisation. The global landscape
    is so fiercely competitive that unless market players capitalise on the prospects that
    come their way, they are sure to lag behind or lose out on critical business opportunities
    To cope with the ever increasing demand of petroleum and associated products, the
    government of India was forced to curb the number of LPG cylinders per household, at
    the same time cater to the needs of a 1.2 billion population. With the petroleum industry
    reeling under losses of more than Rs 44,563 crore through LPG alone and the recent
    loss of the value of the rupee leaves little or no option for the department of petroleum
    to impose stringent measures to balance the needs of the petroleum industry with the
    basic requirements of the people. So there is a scarcity of LPG . One cannot rule out the
    possibility of the governments decision being one amongst the slew of measures to
    strategically encourage consumers to move to alternate options of kitchen fuel.
    The government of India decision to impose a cap on the number of subsidized LPG
    cylinders per household due to scarcity has proved a boon to the players in the fiercely
    competitive induction cooker market. Families with a consumption of more than nine
    cylinders per year would need to shell out almost 130% more than the subsidized rates
    for every additional cylinder they purchase. The new motion passed by the government
    had left home makers fuming, since for many a household the number of subsidized
    cylinders provided are not sufficient to meet their household needs. This forced families
    to look at alternative means to reduce expenditure on cooking gas. Thus a market for
    Induction cooker is established.
    Companies like Bajaj, Philips, Prestige, Khaitan, Jaipan used this opportunity to
    promote the use of the induction cooker as an alternative to the LPG cylinder. An
    induction stove uses electricity and works on the principle of magnetic induction to heat
    food. It is almost 80% more energy efficient and faster than conventional heating
    methods. An average city home uses about 12 LPG cylinders per year. The induction
    cooker priced at an average of Rs 2500 is almost two and a half times the total spent for
    LPG gas per year.

    Prestige, currently the leader with a market share of 25%, closely followed by Bajaj at
    17% are looking at aggressive marketing techniques to increase popularity and create a
    bigger demand for this relatively new concept. With the increase in promotion and
    improved dealer network, companies are also looking at providing a robust aftermarket
    service network for the customers. Customers relying on induction cookers as a source
    of energy for cooking require high quality, reliable products with almost little or no
    maintenance. Global players like Crompton Greaves, Kenwood, and Philips with
    advanced technology are also working to grab a piece of the pie which seems to be ever
    growing with the recent changes in government policy.
    Unable to cope with the increase in demand and limited supply, the strain on nonrenewable energy sources is evident with governmental policies offering benefits to
    companies to reduce carbon footprint. With emphasis gradually shifting to renewable
    green energy market players in this segment envisage a huge potential in India. The use
    of electricity as a source for cooking in itself has limitations since a lot of villages in
    India still lack electrification. Besides, most cities also fall prey to power cuts during
    summer with limited power supply. The government should develop infrastructure to
    provide clean renewable energy through gobar gas, solar energy or windmills. Slow
    governmental approvals, administration and policies continue to hamper decisions and
    investment options of foreign players. With foreign direct investment options slowing
    opening up, the India market continues to offer huge potential for companies to invest
    and explore business opportunities for global and local players in this industry.

    References:

    www.censusindia.gov.in

    http://newindianexpress.com/cities/kochi/article1287646.ece

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