Consumer Durables

May 2024
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Table of Contents

Executive Summary 3

Advantage India 4

Market Overview 6

Recent Trends and Strategies 14

Growth Drivers 18

Opportunities 23

Key Industry Contacts 27

Useful Information 30

2
Executive summary

% increase in
% increase in % increase in % Increase in sales of Electronics India’s Smart
smart Phone exports of consumer hardware Watch market
Shipments in electronic goods electronics and production in shipments in
Q1 24 in April 2024 appliances in FY23 2022 CY 2023

8% 25.8% 46.8% US$ 87 billion 50%

*Compared with same month/quarter in the previous year

▪ By 2025, India's Consumer Electronics and Appliances Industry is predicted to be the fifth-largest in the world. India's consumer electronics and home
appliances market is set to grow by US$ 2.3 billion between 2022 and 2027, registering a CAGR of 1.31%.

▪ Demand for electronics hardware in India is expected to reach US$ 400 billion by FY24.

▪ The government anticipates that the Indian electronics manufacturing sector will reach US$ 300 billion by 2024–25.

Indian Appliance and Consumer Electronics Hardware Production in India

Television Market in India (US$ billion)
Electronics Industry (US$ billion) (US$ billion)
21.12% 11.5%
40.9% 20
100 15
17.93 10 17.56
50 89.38 87.00
72.38 11.26 13.66
31.13 5 10.19
9.84
0 0
2021 2025F FY15 FY19 FY20 FY22 CY2017 CY2019 CY2021E CY2022F

Notes: F – Forecast; CY - Calendar Year, E – Estimate, F – forecast, * - M-o-M growth rate in Rs.
Source: FICCI-EY Re-imagining India's M&E sector, PwC - Championing change in the Indian appliance and consumer electronics industry, National Policy on Electronics 2019,
Directorate General of Commercial Intelligence and Statistics

3
Advantage India

4
Advantage India
1. Growing demand
4. Increasing investment
► Due to a flourishing economy and changing
demographics, India's smartphone market ► Haier appliances plans to invest ~ Rs. 800
is projected to grow to US$ 90 billion by crore (US$ 96.28 million) in 2024, with
2032. further initiatives in pipeline.
► The headset market revenue in India is ► In FY23, Godrej Appliances announced
projected to reach US$ 77 million by 2027 plans to invest US$ 25.11 million in the
at a CAGR of 4.7%, driven by rising capacity expansion of its premium range.
adoption of wireless headsets among ► Between April 2000- December 2023,
consumers. electronic goods attracted FDI inflows of
US$ 4.57 billion.
► The dishwasher market in India is expected
to surpass US$ 90 million by 2025-26, 1 4
driven by rising demand from metro cities
such as Mumbai, Hyderabad, Delhi and
Bangalore. 3. Policy support
ADVANTAGE
2. Opportunities ► 100% FDI allowed in electronics hardware-
INDIA manufacturing.
► Tech players such as Play (a tech brand) ► The PLI scheme for White Goods (ACs and
are focusing on tapping the Indian 2 3 LED lights) spanning FY 2021-22 to FY
consumer electronics market, developing 2028-29 approves 64 applicants with a
an electronic components manufacturing committed investment of Rs. 6,766 crore
base in India, and encouraging export. (US$ 814 million).
► Consumer electronics brands are focusing ► The Ministry of Consumer Affairs has
on the Indian smart wearables market. asked top consumer durables companies
India’s wearable market registered another (such as LG, Samsung, Havells, etc.) to
record quarter, shipping 134 million units in share data in order to create a common
CY 2023, a growth of 34 % YoY. repository of information on their service
► During April 2024, electronics exports grew centres and repair policy in an effort to
by 25.8% YoY to reach US$ 2.65 billion. protect customers' rights to repair and
With robust growth, India aims to achieve maintain home appliances.
electronics manufacturing worth US$ 300 ► In March 2023, Samsung invested in
billion in electronics and exports of US$ 120 setting up smart manufacturing capabilities
billion by FY26. at its mobile phone plant in Noida.

Source: DPIIT, ICE 360 Survey 2016, Blue Star Investor Presentation August 2018, *BARC India Universe Update July 2018, Bombay Stock Exchange, News Articles

5
Market Overview

6
The consumer durables market is split into two key segments

Consumer Durables
Consumer Electronics Consumer Appliances
(Brown Goods) (White Goods)

Televisions CD and DVD players

Air conditioners Washing machines

Laptops Electronic accessories Electric fans Microwave ovens

Audio and video systems Personal computers

Refrigerators Sewing machines

Digital cameras Camcorders

Cleaning
equipment

7
Evolution of the Indian consumer durables sector

1980s and early

Mid and late 1990s Early 2000s Late 2000s 2017
1990s Pre
Liberalisation Growth Consolidation onwards
Liberalisation

▪ Closed market. ▪ Liberalisation of markets. ▪ Increasing availability and ▪ Companies look to ▪ GST introduced from July
▪ Increased product ▪ Influx of global players affordability of consumer consolidate market share. 2017, with most
availability, increased such as LG and finance provides impetus ▪ Indian companies such as electronics goods taxed at
media penetration and Samsung. to growth. Videocon gaining global 18%.
advertising. ▪ Shift in focus from ▪ Low penetration of high- identity. ▪ In 2019, National Policy of
promotion to product end products such as air ▪ Increasing penetration of Electronics 2019 (NPE
innovation. conditioners (<1%). high-end products such as 2019) introduced.
air conditioners (>3%). ▪ The PLI scheme for White
▪ Introduction of new Goods (ACs and LED
aspirational products such lights) spanning FY 2021-
as High Definition TVs 22 to FY 2028-29
(HDTVs). approves 64 applicants
▪ Companies targeting high with a committed
growth in rural market. investment of US$ 814
million (Rs. 6,766 crore).
Note: SAFTA - South Asian Free Trade Area, ASEAN - Association of Southeast Asian Nations
Source: TechSci Research

8
Growth in consumer durables…(1/2)
Indian Appliance and Consumer Electronics Industry
Production of Major White Goods (lakh units)
(US$ billion)

CAGR 9% 300
60
Refrigerators

275
50 48.37 250

Other 200
40
31.48 21.50 Appliances Air Conditioners
30 150

165
145
13.82 26.87

126
20 Smartphones 100
Washing &
17.66 Laundry Machines
10

70
50

65
0 0
2017 2022F FY19 FY25E

▪ By 2025, India's Consumer Electronics and Appliances Industry is predicted to be the fifth-largest in the world.
▪ The Indian Appliances and Consumer Electronics (ACE) market is predicted to nearly double in the next 3 years, reaching approximately Rs. 1.48 lakh
crore (US$ 17.93 billion) by 2025. FDI in the Computer Software & Hardware industry has been second highest US$ 98,328 million for FY24 (April-
December)
▪ The White Goods market is estimated to cross US$ 21 billion by 2025 expanding at a CAGR of 11%. Domestic manufacturing contributes nearly US$ 4.6
billion on average to this industry.
▪ According to a report from Counterpoint’s “Make in India” initiatives , mobile phone shipments value is up by 18% YoY.
▪ India’s electronics exports surpass US$ 20 billion in FY23, with iPhone dominates surge.
▪ In the financial year 2022–23, India's exports of mobile phones doubled from Rs. 45,000 crore (US$ 5.45 billion) in 2021-22 to Rs. 90,000 crore (US$
11.12 billion). India is the second largest mobile manufacturer in the world.

Note: (F) Forecast, E – estimated, CY – Calendar Year, FY – Financial Year, F-forecast

Source: Electronic Industries Association of India, PwC - Championing change in the Indian appliance and consumer electronics industry, Cisco, India cellular and Electronics Association
(ICEA), News Sources

9
Growth in consumer durables…(2/2)

White Goods Market in India in FY24E (US$ billion) YoY Growth in Consumer Durables Production as per IIP

7 15.0% 12.5%
11.5%
6 10.0%
5.88 5.5%
5
5.10 5.0% 3.4% 2.9%
4 0.8%
3.85 0.0%
3 0.5%
2
-5.0%
1
-8.4%
-10.0%
0 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Refrigerators Air Conditioners Washing Machines

▪ As of 2021, the refrigerator, washing machines and air conditioner market in India were estimated around US$ 3.82 billion, US$ 8.43 billion and
US$ 3.84 billion, respectively.
▪ India’s Exports for Refrigerators, Air Conditioners, LEDs and Washing Machines amounted to Rs. 4,732.54 crore (US$ 571 million) in FY21.
▪ India’s Imports for Refrigerators, Air Conditioners, LEDs and Washing Machines amounted to Rs. 14,421.40 crore (US$ 1.74 billion) in FY21.
▪ Import contributed to 20% of domestic market for washing machines and refrigerators and around 30% for air conditioners in FY20.
▪ In March 2023, the Quick estimates of Index of Industrial Production (IIP) for consumer durables stood at 155.
▪ In 2022-23 (April-November), the export of white goods are as follows:
• Refrigerators, freezers and other refrigerating accounted for Rs. 116,223.32 lakh (US$ 140.97 million)
• Washing machines accounted for Rs. 35,819.59 lakh (US$ 43.33 million)
• Air conditioners accounted for Rs. 146,432.20 lakh (US$ 177.60 million)
• Electric lamps & Lighting fittings including tubes accounted for Rs. 160,750.62 lakh (US$ 194.97 million)
Note: IIP – Index of Industrial Production, E- Expected
Source: Edelweiss Investment Research – Impact Analysis of Custom Duty Hike on Consumer Goods, MOSPI, News Sources

10
Consumer electronics – Key products
1. Smart 7. Electric fans
• Production of fans increased 4.4% YoY
Watch to reach 23.42 million units in FY20.
• India’s smartwatch shipments grew 50%
YoY in CY2023, driven by the rising
1 7 • The Indian fan industry is optimistic
that with BEE Star labelling criteria
penetration of smartwatches, requirements and a production-linked
proliferation of low-cost devices to target Incentives (PLI) scheme, the country
first-time users. will become a manufacturing
• With a 30% share, Fire-Bolt took the top 6 powerhouse.
spot in 2023.

2 6. Washing appliances
2. Flat panel • Indian washing appliances current market
size is US$ 3.76 billion which is expected to
display grow US$ 5.43 billion by 2029 with CAGR of
• LED/LCD/Plasma television sets 5 •
7.65%.
In April 2021, Samsung launched an
present a huge opportunity in
India with a penetration of only
14% households in 2019.
3 artificial intelligence-enabled bilingual
washing machine with user interfaces in
• The flat panel television (LED,
LCD, HD, and UHD) market in
4 •
Hindi and English.
Fully automatic machines account for over
60% of the washing machine market, while
India was valued at US$ 9.05
semi-automatic machines account for 40%.
billion in FY18 and is expected to
reach US$ 16.24 billion by FY24, 5. Air Conditioners
growing at a CAGR of 9.25%. 4. Refrigerators • Installed stock of room ACs in India
3. Direct-to-Home • Refrigerator Market in India to increase to US$ 7.6
increased from two million units in 2006 to
30 million units in 2017 and is expected to
▪ The DTH industry was expected to witness billion by FY29 from US$ 5.1 billion in FY24 at a CAGR
be between 55-124 million by 2030.
growth up to 6% from FY20 to Rs. 22,000 crore of 9%.
• In February 2021, Blue Star launched a range of • In April 2022, 17.5 lakh AC units were
(US$ 2.9 billion) in FY21. The recent tariff hike by commercial refrigerators, with offerings comprising sold, an all-time high for the month.
India’s direct-to-home (DTH) operators is likely to temperature-controlled designs for refrigeration and • Air Conditioner Market in India to increase
help them log a 6-8% growth in revenue to Rs. storage of vaccines. In March 2020, the Bureau of to US$ 9.8 billion by FY26 from US$ 3.8
Energy Efficiency (BEE) launched a star labelling
19,500 crore (US$ 2.34 billion) in FY24. billion in FY21 at a CAGR of 20.8%.
program for all white goods.
Source: CEAMA, Electronic Industries Association of India, Economic Times, *EY – Re-imagining India’s M&E sector, National Policy on Electronics 2019, News Articles

11
Key players in the consumer durables sector … (1/2)

▪ White goods industry in India is highly concentrated. In washing machines and refrigerators, the top five players have more than 75% market
share, while for air conditioners and fans it is around 55-60%. On the other hand, kitchen appliances segment is fragmented with top five players
having 30-35% market share.

1 ACs, refrigerators, specialty cooling products including mortuary chambers and

cold storage.

2 ACs and cooling equipment.

3 Refrigerators, ACs, washing machines, microwave ovens, DVD players, digital-

imaging products and audio-visual products.

4 ACs and refrigerators.

Note: This list is indicative

Source: Company Website

12
Key players in the consumer durables sector … (2/2)

5 TVs, audio-visual solutions, computers, mobile phones, refrigerators, washing machines,

microwave ovens, vacuum cleaners and ACs.

LCDs, washing machines, DVD players, ACs, microwave ovens, mobile phones,
6 projectors and display products.

TVs, home theatre systems, DVD players, audio products, personal care products,
7 household products, computers and phones.

TVs, home theatre systems, DVD players, mobile phones, digital cameras, camcorders,
8 refrigerators, ACs, washing machines, microwave ovens and computers.

9 TVs, projectors, DVD players, audio systems, home theatre systems, digital cameras,
camcorders, computers, video-gaming products and recording media.

Refrigerators, washing machines, microwave ovens, water purifiers and power backup
10 solutions.

Note: This list is indicative

Source: Company Website

13
Recent Trends and Strategies

14
Notable trends in the consumer durables sector
1. Shared economy 5. Expansion into new
• Rentals of home appliances are growing segments
in urban areas due to free add-on
services like relocation and periodic • Electrical appliances maker V-Guard
maintenance, which are not available in Industries has announced plans to invest in
the ownership model. new manufacturing plants. Over the next 12
months, the company will open four
• Start-ups like Rentomojo, Furlenco and
additional factories: two in Hyderabad, one
Rentickle have come up in this space
and offer rentals on furniture,
5 in Vapi, and one in Uttarakhand.
appliances and other products. 1 • In FY23, Godrej Appliances announced
plans to invest Rs. 200 crore (US$ 25.11
million) in the capacity expansion of its
premium range.
2. Rising consumer digital • In September 2021, US-based consumer
economy electronics brand Westinghouse Electric
Corporation forayed into the Indian market
• The Indian mobile phone market is
predicted to generate Rs. 2.4 trillion
2 4 by launching a range of TV sets. The brand
collaborated with its Indian licensing partner
(US$ 29.38 billion) in revenue by FY26. Super Plastronics Pvt Ltd (SPPL) and
• According to RedSeer, India's consumer signed an exclusive licensing agreement
digital economy is projected to reach with it.
US$ 800 billion by 2030, from US$ 85-90
billion in FY20, driven by increase in
3 • In 2022-23, India produced wearables such
online shopping. as earphones and smartwatches worth US$
970.31 million (Rs. 8,000 crore).
3. Increased affordability of products 4. Shifting manufacturing bases
• There were 6.5 crore active consumer durable loans at December- • Apple is planning to increase its manufacturing
end 2022, registering an annual growth of 48% over the last year. production outside of China, with India and Vietnam
• With the initiative of “Make in India” campaign, many domestic and both likely to benefit from this decision. Apple is
Chinese manufactures are investing in India to set up their currently in discussions with some of its suppliers
manufacturing plants which would produce more affordable products. about expanding production in India, and potentially
even producing goods for export. Apple wants to
move more than 18% of its iPhone production to
Source: CEAMA, India Retail Report, Business Line, IMAP India, News Sources
India by 2025, up from 7% in 2023.

15
Strategies adopted (1/2)

1 2 3

STRATEGIC PARTNERSHIPS OVERHAULING OF DISTRIBUTION OCCASION BASED MARKETING

FRAMEWORK
▪ Smartphones companies are leveraging ▪ India is the land of occasions and
strategic partnerships to cater to the ▪ More brands are having a uniform festivals; therefore, customers are
consumer durables market in India. pricing strategy in order to expand offered great deals.
retail sales.
▪ In April 2021, Hisense collaborated with ▪ For instance, the prices of products
Croma retail stores to showcase their ▪ Focus on tier II and tier III towns during Diwali, New Year, etc. go
line-up of QLED, UHD and Smart TVs at have increased to have a wider down and customers are offered
185+ Croma stores across India. distribution network. great deals. Such strategies are
adopted to increase revenue and
▪ In November 2021, Flipkart signed an ▪ Companies like Bajaj Electricals
enhance goodwill among buyers.
MoU with the Ministry of Rural and Crompton Consumer are
Development of the Government of India working on real time demand
(MoRD) for their ambitious Deendayal feedback to reduce turn around
Antyodaya Yojana – National Rural time (TAT).
Livelihood Mission (DAY-NRLM)
programme, to empower local
businesses and self-help groups (SHGs)
by bringing them into the e-commerce
fold.

Notes: ISEER - Indian Seasonal Energy Efficiency Ratio

Source: News Articles

16
Strategies adopted (2/2)

4 5 6

SALES STRATEGIES FOCUS ON ENERGY EFFICIENCY AD VOLUME GROWTH

▪ E-commerce companies reported sales ▪ Companies also plan to increase • As per TAM's latest AdEx report,
worth US$ 9.2 billion across platforms in the use of environment-friendly television advertising for the
October and November (2021), driven components and reduce E-waste durables sector grew 2.5 times
by increased shopping during the festive by promoting product recycling. during January-May 2022, as
season. With festive season sales, compared to the same period in
▪ India has made it mandatory for
Flipkart Group emerged as the leader 2021. The sector grew 23% YoY in
manufacturing companies to
with a 62% market share. January-May 2022.
control emissions from climate-
damaging refrigerants. • The Indian consumer electronics
and home appliances market is
▪ In January 2020, the Bureau of
estimated to grow at a CAGR of
Energy Efficiency (BEE) made it
1.31% between 2022 and 2027.
mandatory for all room air
conditioners to have a default • For the same period, the top ten
temperature of 24 degrees Celsius. advertisers accounted for >50%
share of sector’s ad space, with
TTK Prestige India at the top of the
advertiser’s list with 17% share in
the sector’s ad space.

Notes: ISEER - Indian Seasonal Energy Efficiency Ratio

Source: News Articles

17
Growth Drivers

18
Strong demand and policy support driving investments

Growing demand Policy support Increasing investment

Setting up of Expanding production

Higher real disposable Electronic Hardware and distribution
incomes Technology Park facilities in India
(EHTP)

Resulting in
Increasing
Inviting
Easy consumer credit Increased R&D activity
liberalisation,
favorable FDI climate

Policies such as the

Providing support to
Growing working National Policy on
global projects from
population Electronics 2019 and
India
digitisation of TV
services

Reforms like
simplified labor laws
and Technology
Upgradation Fund
Scheme

Notes: EHTP - Electronic Hardware Technology Park, R&D - Research and Development
Source: TechSci Research

19
Income growth will drive demand for consumer durables

▪ Demand for consumer durables in India has been growing on the Visakhapatnam
GDP Per Capita
port
at Current
traffic (million
Prices tonnes)
(US$)
back of rising incomes. This trend is set to continue even as other
factors like rising rural incomes, increasing urbanisation, a growing
3,000
middle class and changing lifestyles aid demand growth in the
sector.

2,730
▪ Significant increase in discretionary income and easy financing 2,500

2,612
schemes have led to shortened product replacement cycles and

2,411
evolving lifestyles where consumer durables like ACs and LCD TVs

2,238
are perceived as utility items rather than luxury possessions. 2,000

2,050
1,974
1,958

1,913
▪ Growth in demand from rural and semi-urban markets is likely to
outpace demand from urban markets.
1,500
▪ In October 2020, Samsung’s consumer electronics business in India
increased by >30% due to increased demand from smaller cities,
which are racing ahead of metros. 1,000

▪ Growth in online retailing is a key factor to reach out as a newer

channel for buyers, with increase in demand.
500
▪ Per capita GDP of India is recorded US$ 2,730 in 2024, which shows
positive trend for the economy over the years.

▪ Non-metro markets, namely Vishakhapatnam, Bhopal, Vadodara, 0

2017

2018

2019

2020

2021

2022

2023

2024
Chandigarh, etc., have grown rapidly on consumption, becoming the
main target markets and posing a huge potential to turn into new
business centres as compared to metro cities.

Source: World Bank, RedSeer Consulting, International Monetary Fund, World Economic Outlook Database, April 2018

20
Policy support aiding growth in the sector
1
Production-Linked Incentive (PLI) Scheme
▪ The Indian government distributed approximately Rs. 79 crore (US$ 9.51 million) in fiscal incentives under the Production Linked Incentive
(PLI) scheme for white goods during the last quarter of fiscal year 2024.
▪ Production Linked Incentive Scheme (PLI) for IT Hardware, dated March 3, 2021, provides a production-linked incentive to stimulate domestic
manufacture and attract big investments in the value chain.
▪ In March 2022, the government approved 14 companies under the production-linked incentive (PLI) scheme for IT hardware. Over the next four
years, these companies are expected to fuel total production of Rs. 1,60,000 crore (US$ 19.23 billion).
▪ In November 2021, 42 companies were selected under the PLI Scheme for White Goods with a committed investment of Rs. 4,614 crore (US$
580.6 million), expected to create additional direct employment for 44,000 people.
▪ In April 2022, 19 companies filed applications for the PLI Scheme for White Goods in the 2nd round of applications, with committed investments
of Rs. 1,548 crore (US$ 194.79 million).
▪ In June 2021, the government extended the PLI scheme for large scale electronics manufacturing by a year (until FY26), giving a boost to the
industry.
▪ India is trying to become a US$ 1 trillion digital economy by 2025. In addition, projects such as ‘Smart Cities’ and ‘Digital India’, coupled with
factors such as the government's push for data localisation, Internet of Things (IoT) market in India, are expected to increase the demand for
electronic products. The PLI scheme aims to boost the production of electronic products in India.
Sectors Ministry/Department Approved financial outlay over a five-year period

Electronic/Technology Products Ministry of Electronics and Information Technology Rs. 5,000 crore (US$ 674.92 million)

White Goods (ACs & LEDs) Department for Promotion of Industry & Internal Trade Rs. 6,238 crore (US$ 842.03 million)

2
Estimated Increase in Exports
▪ The National Policy on Electronics 2019 is targeting the production of one billion mobile handsets valued at US$ 190 billion by 2025, out of
which 600 million handsets valued at US$ 100 billion are likely to be exported.
▪ The PLI scheme, which has been approved for 16 electronics firms, including 10 manufacturers of mobile handsets, would further improve
India's role in the global mobile market and complement the goal of making the country a global mobile production hub for manufacturers.
Source: Press Information Bureau

21
Recent investment by key players
TCL Group Godrej Appliances announced an investment of Rs. 100
At CES 2024, TCL Electronics crore (US$ 13.6 million) across two of its manufacturing facilities—
showcased its innovative technologies. Shirwal in Maharashtra and Mohali in Punjab—to expand its
Group announced in June 2021 that it production capacity for air-conditioners to 800,000 units by 2025.
would start manufacturing handsets and
TV display panels (from the fourth
quarter) in Andhra Pradesh. This Vivo will invest US$ 1.07 billion to
development was in line with the expand its production capacity in India.
company’s plan to invest US$ 219 Vivo India already invested Rs. 2,400
million to manufacture display modules crore (US$ 291.09 million), and a further
in the country. In March 2023, Tirupati Rs. 1,100 crore (US$ 133.41 million) is
bags huge investments from TCL Group expected to be invested by the end of
of Rs. 5,000 crore (US$ 606.44 million) 2023 to increase its manufacturing
for panel manufacturing. Telangana’s capacity and support the government's
homegrown company Resojet has Investment vision of making India a global export
entered into a memorandum of hub.
understanding with TCL for forging a in
joint venture and includes an investment
Foxconn announced in
of Rs. 225 crore (US$ 27.1 million).
India February 2024 to invest up to
Rs. 1200 crore (US$ 144
Dyson, will invest around US$ million) to expand a factory and
200 million in the Indian consumer scale up the operations in India
also come up on a company-
durables sector by 2023. owned land.
G.O.A.T Brand Labs raised funds worth
US$ 36 million from Flipkart Ventures and Tiger
Global in August 2021. The company aims to
collaborate and invest in digital brands and offer
Blue Star Climatech, the wholly
owned subsidiary of Blue Star, plans to invest
plug-and-play platform to accelerate growth. In line
Rs. 550 crore (US$ 73.45 million) over the
with this, the company is focusing on brands
next few years to set up a new manufacturing
across areas such as home & kitchen, beauty and
facility at Sri City in Andhra Pradesh’s
personal care. In June 2023, Goat Brand Labs
Chittoor district.
acquired 80% in Chumbak at a deal value of Rs.
100-120 crore (US$ 12.12- 14.55 million).
Notes: R&D - Research and Development, MSIPS - Modified Special Incentive Package Scheme, Ministry of External Affairs
Source: Company Websites, News Sources

22
 Opportunities

OPPORTUNITIES

23
Growing television market

▪ According to a report by International Data Corporation (IDC), 4.5 Visakhapatnam port traffic (million tonnes)
million televisions were shipped to India in the first half of 2023. India Smart TV Shipments market share (2021-22)
During the same time, Xiaomi continues to lead the TV market with a
14% share focusing more on its TV lineup, mainly the 5A and Redmi 100%
series. 90%
80% 10.50% 10.20% 8.50%
57.40%
▪ The total number of active DTH subscribers rose from 65.25 million in 70% 8.20%
60%
the March 2023 quarter to 65.50 million in the June 2023 quarter. 50%
40%
▪ According to a report by Counterpoint Research, India’s smart TV 30% 17.50% 15.40% 11.70%
market grew by 74 % YoY in the second quarter of 2022. Xiaomi 20% 5.80% 43.20%
stood as the leader with a 13% market share, followed by Samsung 10%
0%
at 12%
Mi Samsung LG One Plus Others
▪ The market also grew 28% in YoY in 2022 and the growth was 2021 2022
primarily driven by strong shipments during the festive season in the
third quarter, multiple new launches, discounts and promotions, and Visakhapatnam port traffic (million tonnes)
the demand for bigger screen-size TVs in the lower price tier. Market share of DTH operators (as of May 2023)

▪ In FY22, TV penetration in India stood at 70%, driven by the DTH

market. Tata Play Ltd.,
32.70%
▪ DTH players are expected to get the largest share in phase IV of the Sun Direct TV,
18.59%
digitisation market.

▪ Digitisation may lead to a complete switchover from analogue cable

to Digital Addressable Systems in a phased manner.

Dish TV India, Bharti Telemedia

22.36% Ltd., 26.35%

Source: TRAI, *BARC India Universe Update July 2018, News Article, IDC

24
Appendix: benefits to consumer durables and wider retail
sector from FDI policy

Benefits of FDI in Indian Retail

Increase in Infrastructure Removing Benefiting Indian

employment investment middlemen manufacturers

Sector Entry route FDI limit

Wholesale cash
Automatic 100%
and carry trading

Single brand
DPIIT 100%
product retailing

Multi brand, front

DPIIT 51%
end retail

Source: DPIIT

25
Key retail related FDI policies that will impact consumer
durables

1
51% FDI in multi brand retail status: Approved
▪ Minimum investment cap is US$ 100 million.
▪ 30% procurement of manufactured or processed products must be from SMEs.
▪ Minimum 50% of the first minimum tranche of US$ 100 million must be invested in back-end infrastructure (logistics, cold storage,
soil testing labs, seed farming and agro-processing units).
▪ Removes the middlemen and provides a better price to farmers.
▪ 50% of the jobs in the retail outlet could be reserved for rural youth and a certain amount of farm produce could be required to be
procured from poor farmers.
▪ To ensure the Public Distribution System (PDS) and Food Security System (FSS), Government reserves the right to procure a
certain amount of food grains.
▪ Consumers will receive higher quality products at lower prices and better service.

2
100% FDI in single brand retail status: Policy passed
▪ Products to be sold under the same brand internationally.
▪ In 2015, according to revised FDI regulations single brand retail companies if desire to sell on ecommerce platform would be
allowed only if they have licence for setting up physical outlets.
▪ Sale of multi brand goods is not allowed, even if produced by the same manufacturer.
▪ For FDI above 51%, 30% sourcing must be from SMEs.
▪ Any additional product categories to be sold under single brand retail must first receive additional Government approval.
▪ “Make in India” initiative to further strengthen the investments coming to India.

Source: DPIIT

26
Key Industry Contacts

27
Key Industry Contacts

Agency Contact Information

Block 'J' Mahapalika Marg, Mumbai-400 001

Tele fax: 91-22 22621612/2265 9715
Consumer Guidance Society of India
E-mail: [email protected]
Website: www.cgsiindia.org

111/112, Ascot Centre, Next to Hotel Le Royal Meridien,

Sahar Road, Sahar, Andheri (E), Mumbai-400099.
Retailers Association of India Tel: 91-22-28269527—28
Fax: 91-22-28269536
E-mail: [email protected]
Website: www.rai.net.in
3/242, Rajendra Gardens, Vettuvankeni, Chennai,
Tamil Nadu-600 041
Consumers Association of India Tel: 91-44-2449 4576/4578
Fax: 91-44-2449 4577
E-mail: [email protected]
Website: http://caiindia.org/
5th Floor, PHD House, 4/2, Siri Institutional Area, August Kranti
Marg
Consumer Electronics and Appliances
New Delhi-10 016
Manufacturers Association
Telefax: 91- 120 4265697
E-mail: [email protected]
Website: https://ceama.in/index.html
ELCINA House, 422 Okhla Industrial Estate, Phase III, New
Delhi -110020
Electronic Industries Association of India Tel: 91- 11- 26924597, 26928053
(ELCINA ) Fax: 91- 11- 26923440
E-mail: [email protected]
Website: www.elcina.com

28
Key Industry Contacts

Agency Contact Information

7th Floor, Le-Meridian Commercial Tower, Windsor Place, New

Delhi-110001
India Cellular and Electronics Association Tel: 91-11-49349900/11-66303663
(ICEA) Fax: 91-11-66303664
E-mail: [email protected]
Website: https://icea.org.in/

Directorate General of Foreign Trade (DGFT) Udyog Bhawan,

The Directorate General of Foreign Trade H-wing, Gate No-02, Maulana Azad Road, New Delhi -110011
(DGFT) Tel: 1800-572-1550
Website: https://www.dgft.gov.in/CP/

29
Appendix

30
Glossary

▪ CAGR: Compound Annual Growth Rate

▪ Capex: Capital Expenditure

▪ CENVAT: Central Value Added Tax

▪ EHTP: Electronic Hardware Technology Park

▪ EPCG: Export Promotion Capital Goods Scheme

▪ FDI: Foreign Direct Investment

▪ FY: Indian Financial Year (April to March); So, FY10 implies April 2009 to March 2010

▪ LCD: Liquid Crystal Display

▪ R&D: Research and Development

▪ US$ : US Dollar

▪ Wherever applicable, numbers have been rounded off to the nearest whole number

31
Exchange rates

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year Rs. Equivalent of one US$ Year Rs. Equivalent of one US$

2004-05 44.95 2005 44.11

2005-06 44.28 2006 45.33
2006-07 45.29 2007 41.29
2007-08 40.24 2008 43.42
2008-09 45.91 2009 48.35
2009-10 47.42 2010 45.74
2010-11 45.58 2011 46.67
2011-12 47.95
2012 53.49
2012-13 54.45
2013 58.63
2013-14 60.50
2014 61.03
2014-15 61.15
2015 64.15
2015-16 65.46
2016 67.21
2016-17 67.09
2017 65.12
2017-18 64.45
2018 68.36
2018-19 69.89
2019 69.89
2019-20 70.49
2020 74.18
2020-21 73.20
2021 73.93
2021-22 74.42 2022 79.82
2022-23 78.60 2023 82.61
2023-24 82.80 2024* 83.21

Note: *- Until April 2024

Source: Foreign Exchange Dealers’ Association of India

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