Owing to prolonged heat waves across the country, air-conditioner (AC) and refrigerator makers recorded 60 per cent growth in sales compared with last summer. Most consumer durable players reported that the prolonged summer this year has helped them get 70 per cent of the overall AC sales recorded in the whole of last year.

“Overall cooling categories this summer for Godrej Appliances witnessed over 60 per cent growth versus last summer. AC sales this summer grew more than 2x over last year and refrigerators grew more than 25 per cent,” said Kamal Nandi, business head and EVP of Godrej Appliances.

According to industry experts, ACs are being seen as a life saving equipment than a luxury. In Delhi, for instance, the death toll due to heatwave this summer rose to at least 58.

“The estimated sales in January to May 2024 is around 7.5 million ACs. June sales will see another 1.5 million units. Last calendar year viz January to December 2023 for the Industry was 10 million ACs. Typically, January to June is 70 per cent of the overall sales for ACs in the entire calendar year,” said Girish Hingorani, Vice President of marketing (Cooling & Purification Appliances) and Corporate Communications - at Blue Star Ltd.

Innovation

With the uptick in demand, AC makers introduced tech-oriented products for the Indian market.

“In FY 23, our revenue reached ₹7,000 crore, with cooling products contributing approximately 40 per cent. This season, we have observed a 35 per cent-40 per cent growth in ACs and 30 per cent in refrigerators. We anticipate double-digit growth in the cooling appliances category this year. We have introduced a wide range of India-first technologies, such as the supersonic cooling technology, which delivers a 20x faster cooling experience than conventional air conditioners. Focusing on making everyday life smart, convenient, and comfortable, we also introduced the industry’s first 2-door and 3-door side-by-side smart convertible refrigerators.,” said NS Satish, President, of Haier Appliances India.

Production shortages 

Makers faced shortages in stock units and non-availability of raw materials in certain locations across the country that faced severe heatwaves this year.

“Most brands faced stock shortages in certain markets and certain models including Blue Star. The extent of the shortages varied from market to market for each brand. The overall market has grown over 50 per cent over last year. Most brands did not anticipate this kind of growth. There were also shortages on account of raw materials for components such as compressors and electronic drives which are imported. There are also disruptions in supply chain logistics and the availability of containers,” added Girish Hingorani.

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