The last time the country experienced a poor monsoon year in 2009, sales of consumer good companies didn’t wane. In 2009-10, consumer durable players in the listed space recorded close to 20 per cent jump in revenues.

The stimulus offered by the Government in the form of an excise duty cut, increase in disposable income after the sixth pay commission arrear payments and easier financing options (the popular ‘zero’ interest loans from consumer finance companies), kept consumer sentiment upbeat.

Rural demand also stayed robust. Demand for refrigerators, washing machines and kitchen appliances was quite strong in the tier-II and tier-III regions. A shift from unbranded to branded goods and higher replacement buys from consumers in these pockets, kept the demand elevated.

In the September 2009 quarter, Whirlpool India, Hitachi Home and Life Solutions, Bajaj Electricals and Khaitan Electricals delivered over 30 per cent growth in sales. In the following December 2009 quarter too, riding on a healthy festival season demand, revenue growth of these companies were robust.

Passing on increases in input costs wasn’t a problem either. Players were hence able to deliver strong earnings growth during the September and December quarter in 2009. Many players, including Whirlpool, TTK Prestige and Bajaj Electricals, in fact, doubled their profits during these quarters.

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